Gener8 Finance Limited - Accounts to registrar - small 17.1

REGISTERED NUMBER: 05593395 (England and Wales)

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016

FOR

GENER8 FINANCE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr D M Richards

Mr M S Wignall

Mrs T L Richards

Mr M F Cox BSc FCA

Mr S G T Scott

Mr P A Stokes

SECRETARIES:

Mrs T L Richards

Mr P Raven

REGISTERED OFFICE:

68G Innovation Drive

Milton Park

Abingdon

Oxfordshire

OX14 4RX

REGISTERED NUMBER:

05593395 (England and Wales)

AUDITORS:

UHY Hacker Young

Quadrant House

4 Thomas More Square

London

E1W 1YW

FIXED ASSETS

Tangible assets

4

39,766

57,005

CURRENT ASSETS

Debtors

5

31,178,203

30,057,773

Cash at bank

60,846

11,879

31,239,049

30,069,652

CREDITORS

Amounts falling due within one year

6

28,581,387

27,986,156

NET CURRENT ASSETS

2,657,662

2,083,496

TOTAL ASSETS LESS CURRENT LIABILITIES

2,697,428

2,140,501

CREDITORS

Amounts falling due after more than one year

7

(7,058

)

(14,937

)

PROVISIONS FOR LIABILITIES

(21,397

)

(35,280

)

NET ASSETS

2,668,973

2,090,284

CAPITAL AND RESERVES

Called up share capital

418,495

418,495

Share premium

34,230

34,230

Retained earnings

2,216,248

1,637,559

SHAREHOLDERS' FUNDS

2,668,973

2,090,284

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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

The financial statements were approved by the Board of Directors on 11 May 2017 and were signed on its behalf by:

Mr D M Richards - Director

1.	STATUTORY INFORMATION

Gener8 Finance 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention and in accordance with

Section 1A Small Entities of Financial Reporting Standard 102 The Financial Reporting Standard applicable in

the UK and the Republic of Ireland and the Companies Act 2006.

Transition to FRS 102

This the first year that the company has presented its results under FRS 102. The last financial statements under

UK GAAP were for the year ended 31 December 2015. The date of transition to FRS 102 was 1 January 2015.

There are no transitional adjustments arising from the first time adoption of FRS 102.

Going concern

The company meets its day-to-day working capital requirements through its bank facilities. The current economic

conditions continue to create uncertainty over (a) the level of demand for the company's services; and (b) the

availability of bank finance for the foreseeable future. The company's forecasts and projections, taking account

of reasonably possible changes in trading performance, show that the company should be able to operate within

the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the

company has adequate resources to continue in operational existence for the foreseeable future. The company

therefore continues to adopt the going concern basis in preparing its financial statements.

Revenue recognition

Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in

accordance with the stage of completion of the contract when all of the following conditions are satisfied:

-

the amount of revenue can be measured reliably;

-

it is probable that the company will receive the consideration due under the contract;

-

the stage of completion of the contract at the end of the reporting period can be measured reliably; and

-

the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated

impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the

location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful

lives, using either a straight line or reducing balance method, as indicated below.

Depreciation is provided on the following basis:

-

Improvements to leasehold property

- 50% on cost

-

Fixtures and fittings

- 25% on cost

-

Motor vehicles

- 25% on cost

-

Office equipment

- 25% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if

appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are

recognised in profit or loss.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised

as other comprehensive income or to an item recognised directly in equity is also recognised in other

comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by

the balance sheet date, except that:

-

the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

-

any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively

enacted by the balance sheet date.

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.

Operating leases

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

Pension costs

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to the profit and loss account in the period to which they relate.

Contributions outstanding at the balance sheet date amounted to £497 (2015: £nil).

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to

related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period

for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is

recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an

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.y's exposure and other relevant factors, to cater for potential

client failures.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the

arrangement constitutes a financing transaction, where the transaction is measured at the present value of the

future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost

using the effective interest method, less any impairment. Trade debtors represent the debts assigned under

invoice finance agreements, net of any bad debt provision. The full value of the assigned debt is recognised as it

represents rights or other access to future economic benefits. The corresponding creditor recognised represents

the difference between the assigned debt and cash advanced to clients net of the appropriate factoring fees.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and

other short-term highly liquid investments that mature in no more than three months from the date of acquisition

and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related

parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less

any impairment.

Interest income

Interest income is recognised in profit or loss using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2015 - 16 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Motor

Office

property

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2016

14,572

27,210

26,075

109,883

177,740

Additions

-

205

-

2,075

2,280

At 31 December 2016

14,572

27,415

26,075

111,958

180,020

DEPRECIATION

At 1 January 2016

14,572

13,939

543

91,681

120,735

Charge for year

-

5,993

6,519

7,007

19,519

At 31 December 2016

14,572

19,932

7,062

98,688

140,254

NET BOOK VALUE

At 31 December 2016

-

7,483

19,013

13,270

39,766

At 31 December 2015

-

13,271

25,532

18,202

57,005

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 January 2016

and 31 December 2016

26,075

DEPRECIATION

At 1 January 2016

543

Charge for year

6,519

At 31 December 2016

7,062

NET BOOK VALUE

At 31 December 2016

19,013

At 31 December 2015

25,532

The asset is secured over the hire purchase contract.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.16

31.12.15

£

£

Trade debtors

30,301,738

29,315,316

Amount owed by group undertaking

804,733

654,513

Other debtors

33,684

38,087

Deferred tax asset

676

-

Prepayments

37,372

49,857

31,178,203

30,057,773

Trade debtors representing invoice finance debts are secured by debentures over all the clients' property and

assets.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.16

31.12.15

£

£

Hire purchase contracts (see note 8)

7,878

7,878

Trade creditors

2,577

4,687

Tax

164,166

162,866

Social security and other taxes

11,365

20,885

VAT

72,567

104,967

Other creditors

499

-

Clients current account

23,391,352

21,002,414

Commercial invoice finance facility

4,900,073

6,655,772

Accruals

30,910

26,687

28,581,387

27,986,156

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.16

31.12.15

£

£

Hire purchase contracts (see note 8)

7,058

14,937

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31.12.16

31.12.15

£

£

Gross obligations repayable:

Within one year

8,497

8,497

Between one and five years

7,789

16,287

16,286

24,784

Finance charges repayable:

Within one year

619

619

Between one and five years

731

1,350

1,350

1,969

Net obligations repayable:

Within one year

7,878

7,878

Between one and five years

7,058

14,937

14,936

22,815

Non-cancellable

operating leases

31.12.16

31.12.15

£

£

Within one year

25,725

38,588

Between one and five years

-

25,725

25,725

64,313

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.16

31.12.15

£

£

Hire purchase contracts

14,936

22,815

Commercial invoice finance

4,900,073

6,655,772

4,915,009

6,678,587

The commercial invoice finance is secured by way of a legal mortgage charge and fixed charges over all assets

of the company.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Matthew Anderson (Senior Statutory Auditor)

for and on behalf of UHY Hacker Young

11.	RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption provided in FRS 102 Section 1A from disclosing

transactions with members of the same group that are wholly owned.

During the reporting period, the company received services from Tracx Investments LLP amounting to £171,333

(2015: £20,000). At the reporting date, amount outstanding was £Nil (2015: £Nil).

The company directors, Mr D M Richards and Mrs T L Richards, are members of Tracx Investments LLP.

During the reporting period, the company received services from Tracx Management Limited amounting to £nil

(2015: £28,333). At the reporting date, amount outstanding was £Nil (2015: £Nil).

The company directors, Mr D M Richards and Mrs T L Richards, are directors of Tracx Management Limited.

During the reporting period, the company received services from Cox Costello & Horne Limited amounting to

£3,770 (2015: £4,715). At the reporting date, amount outstanding was £3,500 (2015: £3,500).

The company director, Mr M F Cox, is a director and beneficial owner of Cox Costello & Horne Limited.

At the reporting date, an amount of £6,210 (2015: £14,910) was due from Mr D M Richards, £1,413 (2015: £Nil)

was due from Mrs T L Richards and £24,400 (2015: £Nil) was due from Mr P A Stokes: directors of the company.

These amounts are included within other debtors.