London Capital Finance - Linked Companies & Loans Update
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
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?
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.
List of Companies owned by LONDON POWER MANAGEMENT LIMITED
|List of Companies owned by LONDON POWER MANAGEMENT LIMITED|