IRIS Accounts Production v20.3.4.1 10773394 Board of Directors 1.1.19 31.12.19 31.12.19 direct lending. false Ordinary 1.00000 Redeemable 1.00000 1.00000 iso4217:GBP iso4217:USD iso4217:EUR xbrli:shares xbrli:pure 10773394 2018-12-31 10773394 2019-12-31 10773394 2019-01-01 2019-12-31 10773394 2017-12-31 10773394 2018-01-01 2018-12-31 10773394 2018-12-31 10773394 ns16:EnglandWales 2019-01-01 2019-12-31 10773394 ns15:PoundSterling 2019-01-01 2019-12-31 10773394 ns11:Director1 2019-01-01 2019-12-31 10773394 ns11:PrivateLimitedCompanyLtd 2019-01-01 2019-12-31 10773394 ns11:FRS102 2019-01-01 2019-12-31 10773394 ns11:Audited 2019-01-01 2019-12-31 10773394 ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport 2019-01-01 2019-12-31 10773394 ns11:LargeMedium-sizedCompaniesRegimeForAccounts 2019-01-01 2019-12-31 10773394 ns11:FullAccounts 2019-01-01 2019-12-31 10773394 ns11:OrdinaryShareClass1 2019-01-01 2019-12-31 10773394 ns11:OrdinaryShareClass2 2019-01-01 2019-12-31 10773394 ns11:OrdinaryShareClass2 2 2019-01-01 2019-12-31 10773394 ns11:Director2 2019-01-01 2019-12-31 10773394 ns11:RegisteredOffice 2019-01-01 2019-12-31 10773394 ns6:CurrentFinancialInstruments 2019-12-31 10773394 ns6:CurrentFinancialInstruments 2018-12-31 10773394 ns6:Non-currentFinancialInstruments 2019-12-31 10773394 ns6:Non-currentFinancialInstruments 2018-12-31 10773394 ns6:ShareCapital 2019-12-31 10773394 ns6:ShareCapital 2018-12-31 10773394 ns6:RetainedEarningsAccumulatedLosses 2019-12-31 10773394 ns6:RetainedEarningsAccumulatedLosses 2018-12-31 10773394 ns6:ShareCapital 2017-12-31 10773394 ns6:RetainedEarningsAccumulatedLosses 2017-12-31 10773394 ns6:ShareCapital 2018-01-01 2018-12-31 10773394 ns6:RetainedEarningsAccumulatedLosses 2018-01-01 2018-12-31 10773394 ns6:ShareCapital 2019-01-01 2019-12-31 10773394 ns6:RetainedEarningsAccumulatedLosses 2019-01-01 2019-12-31 10773394 ns6:ComputerEquipment 2019-01-01 2019-12-31 10773394 ns6:OwnedAssets 2019-01-01 2019-12-31 10773394 ns6:OwnedAssets 2018-01-01 2018-12-31 10773394 ns6:ComputerEquipment 2018-12-31 10773394 ns6:ComputerEquipment 2019-12-31 10773394 ns6:ComputerEquipment 2018-12-31 10773394 ns6:AdditionsToInvestments 2019-12-31 10773394 ns6:CostValuation 2019-12-31 10773394 ns6:Subsidiary1 2019-01-01 2019-12-31 10773394 1 ns6:Subsidiary1 2019-01-01 2019-12-31 10773394 ns6:Subsidiary1 2019-12-31 10773394 ns6:Subsidiary1 2018-12-31 10773394 ns6:Subsidiary1 2018-01-01 2018-12-31 10773394 ns6:CostValuation 2018-12-31 10773394 ns6:OtherIncreaseDecreaseInInvestments 2019-12-31 10773394 ns6:CurrentFinancialInstruments ns6:WithinOneYear 2019-12-31 10773394 ns6:CurrentFinancialInstruments ns6:WithinOneYear 2018-12-31 10773394 ns6:Non-currentFinancialInstruments 2019-01-01 2019-12-31 10773394 ns11:OrdinaryShareClass1 2019-12-31 10773394 ns11:OrdinaryShareClass2 2019-12-31 10773394 ns6:RetainedEarningsAccumulatedLosses 2018-12-31 10773394 1 2019-01-01 2019-12-31
REGISTERED NUMBER: 10773394 (England and Wales)












Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2019

for

Aurelius Finance Company Limited

Aurelius Finance Company Limited (Registered number: 10773394)






Contents of the Financial Statements
for the Year Ended 31 December 2019




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 8

Other Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Aurelius Finance Company Limited

Company Information
for the Year Ended 31 December 2019







DIRECTORS: K Dhir
T Nagler





REGISTERED OFFICE: 6th Floor
33 Glasshouse Street
London
W1B 5DB





REGISTERED NUMBER: 10773394 (England and Wales)





AUDITORS: Venture House Business Service Limited
Chartered Accountants and
Statutory Auditors
Venture House
Calne Road
Lyneham
Chippenham
SN15 4PP

Aurelius Finance Company Limited (Registered number: 10773394)

Strategic Report
for the Year Ended 31 December 2019

The directors present their strategic report for the year ended 31 December 2019.

REVIEW OF BUSINESS
The Company's primary business is direct lending. During the year the Company has grown it's turnover from £2.01m to £6.42m

The loan book has grown during the year from £23.5m to £42.1m, driven by loan issuances to new borrowers.

All loans are appraised, and continually assessed using key performance indicators including: financing performance, liquidity, asset recovery values and loan to value ratios.

PRINCIPAL RISKS AND UNCERTAINTIES
The risks and uncertainties of direct lending and the provision of loans of this nature are complex and varied. Risks include credit risks, default risks liquidity risks and market risks. The principal risk is the ability of the borrower to service their obligations, and the ultimate recoverability of the loan - which can include factors external to the Company.

The Company relies on the continued support of its parent Aurelius Equity Opportunities SE & Co KGaA. In reaching the conclusion as to the going concern the director sought and obtained an indication of the support.

The Company is exposed to interest rate risks and currency exchange rate risks. Material movements could have a negative effect on holding value of its investments and/ or the Company's financial performance

In common with all businesses in the sector, uncertainty regarding the impact of the UK leaving the EU could have an impact on the Company. The directors believe the Company will be able to manage this risk

According to experts, the continuing and worsening coronavirus crisis at the time of this report will have considerable effects on the development of the global economy. In an economic forecast published in early March 2020, the Organization for Economic Cooperation and Development (OECD) concludes that the continuing coronavirus crisis represents the greatest risk to the global economy since the global financial crisis and that economic activity will decline sharply throughout the world in the first half of the year. The coronavirus crisis poses currently not yet quantifiable risks for general economic conditions and therefore also for AURELIUS. It is not possible to estimate the actual medium-term and long-term effects of the coronavirus crisis on the AURELIUS Group at the present time. Therefore, there is a risk that it may not be possible to meet the targets set in the companies' business plans. There is a risk that impairments may need to be recognized in intangible assets, property, plant and equipment or trade receivables and a risk that the portfolio companies may require additional funding. There is also a risk that potential sales of companies cannot be realized or only realized at a later time than planned. In view of the fluid state of developments, the Executive Board will continually re-assess the strategy and orientation of AURELIUS and its portfolio companies.

ENGAGEMENT WITH EMPLOYEES
People create success. Our success is the result of the individual performance of every employee.
Respectful treatment of all employees.
Unconditional respect of human rights.
Conscious diversity and internationality of our workforce.
More jobs thanks to successful growth strategies.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
Corporate codex
Principles such as responsible, sustainable management are firmly embedded in the Aurelius ESG (Environmental Social Governance) policy, including:
No investment in the arms industry.
No investment in emissions-intensive companies.
No trading in weapons or armaments, tobacco or tobacco products.
Code of Conduct for suppliers and service providers.
Anti-corruption and anti-bribery policy.
Protection and support for whistleblowers.


Aurelius Finance Company Limited (Registered number: 10773394)

Strategic Report
for the Year Ended 31 December 2019

STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS
Environment:
Goal for the year 2025: Reduce Group wide CO2 emissions by 30 percent.
Measures have been introduced to permanently reduced CO2 emissions.
Reduction of flights through the increased use of video conferences and online meetings and using train travel as an alternative.
Precautions to prevent environmental damage.
CO2 offsetting of the flights of all holding company employees since the 2019 financial year.

Social commitment:
Aurelius refugee initiative e.v. Aurelius has been helping refugees since 2015.
Extensive support of the START Foundation to promote outstanding young people with migration backgrounds since 2018.
Long established tradition: Christmas-season collection drive for important social projects; AURELIUS matches the donations raised by employees.

POST BALANCE SHEET EVENTS
The entire issued share capital of Aurelius Beta Limited was transferred by Aurelius Equity Opportunities SE & Co, KGaA (as seller) to Aurelius Finance Company Limited (as buyer) on 26 March 2020.

ON BEHALF OF THE BOARD:





K Dhir - Director


10 December 2020

Aurelius Finance Company Limited (Registered number: 10773394)

Report of the Directors
for the Year Ended 31 December 2019

The directors present their report with the financial statements of the company for the year ended 31 December 2019.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2019.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this report.

K Dhir
T Nagler

DISCLOSURE IN THE STRATEGIC REPORT
The Company has opted to disclose some items in the Strategic Report rather than the Director's Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Aurelius Finance Company Limited (Registered number: 10773394)

Report of the Directors
for the Year Ended 31 December 2019


AUDITORS
The auditors, Venture House Business Service Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



K Dhir - Director


10 December 2020

Report of the Independent Auditors to the Members of
Aurelius Finance Company Limited

Opinion
We have audited the financial statements of Aurelius Finance Company Limited (the 'company') for the year ended 31 December 2019 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
- give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its loss for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern
We draw your attention to note 19, as stated, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Aurelius Finance Company Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Christopher Baylis (Senior Statutory Auditor)
for and on behalf of Venture House Business Service Limited
Chartered Accountants and
Statutory Auditors
Venture House
Calne Road
Lyneham
Chippenham
SN15 4PP

10 December 2020

Aurelius Finance Company Limited (Registered number: 10773394)

Income Statement
for the Year Ended 31 December 2019

31.12.19 31.12.18
Notes £    £   

REVENUE 3 6,039,421 2,013,910

Cost of sales 468,148 963,707
GROSS PROFIT 5,571,273 1,050,203

Administrative expenses 4,694,832 596,222
OPERATING PROFIT 5 876,441 453,981

Interest receivable and similar income 1,430 972
877,871 454,953

Interest payable and similar expenses 6 1,605,714 411,665
(LOSS)/PROFIT BEFORE TAXATION (727,843 ) 43,288

Tax on (loss)/profit 7 - 14,209
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(727,843

)

29,079

Aurelius Finance Company Limited (Registered number: 10773394)

Other Comprehensive Income
for the Year Ended 31 December 2019

31.12.19 31.12.18
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (727,843 ) 29,079


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(727,843

)

29,079

Aurelius Finance Company Limited (Registered number: 10773394)

Statement of Financial Position
31 December 2019

31.12.19 31.12.18
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 8 2,301 1,119
Investments 9 31,528,831 23,500,000
31,531,132 23,501,119

CURRENT ASSETS
Debtors 10 11,090,642 3,511,386
Cash at bank 13,099,107 3,749,747
24,189,749 7,261,133
CREDITORS
Amounts falling due within one year 11 18,662,164 3,611,042
NET CURRENT ASSETS 5,527,585 3,650,091
TOTAL ASSETS LESS CURRENT
LIABILITIES

37,058,717

27,151,210

CREDITORS
Amounts falling due after more than one
year

12

21,914,950

16,505,236
NET ASSETS 15,143,767 10,645,974

CAPITAL AND RESERVES
Called up share capital 13 15,865,637 10,640,001
Retained earnings 14 (721,870 ) 5,973
SHAREHOLDERS' FUNDS 15,143,767 10,645,974

The financial statements were approved by the Board of Directors and authorised for issue on 10 December 2020 and were signed on its behalf by:





K Dhir - Director


Aurelius Finance Company Limited (Registered number: 10773394)

Statement of Changes in Equity
for the Year Ended 31 December 2019

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2018 1 (23,106 ) (23,105 )

Changes in equity
Issue of share capital 10,640,000 - 10,640,000
Total comprehensive income - 29,079 29,079
Balance at 31 December 2018 10,640,001 5,973 10,645,974

Changes in equity
Issue of share capital 5,225,636 - 5,225,636
Total comprehensive income - (727,843 ) (727,843 )
Balance at 31 December 2019 15,865,637 (721,870 ) 15,143,767

Aurelius Finance Company Limited (Registered number: 10773394)

Notes to the Financial Statements
for the Year Ended 31 December 2019

1. STATUTORY INFORMATION

Aurelius Finance Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

Preparation of consolidated financial statements
The financial statements contain information about Aurelius Finance Company Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Aurelius Equity Opportunities SE & Co KGaA, Ludwig-Ganghofer-Straße 6, 82031 Grünwald, Germany.

Significant judgements and estimates
The assumptions underlying judgements are based on the information available at the time of preparing the financial statements. Estimates and assumptions are reviewed on a regular basis.

It is the nature of a company carrying out the business of the granting of loans that some loans become irrecoverable. When reviewing the recoverability of loans granted, the directors use best judgment to determine the need for any provisions or write offs.

The recoverability of one of the loans is uncertain. The directors have therefore written off £3.5m in these accounts to allocate a portion as bad debt. There remains £1.5m included in debtors at the year end.

The director feels that the fees on one of the loans are unlikely to be recovered. There is an impairment of £567,873 included in these accounts at the year end.

The Company relies on the continued support of its parent Aurelius Equity Opportunities SE & Co KGaA. In reaching the conclusion as to the going concern the director sought and obtained an indication of the support.

Turnover
Turnover consists of interest receivable, monitoring fees and arrangement fees on loans as well as fees relating to due diligence works carried out. Interest receivable is recognised as it falls due. Arrangement fees are recognised over the life of the loan and monitoring fees are recognised monthly over the course of the year on a straight line basis. Due diligence fees are recognised as due regardless of whether or not the loan agreement is then initiated.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment - 25% on reducing balance

Aurelius Finance Company Limited (Registered number: 10773394)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2019

2. ACCOUNTING POLICIES - continued

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Financial instruments
The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits of this company.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are allocated to the appropriate heading within the Income Statement.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Aurelius Finance Company Limited (Registered number: 10773394)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2019

2. ACCOUNTING POLICIES - continued

Other provisions
Provisions are recognised when the Company has a present legal or constructive obligation to a third party, arising from a past event, and when it is more likely than not that the settlement of the obligation will lead to an outflow of economic resources, and when the amount of the provision can be measured reliably. Uncertain obligations are measured at the best possible estimate.

Fixed asset investments
For the purpose of determining whether the contractual cash flows are solely payments of principal and interest, the principal is defined as the fair value of the financial asset upon initial recognition. Interest is defined as the compensation for the time value of money and the default risk associated with an outstanding principal amount over a certain time period, and for other fundamental credit risk, costs, and a profit margin.

Classification of long term loans as a fixed asset investment is made to represent the intention of the Company to use these assets on a continuing basis in the company's activities. Those repayable within one year per their repayment terms have been classified as current loan receivables within current debtors.

Loan receivables that are contractually repayable on demand are shown as fixed asset investments if the intent of the Company is not to demand repayment in the near future.

Interest receivable or payable which is unpaid at the year end will be classified as current debtors or liabilities except where the contract terms allow later repayment.

3. REVENUE

The revenue and loss (2018 - profit) before taxation are attributable to the one principal activity of the company.

4. EMPLOYEES AND DIRECTORS
31.12.19 31.12.18
£    £   
Wages and salaries 457,495 427,335
Social security costs 59,073 56,070
Other pension costs 3,498 1,340
520,066 484,745

The average number of employees during the year was as follows:
31.12.19 31.12.18

4 2

31.12.19 31.12.18
£    £   
Directors' remuneration 185,000 253,344
Directors' pension contributions to money purchase schemes 1,188 1,340

Aurelius Finance Company Limited (Registered number: 10773394)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2019

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.19 31.12.18
£    £   
Other operating leases - 19,193
Depreciation - owned assets 768 373
Auditors' remuneration 4,500 2,250
Auditors' remuneration for non audit work 2,700 3,750
Foreign exchange differences 9,381 (9,682 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.19 31.12.18
£    £   
Loan interest payable 1,605,714 411,665

7. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
31.12.19 31.12.18
£    £   
Current tax:
UK corporation tax - 9,209

Deferred tax - 5,000
Tax on (loss)/profit - 14,209

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.19 31.12.18
£    £   
(Loss)/profit before tax (727,843 ) 43,288
(Loss)/profit multiplied by the standard rate of corporation tax in the
UK of 19 % (2018 - 19 %)

(138,290

)

8,225

Effects of:
Expenses not deductible for tax purposes 705 984
Capital allowances in excess of depreciation (224 ) -
Estimated further deferred tax on losses 137,809 5,000

Total tax charge - 14,209

Aurelius Finance Company Limited (Registered number: 10773394)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2019

8. PROPERTY, PLANT AND EQUIPMENT
Computer
equipment
£   
COST
At 1 January 2019 1,990
Additions 1,950
At 31 December 2019 3,940
DEPRECIATION
At 1 January 2019 871
Charge for year 768
At 31 December 2019 1,639
NET BOOK VALUE
At 31 December 2019 2,301
At 31 December 2018 1,119

9. FIXED ASSET INVESTMENTS

31.12.19 31.12.18
£    £   
Shares in group undertakings 5,001 -
Loans to group undertakings 17,068,830 500,000
Other loans 14,455,000 23,000,000
31,528,831 23,500,000

Additional information is as follows:
Shares in
group
undertakings
£   
COST
Additions 5,001
At 31 December 2019 5,001
NET BOOK VALUE
At 31 December 2019 5,001

Aurelius Finance Company Limited (Registered number: 10773394)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2019

9. FIXED ASSET INVESTMENTS - continued

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Aurelius Finance Property One Limited
Registered office: 6th Floor 33 Glasshouse Street, London, England, W1B 5DG
Nature of business: Property Holding Company
%
Class of shares: holding
Ordinary 100.00
31.12.19 31.12.18
£    £   
Aggregate capital and reserves (31,910 ) (5,047 )
Loss for the year (31,863 ) (5,048 )

During the year the company acquired the full shareholding of Aurelius Finance Property One Limited.
Loans to
group Other
undertakings loans Totals
£    £    £   
At 1 January 2019 500,000 23,000,000 23,500,000
New in year 17,136,703 (1,545,000 ) 15,591,703
Other movement (567,873 ) (7,000,000 ) (7,567,873 )
At 31 December 2019 17,068,830 14,455,000 31,523,830

Fixed Asset Investments consist of long term loans receivable to the Company from third parties and other group companies. They have been classified as Fixed Asset Investments due to the intention for their continued use within the Company's activities as stated in the fixed asset investment accounting policy. The loans have been granted interest rates between 5% and 10%. All the loans will currently reach maturity within 5 years.
There is an impairment recognised against one of the balances relating to fees of £567,873 which the director feels are unlikely to be recovered. There is no quantifiable impairment currently available from the effects of the corona virus and therefore none has been recognised in these financial statements. Should there be an impairment this may impact the going concern of the Company.

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.19 31.12.18
£    £   
Trade debtors 294,793 (20 )
Amounts owed by group undertakings 3,795,849 1,488
Current loans receivable 7,000,000 3,309,777
Prepayments and accrued income - 200,141
11,090,642 3,511,386

Loan receivables consists of £7,000,000 due from third parties within 12 months as stated within the financial instruments note. Within this balance one of these loans is considered potentially a bad debt and has been written down by £3,500,000 to reflect its uncertain recovery. The loans have been granted interest rates between 7% and 10%.

Aurelius Finance Company Limited (Registered number: 10773394)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2019

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.19 31.12.18
£    £   
Trade creditors 3,752 17,117
Amounts owed to group undertakings 11,653,797 2,660,000
Tax 9,209 9,209
Social security and other taxes 13,595 13,968
Other creditors 6,223,496 -
Accruals and deferred income 626,997 777,831
Accrued expenses 131,318 132,917
18,662,164 3,611,042

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.19 31.12.18
£    £   
Amounts owed to group undertakings 21,914,950 16,505,236

Long term liabilities consist of loans to related parties. These loans have been granted interest rates between 5% and 10%. The loans all mature within 5 years.

13. CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:
Number: Class: Nominal 31.12.19 31.12.18
value: £    £   
1 Ordinary £1 1 1
10,640,000 Redeemable £1 15,865,636 10,640,000
15,865,637 10,640,001

5,225,636 Redeemable shares of £1 each were allotted and fully paid for cash at par during the year.

All shares carry the right to vote, participate in dividends declared and participate in any return of the capital of the Company.

The redeemable shares shall be redeemed in full if required by either the Company at any time or the occurrence of a Redemption Trigger Event in accordance with the Articles.

14. RESERVES
Retained
earnings
£   

At 1 January 2019 5,973
Deficit for the year (727,843 )
At 31 December 2019 (721,870 )

Aurelius Finance Company Limited (Registered number: 10773394)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2019

15. ULTIMATE PARENT COMPANY

Aurelius Equity Opportunities SE & Co. KGaA (incorporated in Germany ) is regarded by the directors as being the company's ultimate parent company.

The Company is included in the group accounts prepared by the ultimate parent company, copies of which can be obtained from Ludwig-Ganghofer Stasse 6, 82031 Grunwald.

The parent company is Aurelius Equity Opportunities SE & Co. KGaA.

16. OTHER FINANCIAL COMMITMENTS

There is a revolving credit facility available until October 2020 for £3 million which has not been drawn down by the customer. This has not been provided for within these accounts as there is no certainty it will be utilized.

17. RELATED PARTY DISCLOSURES

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year a loan was granted to a group company for $2,700,000. This balance is outstanding at the 31 December 2019. Interest is charged at 5% per annum.

18. POST BALANCE SHEET EVENTS

The entire issued share capital of Aurelius Beta Limited was transferred by Aurelius Equity Opportunities SE & Co, KGaA (as seller) to Aurelius Finance Company Limited (as buyer) on 26 March 2020.

See Going Concern Note 19 for a statement of the effects of coronavirus.

19. GOING CONCERN

It is the nature of a company carrying out the business of the granting of loans that some loans become irrecoverable. In adopting the Going Concern presumption, the directors have considered the impact of such events on the Company and have concluded that the Going Concern assumption is still appropriate.

The Company relies on the continued support of its parent Aurelius Equity Opportunities SE & Co KGaA. In reaching the conclusion as to the going concern the director sought and obtained an indication of the support.

According to experts, the continuing and worsening coronavirus crisis at the time of this report will have considerable effects on the development of the global economy. In an economic forecast published in early March 2020, the Organization for Economic Cooperation and Development (OECD) concludes that the continuing coronavirus crisis represents the greatest risk to the global economy since the global financial crisis and that economic activity will decline sharply throughout the world in the first half of the year. The coronavirus crisis poses currently not yet quantifiable risks for general economic conditions and therefore also for AURELIUS. It is not possible to estimate the actual medium-term and long-term effects of the coronavirus crisis on the AURELIUS Group at the present time. Therefore, there is a risk that it may not be possible to meet the targets set in the companies' business plans. There is a risk that impairments may need to be recognized in intangible assets, property, plant and equipment or trade receivables and a risk that the portfolio companies may require additional funding. There is also a risk that potential sales of companies cannot be realized or only realized at a later time than planned. In view of the fluid state of developments, the Executive Board will continually re-assess the strategy and orientation of AURELIUS and its portfolio companies.