REG - A2D Funding plc - RNS announcement
26/07/2022 15:30
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RNS Number : 8065T A2D Funding PLC 26 July 2022
A2D FUNDING PLC
AUDITED RESULTS FOR THE YEAR ENDING 31 MARCH 2022
A2D Funding plc (LSE: A2D1) announces its audited results for the year ended
31 March 2022.
The following is an extract from the Company's financial statements which will
be posted to shareholders on or around 29 July 2022.
Company summary
A2D Funding plc ("the Company" or "Issuer") is a special purpose company
established for the purpose of issuing retail bonds on the London Stock
Exchange (including further retail bonds issued in accordance with the
Conditions) and lending the proceeds thereof to A2Dominion Housing Group
Limited or one or more of its subsidiaries ("A2Dominion"). The Company has the
benefit of a financial guarantee from A2Dominion for the full and punctual
payment of interest and principal of bonds.
Business review
On 18 October 2013 the Company issued £150,000,000 bonds, listed on the
London Stock Exchange. The proceeds of the bond issue were loaned to
A2Dominion. Both the bonds and the loan bear interest at a fixed rate of 4.75%
payable semi-annually in April and October. The loan was issued net of
transaction costs of £793,515 which are amortised through the statement of
comprehensive income over the loan term as deferred income. The loan and the
bonds are due for repayment on 18 October 2022.
Principal risks and uncertainties
The principal risk and uncertainty for the Company is primarily credit risk
as described more fully in the annual financial statements. This includes the
full and timely receipt of interest and principal on the loan due from
A2Dominion. During the current and prior year, all such amounts were paid on
their due dates.
The directors have considered the nature and structure of the Company and are
satisfied that there is sufficient capital in relation to the business
activities of the Company and levels of planned financial performance.
Events after the balance sheet date
On 19th April 2022 the Company redeemed 50% of the outstanding on the Bonds
ahead of the Bond Maturity date in accordance with the terms of the Bonds. As
a result, £75,000,000 of principal together with an early redemption penalty
of £1,263,000 was repaid to Bond holders on that date. The remaining
£75,000,000 principal outstanding on the Bonds is due for repayment on 18th
October 2022, being the Bond Maturity date. 50% of the issue costs (£51k)
have also been released upon this partial redemption.
The Russia/Ukraine conflict has affected the global economic markets and is
exacerbating ongoing economic challenges, including inflation and global
supply chain disruption. Due to the financial guarantees in place in the
transaction, the Directors believe that the Company's performance is not
directly affected by the economic implications of the conflict.
Related party transactions
The Company has taken advantage of the exemption under section 33 of FRS102,
not to disclose transactions with other wholly owned group companies
consolidated by A2Dominion Housing Group Limited.
Under the terms of a corporate services agreement entered into by the Company
at arm's length, Law Debenture Corporate Services Limited is contracted to
provide certain corporate services including a registered office, corporate
administration and directors amongst other services for which it charges a
corporate service fee. The amount charged for these services during the year
was £25k (2021:£25k) and the amount prepaid at year end was £11k
(2021:£12k).
On behalf of the Board
Law Debenture Corporate Services Limited (Company Secretary)
29 July 2022
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2022
Year ended Year ended
31 March 31 March
2022 2021
£000 £000
Interest receivable and similar income 8,562 7,200
Interest payable and similar charges (8,528) (7,198)
Gross profit 34 2
Other operating income 19 53
Administrative expenses (52) (53)
Profit on ordinary activities before taxation 1 2
Taxation - -
Profit for the year 1 2
There are no other comprehensive income items other than the result for the
year stated above. Accordingly, no statement of other comprehensive income is
given.
The above amounts relate exclusively to continuing operations.
STATEMENT OF FINANCIAL POSITION
As at 31 March 2022
2022 2021
£000 £000
Non current assets
Loans and receivables - 149,802
Current assets
Loans and receivables 151,236 -
Debtors: Amounts falling due within one year 3,237 3,239
Cash at bank 46 41
154,519 3,280
Current liabilities: Amounts falling due within one year (154,493) (3,255)
Net current assets 26 25
Total assets less current liabilities 26 149,827
Non current liabilities: Amounts falling due after more than one year - (149,802)
Net assets 26 25
Capital and reserves
Called up share capital 13 13
Profit and loss account 13 12
Shareholders' funds 26 25
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2022
Called up Share capital Retained income Total
£000 £000 £000
Total equity as at 31 March 2020 13 10 23
Profit for the year - 2 2
Total equity as at 31 March 2021 13 12 25
Profit for the year - 1 1
Total equity as at 31 March 2022 13 13 26
STATEMENT OF CASH FLOWS
For the year ended 31 March 2022
Year ended 31 March Year ended 31
2022 March
2021
£000 £000
Operating activities
Profit on ordinary activities before taxation 1 2
Interest received 8,463 7,106
Interest paid (8,431) (7,106)
Net impact of EIR adjustment (32) -
Increase in debtors 2 16
Increase in creditors 2 (13)
Cash generated from operating activities 5 5
Cash flow from investing activities
- -
Cash flow from financing activities
- -
Net increase in cash and cash equivalents 5 5
Cash and cash equivalent at beginning of year 41 36
Cash and cash equivalent at end of year 46 41
Directors' responsibility statement
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 year.
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 UK 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.
The directors confirm, to the best of their knowledge:
· the financial statements have been prepared in accordance with UK
Generally Accepted Accounting Practice and give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company;
· the annual report includes a fair review of the development and
performance of the business and the financial position of the Company,
together with a description of the principal risks and uncertainties that it
faces.
- ENDS-
For further information contact:
Law Debenture Corporate Services Limited (Company Secretary) +44 20 7606 5453
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