A2D Funding II PLC Annual Financial Report (8904H)

TIDMA2D2

RNS Number : 8904H

A2D Funding II PLC

01 August 2023

A2D FUNDING II PLC

AUDITED RESULTS FOR THE YEARING 31 March 2023

A2D Funding II plc (LSE: A2D2) announces its audited results for the year ended 31 March 2023.

The following is an extract from the Company's financial statements which will be posted to shareholders on or around 31 July 2023.

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. 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 GBP27k (2022: GBP25k).

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 GBP27k (2022:GBP24k) and the amount prepaid at year end was GBP12k (2022:GBP11k).

On behalf of the Board

Law Debenture Corporate Services Limited (Company Secretary)

31 July 2023

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2023

 
                                              Year ended       Year ended 
                                           31 March 2023    31 March 2022 
                                   Note           GBP000           GBP000 
-------------------------------   -----  ---------------  --------------- 
 Interest receivable and 
  similar income                              6,823                 6,820 
 Interest payable and similar 
  charges                                    (6,821)              (6,818) 
--------------------------------  -----  ---------------  --------------- 
 Gross profit                                   2                       2 
 Other operating income                         69                     49 
 Administrative expenses                       (69)                  (49) 
--------------------------------  -----  ---------------  --------------- 
 Profit on ordinary activities 
  before taxation                   3           2                       2 
 Taxation                           4           -                       - 
-------------------------------   -----  ---------------  --------------- 
 Profit for the year                            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 2023

 
                                   Note        2023     2022 
                                             GBP000      GBP000 
 -------------------------------  -----  ----------  ---------- 
 Non current assets 
 Loans and receivables              5       149,725     149,655 
--------------------------------  -----  ----------  ---------- 
 
 Current assets 
 Debtors: Amounts falling 
  due within one year               6            47          33 
 Cash at bank                                    63          51 
                                                110          84 
 Current liabilities : Amounts 
  falling due within one year       7          (83)        (59) 
--------------------------------  -----  ----------  ---------- 
 Net current assets                              27          25 
--------------------------------  -----  ----------  ---------- 
 Total assets less current 
  liabilities                               149,752     149,680 
 Non current liabilities 
  : Amounts falling due after 
  more than one year                8     (149,725)   (149,655) 
--------------------------------  -----  ----------  ---------- 
 Net assets                                      27          25 
--------------------------------  -----  ----------  ---------- 
 
 Capital and reserves 
 Called up share capital            10           13          13 
 Profit and loss account                         14          12 
--------------------------------  -----  ----------  ---------- 
 Shareholders' funds                             27          25 
--------------------------------  -----  ----------  ---------- 
 

STATEMENT OF CHANGES IN EQUITY

For the year ended 31 March 2023

 
 
                                 Called up       Profit and     Total 
                             Share capital     Loss account 
                                    GBP000           GBP000    GBP000 
 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 
------------------------  ----------------  ---------------  -------- 
 
 Profit for the year                     -                2         2 
------------------------  ----------------  ---------------  -------- 
 Total equity as at 
  31 March 2023                         13               14        27 
------------------------  ----------------  ---------------  -------- 
 

STATEMENT OF CASH FLOWS

For the period ended 31 March 2023

 
                                             Year ended   Year ended 
                                               31 March           31 
                                                   2023        March 
                                                                2022 
                                                 GBP000       GBP000 
 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                    (14)            3 
 Increase in creditors                               24            1 
------------------------------------------  -----------  ----------- 
 Cash flow from operating 
  activities                                         12            6 
------------------------------------------  -----------  ----------- 
 
 Cash flow from investing                             -            - 
  activities 
 
 Cash flow from financing                             -            - 
  activities 
 
 Net increase in cash and 
  cash equivalents                                   12            6 
 
 Cash and cash equivalents at beginning 
  of the year                                        51           45 
------------------------------------------  -----------  ----------- 
 Cash and cash equivalents at end 
  of year                                            63           51 
------------------------------------------  -----------  ----------- 
 

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; 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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August 01, 2023 03:41 ET (07:41 GMT)