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).