Apricity Finance Group’s books contained a ‘series of anomalies’

Apricity Finance Group’s debts are rumoured to be in the tens of millions, with a “significant shortfall’’ in its loan arrangements flagged by a former non-executive director.

Apricity Finance managing director Linden Toll.

The Apricity Finance managing director is proving difficult to track down as rumours swirl about the size of the company’s debts, while former non-executive director Andrew Meakin has warned investors of a “significant shortfall’’ in the company’s loan arrangements.

Rumours in finance circles and among sources close to the invoice financing company have put the possible shortfall in funds resulting from the collapse of the Apricity Finance group at north of $40m.

So far the administrators of both Apricity Finance Group and Apricity Transasia Finance - the first entity to fail - are releasing no details publicly about how much money is owed.

Managing director Linden Toll is not answering his phone, and sources say he is unable to be contacted.

Apricity Transasia was forced into administration late last month by its Sydney-based specialist debt provider GCI over an unspecified debt.

A balance sheet for parent company Apricity Finance Group, dated as current to the end of the 2022 financial year, put the company’s assets at $83.6m, with the majority of that - $78m - made up of purchased debtors receivable.

Against those assets it had $80.3m in liabilities, largely consisting of $30.2m in investor funds and $50m in wholesale funds.

There are suggestions from one source that these accounts are not accurate however.

This is backed up by a recent letter sighted by The Australian from the group’s former non-executive director Andrew Meakin.

The letter, addressed to “investors”, is undated, but appears to have been sent shortly after Apricity Transasia was placed in administration on March 27.

“Last week I was informed that Linden was not able to be located,’’ the letter says.

“What followed is a series of events that led me to immediately stepped (sic) into the role of CEO.

“Since Friday night, I have been working around the clock on the Apricity group.’’

Mr Meakin writes that the whereabouts of Mr Toll are “unknown, but he is in limited contact with very few people. I am not one of them.’’

“Since Friday I have examined the business in concert with Apricity Transasia Finance’s lender, staff and professional advisers,’’ the letter says.

“On Monday morning a series of anomalies were confirmed including a significant shortfall in the Apricity Finance Group loan arrangements.

“As a result a receiver was appointed to Apricity Transasia Finance.

“I would describe the condition of the Apricity Finance Group in Australia as poor and as such I am consulting advisers about that position at this time.

“We have looked at several strategies ... including the possibility of an equity/debt swap to reinvigorate the company under new management.

“Other arrangements may be possible with other parties follow (sic) a significant realignment.’’

One source has told The Australian that Mr Toll called an all-hands meeting on Friday, March 24, but failed to attend that meeting.

Bowral-based Apricity, whose directors are Linden Toll and Andrew Meakin, offers an invoice financing product under which it would lend up to 95 per cent of the value of approved invoices to business borrowers.

“Apricity Invoice Finance offers a funding solution that is simple, reliable and fast,’’ a cached version of the company’s website says.

“By financing up to 95 per cent of approved invoices upfront, we remove the stress of waiting for big customers to pay their bills.

“We help you leverage your own assets without the need to take on additional debt, delivering cash flow surety and powering business growth.’’

The company’s LinkedIn site says it focuses on high credit-quality customers “from a broad range of industries, from food growers, distributors, wholesalers, logistics operators, labour hirers, transport companies, and telecommunications and mining suppliers’’.

“Established in 2013, we’ve helped a wide range of small to medium sized businesses bring certainty to their balance sheets.’’

Apricity would advance customers 95 per cent of the face value of outstanding invoices, with the remaining amount, less Apricity’s 3 per cent fee, also paid to the customer for invoices paid within 30 days.