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Oracle Asset Finance Limited

Registered number: 05564813
Annual report and 
financial statements
For the year ended 31 March 2024

 
ORACLE ASSET FINANCE LIMITED
 
 
COMPANY INFORMATION


Director
P Brook 




Company secretary
M Mannakee



Registered number
05564813



Registered office
Oracle House
Whitfield Business Park

Manse Lane

Knaresborough

HG5 8BS




Independent auditor
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

5th Floor

3 Wellington Place

Leeds

LS1 4AP




Bankers
Lloyds Bank
8-11 Cambridge Crescent

Harrogate

HG1 1PQ





Natwest

3 Cambridge Crescent

Harrogate

HG1 1PE





 
ORACLE ASSET FINANCE LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 2
Director's Report
 
 
3 - 4
Independent Auditor's Report
 
 
5 - 8
Statement of Comprehensive Income
 
 
9
Statement of Financial Position
 
 
10
Statement of Changes in Equity
 
 
11
Notes to the Financial Statements
 
 
12 - 27


 
ORACLE ASSET FINANCE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The Director presents the Strategic Report for the 12 month period ended 31 March 2024.
Principal activity
The Company's principal activity is that of a motor vehicle finance broker.

Business review
 
The Company reverted back to a 12 month period ending 31 March 2024, previously 6 months ended 31 March 2023 therefore the results for the period are not comparable with the prior year.
The results of the Company for the year ended 31 March 2024 show turnover of £8.8m (6 month period to 31 March 2023: £4.2m) with an operating profit of £3.0m (6 month period to 31 March 2023: £1.4m). 
Within the financial period the business saw an increasing impact from the FCA ban on the discretionary commission model in the motor trade that came into effect on 28th January 2021. The impact of this review increased transparency requirements as well as the compliance obligations for any operator within the automotive finance market. The Company has a mature and efficient compliance programme in place; this coupled with the business’s first-class customer service levels (a Trust Pilot score of 5.0) meant that the business was able to compete more effectively in this better controlled market.
During the previous period the business has also benefited from increased employee engagement. An employee profit share scheme was in place over period, the impact of which was to make every employee a financial stakeholder in the company. This, coupled with a broader people development programme, has really seen the business benefit through increased engagement levels.
Future Developments
Looking ahead into the next period, and notwithstanding the potential impact of external factors, the business expects the investment across all areas of the business over the last 12 months to continue to have a positive impact on the company’s financial performance.

Principal risks and uncertainties
 
As a broker, Oracle Asset Finance Limited is reliant on its relationships with the various banks and lenders it utilises to conduct its day-to-day business. The business is exposed to individual lender fluctuations and appetite to write business; which may be further impacted by the FCA review of the historical use of discretionary commission arrangements; however the risk in this area is reduced by maintaining a large and diverse panel of lenders.

- 1 -

 
ORACLE ASSET FINANCE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Financial key performance indicators
 
The key performance indicators identified by the directors are gross profit and Operating profit as detailed below.


12 months ended
Mar 2024(£)
6 months ended
Mar 2023 (£)
Gross profit
8.6m
4.1m
Operating profit
3.0m
1.4m



This report was approved by the board on 21 August 2024 and signed on its behalf.



P Brook
Director

- 2 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The Director presents his report and the financial statements for the year ended 31 March 2024.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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; and

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,369,841 (2023 - £1,075,016).

Dividends totalling £7,301,800 were declared in the year (2023: £1,000,000).

Director

The director who served during the year was:

P Brook 

Principal risks and uncertainties

As a broker, Oracle Asset Finance Limited is reliant on its relationships with the various lenders it utilises to conduct its day-to-day business. The business has a diverse panel of lenders however remains exposed to fluctuations in lender appetite to write business.
The Company is regulated and authorised by the Financial Conduct Authority and continues to assess risks both internally and within the marketplace.

- 3 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Disclosure of information to auditor

The director at the time when this Director's Report is approved has confirmed that:
 
so far as the director the  director is aware, there is no relevant audit information of which the Company's auditor is 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 auditor is aware of that information.

Post balance sheet events

The Company has no post balance sheet events to disclose.

Going concern

The director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and continues to adopt the going concern basis of accounting in preparing the annual financial statements. The director has considered a period in excess of twelve months from the date of the approval of these financial statements in making his assessment.

Auditor

The auditor, Forvis Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the director on 21 August 2024 and signed on its behalf.
 





P Brook
Director

- 4 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ORACLE ASSET FINANCE LIMITED
 

Opinion

We have audited the financial statements of Oracle Asset Finance Limited (the ‘Company’) for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, 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 FRS 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 March 2024 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 Auditor’s 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 UK, including the FRC’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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is 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.
- 5 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ORACLE ASSET FINANCE LIMITED
 

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.

Opinions 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In 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 Director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

- 6 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ORACLE ASSET FINANCE LIMITED
 

Responsibilities of Director

As explained more fully in the director’s responsibilities statement set out on page 3, the director is 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 director determines 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 director is 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 director intends either to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 auditor’s 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 the financial statements. 
 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
 
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. 

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, The Financial Conduct Authority (FCA) regulation and The Bribery Act 2010.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as the  tax legislation, pension legislation, and the Companies Act 2006. 
- 7 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ORACLE ASSET FINANCE LIMITED
 

In addition, we evaluated the director’s and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to the valuation of provisions, revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 auditor’s report.

Use of the audit 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 auditor's 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.




Christopher Hudson (Senior Statutory Auditor)

  
for and on behalf of

Forvis Mazars LLP
Chartered Accountants and Statutory Auditor 
5th Floor
3 Wellington Place
LS1 4AP

21 August 2024
- 8 -

 
ORACLE ASSET FINANCE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

31 March
6 months ended
31 March
2024
2023
Note
£
£

  

Turnover
 4 
8,845,275
4,235,221

Cost of sales
  
(230,895)
(108,059)

Gross profit
  
8,614,380
4,127,162

Administrative expenses
  
(5,579,564)
(2,760,232)

Other operating income
 5 
7,820
360

Operating profit
 6 
3,042,636
1,367,290

Interest receivable and similar income
  
77,119
-

Interest payable and similar expenses
  
(260)
-

Profit before tax
  
3,119,495
1,367,290

Tax on profit
 10 
(749,654)
(292,274)

Profit for the financial year
  
2,369,841
1,075,016

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 12 to 27 form part of these financial statements.



- 9 -

 
ORACLE ASSET FINANCE LIMITED
REGISTERED NUMBER: 05564813

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible fixed assets
 12 
51,068
50,335

Investments
 13 
50,000
50,000

  
101,068
100,335

Current assets
  

Debtors
 14 
2,566,878
3,302,912

Current asset investments
 15 
-
500,000

Cash at bank and in hand
 16 
145,497
3,592,954

  
2,712,375
7,395,866

Creditors: amounts falling due within one year
 17 
(1,601,520)
(1,340,273)

Net current assets
  
 
 
1,110,855
 
 
6,055,593

Total assets less current liabilities
  
1,211,923
6,155,928

Provisions for liabilities
  

Other provisions
 19 
(586,770)
(598,816)

Net assets
  
625,153
5,557,112


Capital and reserves
  

Called up share capital 
 20 
100
100

Profit and loss account
 21 
625,053
5,557,012

  
625,153
5,557,112


The financial statements were approved and authorised for issue by the director and were signed on its behalf on 21 August 2024.


P Brook
Director

The notes on pages 12 to 27 form part of these financial statements.

- 10 -

 
ORACLE ASSET FINANCE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 October 2022
100
5,481,996
5,482,096


Comprehensive income for the period

Profit for the period
-
1,075,016
1,075,016
Total comprehensive income for the period
-
1,075,016
1,075,016


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,000,000)
(1,000,000)


Total transactions with owners
-
(1,000,000)
(1,000,000)



At 1 April 2023
100
5,557,012
5,557,112


Comprehensive income for the year

Profit for the year
-
2,369,841
2,369,841
Total comprehensive income for the year
-
2,369,841
2,369,841


Contributions by and distributions to owners

Dividends: Equity capital
-
(7,301,800)
(7,301,800)


Total transactions with owners
-
(7,301,800)
(7,301,800)


At 31 March 2024
100
625,053
625,153


The notes on pages 12 to 27 form part of these financial statements.

- 11 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Oracle Asset Finance Limited is a private company, limited by shares, registered in England and Wales, registered number 05564813. The principal place of business is Oracle House Whitfield Business Park, Manse Lane, Knaresborough, North Yorkshire, HG5 8BS.
The presentational currency is Pound Sterling as this is the currency of the primary economic environment in which the Company operates.
The principal activity of the Company continued to be that of finance brokerage.

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 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 prior period financial statements were prepared for the 6 month period ended 31 March 2023 therefore the results for the period are not comparable with the prior year.

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 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Exemplary Group Limited as at 31 March 2024 and these financial statements may be obtained from Companies House.

 
2.3

Going concern

The director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and continues to adopt the going concern basis of accounting in preparing the annual financial statements. The director has considered a period in excess of twelve months from the date of the approval of these financial statements in making his assessment.

- 12 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.4

Revenue

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, clawbacks, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

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.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

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

 
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.

- 13 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

- 14 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures & fittings
-
15%
Straight line
Motor vehicles
-
25%
Straight line
Computer and office equipment
-
25%
Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.11

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

 
2.12

Valuation of investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.13

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.

 
2.14

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

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

- 15 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of Financial Position 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

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

- 16 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.17
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

- 17 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.17
Financial instruments (continued)

Derecognition of financial instruments

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.

 
2.18

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The critical judgments that the director has made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
Assessing indicators of impairment 
In assessing whether there have been any indicators of impairment of assets, the director has considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned. There have been no indicators of impairment identified during the current financial year.
Key sources of estimation uncertainty
The estimates and assumptions which could result in a material adjustment to the carrying amount of assets and liabilities are as follows.
Clawback provision
Under the terms of the agreements with lenders, commission revenue can be clawed back in certain circumstances where there is an early settlement voluntary termination or default. A provision for anticipated clawbacks of £586,770 (2023: £598,816) has been included within provisions. As at 31 March 2024 management have taken account of the potential impact of the current market conditions in arriving at the clawback provision, and believe that the amount included is a reasonable estimate, but nonetheless wish to highlight the inherent uncertainty in predicting the level of future clawbacks in the current economic environment, which could have a material impact on the financial statements.

- 18 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

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


31 March
6 months ended
31 March
2024
2023
£
£

Brokerage fees
8,845,275
4,235,221


All turnover arose within the United Kingdom.


5.


Other operating income

31 March
6 months ended
31 March
2024
2023
£
£

Other operating income
7,820
-

Sundry income
-
360

7,820
360



6.


Operating profit

The operating profit is stated after charging:

31 March
6 months ended
31 March
2024
2023
£
£

Depreciation of owned tangible fixed assets
21,240
11,692

- 19 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


31 March
6 months ended
31 March
2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
27,500
25,000


8.


Employees

Staff costs, including director's remuneration, were as follows:


31 March
6 months ended
31 March
2024
2023
£
£

Wages and salaries
3,690,793
1,799,721

Social security costs
399,260
213,729

Cost of defined contribution scheme
122,174
59,059

4,212,227
2,072,509


The average monthly number of employees, including the director, during the year was as follows:


       31 March
   6 months ended
        31 March
        2024
        2023
            No.
            No.







Sales
34
33



Admin
13
26



Management
22
5



Directors
1
1

70
65

- 20 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Director's remuneration

31 March
6 months ended
31 March
2024
2023
£
£

Director's emoluments
41,558
18,183

Company contributions to defined contribution pension schemes
60,000
30,000

101,558
48,183



10.


Taxation


31 March
6 months ended
31 March
2024
2023
£
£

Corporation tax


Current tax on profits for the period
805,524
268,956

Adjustments in respect of previous periods
(40,478)
(821)


Total current tax
765,046
268,135

Deferred tax


Origination and reversal of timing differences
(15,392)
(5,381)

Adjustments in respect of prior periods
-
29,520

Total deferred tax
(15,392)
24,139


Taxation on profit on ordinary activities
749,654
292,274
- 21 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year/period

The tax assessed for the year/period is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

31 March
6 months ended
31 March
2024
2023
£
£


Profit on ordinary activities before tax
3,119,495
1,367,290


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
779,874
259,785

Effects of:


Expenses not deductible for tax purposes
10,258
5,860

Fixed asset timing differences
-
(779)

Adjustments to tax charge in respect of prior periods
(40,478)
(821)

Adjustments to tax charge in respect of previous periods - deferred tax
-
29,520

Remeasurement of deferred tax for changes in tax rates
-
(1,291)

Total tax charge for the year/period
749,654
292,274


Factors that may affect future tax charges

The rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher rate will apply but with a marginal relief applying as profits increase.


11.


Dividends

2024
2023
£
£


Ordinary shares
7,301,800
1,000,000

- 22 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Tangible fixed assets





Motor vehicles
Fixtures & fittings
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 April 2023
6,184
72,852
4,725
182,454
266,215


Additions
-
-
-
21,974
21,974



At 31 March 2024

6,184
72,852
4,725
204,428
288,189



Depreciation


At 1 April 2023
6,184
60,304
4,725
144,667
215,880


Charge for the year
-
2,981
-
18,259
21,240



At 31 March 2024

6,184
63,285
4,725
162,926
237,120



Net book value



At 31 March 2024
-
9,567
-
41,502
51,069



At 31 March 2023
-
12,548
-
37,787
50,335


13.


Fixed asset investments





Unlisted investments

£



Cost 


At 1 April 2023
50,000



At 31 March 2024
50,000




- 23 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Debtors

2024
2023
£
£



Trade debtors
1,226,888
991,892

Amounts owed by group undertakings
1,205,325
882,437

Other debtors
-
1,272,446

Prepayments and accrued income
82,359
119,223

Deferred taxation
52,306
36,914

2,566,878
3,302,912


Amounts due from group undertakings are interest free and repayable on demand. 


15.


Current asset investments

2024
2023
£
£

Treasury deposits
-
500,000



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
145,497
3,592,954



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
131,911
78,536

Corporation tax
451,223
268,135

Other taxation and social security
115,402
100,222

Other creditors
25,755
187

Accruals and deferred income
877,229
893,193

1,601,520
1,340,273


- 24 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

18.


Deferred taxation




2024
2023


£

£






At beginning of year
36,914
61,053


Charged to profit or loss
15,392
(24,139)



At end of year
52,306
36,914

The deferred tax asset is made up as follows:

2024
2023
£
£


Fixed asset differences
(9,869)
(9,050)

Short term timing differences
62,175
45,964

52,306
36,914


19.


Provisions




Clawback provision

£





At 1 April 2023
598,816


Charged to profit or loss
375,703


Utilised in year
(387,749)



At 31 March 2024
586,770


20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100


- 25 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.


Reserves

Profit & loss account

This reserve represents cumulative profits and losses less dividends paid.


22.


Pension commitments

The Company operates a defined contribution personal pension scheme. The assets of the scheme are held separately from those of the company in a independently administered fund. The pension charge for the period amounted to £122,174 (2023: £59,059). Contributions totaling £20,446 (2023: £60,000) were payable at the end of the financial year and are included in creditors due within 1 year.


23.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
10,449
9,718

Later than 1 year and not later than 5 years
10,645
18,626

Later than 5 years
183
-

21,277
28,344


24.


Related party transactions

The Company has taken advantage of the exemption conferred by FRS 102 Section 33 not to disclose transactions with wholly owned members of the group headed by Exemplary Group Limited.


2024
2023
£
£

Amounts due from other related parties
-
1,265,807

- 26 -

 
ORACLE ASSET FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

25.


Controlling party

The Company's ultimate parent company is Exemplary Group Limited, a company incorporated in England and Wales. This is the largest and smallest group into which the Company is consolidated.
Its office and registered address is Oracle House Whitfield Business Park, Manse Lane, Knaresborough, North Yorkshire, HG5 8BS and the consolidated financial statements are publicly available from Companies House.
The ultimate controlling party is Mr P Brook by virtue of his controlling interest in Exemplary Group Limited. 

- 27 -