Company Registration No. 12868934 (England and Wales)
COGENT HIRE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
LB GROUP
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
COGENT HIRE LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 9
COGENT HIRE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024
31 May 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
145,597
33,968
Tangible assets
5
32,070
47,863
177,667
81,831
Current assets
Debtors
6
5,841,619
8,102,865
Cash at bank and in hand
13,813
67,820
5,855,432
8,170,685
Creditors: amounts falling due within one year
7
(6,506,005)
(8,016,544)
Net current (liabilities)/assets
(650,573)
154,141
Total assets less current liabilities
(472,906)
235,972
Provisions for liabilities
(41,694)
(19,763)
Net (liabilities)/assets
(514,600)
216,209
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(514,601)
216,208
Total equity
(514,600)
216,209
The director of the company has elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved and signed by the director and authorised for issue on 3 February 2025
G Pulford
Director
Company registration number 12868934 (England and Wales)
COGENT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
1
Accounting policies
Company information
Cogent Hire Limited is a private company limited by shares incorporated in England and Wales. The registered office is Speed Medical House, 16 Eaton Avenue, Matrix Park, Chorley, Lancashire, PR7 7NA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
1.2
Going concern
The financial position of the Company is shown in the Statement of Financial Position. The Companytrue is dependent on funding provided by group undertakings. The Director has received confirmation from group undertakings that it will provide financial support as is necessary to enable the Company to meet its liabilities as they fall due for a period of at least 12 months from the date of signing these financial statements.
The Director has considered the forecasts and projections of group undertakings, FL 360 Limited, taking account of reasonably possible changes in trading performance and cash collection profile. Based on the letter of support and the explanations received from the Director of group undertakings the Director has prepared these financial statements on the going concern basis.
1.3
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
Vehicles are only supplied and remain on hire after a strict validation process that assesses to the Company’s satisfaction that liability for the accident rests with a third party. Credit hire revenue is accrued on a daily basis, after adjustments for an estimation of the recovery of those credit hire charges based on historical settlement rates and case characteristics including the size of the claim. This adjustment is made to ensure that revenue is only recognised to the extent that it is highly probable that a significant reversal of revenue will not occur upon settlement of a customer’s claim. Revenue recognised is updated on settlement once the amount of fees that will be recovered is known. Revenue derived from the repair of a customer's vehicle is recognised at the point in time that the repair is completed.
COGENT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 3 -
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
All Intangible Assets are considered to have a finite useful life. If a reliable estimate of the useful life can not be made, the useful life should not exceed 10 years.
The estimated useful lives range as follows:
Computer Software
3 years straight-line
Trademarks
3 years straight-line
1.5
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:
Fixtures and fittings
25% reducing balance
Computers
3 years straight-line
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.
1.6
Borrowing costs related to fixed assets
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
1.7
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include 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.
COGENT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
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.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
COGENT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to Statement of Comprehensive Income 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.
2
Judgements and key sources of estimation uncertainty
In the application of the Company's accounting policies, which are described in note 1 the Director is required to make judgements estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.
Credit hire revenue is accrued on a daily basis. Credit repair revenue is recognised upon the completion of the repair. Adjustment on a portfolio basis for an estimation of the recovery of those credit hire charges based on historical settlement rates and type of service provided. This adjustment Is made to ensure that revenue is only recognised to the extent that it is highly probable that a significant reversal of revenue will not occur upon settlement of a customer’s claim. Revenue recognised is updated on settlement once the amount of fees that will be recovered is known. The settlement percentages applied and expected credit loss provisions are based on management's past experience; historical settlement information, revenue, accrued income and trade receivables are Sensitive to these estimates. This assumes that claims which have settled historically are representative of the trade receivables and accrued income in the balance sheet. This assumption represents a significant judgement
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
42
29
COGENT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 6 -
4
Intangible fixed assets
Computer Software
Trademarks
Total
£
£
£
Cost
At 1 June 2023
57,375
57,375
Additions
145,736
9,860
155,596
At 31 May 2024
203,111
9,860
212,971
Amortisation
At 1 June 2023
23,407
23,407
Amortisation charged for the year
42,117
1,850
43,967
At 31 May 2024
65,524
1,850
67,374
Carrying amount
At 31 May 2024
137,587
8,010
145,597
At 31 May 2023
33,968
33,968
5
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 June 2023
13,544
48,616
62,160
Additions
7,305
7,305
At 31 May 2024
13,544
55,921
69,465
Depreciation
At 1 June 2023
2,866
11,431
14,297
Depreciation charged in the year
4,515
18,583
23,098
At 31 May 2024
7,381
30,014
37,395
Carrying amount
At 31 May 2024
6,163
25,907
32,070
At 31 May 2023
10,678
37,185
47,863
COGENT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,365,941
7,370,202
Unpaid share capital
1
1
Other debtors
74,159
43,969
Prepayments and accrued income
401,518
688,693
5,841,619
8,102,865
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts (secured)
1,303,128
2,563,473
Trade creditors
1,510,979
1,449,257
Amounts owed to group undertakings
1,977,896
1,983,138
Corporation tax
125,017
125,017
Other taxation and social security
180,916
28,079
Other creditors
1,055,068
1,187,535
Accruals and deferred income
353,001
680,045
6,506,005
8,016,544
At 31 May 2024 there was an interest free loan, repayable upon demand from the parent undertaking, FL360 Limited of £1,347,302 (2023: £1,391,401).
In addition there was an interest bearing loan of £629,959 (2023: £587,539) which includes accrued interest in the year of £42,420 (2023: £57,295). The loan is repayable upon demand and has an interest rate of 8% p.a.
At the statement of financial position date, RBS Invoice Finance Ltd held a fixed and floating charge dated 27 July 2022 over all assets of the company in relation to the bank loans and overdrafts.
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
55,867
97,547
COGENT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
9
Deferred taxation
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
42,415
20,458
Short term timing differences
(721)
(695)
41,694
19,763
2024
Movements in the year:
£
Liability at 1 June 2023
19,763
Charge to profit or loss
21,931
Liability at 31 May 2024
41,694
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Shaun Roberts
Statutory Auditor:
LB Group Limited (Colchester)
Date of audit report:
3 February 2025
11
Financial commitments, guarantees and contingent liabilities
The company is a guarantor to an invoice discounting arangement, which it is not a party to, in favour of a number of the group's fellow subsidiary undertakings. The total group borrowing under this facility as at 31 May 2024, was £24,505,078 (2023 - £20,561,260)
12
Related party transactions
The Company has taken advantage of the exemption in section 1AC.35 of FRS 102 not to disclose transactions with other wholly owned subsidiaries within the group headed by FL 360 Limited.
COGENT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
13
Parent company
The immediate parent company, and ultimate controlling parent, is FL 360 Limited, a Company incorporated in England and Wales. The registered address of FL 360 Limited is Speed Medical House, Matrix Park, Chorley, Lancashire, PR7 7NA.
The largest and smallest group in which the results of the Company are consolidated is that headed by FL 360 Limited. The consolidated accounts of this Company are available to the public and may be obtained from the Company's registered address. No other group accounts include the results of the Company.
The ultimate controlling party is Dr Rajnish Lutra.