A2D Funding PLC Annual Financial Report March 2019 (0722H)

TIDMA2D1

RNS Number : 0722H

A2D Funding PLC

29 July 2019

A2D FUNDING PLC

AUDITED RESULTS FOR THE YEARING 31 MARCH 2019

A2D Funding plc (LSE: A2D1) announces its audited results for the year ended 31 March 2019.

The following is an extract from the Company's financial statements which will be posted to shareholders on or around 29 July 2019.

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.

Business review

On 18 October 2013 the Company issued GBP150,000,000 bonds. 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 GBP793,515 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 risks and uncertainty for the Company is primarily credit risk and include the full and timely receipt of interest and principal on the loan due from A2Dominion. During the current year 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

There have been no reportable events since 31 March 2019.

Related party transactions

The Company has taken advantage of the exemption under section 33 of FRS102, not to disclose transactions with other group companies consolidated by A2Dominion Housing Group Limited.

On behalf of the Board

Law Debenture Corporate Services Limited (Company Secretary)

25 July 2019

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2019

 
                                    Year ended    Year ended 
                                      31 March      31 March 
                                          2019          2018 
                                        GBP000        GBP000 
-------------------------------   ------------  ------------ 
 Interest receivable and 
  similar income                         7,151         7,213 
 Interest payable and similar 
  charges                              (7,149)       (7,211) 
--------------------------------  ------------  ------------ 
 Gross profit                                2             2 
 Other operating income                     55            48 
 Administrative expenses                  (56)          (48) 
--------------------------------  ------------  ------------ 
 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 2019

 
                                                2019        2018 
                                              GBP000      GBP000 
---------------------------------------   ----------  ---------- 
 Financial assets 
 Loans and receivables                       149,622     149,597 
----------------------------------------  ----------  ---------- 
 
 Current assets 
 Debtors: Amounts falling due 
  within one year                            3,236         3,225 
 Cash at bank                                 33              37 
----------------------------------------  ----------  ---------- 
                                             3,269         3,262 
 Financial liabilities: Amounts 
  falling due within one year               (3,248)      (3,242) 
----------------------------------------  ----------  ---------- 
 Net current assets                           21              20 
----------------------------------------  ----------  ---------- 
 Total assets less current liabilities      149,643      149,617 
 Financial liabilities: Amounts 
  falling due after more than 
  one year                                 (149,622)   (149,597) 
----------------------------------------  ----------  ---------- 
 Net assets                                   21              20 
----------------------------------------  ----------  ---------- 
 
 Capital and reserves 
 Called up share capital                      13              13 
 Profit and loss account                       8               7 
----------------------------------------  ----------  ---------- 
 Shareholders' funds                              21          20 
----------------------------------------  ----------  ---------- 
 

STATEMENT OF CHANGES IN EQUITY

For the year ended 31 March 2019

 
 
                                  Share capital     Retained income     Total 
                                         GBP000              GBP000    GBP000 
 Total equity as at 31 March 
  2017                                       13                   5        18 
 Profit for the year                          -                   2         2 
-----------------------------  ----------------  ------------------  -------- 
 Total equity as at 31 March 
  2018                                       13                   7        20 
 
 Profit for the year                          -                   1         1 
-----------------------------  ----------------  ------------------  -------- 
 Total equity as at 31 March 
  2019                                       13                   8        21 
-----------------------------  ----------------  ------------------  -------- 
 

STATEMENT OF CASH FLOWS

For the year ended 31 March 2019

 
                                                    Year ended      Year ended 
                                                      31 March        31 March 
                                                          2019            2018 
                                                        GBP000          GBP000 
 Operating activities 
 Profit on ordinary activities 
  before taxation                                            1               2 
 Interest received                                       7,125           7,125 
 Interest paid                                         (7,125)         (7,125) 
 (Increase)/decrease in debtors                           (11)               3 
 Increase/(decrease) in creditors                            6             (2) 
---------------------------------------------      -----------  -------------- 
 Cash (used)/generated from operating 
  activities                                               (4)               3 
---------------------------------------------      -----------  -------------- 
 
 Cash flow from investing activities                         -                 - 
 
 Cash flow from financing activities                         -                 - 
 
 Net (decrease)/increase in cash 
  and cash equivalents                                     (4)         3 
---------------------------------------------  ---------------  -------------- 
 
 Cash and cash equivalent at beginning 
  of year                                                   37              34 
---------------------------------------------  ---------------  -------------- 
 Cash and cash equivalent at end 
  of year                                                   33              37 
---------------------------------------------  ---------------  -------------- 
 
 

Directors' responsibility statement

The directors are responsible for preparing the strategic report, the directors' report 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 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) [phone]

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July 29, 2019 08:21 ET (12:21 GMT)