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A2D FUNDING II PLC
AUDITED RESULTS FOR THE YEAR ENDING 31 March 2022
A2D Funding II plc (LSE: A2D2) 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 II 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 the 30 September 2014 the Company issued £150,000,000 bonds, listed on the London Stock Exchange. The proceeds of the issue were loaned to A2Dominion. Both the bonds and the loan to A2Dominion bear interest at a fixed rate of 4.50% payable semi-annually in March and September. The loan was issued net of transaction costs of £784,573 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 30 September 2026.
Principal risks and uncertainties
The principal risk and uncertainty for the Company is primarily credit rate risk as described more fully in Note 9. This includes the full and timely receipt of interest and principal on the loan due from A2Dominion. During the current and prior period, 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 to continue to operate. Shareholders' funds at the year end were in a surplus of £25k (2021: £23k).
Events after the balance sheet date
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 £24k (2021:£25k) and the amount prepaid at year end was £11k (2021:£11k).
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 31 March 2022 | Year ended 31 March 2021 | ||
£000 | £000 | ||
Interest receivable and similar income | 6,820 | 6,817 | |
Interest payable and similar charges | (6,818) | (6,815) | |
Gross profit | 2 | 2 | |
Other operating income | 49 | 55 | |
Administrative expenses | (49) | (55) | |
Profit on ordinary activities before taxation | 2 | 2 | |
Taxation | - | - | |
Profit for the period | 2 | 2 |
There are no other comprehensive income items other than the result for the period 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 | 149,655 | 149,587 | |
| |||
Current assets |
| ||
Debtors: Amounts falling due within one year | 33 | 36 | |
Cash at bank | 51 | 45 | |
84 | 81 | ||
Current liabilities: Amounts falling due within one year | (59) | (58) | |
Net current assets | 25 | 23 | |
Total assets less current liabilities | 149,680 | 149,610 | |
Non current liabilities: Amounts falling due after more than one year | (149,655) | (149,587) | |
Net assets |
| 25 | 23 |
| |||
Capital and reserves |
| ||
Called up share capital | 13 | 13 | |
Profit and loss account | 12 | 10 | |
Shareholders' funds | 25 | 23 |
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2022
Called up Share capital |
Profit and Loss account |
Total | |
£000 | £000 | £000 | |
Total equity as at 31 March 2020 | 13 | 8 | 21 |
Profit for the period | - | 2 | 2 |
Total equity as at 31 March 2021 | 13 | 10 | 23 |
| |||
Profit for the year | - | 2 | 2 |
Total equity as at 31 March 2022 | 13 | 12 | 25 |
STATEMENT OF CASH FLOWS
For the period ended 31 March 2022
| Year ended 31 March 2022 | Year ended 31 March 2021 | ||
£000 | £000 | |||
Operating activities |
| |||
Profit on ordinary activities before taxation | 2 | 2 | ||
Interest received | 6,750 | 6,750 | ||
Interest paid | (6,750) | (6,750) | ||
(Increase)/decrease in debtors | 3 | (4) | ||
Increase in creditors | 1 | 2 | ||
Cash flow from operating activities | 6 | - | ||
|
| |||
Cash flow from investing activities | - | - | ||
|
| |||
Cash flow from financing activities | - | - | ||
|
| |||
Net increase in cash and cash equivalents | 6 | - | ||
|
| |||
Cash and cash equivalents at beginning of the year | 45 | 45 | ||
Cash and cash equivalents at end of year | 51 | 45 | ||
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 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
· 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; and
· 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