Company registration number 03914791 (England and Wales)
LCA LONDON LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LCA LONDON LTD
COMPANY INFORMATION
- 1 -
Directors
Dr R Gill, OBE (Chairman)
Prof R E Watkins
Mr P W Bogle
Secretary
Mr W K Leung
Company number
03914791
Registered office
19 Charterhouse Street
London
UK
EC1N 6RA
Auditor
King & King
Chartered Accountants & Statutory Auditors
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
Bankers
NatWest Bank Plc
1 Abbey Road
London
NW10 7RB
Solicitors
Adams and Remers LLP
Chancery House
53-64 Chancery Lane
London
UK
WC2A 1QS
Weightmans LLP
The Hallmark
105 Fenchurch Street
London
EC3M 5JG
LCA LONDON LTD
CONTENTS
Page
Strategic report
2 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Profit and loss account
11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 31
LCA LONDON LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The principal activity of the company continues to be the provision of higher education. The company has entered into academic agreement with Anglia Ruskin University to provide undergraduate and postgraduate courses. In the current landscape of higher education, characterised by rapid technological advancements and evolving student expectations, the company has remained agile and responsive to industry trends. We have embraced digital transformation, enhancing our teaching infrastructure to support both remote and hybrid learning models, ensuring our students receive excellent tuition regardless of their location.
Students are at the heart of our offer and our company. We have greatly increased our focus on reinvestment to improve the quality of life and learning of our students. To further support our students , we have established ongoing initiatives such as Hardship Fund and Attendance Bursary, providing crucial financial assistance and support.
The company has continued to expand, now operating 150,000 sq.ft of administrative and teaching space in central and east London. The company has invested heavily in support for people with disabilities, ensuring our facilities and services are inclusive and accessible. Recognising the importance of mental health, the company has also developed a new well-being support department and support services for both students and staff.
Employability services continues to be a focus for us, both during and post-degree to ensure the students are well equipped to enter and thrive in their chosen industry. Our commitment to student success is reflected in the robust career support and practical training opportunities we offer.
The company's turnover decreased from £80.4m to £64.8m by 19.44% compared to last financial year reflecting the changes in current market. However, the state of affairs as at balance sheet date and the future prospects are steadily improving. The bank balances increased by £5.12m and the shareholders’ funds have grown from £44.76m to £48.99m. The company had no bank borrowing or overdraft at the year end and it is building a cash reserve to aid investment in buildings, facilities and personnel for the benefit of the student population. Measures are being taken on an ongoing basis to address the key business risks and secure the company's business. This proactive approach has resulted in steady growth in reserves during the last financial year and this trend is expected to continue over the subsequent years.
Principal risks and uncertainties
The principal risks facing the company is the failure to recruit sufficient students at each recruitment cycle. The company mitigates this risk by closely monitoring the student recruitment numbers and adapts its courses by, introducing a wider range of popular courses and discontinuing courses that are no longer in demand.
Due to close involvement of senior management, general business risk is identified and addressed on a regular basis. The board of directors reviews the risk assessment and the management response on a quarterly basis, ensuring proactive approach to risk management. The principal uncertainties facing the company are the general political and economic conditions which can impact both student enrolment and overall business operations. By staying vigilant and adaptable, the company aims to navigate these uncertainties and maintain steady growth.
The company uses various financial instruments including cash, debtors and creditors to manage the working capital of the company.
Liquidity risk
Liquidity risk is the risk that insufficient working capital will be generated by the company's business activities and that in this event suitable sources of funding may not be available. The company mitigates this risk through effective liquidity management, maintaining a cash reserve. The company currently holds a strong liquidity position and has access to the bank facilities if needed.
LCA LONDON LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Development and performance
Future developments
Director continue to review the strategy and business models to improve the efficiency of the organisation, to invest in up to date facilities in order to enhance the students' learning experience and outcome. The plan going forward is to build upon efforts already made to increase the new range of course offering.
This has already resulted in maintaining the student numbers since the year end and expected to continue to the next financial year. The company strives to provide high quality education and develop good relationship with students and lecturers.
Key performance indicators
The director monitors the performance of the company by using a number of financial and non-financial performance indicators. The turnover and student numbers are primary KPIs, regularly reviewed to ensure that they remain appropriate and relevant to monitor the challenges, complexities and improvements in the business.
| | | |
| | | |
Student no as at year end | | | |
In addition to these main KPIs, the following non-financial KPIs are closely reviewed to assess the progress of the company’s strategy and objectives.
Measured against expectations set by the board to ensure alignment with organizational goals.
Compared to forecast targets to assess enrolment performance.
Monitored against the budget to ensure financial health and operational efficiency.
Conducted on an ongoing basis to compare actual results against the budget, identifying discrepancies and areas for improvement.
Performance monitored against Anglia Ruskin University's KPIs, focusing on the National Student Survey (NSS), Graduate Outcomes, and Access and Widening Participation.
Overseen to ensure compliance with the Office for Students B3 minimum thresholds.
LCA LONDON LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Section 172
Employee's training and development
To achieve our ambitious goals, we require people who are committed and prepared to embrace our corporate philosophy. We offer plenty of opportunities for career advancement and skill improvement. Training is a continuous process, and whilst basic job training is given, people with commitment and an aptitude for challenges are selected for training for growth and higher responsibilities.
Slavery and Human trafficking statement
We have a zero tolerance to slavery in all its forms and are committed to implementing business practices that do not allow any form of slavery to take place, whether internally or as part of our supply chain. Our supply chain includes procurement of study materials, purchase of fixed assets and employing contractors for setting up the classrooms. We carry out an annual review of our Anti-Slavery Policy to determine whether it may be improved for better understanding and applicability.
Supplier relationships
Our suppliers play a pivotal role to our business, in which we use the highest standard study text, and which are delivered to us promptly. Our suppliers keep us informed of any supply chain challenges, and notwithstanding the consequences of the global pandemic we have maintained strong relationships with our key suppliers. We are regularly in contact with our suppliers thereby ensuring our staff retain an open relationship, and our suppliers are always aware of our ongoing requirements.
Customer relationships
Our students are kept up to date with business achievements, future strategy and ongoing business activities and future developments, with a view to nurturing long term partnerships. Our objective is to provide the best level of student service, fulfilling our student's demands and ensuring that the delivery of lectures are of the highest standard, and are delivered in accordance to the university standard. Our staff and management continuously work hard to ensure that we improve the student's quality of life and learning.
Dr R Gill, OBE (Chairman)
Director
17 September 2024
LCA LONDON LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be providers of university and higher education.
Results and dividends
The results for the year are set out on page 11.
Ordinary interim dividends of £10,000,000 were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Dr R Gill, OBE (Chairman)
Prof R E Watkins
Mr P W Bogle
Going concern
The directors have prepared revised financial forecasts, which include sensitivities taking into account plausible downside scenarios likely to arise from unexpected costs. The directors have reasonable expectation that the company has adequate resources to cope with any downside scenario for at least twelve months from the date of approval of the accounts.
Qualifying third party indemnity provisions
The directors have the benefit of a qualifying third party indemnity provision as defined by section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and continues to the current financial year. The company also purchased and maintained throughout the financial year directors' and officers' liability insurance in respect of itself and its directors.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Business relationships
Details on how the company has fostered relationships with suppliers, customers and others can be found within the company’s Section 172 statement in the Strategic Report.
Post reporting date events
Post balance sheet events are set out in note 22 to the financial statements.
Future developments
The company’s future developments are set out in the Future Development section of the Strategic Report.
LCA LONDON LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Auditor
The auditor, King & King, is, Chartered Accountants and Statutory Auditor is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
LCA London Limited’s environmental performance information is presented in accordance with the Streamlined Energy and Carbon Reporting (“SECR”) Policy. The table below represents LCA London Limited’s energy use and greenhouse gas (GHG) emissions from electricity and fuel for the annual reporting period 01/01/2023 to 31/12/2023. The scope of the reporting includes all UK operations.
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
976,546
947,178
- Electricity purchased
926,925
1,065,280
1,903,471
2,012,458
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
178.60
173.30
- Fuel consumed for owned transport
-
-
178.60
173.30
Scope 2 - indirect emissions
- Electricity purchased
191.90
220.60
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
370.50
393.90
Intensity ratio
Tonnes CO2e per employee
1.39
1.48
Quantification and reporting methodology
Intensity measurement
Measures taken to improve energy efficiency
We have installed smart meters, energy saving equipment and lights across all sites and increased video conferencing technology for staff meetings, to reduce the need for travel between locations.
LCA LONDON LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
Strategic report
Directors are required to prepare "Strategic report" under section 414a of Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013. Under that law directors have prepared the strategic report for the company. The directors have chosen to present the "Business review and the future development" and "Financial risk management objectives and policies" in the strategic report.
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 company’s auditor 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 company’s auditor is aware of that information.
Going concern
The director has prepared financial forecasts, which include sensitivities taking into account plausible downside scenarios likely to arise from unexpected costs. The director has reasonable expectation that the group has adequate resources to cope with any downside scenario for at least twelve months from the date of approval of the accounts.
On behalf of the board
Dr R Gill, OBE (Chairman)
Director
17 September 2024
LCA LONDON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LCA LONDON LTD
- 8 -
Opinion
We have audited the financial statements of LCA London Ltd (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LCA LONDON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LCA LONDON LTD (CONTINUED)
- 9 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatements in respect of irregularities including fraud and non-compliance with laws and regulations, we consider the following:
- Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
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.
LCA LONDON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LCA LONDON LTD (CONTINUED)
- 10 -
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.
Rajesh Patel
Senior Statutory Auditor
For and on behalf of King & King
17 September 2024
Chartered Accountants
Statutory Auditor
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
LCA LONDON LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
as restated
Notes
£
£
Turnover
3
64,795,451
80,428,673
Cost of sales
(29,965,798)
(33,768,703)
Gross profit
34,829,653
46,659,970
Administrative expenses
(19,003,149)
(18,003,980)
Operating profit
4
15,826,504
28,655,990
Interest receivable and similar income
7
2,213,870
81,220
Interest payable and similar expenses
9
(123,449)
(119,259)
Profit before taxation
17,916,925
28,617,951
Tax on profit
10
(3,675,556)
(5,762,367)
Profit for the financial year
14,241,369
22,855,584
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LCA LONDON LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
as restated
£
£
Profit for the year
14,241,369
22,855,584
Other comprehensive income
-
-
Total comprehensive income for the year
14,241,369
22,855,584
LCA LONDON LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
6,378,105
7,811,732
Current assets
Debtors falling due after more than one year
13
2,370,214
2,766,776
Debtors falling due within one year
13
10,658,796
10,410,174
Cash at bank and in hand
46,733,002
41,613,407
59,762,012
54,790,357
Creditors: amounts falling due within one year
14
(13,236,663)
(13,520,646)
Net current assets
46,525,349
41,269,711
Total assets less current liabilities
52,903,454
49,081,443
Provisions for liabilities
Provisions
15
3,650,088
3,526,655
Deferred tax liability
16
255,453
798,244
(3,905,541)
(4,324,899)
Net assets
48,997,913
44,756,544
Capital and reserves
Called up share capital
18
3
3
Profit and loss reserves
48,997,910
44,756,541
Total equity
48,997,913
44,756,544
The financial statements were approved by the board of directors and authorised for issue on 17 September 2024 and are signed on its behalf by:
Dr R Gill, OBE (Chairman)
Director
Company registration number 03914791 (England and Wales)
LCA LONDON LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
3
41,101,148
41,101,151
Impact of correction of error
-
(1,616,823)
(1,616,823)
As restated
3
39,484,325
39,484,328
Year ended 31 December 2022:
Profit and total comprehensive income
-
22,855,584
22,855,584
Dividends
11
-
(17,583,368)
(17,583,368)
Balance at 31 December 2022
3
44,756,541
44,756,544
Year ended 31 December 2023:
Profit and total comprehensive income
-
14,241,369
14,241,369
Dividends
11
-
(10,000,000)
(10,000,000)
Balance at 31 December 2023
3
48,997,910
48,997,913
LCA LONDON LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
17,666,743
35,144,983
Interest paid
(16)
Income taxes paid
(4,684,617)
(5,000,001)
Net cash inflow from operating activities
12,982,110
30,144,982
Investing activities
Purchase of tangible fixed assets
(76,385)
(3,656,012)
Interest received
2,213,870
81,220
Net cash generated from/(used in) investing activities
2,137,485
(3,574,792)
Financing activities
Dividends paid
(10,000,000)
(17,583,368)
Net cash used in financing activities
(10,000,000)
(17,583,368)
Net increase in cash and cash equivalents
5,119,595
8,986,822
Cash and cash equivalents at beginning of year
41,613,407
32,626,585
Cash and cash equivalents at end of year
46,733,002
41,613,407
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information
LCA London Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 19 Charterhouse Street, London, UK, EC1N 6RA.
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 £.
Prior period comparatives have been reclassified to align to the current period presentational approach.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Turnover is measured at the fair value of the consideration receivable for higher educational and related services rendered, net of discounts. Where an element of the fees relates to services provided in the subsequent financial years, that proportion is accounted as deferred income and released to turnover when the courses and related services has been delivered.
1.4
Tangible fixed assets
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Cost includes original purchase price, costs directly attributable to bringing the assets to its working condition for its intended use, dismantling and restoration costs.
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
Over the lease term
Plant and equipment
25% reducing balanced method
Fixtures and fittings
20% reducing balanced method
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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 credited or charged to profit or loss.
The asset's residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any is accounted for prospectively.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
1.6
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.
1.7
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 balance sheet 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 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.
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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 company 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.
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 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.
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
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.
1.9
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 company’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 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.
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 leases asset are consumed.
1.14
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.
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Operating lease commitments
The group has entered into property leases. As management have determined that the group has not obtained substantially all the risks and rewards of ownership of these properties, the leases have been classified as operating leases and accounted for accordingly.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Estimation of useful lives of assets
The group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the group considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Dilapidation provision
Provision is made for dilapidations. This requires management's best estimate of the expenditure that will be incurred based on contractual requirements. In addition, the timing of the cash flows and the discount rates used to establish net present value of the obligations require management's judgement.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Course fees
64,795,451
80,428,673
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
64,795,451
80,428,673
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Other revenue
Interest income
2,213,870
81,220
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
1,510,012
1,741,562
Operating lease charges
5,674,045
6,105,581
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 company
51,000
42,858
For other services
All other non-audit services
12,000
17,142
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administrative staffs
104
96
Lecturing staffs
147
174
Total
251
270
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
11,639,436
12,433,934
Social security costs
833,169
972,776
Pension costs
613,946
605,302
13,086,551
14,012,012
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,022,809
81,220
Other interest income
191,061
Total income
2,213,870
81,220
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,022,809
81,220
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
291,261
283,704
Company pension contributions to defined contribution schemes
439
263
291,700
283,967
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
291,261
283,704
Company pension contributions to defined contribution schemes
439
263
The directors' remuneration is only payable to the chairman, Dr R Gill. None of the other directors are in receipt of any remuneration.
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Unwinding of discount on provisions
123,433
119,259
Other interest
16
123,449
119,259
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
4,225,017
5,596,011
Adjustments in respect of prior periods
(6,670)
Total current tax
4,218,347
5,596,011
Deferred tax
Origination and reversal of timing differences
(542,791)
166,356
Total tax charge
3,675,556
5,762,367
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
17,916,925
28,617,951
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
4,479,231
5,437,411
Tax effect of expenses that are not deductible in determining taxable profit
116,344
60,840
Adjustments in respect of prior years
(6,670)
2,455
Effect of change in corporation tax rate
(265,756)
Group relief
(362,400)
Permanent capital allowances in excess of depreciation
257,599
95,305
Deferred tax
(542,792)
166,356
Taxation charge for the year
3,675,556
5,762,367
In the Spring budget 2021, the UK Government announced that from 01 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantially enacted on 24 May 2021, for the financial year ended 31 December 2023. The current weighted average tax rate was 25%.
Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.
11
Dividends
2023
2022
2023
2022
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
5,000,000.00
8,791,684.00
10,000,000
17,583,368
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Dividends
(Continued)
- 25 -
The interim dividends amounting to £10,000,000 (2022:£17,583,368) were paid to the parent company, LCAE Group Limited on the two ordinary shares as a deferred return for the risks taken in investing in the business.
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
5,814,691
1,646,775
7,298,483
14,759,949
Additions
72,425
3,960
76,385
At 31 December 2023
5,814,691
1,719,200
7,302,443
14,836,334
Depreciation and impairment
At 1 January 2023
2,602,918
941,150
3,404,149
6,948,217
Depreciation charged in the year
535,841
194,512
779,659
1,510,012
At 31 December 2023
3,138,759
1,135,662
4,183,808
8,458,229
Carrying amount
At 31 December 2023
2,675,932
583,538
3,118,635
6,378,105
At 31 December 2022
3,211,773
705,625
3,894,334
7,811,732
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
6,127,204
5,874,269
Corporation tax recoverable
75,526
Other debtors
100
2,250
Prepayments
4,455,966
4,533,655
10,658,796
10,410,174
2023
2022
Amounts falling due after more than one year:
£
£
Rent deposit
2,370,214
2,766,776
Total debtors
13,029,010
13,176,950
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
14
Creditors: amounts falling due within one year
2023
2022
£
£
Deferred income
1,918,866
2,395,509
Trade creditors
3,081,895
3,762,231
Amounts owed to group undertakings
2,525,000
Corporation tax
390,744
Other taxation and social security
530,795
351,968
Other creditors
358,400
506,906
Accruals
4,821,707
6,113,288
13,236,663
13,520,646
Other creditors include £358,400 (2022 - £505,870) loan from the director Dr R Gill and which is unsecured, repayable on demand and is non-interest bearing.
15
Provisions for liabilities
2023
2022
£
£
Provision for dilapidation cost
3,650,088
3,526,655
Movements on provisions:
Provision for dilapidation cost
£
At 1 January 2023
3,526,655
Unwinding of discount
123,433
At 31 December 2023
3,650,088
As part of the company's property leasing arrangements there is an obligation to repair damages which incur during the life of the lease, such as wear and tear. The cost is charged to profit and loss as the obligation arises. The provision is expected to be utilised between 2021 to 2036 as the leases terminate.
Due to a number of leased properties in the company and the difficulties in predicting expenditure that will be required on return of a property to the landlord many years in the future, the dilapidations provision is considered a source of significant estimation uncertainty. The provision has been calculated using historical experiences of actual expenditure incurred on dilapidations and estimated lease termination dates. The director considered the possible range of dilapidations provision at 31 December 2023 the most likely amount within the range has been recognised in the balance sheet.
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
255,453
798,244
2023
Movements in the year:
£
Liability at 1 January 2023
798,244
Credit to profit or loss
(542,791)
Liability at 31 December 2023
255,453
The deferred tax liability set out above is expected to reverse by £228,386 within next 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
175,793
175,165
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
3
3
Ordinary A shares of £1 each
1
1
-
-
Of the total share capital of the company, two "Ordinary Shares" are entitled to full voting, dividend and capital distribution rights including distributions arising on winding up of the company, while one "Ordinary A Share" is entitled to appoint two directors and two votes in the board of the company, but not entitled to any dividend or distribution rights.
19
Financial commitments, guarantees and contingent liabilities
The company did not have any other financial commitments, guarantees or contingent liabilities at year end other than those disclosed under contingencies.
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
5,770,151
5,474,079
Between two and five years
14,415,605
17,181,551
In over five years
4,272,002
7,276,206
24,457,758
29,931,836
Operating lease rent recognised as expense in the year amount to £5,651,387 (2022 - £6,080,739).
21
Capital commitments
There were no commitments or contingencies made at the reporting date that require adjustments or disclosure in the financial statements.
22
Events after the reporting date
No events or transactions occurred after the reporting date that require adjustment or disclosure in the financial statements.
23
Related party transactions
2023
2022
Amounts due to related parties
£
£
Key management personnel
358,400
505,870
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
-
344,186
24
Directors' transactions
Other creditors include £358,400 (2022 - £505,870) loan from the director Dr R Gill and which is unsecured, repayable on demand and is non-interest bearing.
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
25
Ultimate controlling party
The company is a 100% subsidiary of LCAE Group Limited, a company incorporated in England. The composition of the board of directors of LCA London Ltd is controlled by a.r.u.
The consolidated financial statements are publicly available at the Companies House, Crown Way, Cardiff, CF14 3UZ.
The ultimate controlling party is Dr R Gill who owns 100% of the issued ordinary share capital of LCAE Group Limited.
26
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
14,241,369
22,855,584
Adjustments for:
Taxation charged
3,675,556
5,762,367
Finance costs
123,449
119,259
Investment income
(2,213,870)
(81,220)
Depreciation and impairment of tangible fixed assets
1,510,012
1,741,562
Increase in provisions
3,407,396
Movements in working capital:
Decrease in debtors
223,467
7,723,870
Increase/(decrease) in creditors
106,760
(6,383,835)
Cash generated from operations
17,666,743
35,144,983
27
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
41,613,407
5,119,595
46,733,002
28
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
Fixed assets
Tangible assets
6,280,725
1,531,007
7,811,732
Provisions for liabilities
Other provisions
-
(3,526,655)
(3,526,655)
Net assets
46,752,192
(1,995,648)
44,756,544
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Prior period adjustment
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
(Continued)
- 30 -
Capital and reserves
Profit and loss reserves
46,752,189
(1,995,648)
44,756,541
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 December 2022
£
£
£
Administrative expenses
(17,744,414)
(259,566)
(18,003,980)
Interest payable and similar expenses
-
(119,259)
(119,259)
Profit for the financial period
23,234,409
(378,825)
22,855,584
Reconciliation of changes in equity
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Depreciation on leasehold asset
(1,034,987)
(1,294,552)
Unwinding of discount of provision
(581,836)
(701,096)
Total adjustments
(1,616,823)
(1,995,648)
Equity as previously reported
41,101,151
46,752,192
Equity as adjusted
39,484,328
44,756,544
Analysis of the effect upon equity
Profit and loss reserves
(1,616,823)
(1,995,648)
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Depreciation on leasehold asset
(259,566)
Unwinding of discount of provision
(119,259)
Total adjustments
(378,825)
Profit as previously reported
23,234,409
Profit as adjusted
22,855,584
LCA LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Prior period adjustment
(Continued)
- 31 -
Notes to reconciliation
Record of dilapidation cost - error correction
The company has not accounted for the estimated dilapidation cost related to the leasehold premises in its financial statements since the start of lease agreements. As a consequence, the dilapidation cost lability and related asset have been understated. As this omission has occurred before the prior period presented (2022), correction was done restating the opening balances of assets, liabilities and equity for the earliest prior period presented (01.01.2022).
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