London Capital & Finance has delayed filing its accounts for the period ending April 2018 by using a well-known (among accountants) loophole in the Companies Act.
Traditionally, public limited companies are supposed to file their annual accounts within six months of their accounting end date. This means London Capital & Finance’s April 2018 accounts would have been due for filing by the end of October 2018.
However, less than a couple of weeks before this deadline expired, London Capital & Finance shortened its accounting reference date by a day, which under UK companies law gives it a further three months to file its accounts, i.e. 17 January 2019.
London Capital & Finance previously used this loophole twice to put off filing its April 2017 accounts, shortening its accounting period in October 2017 and then again in January 2018. The April 2017 accounts were eventually filed in February 2018.
London Capital & Finance is one of the most well known issuers of unregulated bonds directly to high-net-worth and sophisticated investors. As at April 2017 it had raised £60.8 million from investors, of which £11.3 million was paid out in unamortised costs (which covers commission, accounting fees, printing costs, etc), leaving it with £49.5 million on the balance sheet. At the same date it had £50.6 million in total assets (mostly representing its secured loans business) and its net assets were £299,000. As at October 2018, LC&F’s website says that it has raised £214 million to date.
Why it has again needed to put off filing its accounts is not known.