Shenton International Bonds plc has filed its accounts for the year ending December 2018.
In 2016 Shenton raised £3.5 million from investors in 2-year bonds and 4-year bonds, paying 9% and 10% interest respectively. Of the £2.4 million due for repayment in 2018, £1.7 million was rolled over into new bonds, with the remaining £700,000 returned to investments.
In addition to the rolled-over money, Shenton raised a further £1.2 million in 2018 for two year bonds repayable in May 2020. The new two-year bonds pay a higher rate of 10%, or 12% for investors who rolled over the previous two-year bonds.
Shenton lends investors’ money to property developers in Brazil. The profit and loss account shows a net profit of £84k in 2018, down marginally from £86k in 2017.
The director’s report states
There has been a significant increase in administrative expenses compared to the prior year as a result of expenses associated with the issue of a new bond in April 2018. This event also generated significant commission income from the borrower. See notes 5 and 7.
The notes in question show that in respect of this raising of another £1.2 million, SIB plc’s administrative costs rose from £23k to £557k, mostly “legal and professional fees”. However offsetting this increase was £417k paid as “fee income” from sister company Shenton International Limited.
Shenton International Limited still has until the end of September to file December 2018 accounts, being a Ltd company rather than a PLC.
Shenton International Bonds plc now has exactly £4 million invested in loans to developers, up from c. £3.5 million in 2017. A further £400,000 is owed to Shenton as “interest receivable” and £368k is owed by related parties.
Overall net assets increased from £263k to £347k.
Since last year, director Helen Kwai Leng Chong stepped down and was replaced by Andrew Michael Thompson (no relation to London Capital & Finance’s Michael Andrew Thomson, we hasten to add). According to a filing for a UK entity, Shenton International Limited, Shenton’s ultimate owner is Singaporean James Chew Beng Haw.
According to the director’s report, Shenton plans to launch a new loan note investment next month in August.