Detailed Analysis of CV Resorts Ltd - London Capital & Finance - Have any of their loans defaulted?
According to the latest published accounts to 30 April 2017 (more recent accounts have been delayed due to LCF using a loophole to avoid publication) London Capital & Finance have only 11 borrowers up from 6 in 2016. With a loan book valued at £58m that's an average of over £5 million per loan. This is an average, it's possible that some were much higher value loans. Were London Capital & Finance bond holders aware that there was such a small pool of borrowers with loans as this significantly increases the risk?
|London Capital & Finance -How many loans?|
One other company that London Capital & Finance seems to have lent money to is CV Resorts Ltd which is run by the same director as London Capital & Finance. It's hard to know exactly what has been loaned to which company as the accounts are not detailed sufficiently but London Capital & Finance and linked company Cape Verde Support Ltd are the only companies that have a charge on the accounts of CV Resorts and there is a secured debt showing in the accounts of £5.7 million.
This loan has sat doing nothing for 4 years. How can they pay interest of 12-20% on it to LCF when it is earning nothing? No interest payments have been made to LCF over the 4 year period and the company is not trading. It makes no sense at all if LCF were really lending money!
Most importantly in the time since the loan was made in 2015 until the latest accounts, NO interest payments or capital payments have been made. LCF are not getting a return from this money!
CV Resorts Ltd was registered as a company in 2013
|CV Resorts Ltd company registration|
|The only director of CV Resorts is Robert Mannering Sedgewick|
|CV Resorts accounts Sept 2015 showing debt and revaluation|
Curiously the asset charge was only made on 15 November 2015 yet the money had already been loaned to CV Resorts by that point and had appeared in their accounts of September 2015. You would expect that the money would not be handed over until it had been secured as it creates quite a big risk that the documents might not be signed.
|CV Resorts revaluation accounts from 2015|
|CV Resorts Impairment|