The most recently published report by the Joint Administrators (MHA) of Godwin Capital No. 8 Ltd, provides little meaningful insight into where £155m of investors money went.

The report focuses on some details yet fails to address the fundamental questions

Godwin Capital No. 8 Ltd was the major funding arm for a disparate group of around 100 companies under common ownership; the so-called Godwin “Group”. It borrowed £155m from, principally, individual investors, paying interest rates of 10-12% pa, on the back of promises that it would be used in secured lending for building projects. Most of the projects never came to fruition, the lending was not secured, and substantial losses were generated across the “group” structure.

Derby News first identified cause for concern in March 2019 and has been reporting since then on the emerging failures; Godwin CApital No. 8 Ltd and associated companies entered administration in June 2025. The following articles provide more background.

Godwin Developments’ “Ponzi” scheme collapses raising many questions

Previous articles on the Godwin story.

The MHA report confirms that the 5 Godwin Capital companies raised £162.7m from “independent investors”, of which £155.2m was through Godwin Capital No. 8 Ltd. This was distributed to other Godwin companies.

The outstanding debt in Godwin Capital no. 8 Ltd is £149.2m. However, MHA’s 15 August 2025 “Proposals” document records the intercompany debtors as £165.8m – the difference of £16.6m being accrued interest which MHA seems, now, to have “written off”.

The question which all investors want to know the answer to is – “Where did the £155m go?”

MHA partially answers by stating that “the net sums advanced by” Godwin Capital no. 8 Ltd were:

• £18.3m to Godwin CS no. 1 Ltd
• £17.2m to Godwin Development Services Ltd
• £12m to Godwin Capital No. 7 Ltd

which totals only £47.5m! No detail on the other £108m.

Derby News compiled its own “Balance Sheet” from published information, to answer this question.

In short:

• £155m was leant by Individual investors. £25m was paid in commission to Financial Advisors, leaving a net income of £130m
• £130m was distributed to a variety of other Godwin companies; this was then onward distributed to Special Purpose Vehicles (SPV) covering specific project costs, but not land purchases , and Development services which contained the operational costs – staff, office and admin expenses etc
• Most Godwin companies made losses – totalling £108m.
• £22m was lost through the SPVs in developing the various publicised schemes.

Most of the development land was bought through separate secured funding from Together Finance. There are few tangible assets available to Godwin Capital No. 8 Ltd creditors.

GR no. 31

A significant “black hole” which MHA has not mentioned is the SPV GR no. 31 Ltd. Derby News has found no evidence of it being associated with any of the publicly declared development projects.

The last published accounts at 31 March 2024 (published 19 December 2024) showed that it had “stocks” (not intercompany debts) of £22.9m. To be on the balance sheet it should have had full asset value at December 2024.

By 30 September 2025, GR no. 31 had no stock, as per its Statement of Affairs, published by MHA; it had just £19.7m of intercompany creditors. These were:

• £13.2m – Godwin CS No. 1 Ltd ( money distribted initially by Godwin Capital No. 8)
• £2.9m – Godwin Residential Ltd ( money distribted initially by Godwin Capital No. 8)
• £3.4 m – Godwin Capital No. 8 Ltd

In just 9 months a £22.9m asset disappeared off the face of the balance, without any explanation!

Opinion

MHA has made a claim for £155m through the High Court for “Directors’ mismanagement of the Company” , the Heads of claim being:

• Breach of Directors’ fiduciary duties;
• Fraudulent trading; and
• Knowing receipt and dishonest assistance.

MHA knows that, outside of this route, there are only mere “crumbs” of assets available for the investors, as most of the money was subject to uncontrolled/unidentifiable spending.

It is surprising that the GR no. 31 Ltd “black hole” is not mentioned anywhere by MHA given that ~£23m of the £155m disappeared from this one company.

GR no. 31 Ltd, most likely, would provide a valuable insight into the wider Godwin misdemeanours. MHA should explain to the creditors where, why and how this £22.9m was lost, and why this significant sum is no longer available for distribution to creditors.