Monday, 4 February 2019

How Many Loans to London Capital & Finance Borrowers?

The administrators of London Capital & Finance have now confirmed the number of loans that they made with the £236 million of bondholders' money that was handed over to the company.

According to their 2017 accounts LCF had 11 borrowers and loans outstanding of £58 million. As of January 2019 they still only had 12 borrowers but a massive £236 million of loans made. This means that the average loan per company has increased from £5 million to almost £20 million in that time.

Administrators claiming only 12 loans is slightly misleading. LCF may have only lent money to 12 companies but at least some of those companies have lent money on to multiple companies themselves. One example is London Oil and Gas that is shown to have made loans to both Independent Oil & Gas and Atlantic Petroleum. This multi layer lending will make analysis of the recovery prospects much more difficult.

I've been able to identify the companies that have charges on their accounts in favour of London Capital & Finance. Many of these companies are quite new so are not required to submit accounts,  have failed to file on time or have used the London Capital & Finance account period trick to avoid submitting their accounts to Companies House when required. This means that for those companies we are unable to see how much they have borrowed from LCF but we do know that on average the amount is nearly £20 million per company. You'll notice that there are 13 companies in the list below. It appears that International Resort Group may have repaid their loan but left the charge in place. As some accounts are seriously delayed there may have been significant movement in that time.

LCF claimed that they only lent to companies after a detailed review and analysis of 3 years worth of accounts. Out of 14 companies with a charge applied in favour of LCF, 12 of them are under 3 years old and 9 of the companies are brand new with less than a year of existence.

Full details of each company are below:

Many of the companies lent money are linked by directors and registered addresses and many are all part of the same group of companies owned by one called London Group Ltd. All the companies in this group shown in yellow below have loans from LCF.

RIVER LODGE EQUESTRIAN CENTRE UK LIMITED

Formed Jan 2017, first accounts due Oct 2018 but used account trick to shift to 8th Jan 2019 but not filed so now overdue. Charge to LCF made Oct 2017. Company owned by Sean Cubitt

CV RESORTS LIMITED
Formed in Feb 2013 and subject of one of my early London Capital & Finance blog posts as it has a large LCF loan and assets that were revalued around the time the loan made. CV Resorts Ltd has marked their assets as being impaired in their latest accounts. There are 3 charges on their accounts including one to LCF.

Sole Director: Robert Mannering Sedgwick

LONDON POWER MANAGEMENT LIMITED

Formed 1990, accounts overdue in June 2018. Last accounts made up to Oct 2015. Importantly LCF made a loan in May 2017 AFTER accounts had not been filed after repeatedly using the accounting loophole trick! Owned by London Group LLP. 

Director: Simon Hume-Kendall

Assets of £35 million in 2015 accounts. LCF loan was made after this date

LONDON OIL & GAS LIMITED

Formed August 2015, owned by London Power Corporation Plc (75%), Elten Barker (25%) & Simon Hume Kendall (25%) - curious numbers on this one that don't add up to 100%!)

Accounts to May 2017 after shortening trick used. Charge to LCF dated July 2016. Used again for 2018 accounts so not yet published.

Loan from LCF confirmed as £50 million in 2017 accounts but assets are only £38 million. How does the claimed LCF lending criteria of 75% asset buffer work?


LEISURE & TOURISM DEVELOPMENTS LIMITED

Formed Nov 2014. Accounts overdue for 2018. Owned by Leisure & Tourism Holdings Limited (75%), Elten Barker (25%) & Simon Hume Kendall (25%) - curious numbers on this one that don't add up to 100%!)

Charge to LCF added May 2016. Shareholding sold to Leisure & Tourism Holdings Limited by London Group April 2017. Negative Shareholder capital. Loans repaid by group company after Mar 2017 but which one?
Debts £41 million, assets £37 million. How did LCF give this loan with their asset requirements?

Owner Leisure & Tourism Holdings Limited  was struck off Companies House  on 5 Feb 2019

Sole Director: Robert Mannering Sedgwick


WATERSIDE CORNWALL GROUP LIMITED

Formed April 2017. Charge to LCF May 2017. Owned by Prime Resort Development Limited (see below) so ultimately by Ian Sands

Shareholder funds £100 (pounds not millions)

Directors: Ian Sands, Michael Whyke

COLINA PROPERTY HOLDINGS LIMITED

Formed April 2017. Charge to LCF May 2017 AND Global Security Trustees Dec 2017. Owned by Prime Resort Development Limited (see below) so ultimately by Ian Sands. Accounting loophole used to delay filing - basic accounts filed to Jun 2017

Directors: Ian Sands, Michael Whyke

PRIME RESORT DEVELOPMENT LTD

Formed Sept 2017. Charge to LCF Oct 2018. Owned by Ian Sands

Directors: Ian Sands, Philippa Isbell, Angel Rodriguez

No accounts filed yet. Accounting loophole used to delay filing to June 2019 from Dec 2018

COLINA SUPPORT LIMITED

Formed 25 April 2017. Owned by Prime Resort Development Limited (see below) so ultimately by Ian Sands. Charge to LCF added 29 April 2017, 4 days after company created
Accounts to 30 Jun 2017 show no activity and only £100 in bank so why has LCF registered a charge on the company? No further accounts available, due March 2019

Directors: Ian Sands, Michael Whyke

COSTA SUPPORT LIMITED

Formed April 2017. Charge to LCF added 29 April 2017, 3 days after company created. Owned by Prime Resort Development Limited (see below) so ultimately by Ian Sands. Accounts to 30 Jun 2017 show no activity and only £100 in bank so why has LCF registered a charge on the company? No further accounts available, due March 2019

Directors: Ian Sands, Michael Whyke

CAPE VERDE SUPPORT LIMITED

Formed April 2017. Charge from LCF April 2017. No accounts filed - now overdue

Sole Director: Robert Mannering Sedgwick


COSTA PROPERTY HOLDINGS LIMITED

Formed April 2017. Charge to LCF added Dec 2017. Owned by Prime Resort Development Limited (see below) so ultimately by Ian Sands. Accounts to 30 Jun 2017 show no activity and £10,000 in bank so why has LCF registered a charge on the company? No further accounts available, due March 2019

Directors: Ian Sands, Michael Whyke

LONDON GROUP LLP

Formed March 2017. Charge to LCF added 29 April 2017. Accounts overdue - 17 Dec 2018

Directors: Elten Barker & Simon Hume Kendall

GLOBAL ADVANCE DISTRIBUTIONS LIMITED

Formed in Dec 2013 and previously known as International Resort Group PLC. Company due to be struck off, now cancelled. In 2015 had a shareholder value of £9 million. In 2016 the share capital was reduced to £2 with all assets and liabilities written off.

There is still a charge to LCF on the company. Have all the LCF loans been written off or has the charge been left by mistake?


Sole Director: Ian Sands, previously Robert Mannering Sedgwick

Accounts to 30 Sept 2017 show that the company has £2 assets and is now dormant and fully owned by Global Realisations Ltd with director Robert Mannering Sedgwick which is also a dormant company.

Loans showing in the LC&F accounts


2 comments:

  1. is Robert Mannering Sedgwick this person? https://www.lawgazette.co.uk/sdt-and-sra-interventions/sdt-robert-mannering-sedgwick/5065389.article

    ReplyDelete