Tritoria UK Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 10021361 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2021

for

Tritoria UK Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

Mr J S Savage

Mr S A Hall

Ms I Lindstad

REGISTERED OFFICE:

208 Broadway

Didcot

OX11 8RN

REGISTERED NUMBER:

10021361 (England and Wales)

SENIOR STATUTORY AUDITOR:

Philippa Duckworth BSc FCCA

AUDITORS:

WP Audit Limited

Statutory Auditors

5a Frascati Way

Maidenhead

Berkshire

SL6 4UY

The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS

The principal activities of the company were the holding of investments in other companies and the extending of business loans. Details of the company's performance for the financial year are set out in pages 10 and 11. In addition, the company disposed of one of its subsidiaries, realising a profit of £8.93 million.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors continually monitor the key risks facing the company together with assessing the controls used for managing these risks.

Financial risks

The key financial risks to the company are credit and liquidity risk.

During the year the company provided business loans to corporate entities and individuals. Some of the borrowers are start-up companies or special vehicle projects that are based overseas, requiring funds for property development. Many of the borrowers are known entities to the Group. At the year end, the company is owed £32.48million in respect of these loans.

The company is continually improving its assessment of credit risk and monitoring on an ongoing basis and managing it according to its policies and procedures. The consideration given to the recoverability of these loans is detailed within the accounting policies notes.

Liquidity risk is the risk that the company are unable to refinance its debt or not have the ability to finance increases in assets. The Directors closely monitor cash flow and cash flow projections. The company has sufficient financial reserves.

Changes in interest rates have an impact on the company's borrowing costs. The company has a goal to maintain a moderate risk profile.

In addition, the Company is looking to have future loans track benchmark rates, to protect against shrinking margins.

Currency risk

The company has foreign exchange exposure, through investments denominated in foreign currency. Currency hedging is assessed on an ongoing basis, but to date has not been implemented.

KEY PERFORMANCE INDICATORS

At the year end the company had a total of £13.2million in the bank, compared to £1.4 million in 2020. The Company didn't have any loans that it deemed irrecoverable.

FUTURE OUTLOOK

A higher inflation environment has caused central banks around the world to increase interest rates. The Company still has strong demand from its associates and business network for financing, providing opportunities for the Company to deploy its capital.

ON BEHALF OF THE BOARD:

Mr S A Hall - Director

7 September 2022

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of an investment company.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2021.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

Mr J S Savage has held office during the whole of the period from 1 January 2021 to the date of this report.

Other changes in directors holding office are as follows:

Mr L P Van As - resigned 4 October 2021

Mr S A Hall - appointed 1 September 2021

Ms I Lindstad was appointed as a director after 31 December 2021 but prior to the date of this report.

Mr I Almas ceased to be a director after 31 December 2021 but prior to the date of this report.

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.

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:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr S A Hall - Director

7 September 2022

Opinion

We have audited the financial statements of Tritoria UK Ltd (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2021 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.

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.

Conclusions relating to going concern

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.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Emphasis of matter

In forming our opinion, we have considered the adequacy of the disclosures made within the financial statements concerning the recoverability of debtors. In view of the significance of these uncertainties, we consider that this should be drawn to your attention, but our opinion is not qualified in this respect.

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.

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.

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.

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.

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.

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.

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.

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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also ensured of management about their own identification and assessment of the risks and irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:

- had a direct effect on the determination of material amounts and disclosures in the financial statements

These included the UK Companies Act, tax legislation, health and safety legislation and employment legislation.

-had an indirect effect on the determination of material amounts and disclosures in the financial statements.

We discussed among the audit engagement team, regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud and performed specific procedures to ensure that they were addressed.

In common with all audit ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above procedures to respond to the risks identified including the following:

-Reviewing financial statement disclosures by testing supporting documentation to assess compliance with provisions of relevant laws and regulations as described as having a direct effect on the financial statements;

-performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

-reading of minutes of meetings of those charged with governance.

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.

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.

Philippa Duckworth BSc FCCA (Senior Statutory Auditor)

for and on behalf of WP Audit Limited

Statutory Auditors

5a Frascati Way

Maidenhead

Berkshire

SL6 4UY

28 September 2022

TURNOVER

-

-

Administrative expenses

1,605,286

(607,213

)

1,605,286

(607,213

)

Other operating income

-

100

OPERATING PROFIT/(LOSS)

4

1,605,286

(607,113

)

Profit/loss on sale of invest

5

8,926,887

(18,254,091

)

10,532,173

(18,861,204

)

Income from shares in group undertakings

394,530

-

Interest receivable and similar income

1,241,987

939,156

12,168,690

(17,922,048

)

Gain/loss on revaluation of investments

(759,706

)

(1,223,887

)

11,408,984

(19,145,935

)

Interest payable and similar expenses

6

(1,995,446

)

(656,518

)

PROFIT/(LOSS) BEFORE TAXATION

9,413,538

(19,802,453

)

Tax on profit/(loss)

7

(237,777

)

123,015

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

9,175,761

(19,679,438

)

PROFIT/(LOSS) FOR THE YEAR

9,175,761

(19,679,438

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

9,175,761

(19,679,438

)

FIXED ASSETS

Investments

8

146,986,112

148,989,902

CURRENT ASSETS

Debtors

9

32,480,007

23,816,990

Cash at bank

13,201,042

1,407,412

45,681,049

25,224,402

CREDITORS

Amounts falling due within one year

10

(4,047,082

)

(21,588,629

)

NET CURRENT ASSETS

41,633,967

3,635,773

TOTAL ASSETS LESS CURRENT LIABILITIES

188,620,079

152,625,675

CREDITORS

Amounts falling due after more than one year

11

(74,417,650

)

(47,599,007

)

NET ASSETS

114,202,429

105,026,668

CAPITAL AND RESERVES

Called up share capital

12

100,000

100,000

Share premium

13

60,003,099

60,003,099

Retained earnings

13

54,099,330

44,923,569

SHAREHOLDERS' FUNDS

114,202,429

105,026,668

The financial statements were approved by the Board of Directors and authorised for issue on 7 September 2022 and were signed on its behalf by:

Ms I Lindstad - Director

Mr J S Savage - Director

Mr S A Hall - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2020

100,000

64,603,007

60,003,099

124,706,106

Changes in equity

Total comprehensive income

-

(19,679,438

)

-

(19,679,438

)

Balance at 31 December 2020

100,000

44,923,569

60,003,099

105,026,668

Changes in equity

Total comprehensive income

-

9,175,761

-

9,175,761

Balance at 31 December 2021

100,000

54,099,330

60,003,099

114,202,429

1.	STATUTORY INFORMATION

Tritoria UK Ltd 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 (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company does rely on regular interest payments and the repayment of loans. The directors have analysed financial projections and cash flow forecasts for future periods, and concluded that there is sufficient operating headroom to continue to meet liabilities as they fall due therefore the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Tritoria UK Ltd 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, Tritoria Finance AS Norway, Kveldroveien 7, 1407 Vinterbro, Norway.

Related party exemption

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.

Significant judgements and estimates

In the application of the company's accounting policies 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 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.

The company does not make significant estimates and assumptions concerning the future.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Recoverability of loans

During the current and previous years, the company provided business loans to corporate entities and individuals. Some of the borrowers are start-up companies or special vehicle projects that are based overseas, requiring funds for property development.

Loans are issued based on comprehensive due diligence reviews and occasionally based on the advice of locally based consultants, who have knowledge of the local market and borrowers. For example, factors such as the local property market, project location and type of building are taken into consideration. Some of these loans are therefore inherently high risk, and therefore a higher interest rate is charged.

All loans issued during this and the previous period are expected to be repaid in full, though some of the repayments have been delayed by the COVID-19 pandemic.

Interest is charged on each of the loans, with interest payable either periodically or in full at the loanredemption date. Some of the loans are secured by way of a personal guarantee, mortgage deeds and/or security in company shares.

The directors remain in contact with each of the borrowers and request regular financial reports and project updates, extending repayment terms if and where necessary. When assessing the recoverability of these loans, the directors consider factors such as repayments, financial performance of the corporate borrowers or credit profile of the individuals.

Despite measures in place, loans may ultimately not be recoverable, either partly or in full, as the assessment is based on the future performance of third-party businesses or sale of properties. The company establishes a provision for any amounts that are estimated to be not recoverable. The Directors have carried out a risk assessment for loans due at the year end and have included no bad debt provision within the financial statements.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Investments in subsidiaries

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less and accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit and loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from it activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there ia n intention to settle on a net basis to realise the asset and settle the liabilities simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash bank balances. are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that received a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown with borrowings in current liabilities.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belong.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reason for the impairment loss have ceased to apply.Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of it recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of impairment loss is treated as a revaluation increase.

Turnover

Turnover is recognised at the fair value of the interest received or receivable for loans provided in the normal course of business, and is shown net of VAT and other sales related taxes.

3.	EMPLOYEES AND DIRECTORS

31.12.21

31.12.20

£

£

Wages and salaries

121,798

91,800

Social security costs

15,130

7,609

Other pension costs

12,429

12,000

149,357

111,409

The average number of employees during the year was as follows:

31.12.21

31.12.20

Director

1

1

31.12.21

31.12.20

£

£

Directors' remuneration

92,182

91,800

4.	OPERATING PROFIT/(LOSS)

The operating profit (2020 - operating loss) is stated after charging/(crediting):

31.12.21

31.12.20

£

£

Other operating leases

7,800

7,080

Depreciation - owned assets

-

217

Loss on disposal of fixed assets

-

485

Auditors' remuneration

16,000

15,750

Foreign exchange differences

(2,069,600

)

(364,535

)

5.	EXCEPTIONAL ITEMS

31.12.21

31.12.20

£

£

Profit/loss on sale of invest

8,926,887

(18,254,091

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.21

31.12.20

£

£

Interest expenses

1,995,446

656,518

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

31.12.21

31.12.20

£

£

Current tax:

UK corporation tax

85,492

-

Deferred tax

152,285

(123,015

)

Tax on profit/(loss)

237,777

(123,015

)

Reconciliation of total tax charge/(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:

31.12.21

31.12.20

£

£

Profit/(loss) before tax

9,413,538

(19,802,453

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

1,788,572

(3,762,466

)

Effects of:

Expenses not deductible for tax purposes

(1,550,795

)

3,639,451

Total tax charge/(credit)

237,777

(123,015

)

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2021

148,989,902

Additions

7,633,082

Disposals

(8,725,411

)

Impairments

(911,461

)

At 31 December 2021

146,986,112

NET BOOK VALUE

At 31 December 2021

146,986,112

At 31 December 2020

148,989,902

9.

DEBTORS

31.12.21

31.12.20

£

£

Amounts falling due within one year:

Other debtors

14,983,979

4,139,858

Deferred tax asset

-

152,285

14,983,979

4,292,143

31.12.21

31.12.20

£

£

Amounts falling due after more than one year:

Other debtors

17,496,028

19,524,847

Aggregate amounts

32,480,007

23,816,990

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade creditors

19,815

77,230

Tax

129,063

-

Social security and other taxes

-

2,960

Other creditors

3,879,454

21,261,629

Accruals and deferred income

18,750

246,810

4,047,082

21,588,629

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

£

£

Other creditors

74,417,650

47,599,007

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.21

31.12.20

value:

£

£

100,000

Ordinary

£1

100,000

100,000

Each share carries one vote per share and is equally ranked in respect of dividends and return of capital.

13.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 January 2021

44,923,569

60,003,099

104,926,668

Profit for the year

9,175,761

9,175,761

At 31 December 2021

54,099,330

60,003,099

114,102,429