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REGISTERED NUMBER: 13975352 (England and Wales)







Unaudited Financial Statements

for the Year Ended 31 December 2023

for

Colenko Secured Lending 1 Ltd

Colenko Secured Lending 1 Ltd (Registered number: 13975352)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Colenko Secured Lending 1 Ltd

Company Information
for the Year Ended 31 December 2023







DIRECTOR: R Roscoe





REGISTERED OFFICE: 1 Lyric Square
London
London
W6 0NB





REGISTERED NUMBER: 13975352 (England and Wales)





ACCOUNTANTS: Dunkley's
Woodlands Grange
Woodlands Lane
Bradley Stoke
Bristol
United Kingdom
BS32 4JY

Colenko Secured Lending 1 Ltd (Registered number: 13975352)

Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £   
CURRENT ASSETS
Debtors 4 7,326,683 1,527,691
Cash at bank 34,808 13,150
7,361,491 1,540,841
CREDITORS
Amounts falling due within one year 5 (5,355,559 ) (1,015,831 )
NET CURRENT ASSETS 2,005,932 525,010
TOTAL ASSETS LESS CURRENT LIABILITIES 2,005,932 525,010

CREDITORS
Amounts falling due after more than one year 6 (2,005,922 ) (525,000 )
NET ASSETS 10 10

CAPITAL AND RESERVES
Called up share capital 8 10 10
SHAREHOLDERS' FUNDS 10 10

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 18 September 2024 and were signed by:





R Roscoe - Director


Colenko Secured Lending 1 Ltd (Registered number: 13975352)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Colenko Secured Lending 1 Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Colenko Secured Lending 1 Ltd (Registered number: 13975352)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover (Revenue Recognition) for Non-Amortizing Loans with Monthly Interest Accrued in Advance


Purpose:

This policy outlines the approach to recognizing turnover (interest income) from non-amortizing loans where interest is accrued monthly in advance, in compliance with UK accounting standards, particularly UK GAAP (FRS 102), as applicable. The policy is intended for inclusion in the company's financial statements to provide transparency on revenue recognition practices.


Scope:

This policy applies to all non-amortizing loans issued by the company where interest is charged to borrowers in advance of the period it covers. It governs the recognition of interest income as turnover in the financial statements prepared under UK accounting standards.


Definitions:

o Non-Amortizing Loan: A loan where the principal remains due at the end of the loan term, and there are no periodic repayments of the principal during the loan period.

o Interest Accrued in Advance: Interest calculated and billed to the borrower at the start of the month (or relevant period), but related to the use of funds over that period.

o Turnover (Revenue): Income derived from the company's core operations, which, in this context, refers to interest earned on loans.

Policy:

1. Recognition of interest income:

o Turnover from interest income will be recognised on a monthly basis as the interest is earned. This is consistent with the effective interest is earned. This is consistent with the effective interest rate method, per FRS 102.

o As interest is accrued in advance, turnover for each month will include interest relating to that specific month, even if the interest was billed at the beginning of the period.

2. Effective interest rate method:

o The company will recognize interest income using the effective interest rate method. This approach reflects the actual return over the expected life of the loan and spreads the interest evenly over the term of the loan.

o Interest income will be calculated based on the gross carrying amount of the loan before any impairment adjustments.

3. Accrual and Revenue Recognition:

o Since interest is charged in advance, the revenue for each period will be recognized at the start of the period when the company has a right to the interest.

o Interest Receivable will be recognized as an asset on the balance sheet for any interest billed but not yet received.

4. Presentation in Financial Statements

o Turnover from interest income will be disclosed separately in the financial statements under "Interest Income" or similar, consistent with UK accounting principles.

o The company will clearly state in the notes to the financial statements that interest income is earned on non-amortizing loans and is accrued in advance.


Colenko Secured Lending 1 Ltd (Registered number: 13975352)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
5. Interest Receivable:

o Any interest accrued but not yet received at the balance sheet date will be presented as interest receivable in the current assets section.

o The company will assess any outstanding interest receivables for impairment, especially if there is evidence that the borrower may not be able to fulfil their obligations.

6. Impairment and Credit Risk:

o The company will review all loans for impairment in line with FRS 102's requirements for expected credit losses (ECL).

o If there is significant doubt about the reconcilability of interest due to borrower default or credit risk deterioration, impairment losses will be recognized and disclosed in the financial statements, reducing the recognized turnover.

7. Disclosure in financial statements

o The company will include a detailed note on its revenue recognition policy in the financial statements, stating that interest on non-amortizing loans is accrued monthly in advance.

o Any material assumptions, changes in the effective interest rate method, or significant impairments that affect interest income will be disclosed in accordance with FRS 102

8. Tax Considerations:

The company will ensure that the turnover recognition policy complies with UK tax law, particularly regarding the timing of income recognition for tax purposes.

Compliance with UK Accounting Standards:

This policy adheres to FRS 102, the UK Financial Reporting Standard applicable to entities reporting under UK GAAP. It follows the principle of recognizing interest income when it is earned and measurable, ensuring compliance with the UK Companies Act 2006.

Review:

The policy will be reviewed annually or when significant changes in UK accounting standards or relevant laws occur, to ensure continued compliance and accuracy in financial reporting.

Note for Financial Statements:

This policy will be included in the Notes to the Financial Statements under the section Accounting Policies, ensuring clarity around the method of revenue recognition for non-amortizing loans with interest accrued in advance.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Colenko Secured Lending 1 Ltd (Registered number: 13975352)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2022 - NIL).

4. DEBTORS
31.12.23 31.12.22
£    £   
Amounts falling due within one year:
Loan investments 6,406,683 1,527,691

Amounts falling due after more than one year:
Loan investments 920,000 -

Aggregate amounts 7,326,683 1,527,691

5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Other loans 5,355,559 1,015,831

6. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.12.23 31.12.22
£    £   
Other loans - 2-5 years 2,005,922 525,000

7. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Junior loan note 2,005,922 1,540,831
Block loan agreement 5,355,559 -
7,361,481 1,540,831

Junior loans are secured by a second ranking debenture over the assets of the business (the loans to property investor).

Block loans are secured by a first ranking debenture over the assets of the business (the loans to property investor).

8. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
1,000 Ordinary £0.01 10 10