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Forbes Ventures Plc - Audited Results for the year ended 31 December 2020

·6-min read

31 December 2021

FORBES VENTURES

(“Forbes” or the “Company”)

Audited Results for the year ended 31 December 2020

Strategic Report

The directors present the strategic report for the year ended 31 December 2020.

Review of the business

Business Strategy and objectives

Forbes Ventures is a company that has a focus on the finance and legal sectors with particular reference to innovative technology and funding solutions that improve service, scalability and efficiency.

Business environment and performance

The business has continued to explore the potential within the investment market, developing fund management capabilities. The uncertainties caused by Brexit and related issues limited the ability of the business to secure sufficient funding, however the business has extended its interests to include development of a securitisation platform to be used across a range of financial assets, and the first tranche of this activity is expected to be listed and complete after the balance sheet was signed, and has been reported as a post balance sheet event (See note 21). The investment in the company’s future resulted in a financial loss of $297,426 for the year but has been justified by the progress in the securitization platform, and we continue to be well-supported by our majority shareholder, CC Capital Limited (previously named MEGH UK Ltd).

Post balance sheet activities

As mentioned above, Forbes Ventures announced that it was developing a securitisation platform in its wholly owned subsidiary Forbes Ventures Investment Management Limited (“FVIM”). The first tranche of this business is scheduled to be listed and completed after the balance sheet date and after the Board approved the accounts. The impact of this transaction makes it a post balance sheet event – an item that fundamentally changes the interpretation of the accounts. Details of the transaction are provided in note 21 to the accounts.

I would like to thank my fellow Directors, both past and present, for their hard work in bringing this securitisation platform to fruition, as well as our shareholders for their patience as we carefully determined this future course. Given the uncertainties facing global markets as a result of the COVID-19 Epidemic, this platform will create a durable and secure revenue stream for the Company, regardless of continued global volatility in markets or a continued low interest rate environment.

Aside from securitisations, which should provide solid base cashflow, the Company continues to work on other complimentary projects to diversify our business lines and take advantage of current dislocations in the market and will update the market as these come on line.

On behalf of the board

Mr P Moss

Director

31 December 2021

INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

2020

2019

$

$

Administrative expenses

(229,530)

(321,534)

Operating loss

(229,530)

(321,534)

Investment revenues

22,104

52

Finance costs

(90,000)

(8,293)

Other gains and losses

-

-

Loss before taxation

(297,426)

(329,775)

Income tax expense

-

-

Loss for the year

(297,426)

(329,775)

The income statement has been prepared on the basis that all operations are continuing operations.

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020

2020

2019

$

$

Loss for the year

(297,426)

(329,775)

Other comprehensive income

-

-

Total comprehensive income for the year

(297,426)

(329,775)

The income statement has been prepared on the basis that all operations are continuing operations.

Basic loss per share

(0.0007)

(0.0007)

Diluted loss per share

(0.0007)

(0.0007)

Average number of shares

456,251,830

456,251,830

No dividends were proposed or declared in respect of any of the periods presented above.

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

2020

2019

$

$

Non-current assets

Intangible assets

56,785

56,785

Investments

103

103

56,888

56,888

Current assets

Investments

132,065

132,065

Trade and other receivables

584,156

124,545

Cash and cash equivalents

1,361

-

717,582

256,610

Total assets

774,470

313,498

Current liabilities

Trade and other payables

1,356,966

598,568

Net current liabilities

(639,384)

(341,958)

Total liabilities

1,356,966

598,568

Net (liabilities)/assets

(582,496)

(285,070)

Equity

Called up share capital

98,293,401

98,293,401

Other reserves

292,568

292,568

Capital redemption reserve

92,740

92,740

Retained earnings

(99,261,205)

(98,963,779)

Total equity

(582,496)

(285,070)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

2020

2019

$

$

$

$

Cash flows from operating activities

Cash absorbed by operations

(63,059)

(197,062)

Interest Payable

(90,000)

(8,293)

Net cash outflow from operating activities

(153,059)

(205,355)

Investing activities

Purchase of intangible assets

-

-

Loan to subsidiary

(455,009)

(88,957)

Proceeds on disposal of investments

-

-

Interest received

22,104

52

Net cash used in investing activities

(432,905)

(88,905)

Financing activities

Proceeds from issue of shares

-

-

Loan from parent company

587,325

294,085

Adjustment to capital

-

-

Net cash generated from financing activities

587,325

294,085

Net increase/(decrease) in cash and cash equivalents

1,361
)

(175)

Cash and cash equivalents at beginning of year

-

175

Cash and cash equivalents at end of year

1,361

-

The Company’s major shareholder, CC Capital Limited, has provided a letter of support to the Company for 12 months forward. Despite this letter of support ensuring the solvency of the Company, the Auditor has identified the importance of the first tranche of securitisation in demonstrating the company’s ability to deliver on its intended long-term strategy.

The financial statements were approved by the board of directors and authorised for issue on 30 December 2021 and are signed on its behalf by:

Mr P Moss

Director

Note 21

Post Balance Sheet Event

The company and its subsidiaries have for some time been exploring how to provide litigation funding for law firms through listed securitisation issues. During 2020, the firm established working relationships with a number of counterparties that have worked collaboratively to develop a platform that law firms could use to originate funding.

By the end of the year Forbes Ventures and its subsidiaries had established itself as a potential key component of the process, which would involve buying receivables through wholly owned securitisation cell companies and selling them to an issuer as support for bonds listed on the Maltese stock exchange. As at the year end, the firm had not signed any of the documentation to support these relationships but negotiations were at an advanced stage.

The income for the firm and its wholly owned subsidiaries will be a commission based on the size of the bond issued and the specific details of the agreed commercial terms. Since the balance sheet date, Forbes Ventures has worked towards the listing and closing of the first bond of £40m which will realise a gross income of £800,000 (before costs and taxation).,. The firm plans to issue a second tranche of securitisation business amounting to bonds totalling £60m. The gross income that is projected from this tranche will amount to £1.2m (before costs and taxation). The benefit of both tranches will be spread across the firm and its wholly owned subsidiaries.

The Directors of Forbes accept responsibility for the contents of this announcement.

-ENDS-

For further information, please contact:

Forbes Ventures
Peter Moss, Chairman
Rob Cooper, Chief Executive Officer


01625 568 767
020 3687 0498

AQSE Corporate Adviser
Peterhouse Capital Limited
Mark Anwyl


020 7469 0930

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as defined in the European Union (Withdrawal) Act 2018).

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