ORACLE_CAPITAL_ADVISORS_L - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial period ended 23 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

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

Oracle Capital Advisors Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 5 Stratford Place, London, W1C 1AX.

The director decided to shorten the company year end from twelve months, as this extends the filing date for the financial statements. The comparative amounts were reclassified to achieve consistent and better presentation.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company made a profit in the last two years and has net current assets of £3.9m (2020 - £3.9m) but negative equity of £2.2m (2020 - £2.3m) due to losses incurred in previous years. The financial statements have been prepared on the going concern basis as the company has received confirmation from a shareholder who has agreed to provide financial support to the company as may be necessary to meet its obligations as they fall due. On this basis, the director believes that it is appropriate to prepare the financial statements on a going concern basis.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Revenue represents fees receivable for investment management and consultancy services, commissions receivable and rent receivable net of VAT. All fees, rent and commissions receivable are recognised on the date on which the company is contractually entitled to receive the income.

Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Finance costs

Finance costs are charged to profit or loss 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. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The Company is required to consider assets for impairment where such indicators exist using value in use calculations or fair value estimates.

The average monthly number of persons (including directors) employed by the company during the period was:

Details of the company's joint ventures at 23 December 2021 are as follows:

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Other reserves represents the capital contribution arising from the treatment of borrowings at amortised cost.

At the year end, the company had the following outstanding charges:

• A charge created 29th May 2020 entitling Credit Suisse (UK) Limited to a fixed charge over the company's debts and floating charge over the company's assets.

The immediate parent company is Oracle Capital Group Limited.

The ultimate joint controlling parties of the company are D Korotkov-Koganovich and M Ishmuratov.

Since February 2022, military conflict in Ukraine is increasingly affecting world economic situation and global financial markets and exacerbating ongoing economic challenges, including rising inflation, increased cost of materials and global supply-chain disruption.

At present, it is not possible to quantify the effect of these events on the company. The company’s management is actively assessing its continued impact and is taking all possible actions to mitigate the consequences for the company and its stakeholders.

During the period the company entered into the following transactions with related parties:

The company received £101,944 (2020: £158,208) from a company under common ownership and paid expenses totalling £8,376 (2020: £nil) on behalf of the company under common ownership. The carrying value of the loan owed to the company under common ownership was £347,206 at 23 December 2021 (2020: £253,254). The loan is interest free and unsecured.

The company received £19,470 (2020: £41,509 paid) from a company under common ownership. The carrying value of the loan owed to the company under common ownership was £349,206 at 23 December 2021 (2020: £329,966). The loan is interest free and unsecured.

The company paid £nil (2020: £28,000) to a company under common ownership and paid expenses totalling £8,376 (2020: £15,432) on behalf of the company under common ownership. The carrying value of the loan owed to the company under common ownership was £475,457 at 23 December 2021 (2020: £447,501). The loan is interest free and unsecured.

The company received £503,993 (2020: £nil) from a business under common ownership. The carrying value of the loan owed to the business under common ownership was £503,993 at 23 December 2021 (2 020: £nil). The loan is interest 5% and unsecured.

The company paid £635,000 (2020: £1,312,707) to a company under joint ownership. The outstanding amount has 14% interest rate, the interest on the loan for the year is £1,715,3277 (2020: £3,576,433). In the period the company reduced interest related to last year by £1,015,927.The carrying value of the loan owed by the company under joint ownership was £34,029,750 at 23 December 2021 (2020: £32,695.351). The loan has a 14% interest rate and is unsecured.

The company loaned £10,965 (2020: £511,267) to a company under common ownership. The company under common ownership made payments to £1,062,422 (2020: £750,000) to the company. The carrying value of the loan owed to the company under common ownership was £842,800 at 23 December 2021 (2020: £208,657). The loan is interest free and unsecured.

The company paid £509,302 (2020: £nil) to a ultimate beneficial owner. The carrying value of the loan owed to the ultimate beneficial owner was £2,013,290 at 23 December 2021 (2020: £2,522,591). The loan is interest free and unsecured.

The company loaned £30,000 (2020: £72,000) to a company under common ownership and paid expenses totalling £7,127 (2020: £513) on behalf of the company under common ownership. The company under common ownership repaid loan totalling £25,000 (2020: £165,565). The carrying value of the loan owed by the company under common ownership was £338,904 at 23 December 2021 (2020: £326,777). The loan is interest free and unsecured.