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Audited Financial Statements |
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for the Year Ended 31 March 2022 |
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for |
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Coventry and Warwickshire Reinvestment |
Trust Ltd |
REGISTERED NUMBER:
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Audited Financial Statements |
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for the Year Ended 31 March 2022 |
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for |
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Coventry and Warwickshire Reinvestment |
Trust Ltd |
Coventry and Warwickshire Reinvestment |
Trust Ltd (Registered number: 05188971) |
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Contents of the Financial Statements |
for the Year Ended 31 March 2022 |
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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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Coventry and Warwickshire Reinvestment |
Trust Ltd |
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Company Information |
for the Year Ended 31 March 2022 |
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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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SENIOR STATUTORY AUDITOR: |
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INDEPENDENT AUDITORS : |
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Chartered Certified Accountants and |
Statutory Auditor |
Leofric House |
Binley Road |
Coventry |
CV3 1JN |
Coventry and Warwickshire Reinvestment |
Trust Ltd (Registered number: 05188971) |
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Balance Sheet |
31 March 2022 |
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31.3.22 | 31.3.21 |
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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NET ASSETS |
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RESERVES |
Other reserves | 11 |
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Income and expenditure account | 11 |
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In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings 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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Coventry and Warwickshire Reinvestment |
Trust Ltd (Registered number: 05188971) |
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Notes to the Financial Statements |
for the Year Ended 31 March 2022 |
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1. | STATUTORY INFORMATION |
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Coventry and Warwickshire Reinvestment Trust Ltd is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
Despite the deficit for the year, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis. In making this assessment, the Directors have considered a wide range of information relating to present and future conditions, including the current state of the balance sheet, future projections of profitability, cash flows and capital resources and the longer-term strategy of the business. |
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After making enquiries, the Directors believe the company has sufficient resources to continue its activities for the 12 months from the reporting date. |
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Significant judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
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Key sources of estimation uncertainty |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material misstatement to the carrying amounts of assets and liabilities within the next financial year are as follows: |
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Loan bad and doubtful debt provision. |
The calculation and measurement of expected credit losses requires significant judgement and represents a key source of estimation uncertainty. Details of the critical judgements and accounting estimates are set out below. |
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Deferred income. |
Loan arrangement fees are recognised on an accrual basis over the term of the loan. Deferred income reflects management expectation of interest over the remaining term of outstanding loans, where material. |
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Turnover |
Turnover represents loan interest receivable and loan arrangement fees derived from capital advanced to new and existing business and social enterprises and individuals. Loan interest and arrangement fees are recognised on an accruals basis over the term of the loan. |
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Tangible fixed assets |
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Computer equipment | - |
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Coventry and Warwickshire Reinvestment |
Trust Ltd (Registered number: 05188971) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 taxation |
Deferred tax is recognised in respect of all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. |
Deferred tax assets and liabilities are measured at the rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to surplus or deficit on a straight line basis over the period of the lease. |
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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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Grants received |
Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. |
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Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred. |
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Capital loan funding grants |
Capital grants received for onward lending are credited to the commercial funding reserve account or personal funding reserve account, where the value is maintained according to the specific rules of each grant scheme. |
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Personal loans funded by the Department of Work and Pensions (DWP), require capital to be continually held and used for new lending. Therefore, these are held as personal funding reserve. Any bad debt provision and write-off is offset against the funding reserves. |
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Similarly, bad debt provision and write-off is offset against commercial funding reserves. When the age or the rules of the fund permit, a transfer to the income and expenditure account reserve is made to reflect any changes in what remains restricted. |
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In broad terms, the amount remaining in the funding reserves accounts are equal to the grant funded element of the performing loan book, net of specific bad debt provisions, write offs and released reserves. |
Coventry and Warwickshire Reinvestment |
Trust Ltd (Registered number: 05188971) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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2. | ACCOUNTING POLICIES - continued |
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Loan bad and doubtful debt provision |
Understanding the appetite for risk inherent in the market sector in which the Company operates, the directors have made a provision for bad and doubtful loan debts on the following basis: |
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Commercial | Personal |
Number of days value of loans in arrears | loans % | loans % |
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1 - 10 days in arrears | 0 | 20 |
11 - 30 days in arrears | 10 | 20 |
31 - 60 days in arrears | 25 | 40 |
61 - 90 days in arrears | 50 | 60 |
91 - 120 days in arrears | 75 | 80 |
121 plus days in arrears | 100 | 100 |
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The bad debt calculation is initially on a strict day basis. Management then review the level of bad and doubtful debt provision, updating the above basis to reflect other relevant factors such as communication with the customer, and any guarantees or security in place that would mitigate the expected credit losses. |
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Loan debts deemed irrecoverable are written off in full as soon as it becomes clear that repayment will not be received. |
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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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4. | TANGIBLE FIXED ASSETS |
Computer |
equipment |
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COST |
At 1 April 2021 |
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Additions |
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Disposals | ( |
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At 31 March 2022 |
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DEPRECIATION |
At 1 April 2021 |
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Charge for year |
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Eliminated on disposal | ( |
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At 31 March 2022 |
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NET BOOK VALUE |
At 31 March 2022 |
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At 31 March 2021 |
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Coventry and Warwickshire Reinvestment |
Trust Ltd (Registered number: 05188971) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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5. | DEBTORS |
31.3.22 | 31.3.21 |
£ | £ |
Amounts falling due within one year: |
Loans outstanding |
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Other debtors |
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Directors' current accounts | 23,115 | 30,188 |
Prepayments |
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Amounts falling due after more than one year: |
Loans outstanding |
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Aggregate amounts |
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Loans outstanding represent capital advanced to new and existing businesses, social enterprises and to individuals in order to fulfil the aims of the company. Loans are made within an agreed repayment schedule; they are however repayable on demand in certain circumstances. Accordingly, these have been disclosed within current debtors but if settled to terms, the repayment would be split as shown above. |
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These loans represent a mix of secured and unsecured lending at varying rates above the bank base rates fixed at the time the loans are advanced and are repayable in accordance with a payment schedule agreed at the commencement of the term. Generally, the loans are made over a 12 month to 60 month period. |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.22 | 31.3.21 |
£ | £ |
Other loans (see note 8) |
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Trade creditors |
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Other creditors |
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Accrued expenses |
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7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.22 | 31.3.21 |
£ | £ |
Other loans (see note 8) |
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Amounts falling due in more than five years: |
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Repayable otherwise than by instalments |
Other loans more 5yrs non-inst |
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Coventry and Warwickshire Reinvestment |
Trust Ltd (Registered number: 05188971) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued |
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Included within other creditors as detailed at note 8 and 9, is a loan of £64,000 (2021 - £266,836) from Warwickshire County Council which is to support the work of the company's small business lending scheme. The repayment of this loan is made in bi-annual instalments to the Council based upon the amount repaid by the relevant businesses to the CWRT. |
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Included within other creditors as detailed at note 8 and 9, are loans of £610,000 (2021 - £410,000) from Coventry City Council, and £1,400,000 (2021 - £900,000) from Warwickshire County Council which are to support the work of the company's Duplex lending scheme to businesses in the Coventry and Warwickshire area. Interest is payable quarterly in arrears, with capital repayments commencing June 2029. |
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Included within other creditors as detailed at note 8 and 9 are loans from local Councils, for the purposes of CWRT providing loans under the Coronavirus Business Interruption Loan Scheme (CBILS), and the follow up Recovery Loan Scheme (RLS). Interest is payable quarterly in arrears, with capital repayments made in bi-annual instalments following an agreed repayment schedule. |
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2022 | 2021 |
CBILS/RLS Lender | £ | £ |
Coventry City Council | 3,104,071 | 3,463,333 |
Warwickshire County Council | 2,376,390 | 2,486,111 |
Nuneaton & Bedworth Borough Council | 223,210 | 247,833 |
Rugby District Council | - | 247,833 |
Warwick District Council | 223,210 | 247,833 |
5,926,881 | 6,692,943 |
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8. | LOANS |
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An analysis of the maturity of loans is given below: |
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31.3.22 | 31.3.21 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
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Amounts falling due between one and two years: |
Other loans - 1-2 years | 1,607,502 |
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Amounts falling due between two and five years: |
Other loans - 2-5 years |
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Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Other loans more 5yrs non-inst | 2,010,000 | 1,376,238 |
Coventry and Warwickshire Reinvestment |
Trust Ltd (Registered number: 05188971) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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9. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.3.22 | 31.3.21 |
£ | £ |
Within one year |
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10. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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31.3.22 | 31.3.21 |
£ | £ |
Other loans, within one year | 1,445,596 | 988,015 |
Other loans, over one year | 6,555,285 | 6,767,095 |
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Duplex loans: |
Funds have been provided by Warwickshire County Council, and Coventry City Council. |
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These loans are secured by debentures dated 30 September 2019. |
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CBILS loans: |
Funds have been provided by Warwickshire County Council, Coventry City Council, Nuneaton & Bedworth Borough Council, and Warwick District Council. |
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These loans are secured by debentures dated between 24 August 2020 and 25 February 2021. |
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Recovery Loan Scheme (RLS) loans: |
Funds have been provided by Coventry City Council and Unity Trust Bank Plc. |
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The Coventry City Council loan is secured by debentures listed above (CBILS). The Unity Trust Bank Plc loan is secured by a debenture dated 31 December 2021. |
Coventry and Warwickshire Reinvestment |
Trust Ltd (Registered number: 05188971) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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11. | RESERVES |
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Reserves consist of the following: |
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Income and | Commercial | Duplex |
Expenditure | Funding | Grant |
Account | Reserve | Reserve | Total |
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At 1 April 2021 | 269,168 | 973,885 | 1,103,901 | 2,346,954 |
Grant funds paid out | (197,697 | ) | (197,697 | ) |
Grant of restricted funds to CWRT | 1,977 | 1,977 |
Surplus/deficit for year | (102,996 | ) | (102,996 | ) |
Movement in provisions | 153,100 | 153,100 |
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166,172 | 1,128,962 | 906,204 | 2,201,338 |
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Commercial Funding Reserve and Duplex Grant Reserve relate to Restricted Funds. These funds relate to grant funding received, to be utilised in line with the funding restrictions in place. |
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Duplex Grant Reserve relates to grant funds held in partnership with Coventry City Council, Warwickshire County Council, and Coventry and Warwickshire Local Enterprise Partnership. |
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Reserve transfer relates to WCC SBL 2015 partial transfer. Funds have been released to unrestricted funds, taken through the income statement. |
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12. | 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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for and on behalf of
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13. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
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The following advances and credits to a director subsisted during the years ended 31 March 2022 and 31 March 2021: |
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31.3.22 | 31.3.21 |
£ | £ |
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Balance outstanding at start of year |
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Amounts advanced |
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Amounts repaid | ( |
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Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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Interest is charged at an agreed rate over the 48 month duration of the agreement. The loan is repayable in full on the director ceasing to be employed by the company. |
Coventry and Warwickshire Reinvestment |
Trust Ltd (Registered number: 05188971) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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14. | RELATED PARTY DISCLOSURES |
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ADECS Limited |
Common directorship |
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The company received goods and services from ADECS Limited, a company in which Mr A Bhabra is a director. The total value of goods and services provided during the year amounted to £17,534 (2021 - £2,414). At the balance sheet date £580 (2021: £0) was owed to ADECS Limited. |
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Coventry & Warwickshire Chamber of Commerce |
Common directorship |
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The company received goods and services from Coventry & Warwickshire Chamber of Commerce, a company in which Mr A Bhabra is a director. The total value of goods and services provided during the year amounted to £3,352 (2021 - £1,564). At the balance sheet date £0 (2021: £0) was owed to Coventry & Warwickshire Chamber of Commerce. |
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Coventry and Warwickshire Growth Hub Limited |
Common directorship |
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The company received goods and services from Coventry and Warwickshire Growth Hub Limited, that has a subsidiary company Growth Hub Business Solutions Ltd, a company in which Mr C Humphrey and Mr J S W Farnell are directors. The total value of goods and services provided during the year amounted to £21,571 (2021 - £19,452). At the balance sheet date £3,246 (2021: £1,584) was owed to Coventry and Warwickshire Growth Hub Limited. |
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Burgis & Bullock |
Common directorship |
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The company received goods and services from Burgis & Bullock, a firm is which Mr J S W Farnell is a partner. The total value of goods and services provided during the year amounted to £1,680 (2021 - £0). At the balance sheet date £0 (2021 - £0) was owed to Burgis & Bullock. |
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15. | ULTIMATE CONTROLLING PARTY |
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Throughout the current and previous period the company was controlled by the directors. |
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16. | SHARE CAPITAL |
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The company is limited by guarantee and has no share capital. |