ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

OCTANE PROPERTY FINANCE LIMITED - Company Information

Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31true3Bridging Loan Financetruetruetruetruetrue2023-01-01false3falsefalse 10483453 2023-01-01 2023-12-31 10483453 2022-01-01 2022-12-31 10483453 2023-12-31 10483453 2022-12-31 10483453 c:Director1 2023-01-01 2023-12-31 10483453 c:Director2 2023-01-01 2023-12-31 10483453 c:Director3 2023-01-01 2023-12-31 10483453 c:RegisteredOffice 2023-01-01 2023-12-31 10483453 d:CurrentFinancialInstruments 2023-12-31 10483453 d:CurrentFinancialInstruments 2022-12-31 10483453 d:Non-currentFinancialInstruments 2023-12-31 10483453 d:Non-currentFinancialInstruments 2022-12-31 10483453 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 10483453 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 10483453 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 10483453 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 10483453 d:ReportableOperatingSegment1 2023-01-01 2023-12-31 10483453 d:ReportableOperatingSegment1 2022-01-01 2022-12-31 10483453 d:ReportableOperatingSegment2 2023-01-01 2023-12-31 10483453 d:ReportableOperatingSegment2 2022-01-01 2022-12-31 10483453 d:UKTax 2023-01-01 2023-12-31 10483453 d:UKTax 2022-01-01 2022-12-31 10483453 d:ShareCapital 2023-12-31 10483453 d:ShareCapital 2022-12-31 10483453 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 10483453 d:RetainedEarningsAccumulatedLosses 2023-12-31 10483453 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 10483453 d:RetainedEarningsAccumulatedLosses 2022-12-31 10483453 d:RetainedEarningsAccumulatedLosses 2022-01-01 10483453 c:OrdinaryShareClass1 2023-01-01 2023-12-31 10483453 c:OrdinaryShareClass1 2023-12-31 10483453 c:OrdinaryShareClass1 2022-12-31 10483453 c:FRS102 2023-01-01 2023-12-31 10483453 c:Audited 2023-01-01 2023-12-31 10483453 c:FullAccounts 2023-01-01 2023-12-31 10483453 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 10483453 2 2023-01-01 2023-12-31 10483453 e:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 10483453

OCTANE PROPERTY FINANCE LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

OCTANE PROPERTY FINANCE LIMITED

COMPANY INFORMATION

Directors	R J Maddows
	N Bhandari
	Y Leysen


Registered number	10483453


Registered office	Devonshire House
	Mayfair Place
	London
	England
	W1J 8AJ


Independent auditors	Nyman Libson Paul LLP
	Chartered Accountants & Statutory Auditors
	124 Finchley Road
	London
	NW3 5JS

OCTANE PROPERTY FINANCE LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 8
Statement of income and retained earnings	9
Statement of financial position	10
Notes to the financial statements	11 - 18

OCTANE PROPERTY FINANCE LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their annual report on the affairs of the company together with the financial statements and auditor's report for the year ended 31 December 2023. This strategic report has been prepared for Octane Property Finance Limited (the "company") and gives greater emphasis to those matters which are significant to the company.

Introduction

Octane Capital Limited is the parent company of the Octane Group, which as at the balance sheet date consists of Octane Capital Limited and three wholly owned subsidiaries.

Business review

The company’s principal activity is the origination and administration of short to medium-term bridging finance loans in the property sector. The company looks to differentiate itself from competitors within the market with a productless approach, pricing loans based on the risk of each individual deal and set of circumstances.

Principal risks and uncertainties

The company's financial risk management seeks to minimise the exposure to price risk, credit risk and liquidity and cash flow risk.
Price Risk
The main risk the company faces is that the property market could fall significantly, which could result in difficulty in recouping the full exposure of loans. The key mitigant to this risk is that the average loan to value of loans advanced are maintained at a conservative level to allow for reasonable buffer should property prices fall. This risk is further mitigated by the fact the loans are short term in nature and closely monitored throughout the term of the loan.
Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. The elevated interest rate environment creates risk to the company through increased borrowing costs and servicing risk from customers being able to meet their loan repayments within scheduled timeframes. 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. Customer credit risk is analysed on a case by case basis during the underwriting process, and continually monitored by an experienced credit team.
Liquidity and Cashflow Risk
Liquidity and cashflow risk are managed by ensuring sufficient cash is available to fund the company’s ongoing and future operations. The company has aligned its financial liabilities with its financial assets so as to mitigate the impact to cashflow otherwise arising from fluctuations in interest rates.
Liquidity risk is the risk that a party will encounter difficulty in meeting obligations associated with financial liabilities. The company manages this risk through ongoing cashflow forecasting, together with ensuring it has sufficient credit facilities in place so as to ensure it can meet liabilities as they fall due.

Financial key performance indicators

The key performance indicators for the company is turnover. Turnover for the year was £13,034,794 (2022: £17,470,028)

Page 1

OCTANE PROPERTY FINANCE LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Other key performance indicators

Other key performance indicators are brokers and introducers transacted with and conversion ratios of loan enquiry through to completion. The number of introducers engaged, and the conversion ratios were deemed by directors to be acceptable.

This report was approved by the board on 13 June 2024 and signed on its behalf.

R J Maddows

Director

Page 2

OCTANE PROPERTY FINANCE LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors

The directors who served during the year were:

R J Maddows

N Bhandari

Y Leysen

Results and dividends

The profit for the year, after taxation, amounted to £823,645 (2022 - £793,811).

Dividends amounting to £Nil (2022: £1,186,639) were paid during the year.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Future developments

The company is continually looking to grow the loan book across residential and semi-commercial bridging, refurbishments and developer exits. This is done via enhancements to the lending appetite and loan structuring.

Page 3

OCTANE PROPERTY FINANCE LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditors, Nyman Libson Paul LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 13 June 2024 and signed on its behalf.

R J Maddows

Director

Page 4

OCTANE PROPERTY FINANCE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OCTANE PROPERTY FINANCE LIMITED

Opinion

We have audited the financial statements of Octane Property Finance Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of income and retained earnings, the Statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 5

OCTANE PROPERTY FINANCE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OCTANE PROPERTY FINANCE LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Page 6

OCTANE PROPERTY FINANCE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OCTANE PROPERTY FINANCE LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 7

OCTANE PROPERTY FINANCE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OCTANE PROPERTY FINANCE LIMITED (CONTINUED)

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Rowan Lindsay (Senior statutory auditor)

for and on behalf of

Nyman Libson Paul LLP

Chartered Accountants

Statutory Auditors

124 Finchley Road

London

NW3 5JS

13 June 2024

Page 8

OCTANE PROPERTY FINANCE LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2023

	2023	2022
Note	£	£


Turnover	4	13,034,794	17,470,028
Cost of sales		(6,576,814)	(12,084,424)
Gross profit		6,457,980	5,385,604
Administrative expenses		(5,375,217)	(4,423,534)
Operating profit		1,082,763	962,070
Interest receivable and similar income	7	-	18,585
Interest payable and similar expenses	8	(5,814)	(642)
Profit before tax		1,076,949	980,013
Tax on profit	9	(253,304)	(186,202)
Profit after tax		823,645	793,811



Retained earnings at the beginning of the year	2,379,261	2,772,089
Profit for the year	823,645	793,811
Dividends declared and paid	-	(1,186,639)
Retained earnings at the end of the year	3,202,906	2,379,261

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 11 to 18 form part of these financial statements.

Page 9

OCTANE PROPERTY FINANCE LIMITED

REGISTERED NUMBER: 10483453

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

		2023		2022
Note		£		£


Current assets
Debtors: amounts falling due after more than one year	11	34,426,133		8,385,909
Debtors: amounts falling due within one year	11	135,133,462		99,269,411
Cash at bank and in hand	12	7,844,498		7,498,425
		177,404,093		115,153,745
Creditors: amounts falling due within one year	13	(146,904,406)		(106,098,746)
Net current assets			30,499,687		9,054,999
Total assets less current liabilities			30,499,687		9,054,999
Creditors: amounts falling due after more than one year	14		(27,296,780)		(6,675,737)

Net assets			3,202,907		2,379,262

Capital and reserves
Called up share capital	15	1	1
Profit and loss account		3,202,906	2,379,261
		3,202,907	2,379,262

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 June 2024.

R J Maddows

Director

The notes on pages 11 to 18 form part of these financial statements.

Page 10

OCTANE PROPERTY FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1.	General information

Octane Property Finance Limited is a private company limited by shares and incorporated in England. The address of its registered office Devonshire House, Mayfair Place, London, England, W1J 8AJ.
The company’s principal is to offer short-term bridging, refurbishments and developer exits to customers purchasing or refinancing residential and semi-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 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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

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 2023 and these financial statements may be obtained from https://beta.companieshouse .gov.uk/.

Page 11

OCTANE PROPERTY FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

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 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.
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 some uncertainly exists over the company’s future.

2.4

Revenue recognition

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

Interest income

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

2.6

Borrowing costs

All borrowing costs are recognised in profit or 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.

2.7

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.

2.8

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.

2.9

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.

Page 12

OCTANE PROPERTY FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.10

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.

2.11

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.

2.12

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 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.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 13

OCTANE PROPERTY FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amount reported for revenue and expenditure during the period. However, the nature of estimations means that actual outcomes could differ from those estimates.
The following are the company's key sources of estimation uncertainty:
Impairment of debtors
Trade debtors are recorded in the accounts at cost. Some debtors may not pay part or all of the balance due, and thus the debtor balance in the financial statements will need to be amortised to reflect the lower of cost and market value. The company records a provision for bad debts to estimate the total impact of non-payments, considering factors such as the value of the outstanding amount in excess of the security, the recoverable amount ascertained by an independent valuer, the credit rating of customers, the ageing profile of debtors and historical experience.
Accruals
The company makes an estimate of interest, commissions and other costs that relate to the current financial reporting period but have not yet been invoiced.

Interest receivable	10,611,812	13,781,369
Fees income	2,422,982	3,688,659
	13,034,794	17,470,028

All turnover arose within the United Kingdom.

5.	Auditors' remuneration
		2023	2022
		£	£

Fees payable to the company's auditors for the audit of the company's financial statements

14,583

12,000

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

6.	Employees
	The company has no employees other than the 3 (2022: 3) directors, who did not receive any remuneration (2022 - £NIL).

Page 14

OCTANE PROPERTY FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

7.	Interest receivable
		2023	2022
		£	£

Other interest receivable

18,585

8.	Interest payable and similar expenses
		2023	2022
		£	£

Other interest payable

5,814

642

Corporation tax
Current tax on profits for the year	253,304	186,202

Profit on ordinary activities before tax

1,076,949

980,013

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.50% (2022 - 19%)	253,304	186,202

Total tax charge for the year	253,304	186,202

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 15

OCTANE PROPERTY FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

10.	Dividends
		2023	2022
		£	£

Dividends paid on equity capital

1,186,639

11.	Debtors
		2023	2022
		£	£

Due after more than one year
Trade debtors	33,403,322	8,207,375
Prepayments and accrued income	1,022,811	178,534
	34,426,133	8,385,909

					2023	2022
					£	£

Due within one year
Trade debtors	128,498,687	94,021,818
Other debtors	561,112	-
Prepayments and accrued income	6,073,663	5,247,593
	135,133,462	99,269,411

12.	Cash and cash equivalents
		2023	2022
		£	£

	Cash at bank and in hand	7,844,498	7,498,425

Page 16

OCTANE PROPERTY FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

13.	Creditors: Amounts falling due within one year
		2023	2022
		£	£

Trade creditors	-	13,102
Amounts owed to group undertakings	142,199,344	101,446,244
Corporation tax	117,822	127,160
Other creditors	192,360	138,667
Accruals and deferred income	4,394,880	4,373,573
	146,904,406	106,098,746

Included in amounts owed to group undertakings within one year is an unsecured and interest free balance of £6,236,009 (2022: £3,541,538) due to the ultimate parent company PCO HoldCo II Sarl.

14.	Creditors: Amounts falling due after more than one year
		2023	2022
		£	£

Amounts owed to group undertakings	26,620,193	6,508,536
Accruals and deferred income	676,587	167,201
	27,296,780	6,675,737

Secured loans
Included in amounts owed to group undertakings within one year and after more than one year are loans of £129,315,067 (2022: £79,571,166) due to ultimate parent company PCO HoldCo II Sarl. These loans are interest bearing at varying rates linked to the characteristics of the underlying borrower loans and are short and medium term in duration up to a maximum of 3 years. The loans are secured by fixed and floating charge over the assets of the company and by a legal charge against the properties.

15.	Share capital
		2023	2022
		£	£

Allotted, called up and fully paid

1 (2022 - 1) Ordinary "A" shares share of £1.00	1	1

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OCTANE PROPERTY FINANCE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

16.

Reserves

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid, and any other adjustments.

17.	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.

18.	Controlling party

The immediate parent company is Octane Capital Limited, whose registered office is located at Devonshire House, Mayfair Place, London, England, W1J 8AJ.
The ultimate controlling party is Letterone Investment Holdings S.A., incorporated in Luxembourg.

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