for the Period Ended 30 June 2024
Company Information - 3 | |
Report of the Directors - 4 | |
Balance sheet - 5 | |
Footnotes to the Balance Sheet - 7 |
for the Period Ended 30 June 2024
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The directors present their report with the financial statements of the company for the period ended 30 June 2024
Principal Activities
Additional information
Financial Performance For the year ended 30th June 2024, the company reported a net operating loss of £30,784. This loss was primarily attributed to several key factors: 1. High Lease Payments: The vehicles in our fleet are acquired under finance leases, and the lease payments represent a substantial portion of our operating expenses. While the subleasing model provides steady revenue, it has not been sufficient to offset the high lease costs associated with maintaining a fleet of premium electric vehicles. 2. Declining Economic Demand: The broader economic environment has seen a significant decline in demand for taxi services. Factors such as reduced consumer spending and lower urban footfall due to changing travel behaviors have contributed to a downturn in subleasing activity. This has led to a lower utilization rate of the fleet, reducing our ability to generate revenue from subleasing vehicles to drivers. 3. Insurance Costs: The cost of insuring the electric vehicle fleet has increased dramatically during the year. The high value of electric vehicles, coupled with rising repair and maintenance costs, has driven insurance premiums to unsustainable levels. These elevated insurance expenses have further eroded the company’s profitability. #### Key Financial Metrics: - Turnover: £91,353 - Operating Loss: £30,784 - Lease Payment Costs: £101,378 Operational Review Despite the financial losses, the company continued to operate a full fleet of electric taxis, providing drivers with access to modern, eco-friendly vehicles. However, the economic downturn and rising costs posed significant challenges to our business model. The reduced demand for taxi services negatively impacted the number of drivers subleasing vehicles from the company, leading to a lower-than-expected fleet utilization rate. As a result, our income from subleasing vehicles fell short of projections, while our fixed costs (lease payments and insurance) remained high. Challenges and Risks The primary challenges faced by the company this year were: - Declining Economic Demand: The decline in demand for taxi services due to broader economic conditions has been a major issue, reducing both sublease revenue and overall fleet usage. - High Lease Payments: The lease obligations on the vehicles remained constant, placing a significant financial burden on the company despite reduced revenues. - Escalating Insurance Costs: The sharp increase in insurance premiums, driven by the high repair costs of electric vehicles, has substantially impacted our cost structure, further exacerbating our financial difficulties. We also face growing competition from other companies offering similar services, as well as external pressures from the fluctuating costs of electric vehicle maintenance. Future Outlook The Directors acknowledge that the current operating environment presents significant challenges. However, we remain committed to turning the business around by taking the following actions: - Renegotiating Lease Terms: We are in discussions with our leasing partners to negotiate more favorable terms or explore alternative financing structures to ease the pressure of high lease payments. - Cost Control Measures: We are investigating ways to mitigate the impact of rising insurance costs, including exploring group insurance schemes or more tailored policies for electric vehicles. - Adapting to Market Conditions: Efforts are underway to diversify our revenue streams and adapt to the changing demand patterns. We are looking into options such as dynamic pricing models for subleasing and partnerships with ride-hailing platforms to improve utilization rates. While the economic outlook remains uncertain, we are confident that with these measures, the business can navigate the current challenges and return to profitability in the future. Going Concern Although the company is currently operating at a loss, the Directors believe the business remains a going concern. This is based on ongoing efforts to reduce costs, increase revenue, and secure additional financing if needed to support the company through this challenging period. Conclusion This has been a difficult financial year, driven by declining demand for taxi services, high lease payments, and rising insurance costs. However, the Directors are committed to addressing these challenges and are confident that through strategic changes and cost management, B&L Taxi Rentals LTD can achieve long-term financial stability.
Directors
The directors shown below have held office during the whole of the period from 01 July 2023 to 30 June 2024
This report was approved by the board of directors on
And Signed On Behalf Of The Board By:
Name:
Status: Director
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This report was approved by the board of directors on
And Signed On Behalf Of The Board By:
Name:
Status: Director
The notes form part of these financial statements
for the Period Ended 30 June 2024
for the Period Ended 30 June 2024