Tmlstp Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 10761777 (England and Wales)

Tmlstp Limited

Unaudited Financial Statements

for the Year Ended 31 March 2019

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

CA Hinchliffe

REGISTERED OFFICE:

Unit 10 Whitehills Drive

Whitehills Business Park

Blackpool

Lancashire

FY4 5LW

REGISTERED NUMBER:

10761777 (England and Wales)

ACCOUNTANTS:

McMillan & Co LLP

Chartered Accountants

28 Eaton Avenue

Matrix Office Park

Buckshaw Village

Chorley

Lancashire

PR7 7NA

CURRENT ASSETS

Debtors

5

4,701,823

1,531,038

Cash at bank

250,887

1,057,239

4,952,710

2,588,277

CREDITORS

Amounts falling due within one year

6

97,953

1,200

NET CURRENT ASSETS

4,854,757

2,587,077

TOTAL ASSETS LESS CURRENT LIABILITIES

4,854,757

2,587,077

CREDITORS

Amounts falling due after more than one year

7

5,000,000

2,990,333

NET LIABILITIES

(145,243

)

(403,256

)

CAPITAL AND RESERVES

Called up share capital

9

1

1

Retained earnings

10

(145,244

)

(403,257

)

SHAREHOLDERS' FUNDS

(145,243

)

(403,256

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2019 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 29 September 2020 and were signed by:

CA Hinchliffe - Director

1.	STATUTORY INFORMATION

Tmlstp Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The amounts in the financial statements have been rounded to the nearest £1.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Going concern

At the balance sheet date the company had an excess of liabilities over assets. The financial statements have been prepared on a going concern basis as the parent undertaking has confirmed that it will continue to provide financial support to the company for the foreseeable future.

Significant judgements and estimates

The directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised.

60 month cashflow forecasts are prepared for each portfolio on an annual basis. These forecasts are generated using statistical models incorporating a number of factors, including predictions of probability to pay, which is informed by customer and account level data, credit agency data and our historic experience with accounts which have similar key attributes. A further key model input is previous payments made by a customer. Additionally estimates are made of the movement of accounts from non-paying to paying, and vice-versa, either through breakdown of the account or settlement/pay down of the balances due. In relation to non-paying accounts, assumptions will be made as to which operational strategy is the most appropriate to move the account to paying status, this may include placing these accounts into litigation.

The Estimated Remaining Collections (ERC) created from the ERC forecasting models, are regularly benchmarked at a portfolio level against actuals, this informs the decision as to whether a write-up or write-down may be required. An impairment is only recognised if the 'write-downs' exceed any previously recognised cumulative write-ups and revenue recognised.

The estimated future cash flows generated by the above process are the key estimates/judgements in these financial statements.

Turnover

Turnover for the company comprises both income from purchased loan portfolios and fee income revenue earned through the provision of legal services to clients.

Income from purchased loan portfolios represents the yield from acquired portfolio investments. Purchased loan portfolios are financial instruments that are accounted for under Section 11 of FRS 102 and recognised at fair value at the purchase date that equals the price paid. They are subsequently measured at amortised cost using the EIR method.

The EIR method is a method of calculating the amortised cost of a purchased loan portfolio and of allocating interest income over the expected life of the portfolio. The EIR is the rate that exactly discounts 60 months of estimated future cash receipts of the purchased portfolio asset to the net carrying amount at initial recognition (i.e. the price paid to acquire the asset).

Unallocated cash is held as a liability on the balance sheet until it is reconciled. Unallocated cash is held as liability until all reasonable steps have been taken to show that it has been extinguished, only being released to the income statement at this point.

Fee income from clients is recognised on an accruals basis in the income statement.

Financial instruments

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Basic financial assets, which include debtors, prepayments and bank balances, are initially measured at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the asset is measured at the present value of the future receipts discounted at a market rate of interest. Basic financial liabilities, which include creditors, accruals, bank loans and group borrowings, are initially recognised at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the liability is measured at the present value of the future obligations discounted at a market rate of interest.

Loan portfolios

i. Effective interest rate

Portfolio income and expenses are recognised in profit or loss using the effective interest method. The 'effective interest rate' is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:

- the gross carrying amount of the financial asset; or

- the amortised cost of the financial liability.

When calculating the effective interest rate for financial instruments, the Company estimates future cash flows considering the composition of the debt book (payers, non-payers, borrowers in debt management plans or involuntary arrangements) along with past performance of other similar financial instruments. The future cash flows are estimated for a 60 month period. This is the point by which substantially all of the cash flows will have been received from a normal portfolio investment, and the point at which the Company is comfortable in forecasting to.

The calculation of the effective interest rate includes transaction costs and fees paid or received that are an integral part of the effective interest rate. Transaction costs include incremental costs that are directly attributable to the acquisition or issue of a financial asset or financial liability, such as legal and due diligence fees.

ii. Amortised cost and gross carrying amount

The 'amortised cost' of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured on initial recognition minus the principal repayments, plus or minus the cumulative amortisation, using the effective interest method, of any difference between that initial amount and the expected cash flows and, for financial assets. The 'gross carrying amount of a financial asset' is the amortised cost of a financial asset before adjusting for any expected credit loss allowance.

iii. Calculation of interest income and expense

The effective interest rate of a financial asset or financial liability is calculated on initial recognition. In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset or to the amortised cost of the liability.

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.

Current or deferred taxation assets and liabilities are not discounted.

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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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.

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.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2018 - NIL).

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

as

restated

£

£

Loan portfolio

79,065

100,053

Amounts owed by group undertakings

4,622,758

1,430,985

4,701,823

1,531,038

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

as

restated

£

£

Corporation tax

47,553

-

Accruals and deferred income

5,900

1,200

Provision for facility settlement

44,500

-

97,953

1,200

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

as

restated

£

£

Other loans - 2-5 years

5,000,000

2,990,333

8.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

as

restated

£

£

Other loans - 2-5 years

5,000,000

2,990,333

There are both fixed and floating charges which are secured on the assets of the company.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

as restated

£

£

1

A Ordinary

£1

1

1

10.

RESERVES

Retained

earnings

£

At 1 April 2018

(403,257

)

Profit for the year

258,013

At 31 March 2019

(145,244

)

11.	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.

12.	ULTIMATE CONTROLLING PARTY

In the opinion of the directors the company is controlled by the directors of the parent company, T M Legal Services Limited, a company incorporated in the United Kingdom and the 100% parent company of the entity. TM Legal Services Limited is a wholly owned subsidiary of Perch Group Limited, a company incorporated in the United Kingdom.