Company registration number 05237785 (England and Wales)
LOCOMOTIVE SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
LOCOMOTIVE SERVICES LIMITED
COMPANY INFORMATION
Director
Mr J Hosking
Company number
05237785
Registered office
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
Auditor
Arnold Hill & Co LLP
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
LOCOMOTIVE SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
LOCOMOTIVE SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The director presents the strategic report for the year ended 31 March 2023.

Fair review of the business

The principal activities of the Company in the year under review are those of rail vehicles and other associated asset holdings and the provision of On Train Hospitality Services in conjunction with the delivery of high class UK based railway rail tours. Locomotive Services Limited provides central functionality services that are complemented by associated group organisations.

Principal risks and uncertainties

The Company is exposed to a number of risks from both direct and indirect sources. These risks can be broadly categorised into the following areas: Health, Safety and Compliance, Financial Management and Control, Asset Performance and Reputational (as it relates to Service Delivery).

Health, Safety and Compliance.

The UK Railway Industry is heavily regulated, with Health, Safety and Compliance a core requirement in delivering successful operations. Locomotive Services Limited take their responsibilities in this area very seriously, promoting positive Health and Safety culture across the business. Compliance with organisational and Industry Standards are key factors in ensuring the continued viability of the organisation, from food hygiene to the application of Heritage Vehicle technical standards. Regulatory interactions with regard to specific requirements (such as the implementation of Railway Safety Regulations 1999 (RSR99)) represent continuing challenges to the continued use of hinged door heritage coaches on the UK Rail Network with significant work currently ongoing in this regard.

Financial Management and Control

Locomotive Services Limited income streams are facilitated by commercial revenue (rail vehicle hire and the provision of on board hospitality services) and shareholder investment. Cash flow management and expenditure control are crucial to ensure liquidity levels remain sufficient to sustain the forward aspirations of the organisation. Financial security controls continue to require development against cyber threat.

Liquidity risk and cash flow risk are managed in a number of different ways, principally due to the nature of the business. The Company agrees terms with suppliers that do not necessitate the payments of significant sums in advance. Cash flow risk is managed by control over income received.

Credit risks are mitigated by the nature of the debtor balances owed and through the internal control environment identifying recoverability issues.

The Director continually reviews these key risks and uncertainties and believes that the Company is well placed to manage these and that the business will develop satisfactorily in the future.

Asset Performance

The principal activities of the organisation involve the deployment of historic rail vehicles. Whilst these vehicles have received significant investment to maximise condition and reliability, they remain inherently in accordance with older designs and, as such, present challenges to technical and operational staff. Vehicle Maintenance Instructions are tailored to ensure appropriate technical standards are maintained across the asset base, and staff are specifically trained and experienced in the Locomotive Services Limited asset base.

Reputational

The success of the business is very much reliant on customer confidence both from an asset perspective and also the quality of the on-train hospitality product offered by Locomotive Services Limited. Highly trained and immaculately presented service staff are a fundamental prerequisite in the delivery of high-class hospitality. Locomotive Services Limited invests heavily in its staff and the equipment they are provided with, in order to drive continual improvements in the on-train experience provided to its customers such as Saphos Trains, Statesman Rail, Midland Pullman and Intercity.

LOCOMOTIVE SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Key performance indicators

The loss for the year, after taxation, was in line with expectations and amounted to £5,266,634 (2022: £6,736,573). The year to 31 March 2023 produced a turnover of £8,652,693 (2022: £5,521,468).

On behalf of the board

Mr J Hosking
Director
5 March 2024
LOCOMOTIVE SERVICES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activities of the Company in the year under review are those of rail vehicles and other associated asset holdings and the provision of On Train Hospitality Services in conjunction with the delivery of high class UK based railway rail tours. Locomotive Services Limited provides central functionality services that are complemented by associated group organisations.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr J Hosking
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr J Hosking
Director
5 March 2024
LOCOMOTIVE SERVICES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LOCOMOTIVE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOCOMOTIVE SERVICES LIMITED
- 5 -
Opinion

We have audited the financial statements of Locomotive Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

LOCOMOTIVE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOCOMOTIVE SERVICES LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Detection of fraud and breaches of laws and regulations

To identify risks of material misstatement due to fraud, we considered events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to do so. Our approach included:

 

 

We communicated identified fraud risks throughout our team and remained alert to any indications of fraud throughout the audit.

 

To identify risks of material misstatement due to non-compliance with laws and regulations, our approach was as follows:

 

 

LOCOMOTIVE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOCOMOTIVE SERVICES LIMITED
- 7 -

 

 

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. We also performed procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risks that revenue is recorded in the wrong period and that management may be in a position to make inappropriate accounting entries. Our procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiries of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding non-detection of fraud rather than error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Justin Moore (Senior Statutory Auditor)
For and on behalf of Arnold Hill & Co LLP
5 March 2024
Chartered Accountants
Statutory Auditor
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
LOCOMOTIVE SERVICES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
8,652,693
5,521,468
Cost of sales
(6,348,768)
(3,922,010)
Gross profit
2,303,925
1,599,458
Administrative expenses
(7,445,943)
(8,493,784)
Other operating income
292,368
157,702
Operating loss
4
(4,849,650)
(6,736,624)
Interest receivable and similar income
7
2,520
51
Interest payable and similar expenses
8
(2,085)
-
0
Loss before taxation
(4,849,215)
(6,736,573)
Tax on loss
9
(417,419)
-
0
Loss for the financial year
(5,266,634)
(6,736,573)
Loss for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
LOCOMOTIVE SERVICES LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
79,038
-
0
Other intangible assets
11
418,068
34,494
Total intangible assets
497,106
34,494
Tangible assets
12
9,728,518
9,559,757
10,225,624
9,594,251
Current assets
Stocks
15
52,053
53,487
Debtors
16
1,362,270
771,218
Cash at bank and in hand
2,968,578
2,584,039
4,382,901
3,408,744
Creditors: amounts falling due within one year
17
(5,806,295)
(3,215,115)
Net current (liabilities)/assets
(1,423,394)
193,629
Total assets less current liabilities
8,802,230
9,787,880
Creditors: amounts falling due after more than one year
18
(57,973)
-
Provisions for liabilities
Deferred tax liability
20
78,572
-
0
(78,572)
-
Net assets
8,665,685
9,787,880
Capital and reserves
Called up share capital
23
9
8
Share premium account
31,011,433
26,866,995
Profit and loss reserves
(22,345,757)
(17,079,123)
Total equity
8,665,685
9,787,880
The financial statements were approved and signed by the director and authorised for issue on 5 March 2024
05 March 2024
Mr J Hosking
Director
Company registration number 05237785 (England and Wales)
LOCOMOTIVE SERVICES LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
9,709,502
9,552,370
Investments
13
82,503
2
9,792,005
9,552,372
Current assets
Stocks
15
45,178
53,487
Debtors
16
678,846
536,033
Cash at bank and in hand
661,069
1,588,960
1,385,093
2,178,480
Creditors: amounts falling due within one year
17
(2,293,960)
(1,422,881)
Net current (liabilities)/assets
(908,867)
755,599
Net assets
8,883,138
10,307,971
Capital and reserves
Called up share capital
23
9
8
Share premium account
31,011,433
26,866,998
Profit and loss reserves
(22,128,304)
(16,559,035)
Total equity
8,883,138
10,307,971

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £5,569,268 (2022 - £6,649,200 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved and signed by the director and authorised for issue on 5 March 2024
05 March 2024
Mr J Hosking
Director
Company registration number 05237785 (England and Wales)
LOCOMOTIVE SERVICES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
7
24,237,750
(10,342,550)
13,895,207
Year ended 31 March 2022:
Loss and total comprehensive income
-
-
(6,736,573)
(6,736,573)
Issue of share capital
23
1
2,629,245
-
2,629,246
Balance at 31 March 2022
8
26,866,995
(17,079,123)
9,787,880
Year ended 31 March 2023:
Loss and total comprehensive income
-
-
(5,266,634)
(5,266,634)
Issue of share capital
23
1
4,144,438
-
4,144,439
Balance at 31 March 2023
9
31,011,433
(22,345,757)
8,665,685
LOCOMOTIVE SERVICES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
7
24,237,751
(9,909,835)
14,327,923
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
(6,649,200)
(6,649,200)
Issue of share capital
23
1
2,629,247
-
2,629,248
Balance at 31 March 2022
8
26,866,998
(16,559,035)
10,307,971
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
(5,569,269)
(5,569,269)
Issue of share capital
23
1
4,144,435
-
4,144,436
Balance at 31 March 2023
9
31,011,433
(22,128,304)
8,883,138
LOCOMOTIVE SERVICES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(341,999)
(1,909,694)
Interest paid
(2,085)
-
0
Net cash outflow from operating activities
(344,084)
(1,909,694)
Investing activities
Purchase of tangible fixed assets
(2,980,369)
(1,984,032)
Proceeds from disposal of tangible fixed assets
513,385
2,450,000
Purchase of subsidiaries, net of cash acquired
(218,405)
-
Interest received
2,520
51
Net cash (used in)/generated from investing activities
(2,682,869)
466,019
Financing activities
Proceeds from issue of shares
3,422,766
2,629,246
Repayment of bank loans
(11,274)
-
Net cash generated from financing activities
3,411,492
2,629,246
Net increase in cash and cash equivalents
384,539
1,185,571
Cash and cash equivalents at beginning of year
2,584,039
1,398,468
Cash and cash equivalents at end of year
2,968,578
2,584,039
LOCOMOTIVE SERVICES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(706,340)
(1,482,886)
Investing activities
Purchase of tangible fixed assets
(2,918,759)
(1,980,603)
Proceeds from disposal of tangible fixed assets
513,384
2,450,000
Purchase of subsidiaries
(1,682,500)
-
0
Net cash (used in)/generated from investing activities
(4,087,875)
469,397
Financing activities
Proceeds from issue of shares
3,866,324
1,964,529
Net cash generated from financing activities
3,866,324
1,964,529
Net (decrease)/increase in cash and cash equivalents
(927,891)
951,040
Cash and cash equivalents at beginning of year
1,588,960
637,920
Cash and cash equivalents at end of year
661,069
1,588,960
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

Locomotive Services Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Locomotive Services Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Locomotive Services Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Turnover

Turnover arises from passenger rail transport and dining services, and the recharge of expenses to related companies. Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at fair value less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Other intangibles
25% straight line
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Straight line over remaining lease term
Rail coaches
Straight line over 20 years
Fixtures and fittings
Straight line over 10 years
Computers
Straight line over 4 years
Motor vehicles
Straight line over 5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.12
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

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

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Passenger rail services
7,453,381
4,993,416
Recharged expenses
1,009,726
478,531
Coronavirus job retention scheme
-
49,521
Electrical installation
189,586
-
8,652,693
5,521,468
2023
2022
£
£
Other revenue
Interest income
2,520
51
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging:
Exchange losses
176
-
Depreciation of owned tangible fixed assets
557,979
106,622
Impairment of owned tangible fixed assets
1,706,695
3,702,012
Loss on disposal of tangible fixed assets
329
-
Amortisation of intangible assets
63,890
16,427
Impairment of intangible assets
194,151
-
0
Stocks impairment losses recognised or reversed
1,000
-
0
Operating lease charges
303,033
260,726
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,400
6,000
Audit of the financial statements of the company's subsidiaries
11,470
3,600
19,870
9,600
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Engineering
24
15
22
15
Administrative
23
12
11
12
Onboard services
60
51
60
51
Total
107
78
93
78
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,659,904
1,818,483
2,111,960
1,690,980
Social security costs
230,877
157,809
189,175
155,876
Pension costs
84,366
51,785
72,421
51,785
2,975,147
2,028,077
2,373,556
1,898,641
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,520
51
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,520
51
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,085
-
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
298
-
0
Deferred tax
Origination and reversal of timing differences
1,982
-
0
Changes in tax rates
139
-
0
Write down or reversal of write down of deferred tax asset
415,000
-
0
Total deferred tax
417,121
-
0
Total tax charge
417,419
-
0
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 23 -

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(4,849,215)
(6,736,573)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(921,351)
(1,279,949)
Tax effect of expenses that are not deductible in determining taxable profit
2,848
294,103
Unutilised tax losses carried forward
931,818
1,086,345
Permanent capital allowances in excess of depreciation
(13,017)
(100,499)
Deferred tax adjustment
417,121
-
0
Taxation charge
417,419
-
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Goodwill
11
194,151
-
Property, plant and equipment
12
1,706,695
3,702,012
Stocks
15
1,000
-
Recognised in:
Cost of sales
1,000
-
Administrative expenses
1,900,846
3,702,012
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
11
Intangible fixed assets
Group
Goodwill
Other intangibles
Total
£
£
£
Cost
At 1 April 2022
-
0
65,708
65,708
Additions - separately acquired
148,185
-
0
148,185
Additions - business combinations
166,737
439,570
606,307
Disposals
-
0
(39,570)
(39,570)
At 31 March 2023
314,922
465,708
780,630
Amortisation and impairment
At 1 April 2022
-
0
31,214
31,214
Amortisation charged for the year
41,733
22,157
63,890
Impairment losses
194,151
-
0
194,151
Disposals
-
0
(5,731)
(5,731)
At 31 March 2023
235,884
47,640
283,524
Carrying amount
At 31 March 2023
79,038
418,068
497,106
At 31 March 2022
-
0
34,494
34,494
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
12
Tangible fixed assets
Group
Leasehold improvements
Rail coaches
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
645,736
12,916,671
258,962
2,535
20,333
13,844,237
Additions
-
0
2,859,793
61,900
10,749
-
0
2,932,442
Business combinations
-
0
-
0
96
45,873
1,958
47,927
Disposals
-
0
(513,384)
(97)
(33,472)
-
0
(546,953)
At 31 March 2023
645,736
15,263,080
320,861
25,685
22,291
16,277,653
Depreciation and impairment
At 1 April 2022
382,079
3,727,486
153,048
1,534
20,333
4,284,480
Depreciation charged in the year
64,573
480,450
19
12,447
490
557,979
Impairment losses
-
0
1,706,695
-
0
-
0
-
0
1,706,695
Eliminated in respect of disposals
-
0
-
0
(19)
-
0
-
0
(19)
At 31 March 2023
446,652
5,914,631
153,048
13,981
20,823
6,549,135
Carrying amount
At 31 March 2023
199,084
9,348,449
167,813
11,704
1,468
9,728,518
At 31 March 2022
263,657
9,189,185
105,914
1,001
-
0
9,559,757
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Tangible fixed assets
(Continued)
- 26 -
Company
Leasehold improvements
Rail coaches
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
645,736
12,888,847
258,962
2,535
20,333
13,816,413
Additions
-
0
2,856,859
61,900
-
0
-
0
2,918,759
Disposals
-
0
(513,384)
-
0
-
0
-
0
(513,384)
At 31 March 2023
645,736
15,232,322
320,862
2,535
20,333
16,221,788
Depreciation and impairment
At 1 April 2022
382,079
3,707,049
153,048
1,534
20,333
4,264,043
Depreciation charged in the year
64,573
476,341
-
0
634
-
0
541,548
Impairment losses
-
0
1,706,695
-
0
-
0
-
0
1,706,695
At 31 March 2023
446,652
5,890,085
153,048
2,168
20,333
6,512,286
Carrying amount
At 31 March 2023
199,084
9,342,237
167,814
367
-
0
9,709,502
At 31 March 2022
263,657
9,181,798
105,914
1,001
-
0
9,552,370

More information on impairment movements in the year is given in note 10.

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
82,503
2
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
2,130,902
Additions
1,682,500
At 31 March 2023
3,813,402
Impairment
At 1 April 2022
2,130,900
Impairment losses
1,599,999
At 31 March 2023
3,730,899
Carrying amount
At 31 March 2023
82,503
At 31 March 2022
2
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows. The registered office of both entities is Sixth Floor, Capital Tower, 91 Waterloo Road, London, SE1 8RT.

Name of undertaking
Nature of business
Class of
% Held
shares held
Direct
Saphos Train Travel Limited
Passenger Rail Transport
Ordinary
100
Statesman Rail Limited
Passenger Rail Transport
Ordinary
100
The Steam Dreams Rail Co Ltd
Passenger Rail Transport
Ordinary
100
Crossfield Power & Security Limited
Electrical Installation
Ordinary
100
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Saphos Train Travel Limited
(362,918)
(480,759)
Statesman Rail Limited
12,559
(77,625)
The Steam Dreams Rail Co Ltd
141,250
(935,114)
Crossfield Power & Security Limited
(4,880)
14,906
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
52,053
53,487
45,178
53,487
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
238,012
130,620
336,921
296,705
Other debtors
303,314
239,419
174,658
158,426
Prepayments and accrued income
820,944
401,179
167,267
80,902
1,362,270
771,218
678,846
536,033
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
16,219
-
0
-
0
-
0
Trade creditors
1,233,401
739,251
1,009,702
587,241
Amounts owed to group undertakings
-
0
-
0
991,701
600,000
Other taxation and social security
55,820
75,391
50,440
75,391
Deferred income
21
4,129,317
2,230,721
-
0
-
0
Other creditors
285,314
134,170
184,019
132,992
Accruals and deferred income
86,224
35,582
58,098
27,257
5,806,295
3,215,115
2,293,960
1,422,881
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
57,973
-
0
-
0
-
0
Amounts included above which fall due after five years are as follows:
Payable by instalments
13,920
-
-
-
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
74,192
-
0
-
0
-
0
Payable within one year
16,219
-
0
-
0
-
0
Payable after one year
57,973
-
0
-
0
-
0

The long-term loans comprise business bounce back loans which incur interest at 2.5% per annum and are due for repayment in July 2025 and May 2030.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
2,572
-
Revaluations
76,000
-
78,572
-
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 April 2022
-
-
Charge to profit or loss
2,121
-
Charge to equity
76,451
-
Liability at 31 March 2023
78,572
-
21
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
4,129,317
2,230,721
-
-
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
84,366
51,785

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
9
8
9
8
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
112,917
112,334
105,000
105,000
Between two and five years
-
112,917
-
105,000
112,917
225,251
105,000
210,000
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
25
Cash absorbed by group operations
2023
2022
£
£
Loss for the year after tax
(5,266,634)
(6,736,573)
Adjustments for:
Taxation charged
417,419
-
0
Finance costs
2,085
-
0
Investment income
(2,520)
(51)
Loss on disposal of tangible fixed assets
329
1,431,938
Amortisation and impairment of intangible assets
258,041
16,427
Depreciation and impairment of tangible fixed assets
2,264,675
3,808,634
Movements in working capital:
Decrease/(increase) in stocks
434
(53,487)
Increase in debtors
(591,052)
(386,498)
Increase/(decrease) in creditors
676,628
(1,116,706)
Increase in deferred income
1,898,596
1,126,622
Cash absorbed by operations
(341,999)
(1,909,694)
26
Cash absorbed by operations - company
2023
2022
£
£
Loss for the year after tax
(5,569,269)
(6,649,200)
Adjustments for:
(Gain)/loss on disposal of tangible fixed assets
-
1,431,938
Depreciation and impairment of tangible fixed assets
2,248,243
3,802,199
Other gains and losses
1,878,111
664,719
Movements in working capital:
Decrease/(increase) in stocks
8,309
(53,487)
Increase in debtors
(142,813)
(286,442)
Increase/(decrease) in creditors
871,079
(392,613)
Cash absorbed by operations
(706,340)
(1,482,886)
LOCOMOTIVE SERVICES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
27
Related party transactions

The Company has taken advantage of the exemption contained within Section 33 of FRS 102 from the requirement to disclose details of transactions with the Group.

 

During the year, the Group provided services to the director with a total value of £nil (2022: £75,472). During the year, the director provided funding to the Company totalling £3,166,324. In addition, the Company issued 1 ordinary share to the director at a total value of £4,144,435. As at 31 March 2023, the director was owed £nil (2022: £nil) by the Company.

 

During the year, the Group provided services and recharged costs to companies under common control totalling £900,312 (2022: £631,415).

 

During the year, the Group provided services and recharged costs to related undertakings totalling £506,707 (2022: £291,427).

 

During the year, the Group was charged £3,985,528 (2022: £4,061,884) for services provided by companies under common control.

 

During the year, the Group was charged £829,040 (2022: £286,680) for services provided by related undertakings. In addition, the Group was charged £2,223,186 (2022: £1,112,260) by related undertakings for repairs, maintenance and capital refurbishment work on its fixed assets.

 

At the year end, the Group was owed £nil (2022: £245) by companies under common control, and was owed £29,668 (2022: £37,401) by related undertakings.

 

At the year end, the Group owed £181,986 (2022: £124,360) to companies under common control.

28
Analysis of changes in net funds - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
2,584,039
384,539
2,968,578
Borrowings excluding overdrafts
-
(74,192)
(74,192)
2,584,039
310,347
2,894,386
29
Analysis of changes in net funds - company
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
1,588,960
(927,891)
661,069
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