Company Registration No. 03805606 (England and Wales)
STERLING CREDIT GUARANTEE COMPANY LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
LB GROUP
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
STERLING CREDIT GUARANTEE COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr C Emson
Mr J Farrell
Mr N D Pilbrow
Company number
03805606
Registered office
Number One
Vicarage Lane
Stratford
London
E15 4HF
Accountants
LB Group (Stratford)
Number One
Vicarage Lane
Stratford
London
E15 4HF
STERLING CREDIT GUARANTEE COMPANY LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
STERLING CREDIT GUARANTEE COMPANY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Investments
3
11
11
Current assets
Debtors
4
7,222,861
7,222,861
Creditors: amounts falling due within one year
5
(7,311,000)
(7,311,000)
Net current liabilities
(88,139)
(88,139)
Total assets less current liabilities
(88,128)
(88,128)
Capital and reserves
Called up share capital
6
50,000
50,000
Profit and loss reserves
(138,128)
(138,128)
Total equity
(88,128)
(88,128)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their 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.
The financial statements were approved by the board of directors and authorised for issue on 13 October 2021 and are signed on its behalf by:
Mr C Emson
Director
Company Registration No. 03805606
STERLING CREDIT GUARANTEE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
1
Accounting policies
Company information
Sterling Credit Guarantee Company Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Number One, Vicarage Lane, Stratford, London, England, E15 4HF.
1.1
Accounting convention
The financial statements are prepared under the historical cost convention.
As at 31 December 2020, the company's liabilities exceeded its assets by £88,128 (2019: £88,128). The company is, therefore, dependent on the continued financial support of the holding company.
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. The validity of this assumption depends upon the continued financial support, to which the holding company is not legally committed but which the directors believe will be provided by the holding company.
On this basis, the directors believe it is appropriate for the financial statements to be prepared on a going concern basis.
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 financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
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.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.3
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.
STERLING CREDIT GUARANTEE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 3 -
1.4
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.
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.
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
paymen
ts 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. A
m
ounts 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.
1.5
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.
1.6
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
STERLING CREDIT GUARANTEE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 4 -
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
3
3
3
Fixed asset investments
2020
2019
£
£
Shares in group undertakings and participating interests
11
11
As at 31 December 2020, the company held 375 Ordinary Shares of £0.01 each in the following companies, all registered in England and Wales. This represents 3.75% of the issued share capital of each company.
Enigma II Marine Limited
Enigma Recoveries Limited
Shantaram Consolidation Limited
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2020 & 31 December 2020
11
Carrying amount
At 31 December 2020
11
At 31 December 2019
11
STERLING CREDIT GUARANTEE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 5 -
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Other debtors
7,222,861
7,222,861
5
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
7,080,875
7,080,875
Trade creditors
200,125
200,125
Other creditors
30,000
30,000
7,311,000
7,311,000
6
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 1p each
5,000,000
5,000,000
50,000
50,000
7
Related party transactions
C J Emson is a director or member of the following companies and partnerships:
Sterling Corporate Services Limited
The Sterling Credit Group Limited
Sterling Industrial Finance Limited
R F & P Limited
Robert Fraser & Partners LLP
As at 31 December 2020, the company owed Sterling Corporate Services Limited the sum of £200,125 (2019: £200,125) and this is included in trade creditors.
Other debtors include amounts owed to the following related parties:
The Sterling Credit Group Limited - £4,980 (2019: £4,980)
Sterling Industrial Finance Limited - £20,371 (2019: £20,371)
Robert Fraser & Partners LLP - £41,000 (2019: £41,000)
R F & P Limited - £4,000 (2019: £4,000)
8
Parent company
The immediate parent undertaking is Robert Fraser Asset Management Limited and its ultimate parent undertaking is Emson and Dudley Limited. Both companies are registered in England and Wales.
The accounts for the immediate and ultimate holding companies are available from 1 Vicarage Lane, Stratford, London E15 4HF and Companies House.