Harlequin Finance plc - Limited company accounts 23.2

REGISTERED NUMBER: 09883242 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

FOR

HARLEQUIN FINANCE PLC

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

D J Morgan

S J Pope

L E Dalrymple

REGISTERED OFFICE:

Twickenham Stoop Stadium

Langhorn Drive

Twickenham

Middlesex

TW2 7SX

REGISTERED NUMBER:

09883242 (England and Wales)

INDEPENDENT AUDITORS:

Lewis Brownlee (Chichester) Limited

Chartered Accountants

Statutory Auditors

Appledram Barns

Birdham Road

Chichester

West Sussex

PO20 7EQ

The directors present their strategic report for the year ended 30 June 2023.

REVIEW OF BUSINESS

Harlequin Finance plc has recognised interest payable of £248,210 (2022: £236,634), being interest payable to the holders of the bonds sold in previous years at 5.5% per annum.

As the majority of the proceeds of the bonds have been loaned to related companies, Harlequin Finance plc has recognised interest receivable of £248,380 (2022: £235,432) on those loans at 5.5% per annum.

At the balance sheet date the company had total net liabilities of £248,731 (2022: £244,901).

PRINCIPAL RISKS AND UNCERTAINTIES

The key area of risk facing Harlequin Finance plc is the recoverability of capital and interest due to it by its parent Harlequin FC Holdings Limited.

SECTION 172(1) STATEMENT

The directors of the company have acted in a way they considered, in good faith, to be most likely to promote the success of the company for the benefit of the members as a whole, and in doing so had regard, amongst other things to:

-

the likely consequences of any decisions in the long term;

-

the need to foster the business relationships with suppliers, customers and others;

-

the impact of the company’s operations on the community and the environment;

-

the reputation for a high standard of business conduct; and

-

the need to act fairly as between members of the company.

ON BEHALF OF THE BOARD:

S J Pope - Director

6 December 2023

The directors present their report with the financial statements of the company for the year ended 30 June 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of raising finance for the operations of the Harlequin group.

DIVIDENDS

Dividends of £Nil (2022: £Nil) were paid during the year.

FUTURE DEVELOPMENTS

The directors are of the opinion there are no material future developments.

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

The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.

D J Morgan

S J Pope

L E Dalrymple

FINANCIAL INSTRUMENTS

The company has a minimum level of exposure to price, credit, liquidity and cash flow risks arising from its activities which are all conducted in sterling. Interest rate risk is mitigated by matching interest rates on both debtor and creditor financial instruments. The company does not enter into any formally designated hedging arrangements.

DIRECTORS' RESPONSIBILITIES STATEMENT

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;

-	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.

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.

AUDITORS

The auditors, Lewis Brownlee (Chichester) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S J Pope - Director

6 December 2023

Opinion

We have audited the financial statements of Harlequin Finance plc (the 'company') for the year ended 30 June 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement 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 30 June 2023 and of its loss 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.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.

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 course of 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 Directors' Responsibilities Statement set out on page three, 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.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including legislation such as the Companies Act 2006 and taxation legislation;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors, where applicable

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Sam Ede BFP FCA FCCA (Senior Statutory Auditor)

for and on behalf of Lewis Brownlee (Chichester) Limited

Chartered Accountants

Statutory Auditors

Appledram Barns

Birdham Road

Chichester

West Sussex

PO20 7EQ

6 December 2023

TURNOVER

-

-

Administrative expenses

4,000

4,094

OPERATING LOSS

4

(4,000

)

(4,094

)

Interest receivable and similar income

248,380

235,432

244,380

231,338

Interest payable and similar expenses

5

248,210

236,634

LOSS BEFORE TAXATION

(3,830

)

(5,296

)

Tax on loss

6

-

-

LOSS FOR THE FINANCIAL YEAR

(3,830

)

(5,296

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(3,830

)

(5,296

)

CURRENT ASSETS

Debtors

7

4,764,377

4,515,997

CREDITORS

Amounts falling due within one year

8

5,013,108

4,760,898

NET CURRENT LIABILITIES

(248,731

)

(244,901

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(248,731

)

(244,901

)

CAPITAL AND RESERVES

Called up share capital

11

50,000

50,000

Retained earnings

12

(298,731

)

(294,901

)

SHAREHOLDER FUNDS

(248,731

)

(244,901

)

The financial statements were approved by the Board of Directors and authorised for issue on 6 December 2023 and were signed on its behalf by:

S J Pope - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2021

50,000

(289,605

)

(239,605

)

Changes in equity

Total comprehensive income

-

(5,296

)

(5,296

)

Balance at 30 June 2022

50,000

(294,901

)

(244,901

)

Changes in equity

Total comprehensive income

-

(3,830

)

(3,830

)

Balance at 30 June 2023

50,000

(298,731

)

(248,731

)

Cash flows from operating activities

Cash generated from operations

16

460,830

121,097

Interest paid

(248,210

)

(236,634

)

Net cash from operating activities

212,620

(115,537

)

Cash flows from investing activities

Interest received

248,380

235,432

Net cash from investing activities

248,380

235,432

Cash flows from financing activities

Bond redemptions in the year

(461,000

)

(132,000

)

Net cash from financing activities

(461,000

)

(132,000

)

Decrease in cash and cash equivalents

-

(12,105

)

Cash and cash equivalents at beginning of year

17

-

12,105

Cash and cash equivalents at end of year

17

-

-

1.	STATUTORY INFORMATION

Harlequin Finance plc is a public 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.

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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

Harlequin Finance plc is a wholly owned subsidiary of Harlequin FC Holdings Limited and the results of Harlequin Finance plc are included in the consolidated financial statements of Harlequin FC Holdings Limited which are available from Twickenham Stoop Stadium, Langhorn Drive, Twickenham, Middlesex, United Kingdom, TW2 7SX.

Going concern

At the year end the company had net liabilities of £248,731 (2022: £244,901) which includes loans of £2,486,962 (2022: £1,689,106) from other group companies.

The other group companies also place reliance on support from the group's principal shareholder which has confirmed that at the year end, loans due to it were not due for repayment until at least 31 December 2024. The group overall has net current liabilities and net liabilities of which includes a loan of £44,841,264 (2022: £40,184,684) due to Blue Sky Holdings Limited.

Blue Sky Holdings Limited has confirmed that it intends to provide financial support to enable the group to meet its liabilities as and when they fall due until at least 31 December 2024. The directors believe that Blue Sky Holdings Limited has adequate resources to continue to provide a sufficient level of support and based on this, the provision of a letter of support and current and previous actual provision of support, therefore consider it appropriate to prepare financial statements on the going concern basis. The financial statements do not include any adjustment that would result if the going concern assumption was found to be inappropriate.

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 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Cash and cash equivalents

Any cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

Financial instruments

The company has elected to apply the provisions of section 11 'Basic Financial Instruments' and section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes a party to the contractual provisions of the instrument.

Financial instruments 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 is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest rate method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest.

Impairment of financial instruments

Financial assets, other than those held at fair value through the profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flow from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, 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.

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Equity instruments

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

3.	EMPLOYEES AND DIRECTORS

There were no staff costs or directors' remuneration for the year ended 30 June 2023 nor for the period ended 30 June 2022.

The average number of employees and directors during the year ended 30 June 2023 was 3 (2022: 3).

4.	OPERATING LOSS

The operating loss is stated after charging:

2023

2022

£

£

Auditors' remuneration

4,000

4,000

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the group accounts of the parent company.

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

Other interest payable

248,210

236,634

6.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 30 June 2023 nor for the year ended 30 June 2022.

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023

2022

£

£

Loss before tax

(3,830

)

(5,296

)

Loss multiplied by the standard rate of corporation tax in the UK of 25% (2022 - 19%)

(958

)

(1,006

)

Effects of:

Losses carried forward

958

1,006

Total tax charge

-

-

7.

DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Amounts owed by group undertakings

4,764,377

4,515,997

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Other loans (see note 9)

2,500,000

2,961,000

Amounts owed to group undertakings

2,486,962

1,689,106

Social security and other taxes

-

93,886

Other creditors

15,691

-

Accruals and deferred income

10,455

16,906

5,013,108

4,760,898

Included in other loans is £2,500,000 (2022: £2,961,000) repayable to bond holders relating to a bonds issued in the 2016 year. The bonds yield a fixed return of 5.5% (gross) per annum, payable semi-annually, for an initial fixed term of five years.

The bonds issued in 2016 were for an initial five year term. Some of these have been rolled over on an annual basis where they can be redeemed annually on the original redemption date on the condition of the company receiving 6 months notice from the bondholder.

9.

LOANS

An analysis of the maturity of loans is given below:

2023

2022

£

£

Amounts falling due within one year or on demand:

Other loans

2,500,000

2,961,000

10.	FINANCIAL INSTRUMENTS

The company's financial instruments may be analysed as follows:

2023

2022

£

£

Financial assets that are debt instruments measured at amortised cost:

Amounts owed by group undertakings

4,764,377

4,515,997

Financial liabilities measured at amortised cost:

Other loans

2,500,000

2,961,000

Amounts owed to group undertakings

2,486,962

1,689,106

Other creditors

26,146

110,792

11.	CALLED UP SHARE CAPITAL

Allotted and issued:

Number:

Class:

Nominal

2023

2022

value:

£

£

50,000

Ordinary share capital

£1

50,000

50,000

Ordinary shares have attached to them full voting rights, rights to dividends and rights to capital in a distribution on winding up.

12.

RESERVES

Retained earnings reserve represents the cumulative profits and losses after dividends since incorporation.

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption available in section 33 of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group on the grounds that Harlequin FC Holdings Limited publishes consolidated financial statements.

Harlequin Football Club Limited

98% subsidiary of the immediate parent entity

At the year end £2,486,962 (2022: £1,689,106) was owed to Harlequin Football Club Limited.

14.	POST BALANCE SHEET EVENTS

After the balance sheet, at the time of the approval of the financial statements, notifications had been received from bondholders of their intention to redeem their bonds amounting to £189,000 (2022: £Nil).

15.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the board of directors of Somers Isles Private Trust Company Ltd.

The ultimate parent company of Harlequin Finance plc is Prime Life Common Fund Limited, a company domiciled in Bermuda.

The results of Harlequin Finance plc are consolidated into their immediate parent, Harlequin FC Holdings Limited, a company registered and domiciled in England and Wales. Group accounts are available from Harlequin FC Holdings Limited, Twickenham Stoop Stadium, Langhorn Drive, Twickenham, Middlesex, TW2 7SX.

16.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023

2022

£

£

Loss before taxation

(3,830

)

(5,296

)

Finance costs

248,210

236,634

Finance income

(248,380

)

(235,432

)

(4,000

)

(4,094

)

Increase in trade and other debtors

(248,380

)

(235,432

)

Increase in trade and other creditors

713,210

360,623

Cash generated from operations

460,830

121,097

17.	CASH AND CASH EQUIVALENTS

The company has no cash and cash equivalents.

18.	ANALYSIS OF CHANGES IN NET DEBT

At 1/7/22

Cash flow

At 30/6/23

£

£

£

Debt

Debts falling due within 1 year

(2,961,000

)

461,000

(2,500,000

)

(2,961,000

)

461,000

(2,500,000

)

Total

(2,961,000

)

461,000

(2,500,000

)