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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 December 2020 |
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for |
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Aurelius Finance Company Limited |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 December 2020 |
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for |
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Aurelius Finance Company Limited |
Aurelius Finance Company Limited (Registered number: 10773394) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2020 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 5 |
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Income Statement | 9 |
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Other Comprehensive Income | 10 |
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Statement of Financial Position | 11 |
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Statement of Changes in Equity | 12 |
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Notes to the Financial Statements | 13 |
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Aurelius Finance Company Limited |
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Company Information |
for the Year Ended 31 December 2020 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants and |
Statutory Auditors |
Venture House |
Calne Road |
Lyneham |
Chippenham |
SN15 4PP |
Aurelius Finance Company Limited (Registered number: 10773394) |
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Strategic Report |
for the Year Ended 31 December 2020 |
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The directors present their strategic report for the year ended 31 December 2020. |
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REVIEW OF BUSINESS |
The Company's primary business is direct lending to incorporated bodies. During the year the Company has grown its turnover from £6.0m to £7.1m |
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The loan book has reduced during the year from £42.1m to £31.1m, despite loan issuances to new borrowers. The overall loan balance has decreased even though the number of loans of have increased due to fluctuations in loan values. |
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All loans are appraised, and continually assessed using key performance indicators including: financing performance, liquidity, asset recovery values and loan to value ratios. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The risks and uncertainties of direct lending and the provision of loans of this nature are complex and varied. Risks include credit risks, default risks liquidity risks and market risks. The principal risk is the ability of the borrower to service their obligations, and the ultimate recoverability of the loan - which can include factors external to the Company. |
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The Company relies on the continued support of its parent Aurelius Equity Opportunities SE & Co KGaA. In reaching the conclusion as to the going concern the director sought and obtained an indication of the support. |
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The Company is exposed to interest rate risks and currency exchange rate risks. Material movements could have a negative effect on holding value of its investments and/ or the Company's financial performance |
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In common with all businesses in the sector, uncertainty regarding the impact of the UK leaving the EU could have an impact on the Company. The directors believe the Company will be able to manage this risk |
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The coronavirus pandemic plunged the world economy into a deep recession in 2020 and will continue to impact the global economy in 2021. However, leading institutions and organizations are more optimistic about the development of the global economy now than at any time in 2020. Other primary risks for the future development of the economy besides the coronavirus pandemic include possible geopolitical shocks and the uncertainty emanating from international trade conflicts. |
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The Aurelius management promptly analyses the situation of its portfolio companies in close consultation with the operating management teams of the group companies. The closeness to the group companies made it possible to devise and implement comprehensive action plans to protect the health of employees, minimise the risks to our business processes and soften the blow of the challenging external conditions at the different levels of holding companies and group companies. |
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ENGAGEMENT WITH EMPLOYEES |
People create success. Our success is the result of the individual performance of every employee. |
Respectful treatment of all employees. |
Unconditional respect of human rights. |
Conscious diversity and internationality of our workforce. |
More jobs thanks to successful growth strategies. |
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ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
Corporate codex |
Principles such as responsible, sustainable management are firmly embedded in the Aurelius ESG (Environmental Social Governance) policy, including: |
No investment in the arms industry. |
No investment in emissions-intensive companies. |
No trading in weapons or armaments, tobacco or tobacco products. |
Code of Conduct for suppliers and service providers. |
Anti-corruption and anti-bribery policy. |
Protection and support for whistleblowers. |
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Aurelius Finance Company Limited (Registered number: 10773394) |
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Strategic Report |
for the Year Ended 31 December 2020 |
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STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS |
Environment: |
Goal for the year 2025: Reduce Group wide CO2 emissions by 30 percent. |
Measures have been introduced to permanently reduced CO2 emissions. |
Reduction of flights through the increased use of video conferences and online meetings and using train travel as an alternative. |
Precautions to prevent environmental damage. |
CO2 offsetting of the flights of all holding company employees since the 2019 financial year. |
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Social commitment: |
Aurelius refugee initiative e.v. Aurelius has been helping refugees since 2015. |
Extensive support of the START Foundation to promote outstanding young people with migration backgrounds since 2018. |
Long established tradition: Christmas-season collection drive for important social projects; AURELIUS matches the donations raised by employees. |
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ON BEHALF OF THE BOARD: |
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Aurelius Finance Company Limited (Registered number: 10773394) |
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Report of the Directors |
for the Year Ended 31 December 2020 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2020. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2020. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report. |
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DISCLOSURE IN THE STRATEGIC REPORT |
The Company has opted to disclose some items in the Strategic Report rather than the Director's Report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable 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. |
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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. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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AUDITORS |
The auditors, Venture House Business Service Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Aurelius Finance Company Limited |
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Opinion |
We have audited the financial statements of Aurelius Finance Company Limited (the 'company') for the year ended 31 December 2020 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its profit 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. |
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Basis for opinion |
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 Auditors' 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. |
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Material uncertainty relating to going concern |
We draw your attention to note 18, as stated, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. 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. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, 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 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Aurelius Finance Company Limited |
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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 Report of the Directors. |
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We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
Report of the Independent Auditors to the Members of |
Aurelius Finance Company Limited |
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Auditors' 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 a Report of the Auditors 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. |
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Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. |
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The laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation, |
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Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud. |
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No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Aurelius Finance Company Limited |
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Use of our 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 a Report of the Auditors 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. |
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for and on behalf of
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Chartered Accountants and |
Statutory Auditors |
Venture House |
Calne Road |
Lyneham |
Chippenham |
SN15 4PP |
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Aurelius Finance Company Limited (Registered number: 10773394) |
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Income Statement |
for the Year Ended 31 December 2020 |
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31.12.20 | 31.12.19 |
Notes | £ | £ |
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REVENUE | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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4,014,028 | 877,871 |
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Interest payable and similar expenses | 6 |
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PROFIT/(LOSS) BEFORE TAXATION |
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Tax on profit/(loss) | 7 | ( |
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PROFIT/(LOSS) FOR THE FINANCIAL
YEAR |
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Aurelius Finance Company Limited (Registered number: 10773394) |
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Other Comprehensive Income |
for the Year Ended 31 December 2020 |
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31.12.20 | 31.12.19 |
Notes | £ | £ |
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PROFIT/(LOSS) FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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Aurelius Finance Company Limited (Registered number: 10773394) |
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Statement of Financial Position |
31 December 2020 |
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31.12.20 | 31.12.19 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 8 |
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Investments | 9 |
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CURRENT ASSETS |
Debtors | 10 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 11 |
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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
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12 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 13 |
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Retained earnings | 14 | ( |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Aurelius Finance Company Limited (Registered number: 10773394) |
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Statement of Changes in Equity |
for the Year Ended 31 December 2020 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2019 |
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Changes in equity |
Issue of share capital |
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Total comprehensive income | - | ( |
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Balance at 31 December 2019 |
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Changes in equity |
Issue of share capital | ( |
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Total comprehensive income | - |
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Balance at 31 December 2020 |
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Aurelius Finance Company Limited (Registered number: 10773394) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2020 |
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1. | STATUTORY INFORMATION |
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Aurelius Finance Company Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows. |
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Preparation of consolidated financial statements |
The financial statements contain information about Aurelius Finance Company Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Aurelius Equity Opportunities SE & Co KGaA, Ludwig-Ganghofer-Straße 6, 82031 Grünwald, Germany. |
Aurelius Finance Company Limited (Registered number: 10773394) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Significant judgements and estimates |
In the application of the company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
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The estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
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It is the nature of a company carrying out the business of the granting of loans that some loans become irrecoverable. When reviewing the recoverability of loans granted, the directors use best judgment to determine the need for any provisions or write offs. |
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The recoverability of one of the loans is uncertain. The directors have therefore written off £1m in these accounts to allocate a portion as bad debt. There remains £0.5m included in debtors at the year end. |
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The director feels that the fees on one of the loans are unlikely to be recovered. There is an impairment of £567,873 included in these accounts at the year end. |
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There are current claims underway with administrators, the timing and extent that these will be successful are unpredictable and therefore no income is recorded in relation to these. At such point the income is received this will be recognised in the profit and loss account. Legal fees associated with administrator claims are provided on a no win no fee basis and as such no provision has been made with regards to these. Should there be any associated expense it will be recognised in the profit and loss account at the point the administrator income is recognised. |
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The Company relies on the continued support of its parent Aurelius Equity Opportunities SE & Co KGaA. In reaching the conclusion as to the going concern the director sought and obtained an indication of the support. |
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Turnover |
Turnover consists of interest receivable, monitoring fees and arrangement fees on loans as well as fees relating to due diligence works carried out. Interest receivable is recognised as it falls due. Arrangement fees are recognised over the life of the loan and monitoring fees are recognised monthly over the course of the year on a straight line basis. Due diligence fees are recognised as due regardless of whether or not the loan agreement is then initiated. |
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Tangible fixed assets |
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Computer equipment | - |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Aurelius Finance Company Limited (Registered number: 10773394) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
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Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
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Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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Financial assets and liabilities are offset and 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. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits of this company. |
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Group policy is to use losses to offset profits made elsewhere, hence no deferred tax assets on losses have been calculated. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are allocated to the appropriate heading within the Income Statement. |
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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. |
Aurelius Finance Company Limited (Registered number: 10773394) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Other provisions |
Provisions are recognised when the Company has a present legal or constructive obligation to a third party, arising from a past event, and when it is more likely than not that the settlement of the obligation will lead to an outflow of economic resources, and when the amount of the provision can be measured reliably. Uncertain obligations are measured at the best possible estimate. |
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Fixed asset investments |
For the purpose of determining whether the contractual cash flows are solely payments of principal and interest, the principal is defined as the fair value of the financial asset upon initial recognition. Interest is defined as the compensation for the time value of money and the default risk associated with an outstanding principal amount over a certain time period, and for other fundamental credit risk, costs, and a profit margin. |
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Classification of long term loans as a fixed asset investment is made to represent the intention of the Company to use these assets on a continuing basis in the company's activities. Those repayable within one year per their repayment terms have been classified as current loan receivables within current debtors. |
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Loan receivables that are contractually repayable on demand are shown as fixed asset investments if the intent of the Company is not to demand repayment in the near future. |
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Interest receivable or payable which is unpaid at the year end will be classified as current debtors or liabilities except where the contract terms allow later repayment. |
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3. | REVENUE |
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The revenue and profit (2019 - loss) before taxation are attributable to the one principal activity of the company. |
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4. | EMPLOYEES AND DIRECTORS |
31.12.20 | 31.12.19 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
31.12.20 | 31.12.19 |
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31.12.20 | 31.12.19 |
£ | £ |
Directors' remuneration |
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Directors' pension contributions to money purchase schemes |
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Information regarding the highest paid director for the year ended 31 December 2020 is as follows: |
31.12.20 |
£ |
Emoluments etc |
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Pension contributions to money purchase schemes |
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Aurelius Finance Company Limited (Registered number: 10773394) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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5. | OPERATING PROFIT |
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The operating profit is stated after charging: |
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31.12.20 | 31.12.19 |
£ | £ |
Other operating leases |
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Depreciation - owned assets |
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Auditors' remuneration |
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Auditors' remuneration for non audit work |
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Foreign exchange differences |
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6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.20 | 31.12.19 |
£ | £ |
Other interest |
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Loan interest payable |
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7. | TAXATION |
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Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
31.12.20 | 31.12.19 |
£ | £ |
Current tax: |
UK corporation tax | ( |
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Tax on profit/(loss) | ( |
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Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
31.12.20 | 31.12.19 |
£ | £ |
Profit/(loss) before tax |
|
( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of |
|
( |
) |
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances |
|
- |
Utilisation of tax losses | ( |
) |
|
Estimated further deferred tax on losses | - | 137,809 |
|
Total tax credit | (9,209 | ) | - |
Aurelius Finance Company Limited (Registered number: 10773394) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
|
8. | PROPERTY, PLANT AND EQUIPMENT |
Computer |
equipment |
£ |
COST |
At 1 January 2020 |
|
Additions |
|
At 31 December 2020 |
|
DEPRECIATION |
At 1 January 2020 |
|
Charge for year |
|
At 31 December 2020 |
|
NET BOOK VALUE |
At 31 December 2020 |
|
At 31 December 2019 |
|
|
9. | FIXED ASSET INVESTMENTS |
|
31.12.20 | 31.12.19 |
£ | £ |
Shares in group undertakings |
|
|
Loans to group undertakings |
|
|
Other loans |
|
|
|
|
|
Additional information is as follows: |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2020 |
|
Additions |
|
Reclassification/transfer | ( |
) |
At 31 December 2020 |
|
NET BOOK VALUE |
At 31 December 2020 |
|
At 31 December 2019 |
|
|
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
|
|
Registered office: 6th Floor 33 Glasshouse Street, London, England, W1B 5DG |
Nature of business:
|
% |
Class of shares: | holding |
|
|
Aurelius Finance Company Limited (Registered number: 10773394) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
|
9. | FIXED ASSET INVESTMENTS - continued |
|
|
Registered office: 6th Floor 33 Glasshouse Street, London, England, W1B 5DG |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
During the year the company acquired the full shareholding of Aurelius Beta Limited. |
|
|
Registered office: 6th Floor 33 Glasshouse Street, London, United Kingdom, W1B 5DG |
Nature of business:
|
% |
Class of shares: | holding |
|
|
Loans to |
group | Other |
undertakings | loans | Totals |
£ | £ | £ |
At 1 January 2020 |
|
|
|
New in year |
|
|
|
Repayment in year | ( |
) | ( |
) |
( |
) |
Other movement |
|
( |
) | ( |
) |
At 31 December 2020 |
|
|
|
|
Fixed Asset Investments consist of long term loans receivable to the Company from third parties and other group companies. They have been classified as Fixed Asset Investments due to the intention for their continued use within the Company's activities as stated in the fixed asset investment accounting policy. The loans have been granted interest rates between 3% and 16%. All the loans will currently reach maturity within 5 years. There is security in place over these loans in the form of debentures and guarantors. |
There is an impairment recognised against one of the balances relating to fees of £567,873 which the director feels are unlikely to be recovered. There is no quantifiable impairment currently available from the effects of the corona virus and therefore none has been recognised in these financial statements. Should there be an impairment this may impact the going concern of the Company. |
|
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.20 | 31.12.19 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Current loans receivable | 6,500,000 | 7,000,000 |
|
|
|
Loan receivables consists of £6,500,000 due from third parties within 12 months as stated within the financial instruments note. Within this balance one of these loans has been partially written off. £1,000,000 has been written off leaving only £500,000 included within the £6,500,000 which was repaid in January 2021. The loans have been granted interest rates between 3% and 16%. There is security in place over these loans in the form of debentures and guarantors. |
Aurelius Finance Company Limited (Registered number: 10773394) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.20 | 31.12.19 |
£ | £ |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Directors' current accounts | 26,742 | - |
Accruals and deferred income |
|
|
Accrued expenses |
|
|
|
|
|
12. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
31.12.20 | 31.12.19 |
£ | £ |
Amounts owed to group undertakings |
|
|
|
Long term liabilities consist of loans to related parties. These loans have been granted interest rates between 5% and 10%. The loans all mature within 5 years. |
|
13. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.20 | 31.12.19 |
value: | £ | £ |
|
Ordinary | £1 | 1 | 1 |
|
Redeemable | £1 | 8,551,947 | 15,865,636 |
8,551,948 | 15,865,637 |
|
2,160,886 Redeemable shares of £1 each were allotted and fully paid for
|
|
All shares carry the right to vote, participate in dividends declared and participate in any return of the capital of the Company. |
|
The redeemable shares shall be redeemed in full if required by either the Company at any time or the occurrence of a Redemption Trigger Event in accordance with the Articles. |
|
During the year 9,474,575 shares were redeemed at par. |
|
14. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2020 | ( |
) |
Profit for the year |
|
At 31 December 2020 | ( |
) |
Aurelius Finance Company Limited (Registered number: 10773394) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
|
15. | ULTIMATE PARENT COMPANY |
|
Aurelius Equity Opportunities SE & Co. KGaA (incorporated in Germany ) is regarded by the directors as being the company's ultimate parent company. |
|
The Company is included in the group accounts prepared by the ultimate parent company, copies of which can be obtained from Ludwig-Ganghofer Stasse 6, 82031 Grunwald. |
|
The parent company is Aurelius Equity Opportunities SE & Co. KGaA. |
|
16. | OTHER FINANCIAL COMMITMENTS |
|
There is a revolving credit facility available until October 2023 for £3 million which has not been drawn down by the customer. This has not been provided for within these accounts as there is no certainty it will be utilized. |
|
17. | RELATED PARTY DISCLOSURES |
|
The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
|
|
|
|
|
18. | GOING CONCERN |
|
It is the nature of a company carrying out the business of the granting of loans that some loans become irrecoverable. If some of these loans become irrecoverable (please see note 9 and note 10) the directors' assumption of going concern may no longer be valid. In adopting the Going Concern presumption, the directors have considered the impact of such events on the Company and have concluded that the Going Concern assumption is still appropriate. |
|
The Company relies on the continued support of its parent Aurelius Equity Opportunities SE & Co KGaA. In reaching the conclusion as to the going concern the director sought and obtained an indication of the support. |
|
The coronavirus pandemic plunged the world economy into a deep recession in 2020 and will continue to impact the global economy in 2021. However, leading institutions and organizations are more optimistic about the development of the global economy now than at any time in 2020. Other primary risks for the future development of the economy besides the coronavirus pandemic include possible geopolitical shocks and the uncertainty emanating from international trade conflicts. |
|
The Aurelius management promptly analyses the situation of its portfolio companies in close consultation with the operating management teams of the group companies. The closeness to the group companies made it possible to devise and implement comprehensive action plans to protect the health of employees, minimise the risks to our business processes and soften the blow of the challenging external conditions at the different levels of holding companies and group companies. |