Registration number:
The Business Lending Exchange Limited
for the Year Ended 31 May 2021
The Business Lending Exchange Limited
Contents
Company Information |
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Chairman's Report |
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Balance Sheet |
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Notes to the Financial Statements |
The Business Lending Exchange Limited
Company Information
Directors |
CD Allan D H Grant H A Mclean |
Company secretary |
CD Allan |
Registered office |
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Auditors |
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The Business Lending Exchange Limited
Chairman's Report for the Year Ended 31 May 2021
The year was obviously overshadowed by the Covid-19 pandemic and its effect on small businesses sector, along with the wider community. Accordingly, the company adopted a prudent approach to lending and included an additional Covid bad debt provision for the second year running. BLX took the early decision to continue lending throughout the year in order to maintain continuity and also to help support the small business sector as much as possible.
The company put in place government recommended Covid protocols including instructing the majority of staff to work from home for a sustained period. BLX continued to provide a high level of essential flexibility toward customers’ payment frequencies and amounts to help them work through the unprecedented effects of the pandemic.
Despite national restrictions and adverse effects on the Micro Business and SME market sectors, lending activity was sustained through the worst of the pandemic and the company managed an increase in turnover of over 32% from the last year, producing an increased pre-tax profit of over £120,000. Once again, it is due to the dedicated BLX team’s hard work that has allowed such an impressive performance to be achieved under these circumstances.
BLX has enjoyed a long term relationship with Mansell & Co, its firm of accountants who also conducted annual audits. During the year, the decision was taken in conjunction with Mansell & Co to cease their auditing function and pass this instead to a new firm. Accordingly, PEM of Cambridge was appointed in March 2021. The combination of a long-term relationship with BLX accountants coupled with the increased discipline of 3rd party auditors can only enhance the level reporting and transparency for BLX shareholders.
In line with my previously stated ambitions, the decision was made to prepare the business for a sale and, accordingly, I and my co-founder Marion started the process of handing over more functions to the BLX management team to ensure a seamless takeover whenever a sale happened. I am satisfied that we leave a robust lending model and increasingly profitable business for future new owners.
JDG Stickley
Chairman
The Business Lending Exchange Limited
(Registration number: 06011377)
Balance Sheet as at 31 May 2021
Note |
2021 |
2020 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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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 |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
39,000 |
39,000 |
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Profit and loss account |
314,441 |
208,437 |
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Shareholders' funds |
353,441 |
247,437 |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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The Business Lending Exchange Limited
Notes to the Financial Statements for the Year Ended 31 May 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are presented in pound sterling because that is the currency of the primary economic environment in which the company operates.
Going concern
The financial statements have been prepared on a going concern basis. The directors have prepared monthly forecasts which demonstrate that, taking account of potential and realistic changes in trading performance, the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements.
In making their assessment the directors have considered the extent to which the business has been affected by the pandemic and the ongoing potential for the pandemic, or its aftereffects, to impact financial performance. The rapid outbreak of COVID-19 in 2020, and ensuing measures taken by both the UK and foreign governments to contain the spread of the virus had a major impact on the world economy.
Having considered the working capital of the business, the directors are satisfied that it is sufficient for its needs and therefore continue to adopt the going concern basis in their preparation of the financial statements.
Audit report
The Business Lending Exchange Limited
Notes to the Financial Statements for the Year Ended 31 May 2021
Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. Turnover includes interest charged to customers on loans and is calculated as a constant rate on the carrying amount over the term of the loan. Turnover also includes commission added to the principal of a loan and is recognised in the year the loan is made.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Government grants
Grants are accounted under the accruals model as permitted by FRS102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Profit and Loss account in the same period as the related expenditure.
Finance income and costs policy
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Office equipment |
25% straight line basis |
Computer equipment |
20% straight line basis |
The Business Lending Exchange Limited
Notes to the Financial Statements for the Year Ended 31 May 2021
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
The Business Lending Exchange Limited
Notes to the Financial Statements for the Year Ended 31 May 2021
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Tangible assets |
Computer equipment |
Office equipment |
Total |
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Cost or valuation |
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At 1 June 2020 |
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At 31 May 2021 |
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Depreciation |
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At 1 June 2020 |
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Charge for the year |
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At 31 May 2021 |
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Carrying amount |
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At 31 May 2021 |
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- |
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At 31 May 2020 |
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Debtors |
2021 |
As restated |
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Trade debtors |
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Other debtors |
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Less non-current portion |
( |
( |
Total current trade and other debtors |
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The comparatives for Trade debtors falling due after more than one year and Trade debtors falling due within one year have been restated by £2,508,360 to correctly reflect the ageing profile of amounts due. This has no impact on reserves.
The Business Lending Exchange Limited
Notes to the Financial Statements for the Year Ended 31 May 2021
Creditors |
Creditors: amounts falling due within one year
2021 |
2020 |
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Due within one year |
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Loans and borrowings |
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- |
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Other loans |
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Taxation and social security |
- |
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Other creditors and deferred income |
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Corporation tax |
24,414 |
16,048 |
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Other creditors include contributions of £128 (2020 - £214) payable to the Company’s defined contribution pension scheme at the balance sheet date.
Creditors: amounts falling due after more than one year
Note |
2021 |
2020 |
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Due after one year |
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Loans and borrowings |
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Deferred income |
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Other loans |
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6,189,211 |
4,824,067 |
The Business Lending Exchange Limited
Notes to the Financial Statements for the Year Ended 31 May 2021
Loans and borrowings |
2021 |
2020 |
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Non-current loans and borrowings |
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Bank borrowings |
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2021 |
2020 |
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Current loans and borrowings |
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Bank borrowings |
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- |
Bank borrowings
Conister Bank Limited hold a fixed and floating charge over the assets of the Company. |
The CBILS loan is 100% guaranteed by the Government and there are no fees or interest payable in the first 12 months. |
Other borrowings
Private investor loan is denominated in sterling with a nominal interest rate of 10%. The carrying amount at year end is £76,506 (2020 - £148,829). The private investor loans are unsecured. |
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
The Business Lending Exchange Limited
Notes to the Financial Statements for the Year Ended 31 May 2021
Related party transactions |
Summary of transactions with entities with joint control or significant interest
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
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No. |
£ |
No. |
£ |
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39,000.00 |
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39,000.00 |
Post Balance Sheet Events |
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Auditors' Information |
The auditors’ report on the financial statements for the year ended 31 May 2021 was unqualified.
The audit report was signed on 08 December 2021 by Sean McCann (Senior Statutory Auditor) on behalf of Peters Elworthy & Moore.