Tuesday, 8 January 2019

London Capital Finance - Linked Companies & Loans Update

I've previously written about the web of companies that seem to be connected to LCF. This is some more detailed information focused on some of those companies.

Some investors have claimed that it's normal for LCF to have directors on the board of companies they loan to. That may be correct but it's not normal for all companies being given loans to be registered at the same address as the company making the loan. These are not independent companies they are subsidiaries of London Power Management. 

It's not normal or sensible to primarily lend to a company and many subsidiary companies of it. It's also not normal for the company receiving the loan to only have 1 director that is the one from LCF as per CV Hotels

It was also stated today that the FCA would have to obtain a court order to freeze assets so it's possible that they have a lot more evidence than has been released so far. Impacting a business without sufficient proof would lead to lots of damage claims so they must be pretty certain something is amiss.

One company that has a charge outstanding to London Capital Finance is LEISURE & TOURISM DEVELOPMENTS LIMITED. This owns shares in WATERSIDE VILLAGES LIMITED. Both are subsidiaries of  LONDON POWER MANAGEMENT LIMITED. See more below about that company.

According to the latest accounts up to 31/3/2017 it has secured debts of £41million, presumably to London Capital Finance as that is the only charge on it's books. The accounts mention that this debt was REPAID by Group Companies after the year end. The latest accounts are overdue so we don't know who/when this was.

Could this be a way of refinancing the business so that it appears to London Capital Finance that the loan has been paid but in reality it has just been shifted from one company to another? It could mean that the loan is not performing but there has been no default. 

London Capital Finance repeatedly claim that none of their loans have ever defaulted. This seems very unlikely when they are lending to high risk borrowers. By this loan movement they can maintain that statement as being technically correct

LEISURE & TOURISM DEVELOPMENTS LIMITED
https://beta.companieshouse.gov.uk/company/09324527Registered 2014
Accounts overdue 30/12/18
Charge to LCF 17/5/16 Outstanding
Secured Debts (LCF £41m) – REPAID by Group companies after 31/3/17. Which company has taken on this debt? 
LEISURE & TOURISM DEVELOPMENTS LIMITED loan from London Capital Finance
LEISURE & TOURISM DEVELOPMENTS LIMITED

WATERSIDE VILLAGES LIMITED
Charge to LCF 12/5/17, another charge 2016 to TMF trustee
Accounts value £6m
Director – SANDS

The company that owns LEISURE & TOURISM DEVELOPMENTS LIMITED is LONDON POWER MANAGEMENT LIMITED. According to their last accounts from 2015 they owned 10 other companies many of which LCF have loaned money to.

Most worryingly LONDON POWER MANAGEMENT LIMITED (previously London Group Limited) has repeatedly used a loophole to avoid filing accounts with Companies House and is now more than 6 months overdue for filing their 2016 accounts after using the loophole 5 TIMES since 2016. LONDON POWER MANAGEMENT LIMITED has a charge on its accounts from LCF so owes money to London Capital Finance. It also has an outstanding charge to London Support Group.

In addition LONDON POWER MANAGEMENT LIMITED is listed to be struck off by Companies House. This means ownership of all assets moves to the Government.

LONDON POWER MANAGEMENT LIMITED
https://beta.companieshouse.gov.uk/company/02504629

List of Companies owned by LONDON POWER MANAGEMENT LIMITED
List of Companies owned by LONDON POWER MANAGEMENT LIMITED
List of Companies owned by LONDON POWER MANAGEMENT LIMITED
Another company CV Resorts Ltd has a charge from LCF on its accounts which appears to relate to a loan of £5.7m from LCF. However between 2015 and 2017 there was absolutely no movement in any figures in the accounts. How is this possible if the loan is being charged 8% interest?



INTERNATIONAL RESORTS MANAGEMENT LIMITED
Company registered 2012
Request to dissolve active

LAKEVIEW UK INVESTMENTS PLC
Registered 2013
Director – Sedgwick

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