A2D Funding II PLC Annual Financial Report March 2021 (9868G)

TIDMA2D2

RNS Number : 9868G

A2D Funding II PLC

29 July 2021

A2D FUNDING II PLC

AUDITED RESULTS FOR THE YEARING 31 March 2021

A2D Funding II plc (LSE: A2D2) announces its audited results for the year ended 31 March 2021.

The following is an extract from the Company's financial statements which will be posted to shareholders on or around 29 July 2021.

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 GBP150,000,000 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 GBP784,573 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 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 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 GBP23k (2020: GBP21k).

Events after the balance sheet date

There have been no reportable events since 31 March 2021.

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 GBP25k (2020:GBP25k) and the amount prepaid at year end was GBP11k (2020:GBP10k).

On behalf of the Board

Law Debenture Corporate Services Limited (Company Secretary)

29 July 2021

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2021

 
                                       Year ended       Year ended 
                                    31 March 2021    31 March 2020 
                                           GBP000           GBP000 
-------------------------------   ---------------  --------------- 
 Interest receivable and 
  similar income                            6,817            6,752 
 Interest payable and similar 
  charges                                 (6,815)          (6,750) 
--------------------------------  ---------------  --------------- 
 Gross profit                                   2                2 
 Other operating income                        55               47 
 Administrative expenses                     (55)             (48) 
--------------------------------  ---------------  --------------- 
 Profit on ordinary activities 
  before taxation                               2                1 
 Taxation                                       -                - 
-------------------------------   ---------------  --------------- 
 Profit for the period                          2                1 
--------------------------------  ---------------  --------------- 
 

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 2021

 
                                        2021     2020 
                                      GBP000      GBP000 
-------------------------------   ----------  ---------- 
 Non current assets 
 Loans and receivables               149,587     149,523 
--------------------------------  ----------  ---------- 
 
 Current assets 
 Debtors: Amounts falling 
  due within one year                     36          32 
 Cash at bank                             45          45 
                                          81          77 
 Current liabilities : Amounts 
  falling due within one year           (58)        (56) 
--------------------------------  ----------  ---------- 
 Net current assets                       23          21 
--------------------------------  ----------  ---------- 
 Total assets less current 
  liabilities                        149,610     149,544 
 Non current liabilities 
  : Amounts falling due after 
  more than one year               (149,587)   (149,523) 
--------------------------------  ----------  ---------- 
 Net assets                               23          21 
--------------------------------  ----------  ---------- 
 
 Capital and reserves 
 Called up share capital                  13          13 
 Profit and loss account                  10           8 
--------------------------------  ----------  ---------- 
 Shareholders' funds                      23          21 
--------------------------------  ----------  ---------- 
 

STATEMENT OF CHANGES IN EQUITY

For the year ended 31 March 2021

 
 
                                      Called up       Profit and     Total 
                                  Share capital     Loss account 
                                         GBP000           GBP000    GBP000 
 Total equity as at 31 March 
  2019                                       13                7        20 
-----------------------------  ----------------  ---------------  -------- 
 Profit for the period                        -                1         1 
-----------------------------  ----------------  ---------------  -------- 
 Total equity as at 31 March 
  2020                                       13                8        21 
-----------------------------  ----------------  ---------------  -------- 
 
 Profit for the year                          -                2         2 
-----------------------------  ----------------  ---------------  -------- 
 Total equity as at 31 March 
  2021                                       13               10        23 
-----------------------------  ----------------  ---------------  -------- 
 

STATEMENT OF CASH FLOWS

For the period ended 31 March 2021

 
                                             Year ended   Year ended 
                                               31 March           31 
                                                   2021        March 
                                                                2020 
                                                 GBP000       GBP000 
 Operating activities 
 Profit on ordinary activities 
  before taxation                                     2            1 
 Interest received                                6,750        6,750 
 Interest paid                                  (6,750)      (6,750) 
 (Increase)/decrease in debtors                     (4)            2 
 Increase in creditors                                2            - 
----------------------------------------    -----------  ----------- 
 Cash flow from operating 
  activities                                          -            3 
------------------------------------------  -----------  ----------- 
 
 Cash flow from investing                             -            - 
  activities 
 
 Cash flow from financing                             -            - 
  activities 
 
 Net increase in cash and 
  cash equivalents                                    -            3 
 
 Cash and cash equivalents at beginning 
  of the year                                        45           42 
------------------------------------------  -----------  ----------- 
 Cash and cash equivalents at end of 
  year                                               45           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) [phone]

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July 29, 2021 13:15 ET (17:15 GMT)