Marcello Developments (UK) Limited launched in 2015 and raised £3.6 million from investors in five year loan notes paying interest of 8% in years 1-2, 9% in years 3-4 and 10% in year 5.
The company’s February 2018 accounts would have been due at the end of November 2018, however at the last minute – days before they became overdue – it decided to extend its accounting date to June 2018. This means it now has until March 2019 to submit the 2018 accounts under UK company law.
Marcello Developments’ February 2017 accounts stated that alongside investors’ £3.6 million, its parent company (Marcello Group Limited) invested £3 million in the company. Of this £6.6 million, £6.5 million was invested in property investments, which the directors valued at £8.7 million. The accounts were however not audited by Marcello Developments’ auditor (Accounting Worx) due to its small size.
There is a problem with the statement in the February 2017 accounts (filed in August 2017) that Marcello Group Limited invested £3 million by way of share capital at its incorporation in February 2015; Marcello Group didn’t exist at the time. It was incorporated in May 2017 and has yet to file accounts.
In addition, the company’s February 2016 annual return identifies its parent company as Marcello Developments (Offshore) Limited, not Marcello Group Limited. Marcello Developments (Offshore) Limited, like Marcello Group Limited, did not exist until May 2017, just over a year after the 2016 annual return was filed.
Marcello Group lists a Singapore address on its website, so I checked to see whether the filings could refer to Singaporean listed companies; no relevant entries appeared either on the Singaporean company registry or the global opencorporates.com database.
Where the £3 million of share capital came from is therefore unclear. It is also unclear to me how a parent can be younger than its child, without the aid of a TARDIS.
(This lack of clarity was overlooked in my original review.)