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Registered number: 10481270









OCTANE CAPITAL LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
OCTANE CAPITAL LIMITED
 
 
COMPANY INFORMATION


Directors
Y Leysen 
N Bhandari 
R J Maddows 




Registered number
10481270



Registered office
20 Grafton Street

London

England

W1S 4DZ




Independent auditors
Nyman Libson Paul LLP
Chartered Accountants & Statutory Auditors

124 Finchley Road

London

NW3 5JS





 
OCTANE CAPITAL LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Consolidated statement of comprehensive income
 
9
Consolidated statement of financial position
 
10
Company statement of financial position
 
11
Consolidated statement of changes in equity
 
12
Company statement of changes in equity
 
13
Consolidated statement of cash flows
 
14
Consolidated analysis of net debt
 
15
Notes to the financial statements
 
16 - 29


 
OCTANE CAPITAL LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their annual report on the affairs of the company together with the financial statements and auditor's report for the year ended 31 December 2024. This strategic report has been prepared for the Group and gives greater emphasis to those matters which are significant to the company.

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

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

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

Financial key performance indicators
 
The financial key performance indicator for the Group is turnover. Turnover for the year was £40,684,373 (2023: £30,546,196).

Page 1

 
OCTANE CAPITAL LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

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


This report was approved by the board on 21 May 2025 and signed on its behalf.



R J Maddows
Director

Page 2

 
OCTANE CAPITAL LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors

The directors who served during the year were:

Y Leysen 
N Bhandari 
R J Maddows 

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

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


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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group 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 £9,227,161 (2023 - £5,672,970).

Dividends amounting to £Nil (2023: £Nil) were paid during the year.

Future developments

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

Page 3

 
OCTANE CAPITAL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditorsNyman Libson Paul LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 21 May 2025 and signed on its behalf.
 





R J Maddows
Director

Page 4

 
OCTANE CAPITAL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OCTANE CAPITAL LIMITED
 

Opinion


We have audited the financial statements of Octane Capital Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's 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 Group 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 5

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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual 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 group 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 group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

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


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

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


Auditors' responsibilities for the audit of the financial statements
 

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


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

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


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


Page 7

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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.





Richard Paul (Senior statutory auditor)
  
for and on behalf of
Nyman Libson Paul LLP
 
Chartered Accountants
Statutory Auditors
  
124 Finchley Road
London
NW3 5JS

4 June 2025
Page 8

 
OCTANE CAPITAL LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
40,684,373
30,546,196

Cost of sales
  
(23,182,669)
(16,078,985)

Gross profit
  
17,501,704
14,467,211

Administrative expenses
  
(7,803,533)
(7,008,912)

Operating profit
 5 
9,698,171
7,458,299

Interest receivable and similar income
 9 
336,346
36

Interest payable and similar expenses
 10 
-
(22,852)

Profit before taxation
  
10,034,517
7,435,483

Tax on profit
 11 
(807,356)
(1,762,513)

Profit for the financial year
  
9,227,161
5,672,970

  

Profit for the year attributable to:
  

Owners of the parent Company
  
9,227,161
5,672,970

  
9,227,161
5,672,970

  

  

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

The notes on pages 16 to 29 form part of these financial statements.

Page 9

 
OCTANE CAPITAL LIMITED
REGISTERED NUMBER: 10481270

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible fixed assets
  
123,905
18,524

Current assets
  

Debtors: amounts falling due after more than one year
 15 
309,935,593
332,516,558

Debtors: amounts falling due within one year
 15 
198,705,690
135,808,616

Cash at bank and in hand
 16 
22,522,664
27,000,203

  
531,163,947
495,325,377

Creditors: amounts falling due within one year
 17 
(163,109,012)
(117,092,387)

Net current assets
  
 
 
368,054,935
 
 
378,232,990

Total assets less current liabilities
  
368,178,840
378,251,514

Creditors: amounts falling due after more than one year
 18 
(246,468,382)
(265,768,217)

Provisions for liabilities
  

Net assets
  
121,710,458
112,483,297


Capital and reserves
  

Called up share capital 
 20 
27,390,287
27,390,287

Share premium account
 21 
74,831,044
74,831,044

Profit and loss account
 21 
19,489,127
10,261,966

  
121,710,458
112,483,297


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 May 2025.




R J Maddows
Director

The notes on pages 16 to 29 form part of these financial statements.

Page 10

 
OCTANE CAPITAL LIMITED
REGISTERED NUMBER: 10481270

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
123,905
18,524

Investments
 14 
3
3

  
123,908
18,527

Current assets
  

Debtors: amounts falling due within one year
 15 
106,345,399
94,250,441

Cash at bank and in hand
 16 
9,453,552
15,740,824

  
115,798,951
109,991,265

Creditors: amounts falling due within one year
 17 
(2,267,279)
(2,428,912)

Net current assets
  
 
 
113,531,672
 
 
107,562,353

Total assets less current liabilities
  
113,655,580
107,580,880

  

  

Net assets
  
113,655,580
107,580,880


Capital and reserves
  

Called up share capital 
 20 
27,390,287
27,390,287

Share premium account
 21 
74,831,044
74,831,044

Profit and loss account
 21 
11,434,249
5,359,549

  
113,655,580
107,580,880


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 May 2025.


R J Maddows
Director

The notes on pages 16 to 29 form part of these financial statements.

Page 11

 
OCTANE CAPITAL LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
23,686,584
63,534,750
4,588,996
91,810,330


Comprehensive income for the year

Profit for the year
-
-
5,672,970
5,672,970
Total comprehensive income for the year
-
-
5,672,970
5,672,970


Contributions by and distributions to owners

Shares issued during the year
3,703,703
11,296,294
-
14,999,997


Total transactions with owners
3,703,703
11,296,294
-
14,999,997



At 1 January 2024
27,390,287
74,831,044
10,261,966
112,483,297


Comprehensive income for the year

Profit for the year
-
-
9,227,161
9,227,161
Total comprehensive income for the year
-
-
9,227,161
9,227,161


Total transactions with owners
-
-
-
-


At 31 December 2024
27,390,287
74,831,044
19,489,127
121,710,458


The notes on pages 16 to 29 form part of these financial statements.

Page 12

 
OCTANE CAPITAL LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
23,686,584
63,534,750
1,660,353
88,881,687


Comprehensive income for the year

Profit for the year
-
-
3,699,196
3,699,196
Total comprehensive income for the year
-
-
3,699,196
3,699,196


Contributions by and distributions to owners

Shares issued during the year
3,703,703
11,296,294
-
14,999,997


Total transactions with owners
3,703,703
11,296,294
-
14,999,997



At 1 January 2024
27,390,287
74,831,044
5,359,549
107,580,880


Comprehensive income for the year

Profit for the year
-
-
6,074,700
6,074,700
Total comprehensive income for the year
-
-
6,074,700
6,074,700


Total transactions with owners
-
-
-
-


At 31 December 2024
27,390,287
74,831,044
11,434,249
113,655,580


The notes on pages 16 to 29 form part of these financial statements.

Page 13

 
OCTANE CAPITAL LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
9,227,161
5,672,970

Adjustments for:

Depreciation of tangible assets
22,979
33,929

Interest paid
-
22,852

Interest received
(336,346)
(36)

Taxation charge
807,356
1,762,513

(Increase) in debtors
(38,670,732)
(55,385,419)

Increase in creditors
1,079,441
267,636

Corporation tax (paid)
(3,123,312)
(1,870,733)

Net cash generated from operating activities

(30,993,453)
(49,496,288)


Cash flows from investing activities

Purchase of tangible fixed assets
(128,360)
(5,220)

Interest received
336,346
36

Net cash from investing activities

207,986
(5,184)

Cash flows from financing activities

Issue of ordinary shares
-
14,999,997

New loans from group companies
494,888,049
277,606,520

Loans from group companies repaid
(468,580,121)
(239,703,522)

Interest paid
-
(22,852)

Net cash used in financing activities
26,307,928
52,880,143

Net (decrease)/increase in cash and cash equivalents
(4,477,539)
3,378,671

Cash and cash equivalents at beginning of year
27,000,203
23,621,532

Cash and cash equivalents at the end of year
22,522,664
27,000,203


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
22,522,664
27,000,203

22,522,664
27,000,203


The notes on pages 16 to 29 form part of these financial statements.

Page 14

 
OCTANE CAPITAL LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

27,000,203

(4,477,539)

22,522,664

Debt due after 1 year

(257,598,719)

17,153,770

(240,444,949)

Debt due within 1 year

(109,193,867)

(30,453,204)

(139,647,071)


(339,792,383)
(17,776,973)
(357,569,356)

The notes on pages 16 to 29 form part of these financial statements.

Page 15

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Octane Capital Limited is a private company limited by shares and incorporated in England. The address of its registered office and principal place of business is 20 Grafton Street, London, England, W1S 4DZ.
The company's principal activity is that of a holding company and management of the Group.

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.

The Group has taken advantage of exemptions provided by FRS 102, from disclosing key management personnel compensation and financial instruments, and from preparing a statement of cash flows, in the financial statements of its subsidiary undertakings. These exemptions are available to the subsidiaries by virtue of them being members of a Group where the parent undertaking of theS Group prepares publicly available consolidated financial statements which are intended to give a true and fair view and in which the subsidiary is included as part of the consolidation. Full disclosure of these items are presented in the these consolidated financial statements.
Subsidiary undertaking Octane Proprty Finance 2 Limited (company number 11145099) is exempt from the audit of its individual financial statements for the year ended 31 December 2024 by virtue of section 479A of the Companies Act 2006.
The company's functional and presentational currency is GBP, rounded to the nearest £1.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 16

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Group meets its day to day working capital requirements through the utilisation of its own funds and a loan from its parent company.
Existing funding facilities, forecasts and projections indicate that the Group has adequate resources to continue with some level of activity from minimal to full levels.
After reviewing the Group's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements, but with the proviso that some uncertainly exists over the company’s future.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.
Revenue for the Group consists of interest on loans issued and other set-up fees. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and rebates, using the effective interest method which allocates interest and direct and incremental fees over the the expected useful lives of the loans.
Revenue for the company consists of management fees receivable for marketing and administration of the Group. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and rebates, and is recognised in the period in which the management service is performed.  

 
2.5

Operating leases: the Group as lessee

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

 
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.

  
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Costs are charged over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

Page 17

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

 
2.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.


 
2.11

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.

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:

Long-term leasehold property
-
Over the lease term
Office equipment
-
5 years
Computer equipment
-
3 years

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.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 18

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
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.

 
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.

 
2.16

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
 
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Page 19

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

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


4.


Turnover

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


2024
2023
£
£

Interest receivable
34,277,628
26,514,483

Fees income
6,406,745
4,029,938

Other income
-
1,775

40,684,373
30,546,196


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
144,330
115,711

Page 20

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements

17,000
15,750


Fees payable to the Groups's auditor in respect of:


Audit-related assurance services
44,000
50,583

All other services
16,835
43,702

60,835
94,285


7.


Employees

Staff costs were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Staff salaries and PHI
4,692,491
4,169,927
4,692,491
4,169,927

Social security costs
621,707
535,709
621,707
535,709

Cost of defined contribution scheme
30,948
30,433
30,948
30,433

5,345,146
4,736,069
5,345,146
4,736,069


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Directors
3
3
3
3



Staff
28
27
28
27

31
30
31
30

Page 21

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Key management personnel

Directors and heads of department are considered to be the key managers.
Remuneration and short term benefits payable to key management personnel during the period amounted to £2,285,162 (2023: £2,400,579).


9.


Interest receivable

2024
2023
£
£


Bank and other interest receivable
336,346
36

336,346
36


10.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
-
11,287

Other interest payable
-
11,565

-
22,852


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
2,507,601
1,762,513

Adjustments in respect of previous periods
(1,700,245)
-

Total current tax
807,356
1,762,513
Page 22

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.50%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
10,034,517
7,435,483


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.50%)
2,508,629
1,747,339

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
12,798
5,925

Capital allowances for year in excess of depreciation
(13,889)
6,728

Utilisation of tax losses
-
355

Adjustments to tax charge in respect of prior periods
(1,315,928)
-

Changes in provisions leading to an increase (decrease) in the tax charge
63
1,318

Other differences leading to an increase (decrease) in the tax charge
-
848

Group relief
(538,613)
-

Compensation for group relief
154,296
-

Total tax charge for the year
807,356
1,762,513


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £6,074,700 (2023 - £3,699,196).

Page 23

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Tangible fixed assets

Group and Company






Leasehold improvements
Office equipment
Computer equipment
Total

£
£
£
£



Cost 


At 1 January 2024
21,857
54,373
55,681
131,911


Additions
53,609
53,891
20,860
128,360



At 31 December 2024

75,466
108,264
76,541
260,271



Depreciation


At 1 January 2024
21,148
44,921
47,318
113,387


Charge for the year on owned assets
3,039
11,858
8,082
22,979



At 31 December 2024

24,187
56,779
55,400
136,366



Net book value



At 31 December 2024
51,279
51,485
21,141
123,905



At 31 December 2023
709
9,452
8,363
18,524

Page 24

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 January 2024
3



At 31 December 2024
3





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Octane Property Finance Limited
Ordinary
100%
Octane Property Finance 2 Limited
Ordinary
100%
Octane Property Finance 4 Limited
Ordinary
100%

The registered office of each entity is 20 Grafton Street, London, England, W1S 4DZ.

Page 25

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due after more than one year

Trade debtors
302,003,035
323,511,523
-
-

Prepayments and accrued income
7,932,558
9,005,035
-
-

309,935,593
332,516,558
-
-


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due within one year

Trade debtors
185,279,178
128,498,687
-
-

Amounts owed by group undertakings
-
-
104,790,116
94,010,652

Other debtors
1,898,100
996,477
1,305,844
-

Prepayments and accrued income
11,528,412
6,313,452
249,439
239,789

198,705,690
135,808,616
106,345,399
94,250,441



16.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
22,522,664
27,000,203
9,453,552
15,740,824

22,522,664
27,000,203
9,453,552
15,740,824


Page 26

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
142,625
164,318
142,625
164,318

Amounts owed to group undertakings
152,655,565
109,193,867
-
1

Corporation tax
-
670,579
-
369,379

Other taxation and social security
104,532
86,865
104,532
86,865

Other creditors
561,689
759,258
6,559
7,842

Accruals and deferred income
9,644,601
6,217,500
2,013,563
1,800,507

163,109,012
117,092,387
2,267,279
2,428,912


Included within amounts owed to group undertakings are unsecured and interest-free loans of £4,768,510 (2023: £6,498,993) due to the due to the ultimate parent company PCO HoldCo II Sarl. 


18.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£
£

Amounts owed to group undertakings
240,444,949
257,598,719

Accruals and deferred income
6,023,433
8,169,498

246,468,382
265,768,217


Secured loans
Included in amounts owed to group undertakings within one year & after more than one year are loans of £388,332,004 (2023: £360,293,593) due to ultimate parent company PCO HoldCo II Sarl. These loans are interest bearing at varying rates linked to the characteristics of the underlying borrower loans and are short and medium term in duration up to a maximum of 5 years. The loans are secured by fixed and floating charge over the assets of the company and by a legal charge against the properties.

Page 27

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at amortised cost
487,534,936
452,379,926
104,790,116
94,010,652


Financial liabilities

Financial liabilities measured at amortised cost
(393,804,828)
(367,716,162)
(149,184)
(172,161)


Financial assets measured at amortised cost comprise of trade debtors, other debtors, and amounts owed by group undertakings.


Financial liabilities measured at amortised cost comprise of bank loans, trade creditors, other creditors, and amounts owed to group undertakings.


20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



8,334 (2023 - 8,334) Growth shares of £1.00 each
8,334
8,334
27,381,953 (2023 - 27,381,953) A shares of £1.00 each
27,381,953
27,381,953

27,390,287

27,390,287



21.


Reserves

Share premium account

The share premium account is non-distributable reserve and includes the value of shares issued in excess of their nominal amount. During the year this amounted to £Nil (2023: £11,296,294 based on an issue of 3,703,703 additional Ordinary A shares).

Profit and loss account

The profit and loss account includes retained earnings that are realised gains and fully distributable.

Page 28

 
OCTANE CAPITAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

22.


Contingent liabilities

The directors are aware that HMRC consider that some of the interest payable previously recognised as deductible could be treated as a deemed distribution for corporation tax purposes, resulting in a potential additional corporation tax liability. However, on advice from external tax advisors, the directors consider that it is unlikely that a disallowance will arise. The potential financial impact of any such disallowance cannot be estimated reliably at this time.


23.


Pension commitments

The Group operates a defined contribution scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £30,948 (2023: £30,433). At the year end contributions totalling £6,609 (2023: £5,866) were outstanding.


24.


Commitments under operating leases

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


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
141,854
7,146
141,854
7,146

Later than 1 year and not later than 5 years
286,458
-
286,458
-

428,312
7,146
428,312
7,146


25.


Related party transactions

During the year, the Group was charged interest of £19,720,052 (2023: £14,291,569) with its parent company PCO Holdco II S.à.r.l. At the reporting date loans of £393,100,514 (2023: £366,792,586) and accrued loan interest of £9,560,673 (2022: £7,442,013) were due to the parent company.


26.


Controlling party

The immediate parent company is PCO Holdco II S.à r.l, a company incorporated and registered in the Luxembourg. At 31 December 2024 the ultimate parent company is Letterone Investment Holdings S.A, incorporated and registered in Luxembourg.
The largest and smallest group of undertakings for which group accounts are drawn up and of which the company is included is Octane Capital Limited.

 
Page 29