Company Registration No. 07373678 (England and Wales)
VC Finance Ltd
Unaudited filleted accounts
for the year ended 31 March 2023
VC Finance Ltd
Unaudited filleted accounts
Contents
VC Finance Ltd
Company Information
for the year ended 31 March 2023
Directors
Christopher Neil Evans
Victoria Gardner
Company Number
07373678 (England and Wales)
Registered Office
3.02 The Plaza
100 Old Hall Street
Liverpool
L3 9QJ
Accountants
VC Finance Ltd
3.02 The Plaza
100 Old Hall Street
Liverpool
L3 9QJ
VC Finance Ltd
Statement of financial position
as at 31 March 2023
Cash at bank and in hand
48,563
33,171
Creditors: amounts falling due within one year
(11,668)
(14,566)
Net current assets
83,118
45,593
Total assets less current liabilities
83,118
45,593
Creditors: amounts falling due after more than one year
(32,900)
(38,650)
Provisions for liabilities
Other provisions
(41,984)
-
Called up share capital
2
2
Profit and loss account
8,232
6,941
Shareholders' funds
8,234
6,943
For the year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 21 November 2023 and were signed on its behalf by
Christopher Neil Evans
Director
Company Registration No. 07373678
VC Finance Ltd
Notes to the Accounts
for the year ended 31 March 2023
VC Finance Ltd is a private company, limited by shares, registered in England and Wales, registration number 07373678. The registered office is 3.02 The Plaza, 100 Old Hall Street, Liverpool, L3 9QJ. The principal place of business is 2d Fulwood Park, Liverpool, L17 5AG.
2
Compliance with accounting standards
The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.
The accounts are presented in £ sterling.
Tangible fixed assets and depreciation
Tangible assets are included at cost less depreciation and impairment. Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives:
VC Finance Ltd
Notes to the Accounts
for the year ended 31 March 2023
The Company generates revenues from activities with a closed group of related party companies. It has also provided secured loans to these same related party companies. Its own ability to fund these activities beyond its carrying reserves has been provided by its shareholder Christopher Neil Evans.
Its primary source of income from both accounting related management services plus interest on secured lending to entitles generated substantially all its income and profitability. Following a downturn in trading and a shareholder’s dispute in “Tokyo Digital Group” (then named Tokyo.uk Team Ltd, now TokGrp Ltd – CRN 09938882), the Company (along with its supporting shareholder) supported a takeover of the Group. Its Group was restructured and its principal trading entity Tokyo Digital Ltd (now TD2023 Realisations Ltd – CRN 10958626) ceased trading and its directors sought to wind down the company solvently. VC Finance Ltd continued to support this activity advancing funds for restructuring. However, events unfolded with unanticipated liabilities crystalising including those relating to lease cars held by a prior director of the Company plus irrecoverable debts. It is expected that its principal trading partner TD2023 Realisations Ltd will imminently enter creditors voluntary liquidation, this is in part due to VC Finance Ltd withdrawing further financial support.
As a result, there have been significant provisions made within the financial statements and the recoverability of debts owed may give rise to the question of going concern. The Directors have sought comfort from the lender shareholder that he will not recall his loans to the Company for at least 12 months from the balance sheet date, or not unless in doing so would not cause the Company to be unable to pay its debts as and when they fall due.
The Directors based on the confirmation obtained continue to consider the Going Concern as the appropriate basis on which to prepare the accounts.
However, attention is drawn to the fact that as this comfort has been given by a Director/Shareholder who has advanced substantial other funding and has exposure beyond that known to VC Finance Ltd to the Group, this represents a material uncertainty as to if the shareholder/Director can maintain this comfort. This material uncertainty casts doubt as to the ability of the Company to continue as a going concern. No adjustments have been made to the accounts in respect of the event of it not being able to continue as a going concern.
4
Tangible fixed assets
Plant & machinery
Fixtures & fittings
Total
Cost or valuation
At cost
At cost
At 1 April 2022
4,786
238
5,024
At 31 March 2023
4,786
238
5,024
At 1 April 2022
4,786
238
5,024
At 31 March 2023
4,786
238
5,024
VC Finance Ltd
Notes to the Accounts
for the year ended 31 March 2023
Amounts falling due within one year
Other debtors
41,984
21,988
Amounts falling due after more than one year
6
Creditors: amounts falling due within one year
2023
2022
Bank loans and overdrafts
6,720
6,720
Amounts owed to group undertakings and other participating interests
2,900
-
Taxes and social security
-
6,846
Loans from directors
2,048
-
7
Creditors: amounts falling due after more than one year
2023
2022
The Directors have confirmed that there are no contingent liabilities requiring disclosure in this period or the prior period.
Brought
Forward
Advance/
credit
Repaid
Carried
Forward
A loan was provided to a director during the prior year it carried interest at 2.5%
15,008
-
17,056
(2,048)
Loans provided to the Director are repayable on demand where the business requires the cash to satisfy its obligations as and when they fall due. The prior period loan was repaid in full during the year.
VC Finance Ltd
Notes to the Accounts
for the year ended 31 March 2023
10
Transactions with related parties
During the year a loan that had been provided to C N Evans a Director of the company was repaid in full and there was a balance owing to the Director of £2,049 (2022: debtor £15,008) this is shown in Creditors < 1 year.
A loan was repaid from a related party company Ultimate Trim Ltd which in the period has C N Evans as a common director. It carried no interest; was repayable on demand and was shown in Other Debtors < 1 year (2022: £6,980). A loan of £4,100 (2022: £5,000) continued to be outstanding by Ultimate Trim Ltd, this amount is shown in Creditors > 1 year as although repayable on demand the Company has no intention of recalling this loan until Ultimate Trim Ltd (a start up company) is in a position to repay it. The loans to Ultimate Trim Ltd are unsecured and interest free.
Directors/Consultancy Fees were charged to Tokyo Digital Ltd a related party company by C N Evans being a director and a 47.5% shareholder in its ultimate parent company Tokyo.uk Team Ltd, the amount of fees received in the year were £81,100 (2022: £210,610).
Management Fees in respect of accounting and consulting services were charged to Tokyo Digital Ltd of £49,337. At the year end the balance outstanding was £49,337. A bad debt provision has been recognised in respect of this full balance.
During the year loans of £178,800 were made to Tokyo Digital Ltd. Interest of £788 was charged on these loans, at the year end £41,985 was outstanding. The outstanding loan balance has been provided for in full.
11
Post balance sheet events
Post period end following a shareholder’s dispute in “Tokyo Digital Group”, VC Finance Ltd provided support to enable a “buy out” and restructuring of the Group. The amount of funding anticipated to be required was underestimated resulting in bad debt provisions needing to be made. As a result, the Company is transitioning its business to generate revenues “externally”. It is winding down lending support provided to Group members but will continue to provide accounting, tax compliance and other related services on an “arm’s length” commercial basis. As a result of this change there have been substantial bad debt provisions made, whilst the Directors reasonably believe this fully represents the position it may be that as restructuring continues other potential liabilities come to light which impact the Company. Though the Directors are working to more than offset this with a renewed strategy.
12
Average number of employees
During the year the average number of employees was 3 (2022: 2).
