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.