ACCOUNTS - Final Accounts preparation

ACCOUNTS - Final Accounts preparation

OCTANE PROPERTY FINANCE 4 LIMITED - Company Information

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Registered number: 12491136









OCTANE PROPERTY FINANCE 4 LIMITED









FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE PERIOD ENDED 31 DECEMBER 2020
 
OCTANE PROPERTY FINANCE 4 LIMITED
REGISTERED NUMBER: 12491136

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020

31 December
2020
Note
£

  

Current assets
  

Debtors: amounts falling due after more than one year
 5 
21,255,080

Debtors: amounts falling due within one year
 5 
25,008

Cash at bank and in hand
  
126,207

  
21,406,295

Creditors: amounts falling due within one year
 6 
(52,384)

Net current assets
  
 
 
21,353,911

Total assets less current liabilities
  
21,353,911

Creditors: amounts falling due after more than one year
 7 
(21,346,820)

  

Net assets
  
7,091


Capital and reserves
  

Called up share capital 
 8 
1

Profit and loss account
  
7,090

  
7,091


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 March 2021.



M E Posniak
Director

The notes on pages 2 to 7 form part of these financial statements.

Page 1
 
OCTANE PROPERTY FINANCE 4 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020

1.


General information

Octane Property Finance 4 Limited is a private company limited by shares and incorporated in England. Its registered office is 3 Angel Square, London, EC1V 1NY.
The company's principal activity is to offer short-term bridging finance to customers purchasing residential or commercial property.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The company's functional and presentational currency is GBP, rounded to the nearest £1.

The following principal accounting policies have been applied:

 
2.2

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Octane Capital Limited as at 31 December 2020 and these financial statements may be obtained from  https://beta.companieshouse.gov.uk/.

Page 2
 
OCTANE PROPERTY FINANCE 4 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

 
2.3

Going concern

The company meets its day to day working capital requirements through the utilisation of its own funds, banking and loan facilities and a loan from its ultimate controlling party.
Existing funding facilities, forecasts and projections indicate that the company has adequate resources to continue with some level of activity from a minimal to full levels. Although the continuing effects of the global coronavirus outbreak from January 2020 can be modelled, it is very difficult to determine the assumptions that will prove to be most appropriate and therefore there is an element of doubt existing that cannot be quantified.
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.  The company therefore continues to adopt the going concern basis in preparing its financial statements, but with the proviso that a some uncertainly exists over the company’s future.

 
2.4

Revenue

Revenue consists of interest on loans issued and other set-up fees. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and rebates, using the effective interest method which allocates interest and direct and incremental fees over the the expected useful lives of the loans.

 
2.5

Borrowing costs

All borrowing costs are recognised in profit and loss in the period in which they are incurred. Costs are charged over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

 
2.6

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

 
2.7

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

Page 3
 
OCTANE PROPERTY FINANCE 4 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

 
2.9

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including group loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. 

 
2.10

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to or from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.


3.


Employees

The company has no employees other than the directors, who did not receive any remuneration.


4.


Auditors' information

The auditors' report on the financial statements for the period ended 31 December 2020 was unqualified.

The audit report was signed on 30 March 2021 by Richard Paul (Senior statutory auditor) on behalf of Nyman Libson Paul LLP.

Page 4
 
OCTANE PROPERTY FINANCE 4 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020

5.


Debtors

31 December
2020
£

Due after more than one year

Trade debtors
20,895,169

Prepayments and accrued income
359,911

21,255,080


31 December
2020
£

Due within one year

Other debtors
25,008



6.


Creditors: Amounts falling due within one year

31 December
2020
£

Amounts owed to group undertakings
21,721

Corporation tax
1,663

Other creditors
20,000

Accruals
9,000

52,384



Page 5
 
OCTANE PROPERTY FINANCE 4 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020

7.


Creditors: Amounts falling due after more than one year

31 December
2020
£

Amounts owed to group undertakings
20,812,300

Accruals and deferred income
534,520

21,346,820


Secured loans
Included in amounts owed to groups are loans of £20,812,300 due to ultimate parent company PCO HoldCo II Sarl. These loans are interest bearing at a variable rate linked to the performance of the borrower loans and are short and medium term in duration up to a maximum of five years. The loans are secured by fixed and floating charge over the assets of the company and by a legal charge against the properties.


8.


Share capital

31 December
2020
£
Allotted, called up and fully paid


1 Ordinary "A" Shares share of £1
1

On 2 March 2020, the company issued 1 Ordinary "A" share of £1, for cash at par.



9.


Related party transactions

The company is a wholly owned subsidiary within a group for which consolidated financial statements are publicly available and accordingly has taken advantage of the exemptions provided by "Financial Reporting Standard 102" not to disclose transactions with the other group entities including its parent and fellow subsidiary undertakings.


10.


Post balance sheet events

The Coronavirus (COVID-19) pandemic has presented the UK with many challenges and uncertainties. The UK roll out of the coronavirus vaccine from January 2021 combined with the government's lockdown exit plan scheduled to complete by the end of June 2021, is expected to lead to the start of working conditions and customer activity returning to pre-lockdown levels from the second half of 2021.
The company's directors are well placed to continue working remotely as required and as a productless lender who prices loans based on risk, the company will continue to assess pricing and loan to values on a case by case basis.

Page 6
 
OCTANE PROPERTY FINANCE 4 LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020

11.


Controlling party

The immediate parent company is Octane Capital Limited.
The ultimate controlling party is the ultimate parent company PCO HoldCo II Sarl.

 
Page 7