ACCOUNTS - Final Accounts

Registered number: 11070026

SOFL Funding III Limited

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

SOFL FUNDING III LIMITED

COMPANY INFORMATION

Directors	M Childress
	J Jesani


Registered number	11070026


Registered office	Premier House
	15-19 Church Street West
	Woking
	Surrey
	GU21 6DJ


Independent auditors	Ecovis Wingrave Yeats LLP
	Chartered Accountants & Statutory Auditor
	3rd Floor, Waverley House
	7-12 Noel Street
	London
	W1F 8GQ

SOFL FUNDING III LIMITED

CONTENTS

	Page
Balance Sheet	1
Notes to the financial statements	2 - 6

SOFL FUNDING III LIMITED

REGISTERED NUMBER: 11070026

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£


Current assets
Debtors: amounts falling due within one year	5	13,463		84,043
Cash at bank and in hand	7	6,505		2,708
		19,968		86,751
Creditors: amounts falling due within one year	8	(115,414)		(98,338)
Net current liabilities			(95,446)		(11,587)
Net liabilities			(95,446)		(11,587)

Capital and reserves
Called up share capital	9	-	-
Profit and loss account		(95,446)	(11,587)
Shareholder's deficit		(95,446)	(11,587)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 April 2025.

M Childress

Director

The notes on pages 2 to 6 form part of these financial statements.

Page 1

SOFL FUNDING III LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

SOFL Funding III Limited is a private company, limited by shares, registered in England and Wales, registration number 11070026. The address of its registered office and its principal place of business is Premier House, 15 - 19 Church Street West, Woking, GU21 6DJ.

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 Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Going concern

The directors are confident that the Company has sufficient resources to meet its liabilities for at least 12 months from the date of signing this report. In addition to this, support can be obtained from the parent company, Step One Finance Limited, should the Company not have sufficient resources to meet their liabilities. As such the accounts have been prepared on a going concern basis.

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Debtors

Short term debtors are measured at transaction price, less any impairment. Long term loans and receivables are measured at amortised cost using the effective interest method less any impairment.

Page 2

SOFL FUNDING III LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.5

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.

2.6

Financial instruments

The Company 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.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
Objective evidence of impairment includes accounts going into arrears, renegotiation of the terms of the loan including granting forbearance and any other information discovered during regular review suggesting significant financial difficulties of the borrower.
For financial assets measured at cost less impairment, the impairment loss is measured as the
difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
The fair value of the underlying collateral value is estimated by applying regional HPI indexes to the most recent formal valuation. This fair value is subsequently adjusted down by a forced sale discount, following which the first charge mortgage balance is deducted to provide the recoverable amount. This, together with management judgement to determine the timing and amounts of cash flows, gives a best estimate of the recoverable amount.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

2.7

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.

Page 3

SOFL FUNDING III LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.8

Finance costs

Finance costs are charged to the Statement of Comprehensive Income 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.

2.9

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

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 operates and generates income.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Impairment of debtors
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing this, management consider factors including the ageing profile of debtors and historical experience. Judgement is applied within the impairment provision model to determine an appropriate force sale discount, an expected first charge mortgage balance and provisions applied to the ageing of the debt. These key inputs are based on historical experience.

Employees

The Company has no employees other than the Directors, who did not receive any remuneration (2023 - £Nil).

Debtors

					2024	2023
					£	£

Due within one year
Other debtors	13,463	84,043

Page 4

SOFL FUNDING III LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.	Other debtors
		2024	2023
		£	£


Mortgage control account	270,207	232,864
Impairment provision	(256,744)	(148,821)
	13,463	84,043

7.	Cash and cash equivalents
		2024	2023
		£	£

	Cash at bank and in hand	6,505	2,708

8.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Amounts owed to group undertakings	109,960	83,464
Accruals and deferred income	5,454	14,874
	115,414	98,338

Amounts owed to group undertakings are interest free, unsecured and repayable on demand.

Page 5

SOFL FUNDING III LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

2 (2023 - 2) Ordinary shares of £0.01 each	-	-

The Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.

10.	Related party transactions
	The Company has taken advantage of exemptions from disclosing transactions with related companies that are 100% group owned under the provisions of Section 33 of FRS 102.

11.	Parent undertaking and controlling party

The immediate parent undertaking is Step One Finance Limited, a company incorporated and registered in England and Wales. The smallest group, which includes the Company and for which group accounts are prepared, is Step One Finance Limited.
Copies of the group financial statements of Step One Finance Limited are available from Companies House, or from its registered address at Premier House, 15 - 19 Church Street West, Woking, GU21 6DJ.
The ultimate parent undertaking is Step One Group Limited, a company incorporated and registered in Guernsey. The largest group, which includes the Company and for which group accounts are prepared.

12.	Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.

The audit report was signed on 22 April 2025 by Jamie Mullen (Senior Statutory Auditor) on behalf of Ecovis Wingrave Yeats LLP.

Page 6