Company Registration No. 05897484 (England and Wales)
AURORA LEASING LIMITED
DIRECTORS' REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
AURORA LEASING LIMITED
COMPANY INFORMATION
Directors
A C R Gerson
P D Gerson
S J Gerson
Secretary
C H Chew
Company number
05897484
Registered office
1 Downland Close
Whetstone
London
N20 9LZ
Accountants
Wilson Wright LLP
Chartered Accountants
5 Fleet Place
London
EC4M 7RD
AURORA LEASING LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Statement of income and retained earnings
3
Statement of financial position
4
Notes to the financial statements
5 - 9
AURORA LEASING LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

The directors present their annual report and financial statements for the period ended 31 December 2023.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

A C R Gerson
P D Gerson
S J Gerson
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
A C R Gerson
Director
30 August 2024
AURORA LEASING LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF AURORA LEASING LIMITED FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Aurora Leasing Limited for the period ended 31 December 2023 set out on pages 3 to 9 from the company’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.

This report is made solely to the board of directors of Aurora Leasing Limited, as a body, in accordance with the terms of our current engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Aurora Leasing Limited and state those matters that we have agreed to state to the board of directors of Aurora Leasing Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Aurora Leasing Limited and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Aurora Leasing Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Aurora Leasing Limited. You consider that Aurora Leasing Limited is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the financial statements of Aurora Leasing Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Wilson Wright LLP
2 September 2024
Chartered Accountants
5 Fleet Place
London
EC4M 7RD
AURORA LEASING LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
Period
Year
ended
ended
31 December
30 September
2023
2022
Notes
£
£
Revenue
11,300,778
7,328,361
Cost of sales
(7,114,342)
(4,286,673)
Gross profit
4,186,436
3,041,688
Administrative expenses
(594,459)
(457,196)
Other operating income
151,423
123,969
Operating profit
3,743,400
2,708,461
Investment income
-
0
373
Finance costs
3
(2,994,647)
(659,025)
Profit before taxation
748,753
2,049,809
Tax on profit
4
(169,207)
(390,614)
Profit for the financial period
579,546
1,659,195
Retained earnings brought forward
1,062,049
1,002,854
Dividends
(600,000)
(1,600,000)
Retained earnings carried forward
1,041,595
1,062,049

The income statement has been prepared on the basis that all operations are continuing operations.

AURORA LEASING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 4 -
31.12.2023
30.09.2022
Notes
£
£
£
£
Current assets
Trade and other receivables
5
53,759,528
47,289,557
Cash and cash equivalents
1,532,295
523,190
55,291,823
47,812,747
Current liabilities
7
(53,177,994)
(45,376,474)
Net current assets
2,113,829
2,436,273
Non-current liabilities
8
(1,062,234)
(1,364,224)
Net assets
1,051,595
1,072,049
Equity
Called up share capital
9
10,000
10,000
Retained earnings
1,041,595
1,062,049
Total equity
1,051,595
1,072,049

Current assets include amounts recoverable after more than one year amounting to £32,130,681 (2022 - £29,558,312).

 

For the financial period ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

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

The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
A C R Gerson
Director
Company registration number 05897484 (England and Wales)
AURORA LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -
1
Accounting policies
Company information

Aurora Leasing Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Downland Close, Whetstone, London, N20 9LZ.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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
Reporting period

The company has changed its accounting reference date from 30 September to 31 December. The period covered by these financial statements is for the fifteen month period to 31 December 2023, while the comparative figures cover the year to 30 September 2022. The decision to lengthen the accounting period was made to align the company's reporting date with that of its group.

1.3
Revenue

Revenue consists of finance charges and interest receivable from customers, all of whom are situated in the United Kingdom.

1.4
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include deposits held at call with banks.

1.5
Financial instruments

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

AURORA LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
Impairment of financial assets

Financial assets 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 the statement of income.

 

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 the statement of income.

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.6
Equity instruments

Equity instruments issued by the company 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 company.

1.7
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 income statement 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

AURORA LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
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.

 

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 income statement, 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 when the company has 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.

1.8
Leases

Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment in the leases in each period.

1.9
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

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

Period
Year
ended
ended
31 December
30 September
2023
2022
Number
Number
Total
-
0
-
0
3
Finance costs
Period
Year
ended
ended
31 December
30 September
2023
2022
£
£
Finance costs includes the following:
Interest payable to parent company
2,994,647
659,025
AURORA LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
4
Taxation
Period
Year
ended
ended
31 December
30 September
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
170,000
390,000
Adjustments in respect of prior periods
(793)
614
Total current tax
169,207
390,614
5
Trade and other receivables
31.12.2023
30.09.2022
Amounts falling due within one year:
£
£
Trade receivables
1,267,566
1,092,760
Finance lease receivables (note 6)
15,742,178
13,867,492
Advances
3,526,656
2,316,954
Other receivables
1,009,416
422,455
Prepayments and accrued income
83,031
31,584
21,628,847
17,731,245
31.12.2023
30.09.2022
Amounts falling due after more than one year:
£
£
Finance lease receivables (note 6)
26,968,320
25,622,325
Advances
5,162,361
3,935,987
32,130,681
29,558,312
Total trade and other receivables
53,759,528
47,289,557
AURORA LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 9 -
6
Finance lease receivables
31.12.2023
30.09.2022
£
£
Gross amounts receivable under finance leases:
Within one year
22,315,395
19,864,426
In two to five years
33,341,117
31,721,049
55,656,512
51,585,475
Unearned finance income
(12,946,014)
(12,095,658)
Present value of minimum lease payments receivable
42,710,498
39,489,817
The present value is receivable as follows:
Within one year
15,742,178
13,867,492
In two to five years
26,968,320
25,622,325
42,710,498
39,489,817
7
Current liabilities
31.12.2023
30.09.2022
£
£
Trade payables
1,413,895
879,645
Amounts due to parent company
50,822,291
43,573,837
Lease rentals in advance
798,225
788,912
Other payables
143,583
134,080
53,177,994
45,376,474
8
Non-current liabilities
31.12.2023
30.09.2022
£
£
Lease rentals in advance
1,062,234
1,364,224
9
Called up share capital
31.12.2023
30.09.2022
31.12.2023
30.09.2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
10
Parent company

Michael Gerson (Investments) Limited, registered in England and Wales, was regarded as the company's parent company at the Statement of Financial Position date.

 

The registered office address of Michael Gerson (Investments) Limited is 1 Downland Close, Whetstone, London, N20 9LZ.

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