Company Registration No. 08924629 (England and Wales)
CAIN HOY FINANCE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
CAIN HOY FINANCE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
CAIN HOY FINANCE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
7
9,122,407
4,190,411
Current assets
Debtors
9
33,839
87,825
Cash at bank and in hand
23,988
4,825,972
57,827
4,913,797
Creditors: amounts falling due within one year
10
(9,218,455)
(13,415,436)
Net current liabilities
(9,160,628)
(8,501,639)
Total assets less current liabilities
(38,221)
(4,311,228)
Capital and reserves
Called up share capital
11
40,100
40,100
Share premium account
579,580
579,580
Other reserves
12
5,459,359
-
0
Profit and loss reserves
(6,117,260)
(4,930,908)
Total equity
(38,221)
(4,311,228)

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
J Goldstein
Director
Company Registration No. 08924629
CAIN HOY FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Cain Hoy Finance Limited is a private company limited by shares incorporated in England and Wales. The registered office was changed to 72 Welbeck Street, London, United Kingdom, W1G 0AY on 1 May 2024 (previously 116 Upper Street, London, N1 1QP). The company registration number is 08924629.

1.1
Accounting convention

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 and include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis, which assumes the company will be able to meet its liabilities as and when they fall due for the foreseeable future. At 31 December 2023, the company has net current liabilities of £9.2m (2022: £8.5m) and net liabilities of £38k (2022: £4.3m). true

 

The liabilities comprise of current liabilities in respect of accruals and amounts due to parent undertakings.

 

To conclude on the entity's ability to continue as a going concern, the directors have considered the cash position at year end and into 2024, as well as ongoing costs to fund operations and ongoing support from fellow group undertakings. The company has received confirmation of financial support from Cain International LP on behalf of Cain PE LLC in respect of amounts owed. Although considered repayable on demand this amount or any other amounts due to Cain PE LLC, or entities that it controls will not be recalled unless the company is in a position to repay or otherwise settle any amounts called upon, such that this would impact the going concern status of the company. In addition, support has been agreed to provide £60,000 for ongoing expenses during the period to 31 December 2025.

 

The directors therefore consider it appropriate to prepare the company's accounts on a going concern basis.

1.3
Financial instruments
Basic financial assets

Basic financial assets, which include loans receivable within fixed asset investments, 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 less any reduction for impairment or uncollectability 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.

 

For basic financial assets held at amortised cost where an impairment loss has been recognised, if in a subsequent period, the amount of an impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the impairment previously recognised shall be reversed.

 

Basic financial assets which include traded stocks within fixed asset investments are initially measured at the transaction price and are subsequently measured at their fair value based on a quoted market price, with any gains and losses being recognised through the profit or loss.

CAIN HOY FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities, including creditors and loans from fellow group companies 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.

Derecognition of financial liabilities

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

1.4
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

CAIN HOY FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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.

Key sources of estimation uncertainty
Impairment of loan shown as fixed asset investment

Where there are indicators of impairments of loans receivable which indicate that the carrying value may not be recoverable, the directors perform impairment tests on these receivables based on the fair value by comparing the carrying value with its recoverable amount. On 15 June 2023 and as part of a wider group restructuring, all rights and obligations attaching to the loans receivable were assigned to its immediate parent company, Cain PE LLC. The directors, having observed a downturn in trading performance due to adverse economic factors, considered the financial position and trading results of the investment entity as at the date of the assignment of all rights and obligations to these loan notes and determined that based on the conditions that existed as at that date, it was not probable that the debt would be recovered. Loans receivable with a carrying amount of £2,164,892 were fully impaired during the year.

3
Turnover

An analysis of the company's turnover, which has been fully derived in the UK, is as follows:

2023
2022
£
£
Turnover
Effective interest income
399,126
473,874
4
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
25,330
37,900
Impairment losses on loan notes receivable
2,164,892
3,738,958
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was nil (2022 - nil).

6
Directors' remuneration

The directors received no remuneration during the year (2022 - £nil). The directors are also directors of other related party undertakings and their remuneration for the year was paid for by other undertakings. The directors did not receive any remuneration in relation to the company as the qualifying services provided to the company was incidental to the qualifying services provided to the other related party undertakings.

CAIN HOY FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
7
Fixed asset investments
2023
2022
£
£
Other investments other than loans
9,122,407
4,190,411

The other investments represents investments in listed securities and other commodities held in an investment portfolio.

Movements in fixed asset investments
Investments other than loans
Notes receivable
Total
£
£
£
Cost or valuation
At 1 January 2023
4,190,411
-
4,190,411
Additions
12,612,144
1,706,488
14,318,632
Interest
60,103
458,404
518,507
Impairment
-
(2,164,892)
(2,164,892)
Disposals
(7,654,263)
-
(7,654,263)
Fair value loss
(85,988)
-
(85,988)
At 31 December 2023
9,122,407
-
9,122,407
Carrying amount
At 31 December 2023
9,122,407
-
9,122,407
At 31 December 2022
4,190,411
-
0
4,190,411

Notes receivable are loan notes issued to a third party amounting to principal of £6,686,359 (2022: £4,979,871), plus unpaid interest of £1,120,894 (2022: £721,768). These loan notes carried interest at a rate of 12% and were secured by an agreement with the third party. On 15 June 2023, all rights and obligations attaching to these loan notes were assigned to its immediate parent company, Cain PE LLC, along with its associated intra-group debt arising from funds borrowed to facilitate the loan, accordingly, the loans were de-recognised. Prior to the assignment, the loans had been fully impaired, as disclosed in Note 2.

8
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
9,122,407
4,190,411
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
26,048
26,048
Amounts owed by group undertakings
-
0
2,500
Prepayments and accrued income
7,791
59,277
33,839
87,825
CAIN HOY FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
10
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
9,193,443
13,379,774
Accruals and deferred income
25,012
35,662
9,218,455
13,415,436

During the year, and as part of the restructuring of the wider group, the amount of £5,459,359 owed by the company to CH Capital A Holdings LLC, in respect of monies previously borrowed to fund its loans to a third party, was formalised in a loan agreement, dated 29 May 2023. This loan was subsequently assigned to Cain PE LLC, following the assignment of the loans receivable from a third party as described in Note 7 above.

11
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
4,010,000
4,010,000
40,100
40,100
12
Other reserves

Other reserves comprises a capital contribution by the company's immediate parent company, Cain PE LLC, arising from the assumption by Cain PE LLC of a loan due by the company to another group entity.

13
Related party transactions

Under FRS 102 section 1 AC.35, disclosure is not given of details between two or more members of a group, provided that the subsidiary which is a party to the transaction is wholly-owned by such a member. The directors consider that all related party balances and transactions meet the requirement for such exemption.

14
Parent undertaking

As at the year end, the immediate parent undertaking is Cain PE LLC, a company incorporated in Delaware, with a registered address of 767 Fifth Avenue, 17th Floor, New York, NY 10153.

In 2023, the ultimate controlling parties were Mr T.L. Boehly and Mr. J.S. Goldstein.

The largest group in which results of the Company are consolidated is that headed by Eldridge Industries, LLC of 600 Steamboat Road, Greenwich, Connecticut, 06830, USA. The financial statements of these entities are not publicly available.

The smallest group in which they are consolidated is that headed by Cain RE LLC, with a registered office address of 767 Fifth Avenue, 17th Floor, New York, NY 10153. The financial statements of this entity are not publicly available.

CAIN HOY FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
15
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Carolyn Hazard.
The auditor was HW Fisher LLP.
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