The primary investment strategy of the Company is to capitalize, mainly by sourcing investments and loan opportunities, in businesses or companies in the UK and Europe which have a potential to generate strong cash flows, profits and investment growth.
If the Board decides to proceed with the proposed investment, financial forecasts will be prepared to demonstrate the investment’s ability to meet the required Company criteria including interest payments and loan repayments.
Each investment will be structured in the most appropriate commercial and tax manner which may loan and interest, equity and dividend or a mixture of both. For each investment decision external taxation advice will be sought where appropriate.
Acquisitions by the Company for Social Housing may be by way of outright purchase, or where it is advantageous with appropriate banking finance.
The Company will allocate the funds received from the Bond to its operating investments according to the business proposals put forward and agreed by the Board. The funds will be allocated on the basis that the acquired target investments will provided either a revenue stream or capital return to, as a minimum, to meet the Company’s required rate of return to fund the bond interest payments.
The Board has deep experience in the provision of professional services to UK and European businesses.
The Company is dependent upon its investment strategies to generating revenue, cash flow, profits and/or increase in capital value in order to fund the Bond interest payments.
There will be no consumer lending from the funds received from the Bonds issued.
The strategies to control and mitigate the investment and operational risks include:
diversification of revenues over a number of core sectors which are not correlated economically;
a requirement for an independent assessment and evaluation of the borrower and security package for the bridging finance;
in relations to the provision of bridging finance, it is anticipated that the loan agreements would be between 6-18 months, and
a security package comprising of property backed lending over UK property or corporate assets, in some instances enhanced by personal guarantees etc.