Caseware UK (AP4) 2023.0.135 2023.0.135 2024-05-312024-05-31Provide mezzanine funding to residential developers5falsefalse2023-06-015falsefalse 08534871 2023-06-01 2024-05-31 08534871 2022-06-01 2023-05-31 08534871 2024-05-31 08534871 2023-05-31 08534871 2022-06-01 08534871 1 2023-06-01 2024-05-31 08534871 1 2022-06-01 2023-05-31 08534871 3 2023-06-01 2024-05-31 08534871 3 2022-06-01 2023-05-31 08534871 4 2023-06-01 2024-05-31 08534871 4 2022-06-01 2023-05-31 08534871 5 2023-06-01 2024-05-31 08534871 5 2022-06-01 2023-05-31 08534871 6 2023-06-01 2024-05-31 08534871 6 2022-06-01 2023-05-31 08534871 1 2023-06-01 2024-05-31 08534871 e:CompanySecretary1 2023-06-01 2024-05-31 08534871 e:Director1 2023-06-01 2024-05-31 08534871 e:Director2 2023-06-01 2024-05-31 08534871 e:Director3 2023-06-01 2024-05-31 08534871 e:RegisteredOffice 2023-06-01 2024-05-31 08534871 d:OfficeEquipment 2023-06-01 2024-05-31 08534871 d:OfficeEquipment 2024-05-31 08534871 d:OfficeEquipment 2023-05-31 08534871 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 08534871 d:CurrentFinancialInstruments 2024-05-31 08534871 d:CurrentFinancialInstruments 2023-05-31 08534871 d:Non-currentFinancialInstruments 2024-05-31 08534871 d:Non-currentFinancialInstruments 2023-05-31 08534871 d:CurrentFinancialInstruments d:WithinOneYear 2024-05-31 08534871 d:CurrentFinancialInstruments d:WithinOneYear 2023-05-31 08534871 d:Non-currentFinancialInstruments d:AfterOneYear 2024-05-31 08534871 d:Non-currentFinancialInstruments d:AfterOneYear 2023-05-31 08534871 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2024-05-31 08534871 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-05-31 08534871 d:ReportableOperatingSegment1 2023-06-01 2024-05-31 08534871 d:ReportableOperatingSegment1 2022-06-01 2023-05-31 08534871 d:ReportableOperatingSegment2 2023-06-01 2024-05-31 08534871 d:ReportableOperatingSegment2 2022-06-01 2023-05-31 08534871 d:UKTax 2023-06-01 2024-05-31 08534871 d:UKTax 2022-06-01 2023-05-31 08534871 d:ShareCapital 2024-05-31 08534871 d:ShareCapital 2023-05-31 08534871 d:ShareCapital 2022-06-01 08534871 d:RetainedEarningsAccumulatedLosses 2023-06-01 2024-05-31 08534871 d:RetainedEarningsAccumulatedLosses 2024-05-31 08534871 d:RetainedEarningsAccumulatedLosses 2022-06-01 2023-05-31 08534871 d:RetainedEarningsAccumulatedLosses 2023-05-31 08534871 d:RetainedEarningsAccumulatedLosses 2022-06-01 08534871 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-05-31 08534871 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-05-31 08534871 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:UnlistedNon-exchangeTraded 2024-05-31 08534871 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:UnlistedNon-exchangeTraded 2023-05-31 08534871 e:OrdinaryShareClass1 2023-06-01 2024-05-31 08534871 e:OrdinaryShareClass1 2024-05-31 08534871 e:OrdinaryShareClass1 2023-05-31 08534871 e:OrdinaryShareClass2 2023-06-01 2024-05-31 08534871 e:OrdinaryShareClass2 2024-05-31 08534871 e:OrdinaryShareClass2 2023-05-31 08534871 e:FRS102 2023-06-01 2024-05-31 08534871 e:Audited 2023-06-01 2024-05-31 08534871 e:FullAccounts 2023-06-01 2024-05-31 08534871 e:PrivateLimitedCompanyLtd 2023-06-01 2024-05-31 08534871 d:Subsidiary1 2023-06-01 2024-05-31 08534871 d:Subsidiary1 1 2023-06-01 2024-05-31 08534871 d:WithinOneYear 2024-05-31 08534871 d:WithinOneYear 2023-05-31 08534871 d:BetweenOneFiveYears 2024-05-31 08534871 d:BetweenOneFiveYears 2023-05-31 08534871 2 2023-06-01 2024-05-31 08534871 f:PoundSterling 2023-06-01 2024-05-31 iso4217:GBP xbrli:shares xbrli:pure



Company Registration No. 08534871 (England and Wales)







THE PROPERTY BOX LOAN COMPANY PLC

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024




































Riordan O'Sullivan & Co
Chartered Certified Accountants and Statutory Auditors
40 Chamberlayne Road
London
NW10 3JE

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
COMPANY INFORMATION


Directors
M J Chicken 
S A Ryan 
B B Tansey 




Company secretary
F McCulloch



Registered number
08534871



Registered office
4 Newburgh Street

London

W1F 7RF




Independent auditors
Riordan O'Sullivan & Co
Chartered Certified Accountants and Statutory Auditors

40 Chamberlayne Road

London

NW10 3JE





 
THE PROPERTY BOX LOAN COMPANY PLC
 

CONTENTS



Page
Strategic Report
 
 
1 - 3
Directors' Report
 
 
4 - 5
Independent Auditors' Report
 
 
6 - 9
Profit and Loss Account
 
 
10
Balance Sheet
 
 
11
Statement of Changes in Equity
 
 
12
Statement of Cash Flows
 
 
13
Analysis of Net Debt
 
 
14
Notes to the Financial Statements
 
 
15 - 25


 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their strategic report together with the financial statements of the company for the year ended 31st May 2024.
The Property Box Loan Company has been providing mezzanine loans to residential property developers since 2013. The founding directors have key competences and extensive experience in both property finance and property development.
Michael Chicken has significant banking and property finance expertise both at Merchant Place Corporate Finance and previously at two merchant banks. Sean Ryan and Barry Tansey (both qualified accountants) have been involved in executive roles (and continue to be involved) in the residential and construction sectors. The three founders have between them over 80 years experience in this market area and have an intricate knowledge of financing property developments.
The primary objective of the company is to generate profits by lending to competent developers at a higher rate than its own cost of funds.

Principal activities

The principal activities of the company continues to be that of providing mezzanine loans to residential property developers.
Headline facts and key performance indicators
 
The key financial highlights of the company for the last four years are as follows:
ole2e2e.png
The profit and loss account

The profit and loss account for the year is set out on page 10.

Review of the business

During the year, we continued to trade profitably within our targeted niche generating profit after tax of £168,080. Our 2024 results were in line with our expectations.   
While market conditions remain challenging for many of our clients, we have continued to write new business.  In the short term and in particular at the time of writing, we are approaching new loans with more caution and with a focus on maintaining rather than growing the loan book in the current uncertain environment.  

Page 1

 
THE PROPERTY BOX LOAN COMPANY PLC
 

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

Principal exposure risks and uncertainties
 
The company is exposed to the usual risks of companies lending to property development, including construction budget cost overruns, programme delays, client insolvency and default, general economic conditions, uninsured calamities and other factors.
Loans are made in sterling and therefore not subject to foreign exchange rate risks. The company’s credit risk is primarily attributable to its loan debtors. Credit risk is managed through a detailed and thorough due diligence process prior to the signing, agreement and drawdown of facilities, and by the regular monthly monitoring of progress (both in terms of costs and programme performance) – this monitoring is carried out by independently appointed monitoring surveyors with each report reviewed by the company.

Financial risk management
 
The historic context is of traditional bank lending being limited to 60% of forecast end value of projects. The company strategy has been to lend beyond this limit but only up to a maximum of 75% (bank debt plus mezzanine) of the forecast end value.
The board have observed that while high street banks broadly continue to provide senior debt up to the 60% of end value there is increased competition from new entrants proving higher loans typically up to 65%/70% of end value. The board do not consider that extending our loans to a higher maximum than 75% of end value is an appropriate response to this challenge. 

Going concern
 
The Board of Directors is required to consider the group's ability to continue as a going concern over a period of at least 12 months from the date of approval of the financial statements. The company has 10 years of successful trading and a continuous strengthening of its finances, balance sheet and reputation in its sector. We have a satisfactory loan book with well established customers.
The directors are confident that the group can continue to trade successfully providing an excellent and reliable service to our customers for the foreseeable future.
Thus we continue to adopt the going concern basis in preparing the financial statements.

Directors' statement of compliance with duty to promote the success of the company
 
The primary responsibility of the Board is to promote the long term success of the company for the benefit of the shareholders, but the directors acknowledge that long term success and reputation is dependent on our responsibility to balance the interests of all other stakeholders who we come into contact with, in order to deliver the best possible outcome for all concerned.
Section 172 of the Companies Act 2006 requires us to report each year on how we fulfil these obligations.
Customers
Our customers are at the heart of our business, with whom we are in constant dialogue and we strive to give them the best possible service and to enhance our relationship for our mutual benefit and that of the wider community.
Our employees
Our employees are key to the success of our business. We have a hands-on family culture where our directors are actively involved with our customers on a day-to-day basis and who constantly engage with our employees and keep them informed of business development, forecasts and prospects. We expect and maintain high standards and we offer a rewarding career progression. We thank our employees for their dedication and commitment.
 
Page 2

 
THE PROPERTY BOX LOAN COMPANY PLC
 

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

Suppliers
Our suppliers are crucial stakeholders in the success of our business, without whom we could not operate efficiently, so we treat them in the same way we treat our employees in terms of communication, payment, terms and conditions and inclusivity and whom we expect to adhere to our high standards.
Local community and the environment 
We acknowledge the external impact of our activities on local communities and on the environment.
Other controls
We acknowledge our ethical, moral and social responsibilities and the aim of the company is to maintain high standards of business conduct which remains paramount. We are opposed to all forms of discrimination. We obtain external assurance through audits and through national and international standards compliance and accreditations.
As a small company providing all important mezzanine funding for residential development an area that the government itself is keen to support the following paragraphs summarise how the directors fulfil their duties:
(i) Formalised credit decisions by way of a committee reviewing detailed proposals;
(ii) Fundings only proceeding after receipt and review of various professional reports such as legal,   
 construction, title, valuation, and environmental;                                                                        
(iii) Regular consultation with all staff to ensure that interests are taken account of;
(iv) Formalised monitoring of developments;
(v) Policy and promotion of high standards and quick decision making, partly by way of close working
 between directors and staff;
(vi) Equitable rewards for members/ staff based on company performance.

The future

The Directors look forward with confidence to continue the success of the company into the future.


This report was approved by the board on 22 November 2024 and signed on its behalf.




___________________________
S A Ryan
Director

Page 3

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

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 judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 2006They 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Results and dividends

The profit for the year, after taxation, amounted to £168,080 (2023: £406,686).

No interim dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

M J Chicken 
S A Ryan 
B B Tansey 

Strategic report

The company has chosen in accordance with Companies Act 2006, s414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainities and future prospects.

Page 4

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

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.

Auditors

Under section 487(2) of the Companies Act 2006, Riordan O'Sullivan & Co, Chartered Certified Accountants and Statutory Auditors, are deemed to be reappointed as auditors.

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




___________________________
S A Ryan
Director

Date: 22 November 2024

Page 5

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PROPERTY BOX LOAN COMPANY PLC
 

Opinion


We have audited the financial statements of The Property Box Loan Company Plc (the 'company') for the year ended 31 May 2024, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 May 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 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 6

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PROPERTY BOX LOAN COMPANY PLC (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 ReportOur 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
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 4, 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 7

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PROPERTY BOX LOAN COMPANY PLC (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 obtained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, through discussions with directors and senior management and from our commercial knowledge and experience of the mezzanine loan industry.
We focused on specific laws and regulations which we considered may have a material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
We assessed the extent of compliance with these laws and regulations through discussions and enquiry with directors and senior management. 
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur.
We considered the financial controls in place to mitigate risks of fraud and error, including the risk of management bias or override. We tested the appropriateness of journal entries that appeared unusual as to nature or amount.
Our audit procedures were designed to respond to the risks of material misstatement in the financial statements, 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 or collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations are from financial transactions, the less likely we are to become aware of it.


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 8

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PROPERTY BOX LOAN COMPANY PLC (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 2006Our 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.






Patrick McNamara (Senior Statutory Auditor)
for and on behalf of
Riordan O'Sullivan & Co
Chartered Certified Accountants and Statutory Auditors
40 Chamberlayne Road
London
NW10 3JE

22 November 2024
Page 9

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

Turnover
 4 
1,247,993
1,406,955

Cost of sales
  
(605,922)
(466,266)

Gross profit
  
642,071
940,689

Administrative expenses
  
(419,458)
(429,577)

Operating profit
 5 
222,613
511,112

Interest receivable and similar income
 8 
2,156
122

Interest payable and similar expenses
 9 
-
(915)

Profit before tax
  
224,769
510,319

Taxation
 10 
(56,689)
(103,633)

Profit for the financial year
  
168,080
406,686

The notes on pages 15 to 25 form part of these financial statements.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Page 10

 
THE PROPERTY BOX LOAN COMPANY PLC
REGISTERED NUMBER:08534871

BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible fixed assets
 11 
6,921
8,218

Investments
 12 
75
75

  
6,996
8,293

Current assets
  

Debtors: amounts falling due after more than one year
 13 
1,897,679
1,369,053

Debt due within 1 year
 13 
6,160,527
6,606,200

Cash at bank and in hand
  
48,746
12,785

  
8,106,952
7,988,038

Creditors: amounts falling due within one year
 14 
(2,446,626)
(1,483,134)

Net current assets
  
 
 
5,660,326
 
 
6,504,904

Total assets less current liabilities
  
5,667,322
6,513,197

Creditors: amounts falling due after more than one year
 15 
(1,635,000)
(2,648,955)

Net assets
  
4,032,322
3,864,242


Capital and reserves
  

Called up share capital 
 18 
50,100
50,100

Profit And Loss Account
  
3,982,222
3,814,142

  
4,032,322
3,864,242


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 November 2024.



___________________________
S A Ryan
Director

The notes on pages 15 to 25 form part of these financial statements.

Page 11

 
THE PROPERTY BOX LOAN COMPANY PLC
 

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


Share capital
Profit and loss account
Total equity

£
£
£


At 1 June 2022
50,100
3,407,456
3,457,556



Profit for the year after tax
-
406,686
406,686



At 1 June 2023
50,100
3,814,142
3,864,242



Profit for the year after tax
-
168,080
168,080


At 31 May 2024
50,100
3,982,222
4,032,322


The notes on pages 15 to 25 form part of these financial statements.

Page 12

 
THE PROPERTY BOX LOAN COMPANY PLC
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
168,080
406,686

Adjustments for:

Depreciation of tangible assets
2,307
2,740

Interest paid
-
915

Interest received
(2,156)
(122)

Taxation charge
56,689
103,633

Increase in debtors
(82,912)
(1,761,617)

(Decrease)/increase in creditors
(3,643)
3,192

Corporation tax paid
(103,362)
(199,790)

Net cash generated from operating activities

35,003
(1,444,363)

Cash flows from investing activities

Purchase of tangible fixed assets
(1,009)
-

Purchase of fixed asset investments
-
(75)

Interest received
2,156
122

Net cash from investing activities

1,147
47

Cash flows from financing activities

Issue of ordinary shares
(42)
-

Repayment of other loans
(147)
(929,127)

Interest paid
-
(915)

Net cash used in financing activities
(189)
(930,042)

Net increase/(decrease) in cash and cash equivalents
35,961
(2,374,358)

Cash and cash equivalents at beginning of year
12,785
2,387,143

Cash and cash equivalents at the end of year
48,746
12,785


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
48,746
12,785

48,746
12,785


The notes on pages 15 to 25 form part of these financial statements.

Page 13

 
THE PROPERTY BOX LOAN COMPANY PLC
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2024




At 1 June 2023
Cash flows
At 31 May 2024
£

£

£

Cash at bank and in hand

12,785

35,961

48,746

Debt due after 1 year

(2,648,955)

(890,038)

(3,538,993)

Debt due within 1 year

(1,346,637)

890,185

(456,452)


(3,982,807)
36,108
(3,946,699)

The notes on pages 15 to 25 form part of these financial statements.

Page 14

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

The Property Box Loan Company Plc is a public limited company, limited by shares, incorporated in England and Wales. The registered office is 4 Newburgh Street, London, W1F 7RF.

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 judgement in applying the company's accounting policies (see note 3).

The financial statements are prepared in sterling, which is the functional currency of the company.

The following principal accounting policies have been applied:

 
2.2

Going concern

The Directors' Report and the Strategic Report sets out the company's business activities, and highlights the factors which may impact on its financial performance, market position and future prospects. 
The Strategic Report also provides information in relation to the company's financial position, cashflow and liquidity as well as its risks and uncertainties.
As a consequence, the directors believe that the company is well placed to manage its business risks successfully and continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing these financial statements.

 
2.3

Turnover

Turnover represents interest and fees receivable from loans advanced. Revenue from interest is recognised on an accrual basis. Fee revenue is recognised as it arises.

 
2.4

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.

Page 15

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.4
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Office equipment
-
25%

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.

  
2.5

Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. 

 
2.6

Cash and cash equivalents

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


 
2.7

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments. 
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 16

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.8

Taxation

The tax expense represents the sum of the tax currently payable.
Current 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 balance sheet date in the countries where the company operates and generates income.

 
2.9

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees.

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 Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.10

Equity instruments

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

 
2.11

Interest income

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

 
2.12

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.

 
2.13

Borrowing costs

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

 
2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 17

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

  
2.15

Group accounts

The company has taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts. 

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements under FRS 102 requires management to make estimates and assumptions that affect the amounts recognised as assets and liabilities at the balance sheet date and the amounts of revenue and expenses incurred during the year. Actual outcomes may therefore differ from these estimates and assumptions. The estimates and assumptions that have the most significant impact on the carrying values of assets and liabilities of the company within the next financial year are detailed as follows:
Recoverability of debtors
The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 13 for the net carrying amount of the debtors.


4.


Turnover

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


2024
2023
£
£

Interest receivable
1,170,368
1,279,217

Fees receivable
77,625
127,738

1,247,993
1,406,955


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Fees payable to the company's auditors for audit services
20,400
18,000

Depreciation of tangible fixed assets
2,307
2,740
Page 18

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
192,500
177,838

Social security costs
12,815
11,762

Pension costs
21,992
34,004

227,307
223,604


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


        2024
        2023
            No.
            No.







Key management
3
3



Administration
2
2

5
5


7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
55,000
45,000



8.


Interest receivable

2024
2023
£
£


Bank interest receivable
2,156
122


9.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
-
915

Page 19

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
56,689
103,633

Total current tax
56,689
103,633

Factors affecting tax charge for the year

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

2024
2023
£
£


Profit on ordinary activities before tax
224,769
510,319


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
56,192
127,580

Effects of:


Expenses not deductible for tax purposes
173
706

Difference in capital allowance and depreciation
324
685

Effect of change in corporation tax rate
-
(25,338)

Total tax charge for the year
56,689
103,633

Page 20

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

11.


Tangible fixed assets





Office equipment

£



Cost or valuation


At 1 June 2023
25,359


Additions
1,009



At 31 May 2024

26,368



Depreciation


At 1 June 2023
17,141


Charge for the year
2,306



At 31 May 2024

19,447



Net book value



At 31 May 2024
6,921



At 31 May 2023
8,218


12.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2023
75



At 31 May 2024
75





Subsidiary undertaking


The following was a subsidiary undertaking of the company:

Name

Principal activity

Class of shares

Holding

Home Sussex 1 Limited
Development of building projects
Ordinary
75%

Page 21

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

The aggregate amount of capital and reserves and the results for Home Sussex 1 Limited for the last  financial years  were as follows:

Dec'23
Dec'22
£
£


Profit/ (loss) for the period
(3,962)
(2,430)

Capital and reserves
(6,192)
(2,330)

13.


Debtors

2024
2023
£
£

Due after more than one year

Trade debtors
750,891
414,361

Amounts owed by group undertakings
1,146,788
954,692

1,897,679
1,369,053


2024
2023
£
£

Due within one year

Trade debtors
6,123,027
6,558,082

Prepayments
-
10,660

Unpaid share capital
37,500
37,458

6,160,527
6,606,200


Trade debtors represent loan finances and are secured by way of second charge behind primary debt providers over the property being financed. 
Interest payable on loans is fixed at between 14% and 20%. All loans are repayable on maturity.


14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Loans and overdrafts
2,360,445
1,346,637

Trade creditors
4,620
10,586

Corporation tax
57,127
103,800

Other taxation and social security
3,992
4,112

Accruals
20,442
17,999

2,446,626
1,483,134


Page 22

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

15.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Loans
1,635,000
2,648,955



16.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Other loans
2,360,445
1,346,637

Amounts falling due 1-2 years

Other loans
1,635,000
2,648,955

3,995,445
3,995,592


Included in loans is amounts payable to directors of £459,587 (2023:  £650,378). Interest was accruing at 8% per annum.


17.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
48,746
12,785

Financial Assets that are debt instruments measured at amortised cost
8,058,206
7,964,668

8,106,952
7,977,453


Financial liabilities


Financial liabilities measured at amortised cost
4,020,507
4,024,177

Page 23

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

18.


Share capital

2024
2023
£
£
Allotted and called up and partly paid



10,000 (2023:10,000) Ordinary A shares of £0.01 each
100
100
50,000 (2023: 50,000) Ordinary B shares of £1.00 each
50,000
50,000

50,100

50,100



19.


Pension commitments

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £21,992 (2023: £34,004). There were £Nil (2023: £Nil) contributions payable to the fund at the balance sheet date.


20.


Operating lease commitments

At 31 May 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
62,420
20,027

Later than 1 year and not later than 5 years
83,226
-

145,646
20,027


21.


Related party transactions

During the period the following related party transactions took place, all on normal commercial terms:
M J Chicken subscribed for loan notes totalling £20,000 (2023: £20,000), during the period. The loan notes carry a coupon of 8% per annum and interest of £39,588 (2023: £73,727) was accrued during the period. During the period £250,379 (2023: £606,000) was repaid to M J Chicken. At the balance sheet date the total due to M J Chicken was £459,587 (2023: £650,378).
M J Chicken is a director of Merchant Place Corporate Finance Limited.  At the balance sheet date the total loan notes due to Merchant Place Corporate Finance Limited was £1,074,026 (2023: £981,675). The loan notes carry a coupon of 9% per annum and interest and fees of £92,351 (2023: £84,190) were accrued during the period.
Included within administration expenses are fees from Merchant Place Corporate Finance Limited amounting to £1,432 (2023: £9,905).

Page 24

 
THE PROPERTY BOX LOAN COMPANY PLC
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

M J Chicken is a director of Cliffe Property Investments Limited, who subscribed for loan notes totalling £40,000 (2023: £Nil) during the period. The loan notes carry a coupon rate of 9% per annum and interest of £18,769 (2023: £45,596) was accrued during the period. During the period £100,000 (2023: £1,035,758) was repaid to Cliffe Property Investments Ltd. At the balance sheet date the total due to Cliffe Property Investments Limited was £140,670 (2023: £181,901). Loan advances £300,000 (2023: £Nil) was provided at coupon rate of 15% per annum. During the period interest of £14,389 (2023: £Nil) was accrued. £69,829 (2023: £970,055) was repaid in the year to 31 May 2024. At the balance sheet date, Cliffe Property Investments Limited owed £244,560 (2023: £Nil). 
S A Ryan is a director of Accounting365 Limited. Accounting365 Limited subscribed for loan notes totalling £15,000 (2023: £40,000) during the period.  The loan notes carry a coupon rate of 8% per annum and interest of £510 (2023: £3,352) was accrued during the period. During the period £76,212 (2023: £34,062) was repaid to Accounting365 Ltd. At the balance sheet date the total due to Accounting365 Limited was £Nil (2023: £60,702).
Barry Tansey is a director of Ardrea Estates Limited. Ardrea Estates Limited subscribed for loan notes totalling £240,000 (2023: £200,000) during the period.  The loan notes carry a coupon of 6% and 16% per annum and interest of £29,026 (2023: £11,710) was accrued during the period. During the period £15,564 was repaid to Ardrea Estates Limited. At the balance sheet date the total due to Ardrea Estates Limited was £465,172 (2023: £211,710).
S A Ryan and Barry Tansey are officers of Bradfield Road Properties Limited. Loan advances £Nil (2023: £1,300,000) were provided during the period. The advances carry a coupon rate of 15% per annum. During the period interest of £66,806 (2023: £62,415) and fees of £Nil (2023: £22,000) were accrued. £Nil (2023: £970,055) was repaid by Bradfield Road Properties Limited in the year to 31 May 2024. At the balance sheet date, Bradfield Road Properties Limited owed £481,167 (2023: £414,361).
Barry Tansey is a director of Railshead Residential Limited. Loan advances £440,000 (2023: £Nil) was provided during the period at coupon rate of 18% per annum. During the period interest of £24,026 (2023: £Nil) and fees of £8,000 (2023: £Nil) were accrued. There were no repayments by Railshead Residential Limited in the year to 31 May 2024. At the balance sheet date, Railshead Residential Limited owed £472,026 (2023: £Nil).
During the year ended May 2024, the company advanced £192,096 (2023: £954,692) to Home Sussex 1 Limited (Subsidiary company). The advances carry an interest rate of 10% per annum.
Key Management personnel
The key management personnel are the company directors and their total remuneration is disclosed in note 7.


22.


Post balance sheet events

There were no events since the year end which materially affected the company.


23.


Controlling party

The company is controlled by the directors by virtue of their shareholdings.

 
Page 25