REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FOR |
RABBITS VEHICLE HIRE LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FOR |
RABBITS VEHICLE HIRE LIMITED |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Statement of Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 18 |
RABBITS VEHICLE HIRE LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
The Lightbox |
87 Castle Street |
Reading |
Berkshire |
RG1 7SN |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
The directors present their strategic report for the year ended 29 February 2024. |
REVIEW OF BUSINESS |
In the year under review, the Company saw further growth in demand for rental vehicles and a continued normalisation of operations alongside the sustained stabilisation of impacts from the Covid 19 viral disease. This had caused a shortage of components used in the manufacture of new vehicles which in turn caused significant delays in the supply chain. Despite this, the Company has not seen any significant adverse impact on financial results, financial stability and going concern in the financial year 2024, however it continues to work closely with suppliers to monitor and respond to any evolving situations. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The vehicle hire market in the UK is highly competitive and the Company strives to distinguish itself from its competitors by providing exceptional customer service. The Company believes that a strong commitment to providing exceptional customer service will lead to repeat future rental business and continued growth over time. The key components to providing exceptional customer service in the UK are the ability to offer a wide range of different vehicle categories (including various specialist vehicles) as well as developing a UK wide delivery/collection service. |
The Company's operations exposure is to a variety of financial risks that include the risks associated with current events, liquidity risks, residual value risk, interest rate risk, currency risk and credit risk. |
Current Events & Macroeconomic Environment Risk |
Unforeseeable and substantial global events can have an adverse impact on the vehicle rental and mobility market due to falling demand, reduced travel or disruption to the supply chain for vehicle manufacture components. Global events affecting the current macroeconomic environment include the conflict in Russia and Ukraine and the UK's withdrawal from the European Union. While these events have not adversely impacted the Company's financial results in the current financial year, any developments and trends resulting from such changes are monitored and assessed to identify and mitigate risks to the business. |
During the year under review, the cost of living, energy rates, interest rates and fuel costs have increased and been unpredictable, however at the date of this report, we are starting to see reductions in the cost of living, energy rates and fuel costs which should hopefully help to increase demand in vehicle rental. The Company manages the risk of uncontrollable and sudden falls in customer demand through diversification of the rental fleet portfolio and the rental markets in which it operates, as well as remaining proactive in responding and adapting to changes in market conditions and customer requirements. |
Liquidity Risk |
The Company finances the purchase of rental vehicles through funds provided from operations and ongoing borrowing programs. If the Company were unable to borrow on advantageous terms because of credit rating downgrades, higher market interest rates or other reasons, it may be unable to maintain or increase the size of its fleet, replace its existing vehicles with new vehicles and/or offer competitive rental rates. These factors could impact customer satisfaction and have a material adverse effect on the Company's results of operations and financial condition. |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Residual Value Risk |
Residual value risk is the risk that a vehicles market value at the time it is sold will be less than its depreciated value. It is difficult to predict the impact or timing of factors that influence used vehicle resale values. In determining estimated residual values and depreciation rates on vehicles, the Directors can consider many factors, including used vehicle market conditions, anticipated holding periods, fleet mix and historical experience. The Directors regularly monitor residual values and the need, if any, to adjust depreciation rates. |
Interest Rate Risk |
The Company attempts to balance its current interest costs and exposure to interest rate volatility by using various finance companies and terms. Overall the Directors consider interest rate risk to be at an acceptable level and that no hedging of interest rates is necessary at this time. |
Currency Risk |
The Company has no transactional currency exposure arising from sales and purchases in currencies other than its functional currency. The Directors therefore consider currency risk to be at an acceptable level and no hedging of currency exposures is considered necessary at this time. |
Credit Risk |
There is a risk of financial loss to the Company arising from the failure of the Company's customers to meet their financial obligations for vehicle rentals. However, the Company is now dealing more frequently with larger companies where the Directors believe the credit risk is less. The Company utilises the Creditsafe checking facility when opening accounts for new customers as well as monitoring existing clients. The Company also monitors each clients debtor balance as a percentage against the total aged debt to ensure the customer portfolio spread is maximised. Taking into account credit control procedures also, the Directors are of the view that the risk is at an acceptable level. |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
KEY PERFORMANCE INDICATORS |
The Company's key financial and performance indicators during the year were as follows: |
2024 | 2023 | Change |
Turnover | £13,974,366 | £10,715,964 | 30.4% |
Gross Profit* | £4,925,356 | £3,710,832 | 50.1% |
Gross Profit Percentage | 35.2% | 34.6% | 0.6ppts |
Net Profit | £2,461,553 | £2,186,171 | 8.8% |
Net Profit Percentage | 17.6% | 20.4% | (2.8ppts | ) |
Number of Employees | 35 | 31 | 12.9% |
Fleet Net Book Value | £14,822,622 | £9,840,777 | 50.6% |
* Figures are amended to take into consideration depreciation and profit on sales |
For the year ended 29 February 2024, the Company reported a £3,258,402 increase in turnover to £13,974,366 (2023: £10,715,964). The Company generated profit for the financial year of £1,853,386 (2023: £1,613,953). |
The net profit for the period increased by £275,382, but net profit percentage fell by 2.8 ppts. There are many reasons for this that include: |
- Additional operating costs were incurred due to the new building being constructed which reduced the space available for staff and customers. |
- Some senior staff members received one off additional company pension contributions during the year. |
- As the company seeks to lower the age of the fleet, the new vehicles (specifically the commercial and specialist vehicles) cost more than in previous years so a higher depreciation charge is reflected in the company accounts at an earlier stage in the life of these new vehicles than in previous years. |
- Interest rates also increased during the year making finance more expensive, however the Directors are now seeing these costs reduce since the two base rate cuts post year-end with almost certainly at least another one before our current year end in 2025. |
The fleet size has grown from 1004 units (2023) to 1110 (2024) comprising of 3.5t, 7.5t and 18t commercial vehicles and cars (small, large and executive). Amongst this is a wide range of chapter 8 units, 4x4's, hybrids and full electric vehicles. The percentage split for 2024 is 83% commercial vehicles and 17% cars. The target fleet size for 2025 is 1240 with a percentage split of 88% commercial vehicles and 12% cars. |
OUTLOOK & CURRENT PERFORMANCE POST YEAR END |
The results for our first 6 months of the current accounting year to 28th February 2025 are as follows: |
Sales have increased to £7.8M an increase compared to the previous 6 month period to last year of 11%. |
The Gross Profit increased by £160k to £2.62M for the six months but the Gross profit margin fell slightly to 33.8% from 35.25% in the previous year. |
The Net profit increased to £927k for the six months with Net Profit percentage increasing to 12% from last year's 11.6%. |
The directors believe the second half of the year may exceed these results as all the disruption in relation to the construction of the company's business premises ceased by Middle October 24. |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
OPENING OF NEW BUSINESS PREMISES |
In November 2024, the Company officially opened its bespoke, purpose-built trading premises built on its expanded, existing site following the purchase of the site next to it by the company's pension scheme. These premises have been built to the exact specification needed by the Company and include new offices and custom-built spaces for maintenance work, vehicle preparation and additional customer and staff car parking. |
MISSION STATEMENT |
The Company's mission is as follows: |
- Be the best independent vehicle hire company in the UK |
- Exceed customer expectations in terms of service, quality and value |
- Provide employees with a great place to work |
Throughout the financial year the Directors have ensured that these goals have been considered in their decision-making process. The Directors acknowledge their duty to promote the success of the Company and act with integrity in all matters. |
ON BEHALF OF THE BOARD: |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
The directors present their report with the financial statements of the company for the year ended 29 February 2024. |
PRINCIPAL ACTIVITY |
The principal activity of Rabbits Vehicle Hire Ltd (the "Company") is the renting and selling of commercial vehicles and cars in the United Kingdom ("UK"). To support the operation, the Company engages in fleet acquisition and vehicle maintenance as well as vehicle sales. Funding for the acquisition of fleet vehicles is secured through external finance and operational cash flow. Forecasting, sourcing and management of the rental fleet, as well as availability and cost of financing, is controlled by the Company. |
DIVIDENDS |
The total distribution of dividends for the year ended 29 February 2024 will be £230,528 (2023: £201,028). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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; |
- | 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
AUDITORS |
The auditors, Cooper Parry Group Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RABBITS VEHICLE HIRE LIMITED |
Opinion |
We have audited the financial statements of Rabbits Vehicle Hire Limited (the 'company') for the year ended 29 February 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 29 February 2024 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. |
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 Auditors' 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. |
Other audit matters |
The Company did not require an audit of its financial statements for the prior period ended 28 February 2023 in accordance with section 477 of the Companies Act 2006 relating to small companies. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RABBITS VEHICLE HIRE LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 directors' 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 Statement of Directors' Responsibilities set out on page six, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RABBITS VEHICLE HIRE LIMITED |
Auditors' 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 a Report of the Auditors 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: |
We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where management considered there was susceptibility to fraud. Audit procedures performed by the audit team included: |
- Challenging assumptions and judgements made by management in its significant accounting estimates; |
- Identifying and testing journal entries, with a focus on entries made with unusual accounting combinations; |
- Confirming with management whether they have knowledge of any actual, suspected or illegal fraud; |
- Evaluating whether there was evidence of bias by management that represents a risk of material misstatement due to fraud. |
These procedures 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 (irregularities) 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. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance will all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RABBITS VEHICLE HIRE LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
The Lightbox |
87 Castle Street |
Reading |
Berkshire |
RG1 7SN |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
3,234,174 | 2,447,870 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
BALANCE SHEET |
29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 28 February 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 29 February 2024 |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Finance costs paid | (59,746 | ) | (30,868 | ) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(307,436 |
) |
159,253 |
Cash and cash equivalents at end of year |
2 |
( |
) |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit for the financial year |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 772,621 | 261,699 |
Finance income | (18,035 | ) | (750 | ) |
Taxation |
6,392,733 | 4,136,569 |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 29 February 2024 |
29/2/24 | 1/3/23 |
£ | £ |
Cash and cash equivalents | 941,192 | 723,737 |
Bank overdrafts | ( |
) | ( |
) |
236,538 | (307,436 | ) |
Year ended 28 February 2023 |
28/2/23 | 1/3/22 |
£ | £ |
Cash and cash equivalents | 723,737 | 597,858 |
Bank overdrafts | ( |
) | ( |
) |
(307,436 | ) | 159,253 |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1/3/23 | Cash flow | changes | At 29/2/24 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 723,737 | 217,455 | 941,192 |
Bank overdrafts | (1,031,173 | ) | 326,519 | (704,654 | ) |
(307,436 | ) | 236,538 |
Debt |
Finance leases | (6,743,040 | ) | 6,052,638 | (10,290,063 | ) | (10,980,465 | ) |
Debts falling due |
within 1 year | (50,000 | ) | - | - | (50,000 | ) |
Debts falling due |
after 1 year | (141,667 | ) | 50,000 | - | (91,667 | ) |
(6,934,707 | ) | 6,102,638 | (10,290,063 | ) | (11,122,132 | ) |
Total | (7,242,143 | ) | 6,646,612 | (10,290,063 | ) | (10,885,594 | ) |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
1. | STATUTORY INFORMATION |
Rabbits Vehicle Hire Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Revenue |
Rental turnover consists primarily of fees from vehicle rentals and the sale of related rental products. Rental turnover is recognised as the vehicles are utilised by hirers. Maintenance and repairs of rental vehicles are charged to the Statement of Income and Retained Earnings as incurred. Vehicle tax and licence costs are amortised over the respective tax period or estimated remaining period the vehicle is expected to be in service, whichever is appropriate. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Website costs are being amortised evenly over their estimated useful life of five years. |
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: |
Improvements to property - 10% on cost |
Fixtures and fittings - 25% on cost |
Computer equipment - 20% on reducing balance |
Motor vehicles - 25% - 30% on reducing balance |
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. |
In determining estimated residual values and depreciation rates on vehicles the Directors consider many factors including used vehicle market conditions, anticipated holding periods, fleet mix and historical experience. The Directors regularly monitor residual values and the need, if any, to adjust depreciation rates. |
The annual depreciation and amortisation charge on tangible fixed assets, goodwill and intangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values of the assets are amended when necessary to reflect current estimates. |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
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. |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
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 company's contractual obligations expire or are discharged or cancelled. |
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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
3. | CRITICAL ACCOUNTING 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 the 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. |
The following paragraph details the estimates and judgements the company believes to have the most significant impact on the annual results under FRS 102. |
Depreciation and useful economic life |
The depreciation, in respect of tangible fixed assets, is based upon estimates of the useful economic lives of the assets involved. Useful economic life is assessed initially upon acquisition of the asset and thereafter reviewed annually taking into account any revisions of future use of those assets. The judgements involved are informed by historical experience in relation to similar assets. |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 2 | 2 |
Senior Staff | 2 | 2 |
Administration | 4 | 4 |
Fleet / Maintenance | 3 | 2 |
Operations | 2 | 2 |
Rental Operative | 22 | 19 |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
5. | DIRECTORS' EMOLUMENTS |
2024 | 2023 |
£ | £ |
Director's remuneration | 17,160 | 17,160 |
Director's pension contributions to money purchase schemes | 120,000 | 119,900 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Website costs amortisation |
Auditors' remuneration |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Hire purchase |
Factoring charges |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Accelerated capital allowances | (39,196 | ) | 240,396 |
Total tax charge | 608,167 | 572,218 |
As of 1 April 2023, the UK Government has increased the main rate of corporation tax from 19% to 25%. |
9. | DIVIDENDS |
Dividends voted and paid in the period totalled £230,528 (2023: £201,028). |
10. | INTANGIBLE FIXED ASSETS |
Website |
costs |
£ |
COST |
Additions |
At 29 February 2024 |
AMORTISATION |
Amortisation for year |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Improvements | and | Motor | Computer |
to property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 March 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
The NBV of assets held under hire purchase contracts is £13,000,455 (2023: £7,660,250). |
12. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
VAT |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
Included in trade debtors are invoice discounted debtors amounting to £2,034,903 (2023: £2,125,687) which have not been paid by the customer to the invoice discounting company at the balance sheet date. |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 26,100 | - |
Other creditors |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase | contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable |
operating leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
OPERATING LEASE INCOME |
The total amount of future minimum lease income under non-cancellable operating leases falls due as follows: |
2024 | 2023 |
£ | £ |
Within one year | 1,191,017 | 463,054 |
Between one and five years | 1,300,895 | 240,745 |
2,491,912 | 703,809 |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank overdrafts |
Hire purchase contracts | 10,980,465 | 6,743,040 |
The invoice discounting debt is secured by a fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, plant and machinery. |
Amounts payable on hire purchase liabilities are secured against the relevant assets to which they relate and a fixed charge over all the monies payable under the subcontracts. |
18. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 711,109 | 750,305 |
Deferred tax |
£ |
Balance at 1 March 2023 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 29 February 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | £1 | 1,233 | 1,233 |
B Ordinary | £1 | 500 | 500 |
C Ordinary | £1 | 2,500 | 2,500 |
D Ordinary | £1 | 100 | 100 |
E Ordinary | £1 | 1,000 | 1,000 |
5,333 | 5,333 |
RABBITS VEHICLE HIRE LIMITED (REGISTERED NUMBER: 02403691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
20. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 March 2023 | 3,542,339 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 29 February 2024 | 5,165,197 |
21. | PENSION COMMITMENTS |
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. |
The charge to the profit or loss account in respect of the Company's defined contribution pension scheme is £209,298 (2023: £134,258). At the year end an amount of £3,304 (2023: £3,167) was outstanding. |
22. | RELATED PARTY DISCLOSURES |
During the year the company made a loan of £250,000 (2023: £300,000) to a SIPP pension scheme benefitting the directors, in order to purchase the commercial property that the business operates in. Interest in being charged at commercial rates. |
At the year end the amount due to the company totalled £430,142 (2023: £300,750) in respect of loans and interest charged to date. |
During the year the company paid costs on behalf of the pension scheme totalling £92,389 (2023: £nil). At the year-end the amount due to the company totalled £92,389 (2023: £nil), this amount has been repaid to the Company within 9 months of the year end. |
23. | ULTIMATE CONTROLLING PARTY |
The directors believe there to be no ultimate controlling party. |