Company Registration No. SC405125 (Scotland)
LCB VEHICLES LTD.
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
LCB VEHICLES LTD.
COMPANY INFORMATION
Directors
F Bishop
M Grier
Company number
SC405125
Registered office
16 Flakefield
East Kilbride
GLASGOW
G74 1PF
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
LCB VEHICLES LTD.
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
LCB VEHICLES LTD.
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The directors present the strategic report for the year ended 31 August 2024.

Fair review of the business

The results for the year and financial position of the group and company are shown in the annexed financial statements.

 

Fiscal year ending August 2024 saw a continued post-Covid demand for commercial vehicles, numerous macro factors contributed to this including vehicle shortages spanning several years, reduced appetite for ‘on book borrowing’ driving customers towards long term rental because of increased interest rates and a higher demand for flexibility within fleet management.

Principal risks and uncertainties

Credit risk

The business operates a strict ‘no marketing’ policy ensuring that we intimately know every customer we engage with. Alongside this we exclusively deal with recommended business and still engage in stringent credit control parameters.

 

Health, safety and environmental risk

The business is fully aware of numerous larger organisations moving into flexi-commercial rental market. We are not reliant on a small number of clients in one industry, the business strategically spreads its risk across numerous customers and industries. With service and relationship management being key priorities within LCB we continue to have a strategic advantage over competitors entering the space.

Market conditions

The company continues to enhance business performance through a variety of initiatives in what remains an increasingly competitive environment. Despite the uncertainty in the wider economy emanating from the cost of living crisis, the ongoing market demand within the sector provides grounds for a cautious optimism.

IT risk

The company is dependent on reliable IT systems for managing and controlling the business. The company's IT function oversees all systems and has policies in place to protect software, hardware and data and to prevent unauthorised access to systems.

Liquidity risk

Current and projected working capital and investment demand is reviewed in conjunction with existing financing facilities to determine cash requirements as part of the routine reporting process.

Fraud risk

There are internal control procedures to ensure that detailed checking is carried out in all areas of the business. The company's management reporting systems are designated in part to highlight irregularities at all stages of the cycle of cash and stock whilst moving through the business, during the disbursement of company funds and as regards the safety and security of assets.

Key performance indicators

These include the monitoring of turnover (increased by £1,374,179) to £13,961,349 an increase of 10.9%. Profit before tax increased by £241,487 on a net profit percentage of 21.5%. The NBV of motor vehicles decreased by £3,392,096 as a result of market volatility.

 

Monitoring of staff turnover and strict adherence to health and safety standards are also considered key to solid financial performance.

LCB VEHICLES LTD.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Other performance indicators

The directors are confident that sufficient market demand combined with robust cash management places the business in a strong position within the sector despite the ongoing uncertainty in the wider economy.

 

The directors have continued to pursue the strategies that have served the company well in the past and anticipate a favourable outcome taking into consideration the commercial challenges faced.

Other information and explanations

The company focuses on fostering excellent relationships with its key stakeholders. The directors consider these to be:

 

 

 

 

 

 

Who

Why

How

What

Outcome and Actions

Customers

Delivering excellent service in a cost-effective manner is pivotal to customer retention and growth

Additions to the management team with a focus on improving standard operating procedures

Quality and efficiency of services offered

An increased focus on newer vehicles, reducing VOR (vehicles off road) and reducing time

Employees

Ensuring the business has the right culture and working environment to provide excellent service to customers

Increased staffing levels from management to entry level employees and refocus on alternative working arrangements led by directors following feedback from staff.

Monthly meetings with management & directors. Open conversation forum through feedback in 1:1s

Feedback from customers on improved service levels. Improved retention levels within the business. Several internal promotions within the business

Manufacturers and Vehicle Suppliers

Access to Vehicles is vital to rental operations

Managing Directors regularly meets with all suppliers both in England and in Scotland to continue enhanced relationships

Vehicle Supply and commitment on volume

Vehicles readily available across numerous channels fueling significant fleet growth

On behalf of the board

F Bishop
Director
20 February 2025
LCB VEHICLES LTD.
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 August 2024.

Principal activities

The principal activity of the company continued to be that of the rental and sale of motor vehicles.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £100,000. The directors do not recommend payment of a further dividend.

No preference dividends 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:

F Bishop
M Grier
Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 auditor of the company 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 auditor of the company is aware of that information.

Other matters

On 31 March 2024, LCB vehicles (parent company) acquired the entire fleet of vehicles and customer lists from its 100% owned subsidiary LCB Fleet Limited for a consideration of £850,000. As a result, the investment in LCB Fleet Ltd has been impaired by £850,000 and Goodwill of £479,000 has been recognised in respect of the acquisition within the company accounts.

On behalf of the board
F Bishop
Director
20 February 2025
LCB VEHICLES LTD.
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LCB VEHICLES LTD.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LCB VEHICLES LTD.
- 5 -
Opinion

We have audited the financial statements of LCB Vehicles Ltd. (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the group and company profit and loss account, the group and company statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:

 

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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and parent 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 information

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.

LCB VEHICLES LTD.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LCB VEHICLES LTD.
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and 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:

 

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 parent 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 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

 

LCB VEHICLES LTD.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LCB VEHICLES LTD.
- 7 -
Extent to which the audit is considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the group’s and parent company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

 

Other matters which we are required to address

The corresponding subsidiary prior year figures are unaudited.

LCB VEHICLES LTD.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LCB VEHICLES LTD.
- 8 -

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 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.

James Hamilton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
20 February 2025
Chartered Accountants
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
LCB VEHICLES LTD.
GROUP AND COMPANY PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Turnover
3
13,961,349
12,586,740
11,748,670
10,387,726
Cost of sales
(7,553,801)
(5,807,544)
(5,530,460)
3,766,480
Gross profit
6,407,548
6,779,196
6,218,210
6,621,246
Administrative expenses
(3,925,493)
(3,966,848)
(3,689,214)
3,740,092
Other operating income
-
30,500
-
42,700
Profit on disposal of tangible fixed assets
1,056,499
477,544
1,019,854
489,734
Operating profit
4
3,538,554
3,320,392
3,548,850
3,413,588
-
0
-
0
Interest receivable and similar income
-
-
850,000
-
0
Interest payable and similar expenses
8
(540,091)
(563,416)
(518,607)
(524,150)
Amounts written off investments
-
-
(850,000)
-
Profit before taxation
2,998,463
2,756,976
3,030,243
2,889,438
Tax on profit
9
(529,644)
(570,144)
(712,334)
(640,668)
Profit for the financial year
26
2,468,819
2,186,832
2,317,909
2,248,770
Profit for the financial year is all attributable to the owner of the parent company.
LCB VEHICLES LTD.
GROUP AND COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Group
Company
2024
2023
2024
2023
£
£
£
£
Profit for the year
2,468,819
2,186,832
2,317,909
2,248,770
Other comprehensive income
-
-
-
-
Total comprehensive income for the year
2,468,819
2,186,832
2,317,909
2,248,770
Total comprehensive income for the year is all attributable to the owners of the parent company.
LCB VEHICLES LTD.
GROUP BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
456,424
511,424
Tangible assets
12
11,956,348
15,008,643
12,412,772
15,520,067
Current assets
Stocks
15
11,800
-
Debtors
16
3,744,760
2,842,397
Cash at bank and in hand
958,882
312,413
4,715,442
3,154,810
Creditors: amounts falling due within one year
17
(4,275,317)
(5,561,632)
Net current assets/(liabilities)
440,125
(2,406,822)
Total assets less current liabilities
12,852,897
13,113,245
Creditors: amounts falling due after more than one year
18
(1,319,947)
(3,668,452)
Provisions for liabilities
Provisions
20
-
0
200,347
Deferred tax liability
21
1,044,671
1,124,986
(1,044,671)
(1,325,333)
Net assets
10,488,279
8,119,460
Capital and reserves
Called up share capital
24
201
201
Share premium account
25
1,424,899
1,424,899
Profit and loss reserves
26
9,063,179
6,694,360
Total equity
10,488,279
8,119,460
The financial statements were approved by the board of directors and authorised for issue on 20 February 2025 and are signed on its behalf by:
20 February 2025
F Bishop
Director
LCB VEHICLES LTD.
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
456,424
-
0
Tangible assets
12
11,843,718
13,977,534
Investments
13
-
0
1,400,000
12,300,142
15,377,534
Current assets
Stocks
15
11,800
-
Debtors
16
3,120,894
1,854,519
Cash at bank and in hand
950,282
259,729
4,082,976
2,114,248
Creditors: amounts falling due within one year
17
(3,688,546)
(4,757,917)
Net current assets/(liabilities)
394,430
(2,643,669)
Total assets less current liabilities
12,694,572
12,733,865
Creditors: amounts falling due after more than one year
18
(1,320,904)
(3,609,886)
Provisions for liabilities
Deferred tax liability
21
1,044,882
942,581
(1,044,882)
(942,581)
Net assets
10,328,786
8,181,398
Capital and reserves
Called up share capital
24
201
201
Share premium account
25
1,424,899
1,424,899
Profit and loss reserves
26
8,903,686
6,756,298
Total equity
10,328,786
8,181,398
The financial statements were approved by the board of directors and authorised for issue on 20 February 2025 and are signed on its behalf by:
20 February 2025
F Bishop
Director
Company Registration No. SC405125
LCB VEHICLES LTD.
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
200
724,900
4,607,528
5,332,628
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
2,186,832
2,186,832
Issue of share capital
24
1
-
0
-
1
Dividends
10
-
-
(100,000)
(100,000)
Other movements
-
699,999
-
699,999
Balance at 31 August 2023
201
1,424,899
6,694,360
8,119,460
Year ended 31 August 2024:
Profit and total comprehensive income for the year
-
-
2,468,819
2,468,819
Dividends
10
-
-
(100,000)
(100,000)
Balance at 31 August 2024
201
1,424,899
9,063,179
10,488,279
LCB VEHICLES LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
200
724,900
4,607,528
5,332,628
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
2,248,770
2,248,770
Issue of share capital
24
1
-
0
-
1
Dividends
10
-
-
(100,000)
(100,000)
Other movements
-
699,999
-
699,999
Balance at 31 August 2023
201
1,424,899
6,756,298
8,181,398
Year ended 31 August 2024:
Profit and total comprehensive income for the year
-
-
2,317,909
2,317,909
Dividends
10
-
-
(100,000)
(100,000)
Other movements
-
-
(70,521)
(70,521)
Balance at 31 August 2024
201
1,424,899
8,903,686
10,328,786
LCB VEHICLES LTD.
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
4,587,477
6,287,218
Interest paid
(540,091)
(563,416)
Income taxes paid
(630,375)
(300,000)
Net cash inflow from operating activities
3,417,011
5,423,802
Investing activities
Purchase of subsidiary net of cash acquired
-
(461,590)
Purchase of tangible fixed assets
(2,895,832)
(5,653,723)
Proceeds on disposal of tangible fixed assets
4,128,429
2,405,498
(Payments)/ receipts on directors loan accounts
(166,451)
352,010
Net cash generated from/(used in) investing activities
1,066,146
(3,357,805)
Financing activities
Issue of preference shares
-
(1)
Payment of finance leases obligations
(3,736,688)
(1,899,515)
Dividends paid to equity shareholders
(100,000)
(100,000)
Net cash used in financing activities
(3,836,688)
(1,999,516)
Net increase in cash and cash equivalents
646,469
66,481
Cash and cash equivalents at beginning of year
312,413
245,932
Cash and cash equivalents at end of year
958,882
312,413
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
1
Accounting policies
Company information

LCB Vehicles Ltd. (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 16 Flakefield, East Kilbride, GLASGOW, G74 1PF.

 

The group consists of LCB Vehicles Ltd. and all of its subsidiaries.

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company LCB Vehicles Ltd. together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The Group has generated a profit before tax of £2,998,463 has net current assets of £374,021 and net assets of £10,488,279 at the year ended 31 August 2024. In assessing the ability of the group to continue as a going concern for a minimum period of 12 months from the date of authorising the financial statements, the directors have prepared detailed trading projections to August 2025. In doing so, the directors have assessed the book value of the assets (£11,956,348) against the level of debt within the group 4,275,317) and are confident that current projections provide the directors with confidence that the group will be able to continue to service its debts as required. Further, the groiup's strategy of re-investing into the fleet means that the group has a growing number of debt free vehicles that can be leveraged in the event of any unforeseen cash flow shortfalls. The directors are confident in the future of the market despite the current economic outlook and consider that demand for their services will remain resilient. On this basis, the financial statements have been prepared on a going concern basis.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or 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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
1.7
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:

Plant and equipment
25% straight line
Motor vehicles
20% 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 recognised in the profit and loss account.

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 20 -
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 group 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 group 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.

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.

LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’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 if, and only if, there is 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.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.

LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 22 -
1.16
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.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

1.19
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

In the prior year, LCB Vehicles. (company) acquired LCB Fleet (subsidiary) for consideration of £1.4 million. This consideration was settled by cash as well as through the introduction of a preference share equal to £0.7 million. The directors consider that the treatment of the preference share as equity rather than a liability within the accounts is correct, taking account of the nature and substance of the transaction.

LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
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.

Useful life, net book value and residual value of motor vehicles

Motor vehicles are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Any change within the actual lives of the asset would impact on the net book value of the vehicles. In making these assessments, the directors consider factors such as current market conditions and demand as well as projected disposal values.

3
Turnover and other revenue

The whole of the turnover is attributable to the principal activity of LCB Vehicles Limited and its subsidiary, being the renting and leasing of motor vehicles.

 

All turnover arose within the United Kingdom.

 

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
2,876,197
3,200,776
Profit on disposal of tangible fixed assets
(1,056,499)
(477,544)
Amortisation of intangible assets
55,000
38,576
Operating lease charges
88,425
35,377
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
28,000
16,000
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
21
20
15
13
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
614,264
445,200
395,214
279,166
Social security costs
62,871
39,540
40,279
22,499
Pension costs
10,582
7,299
5,441
3,614
687,717
492,039
440,934
305,279
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
40,000
40,000
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
511,593
563,416
Other interest
28,498
-
Total finance costs
540,091
563,416
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
352,531
544,987
Adjustments in respect of prior periods
-
0
(5,963)
Total current tax
352,531
539,024
Deferred tax
Origination and reversal of timing differences
177,113
31,120
Total tax charge
529,644
570,144
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
9
Taxation
(Continued)
- 25 -

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:

2024
2023
£
£
Profit before taxation
2,998,463
2,756,976
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
749,616
593,301
Fixed asset differences
5,763
-
0
Expenses not deductible for tax purposes
15,113
10,350
Other tax adjustments, reliefs and transfers
(201,241)
(40,668)
Chargeable gains/ (losses)
30,764
10,793
Adjustments to tax charge in respect of previous periods
(494)
(8,080)
Remeasurement of deferred tax for changes in tax rates
(69,877)
4,448
Taxation charge
529,644
570,144
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
100,000
100,000
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 September 2023 and 31 August 2024
550,000
Amortisation and impairment
At 1 September 2023
38,576
Amortisation charged for the year
55,000
At 31 August 2024
93,576
Carrying amount
At 31 August 2024
456,424
At 31 August 2023
511,424
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
11
Intangible fixed assets
(Continued)
- 26 -
Company
Goodwill
£
Cost
At 1 September 2023
-
0
Additions
479,479
At 31 August 2024
479,479
Amortisation and impairment
At 1 September 2023
-
0
Amortisation charged for the year
23,055
At 31 August 2024
23,055
Carrying amount
At 31 August 2024
456,424
At 31 August 2023
-
0

Goodwill of £550,000 is the estimated goodwill on acquisition of LCB Fleet Ltd in 2022. The difference between £550,000 and the amount recognised in Goodwill of £479,479 within the Company represents amortisation that would have occurred where the assets were hived up immediately upon acquisition of the share capital. The difference is recorded in Equity.

12
Tangible fixed assets
Group
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 September 2023
23,428
26,550,650
26,574,078
Additions
392,381
2,503,451
2,895,832
Disposals
-
0
(6,865,104)
(6,865,104)
At 31 August 2024
415,809
22,188,997
22,604,806
Depreciation and impairment
At 1 September 2023
18,410
11,547,025
11,565,435
Depreciation charged in the year
52,580
2,823,617
2,876,197
Eliminated in respect of disposals
-
0
(3,793,174)
(3,793,174)
At 31 August 2024
70,990
10,577,468
10,648,458
Carrying amount
At 31 August 2024
344,819
11,611,529
11,956,348
At 31 August 2023
5,018
15,003,625
15,008,643
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
12
Tangible fixed assets
(Continued)
- 27 -
Company
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 September 2023
13,681
24,493,243
24,506,924
Additions
392,381
3,345,451
3,737,832
Disposals
-
0
(6,710,304)
(6,710,304)
At 31 August 2024
406,062
21,128,390
21,534,452
Depreciation and impairment
At 1 September 2023
11,634
10,517,756
10,529,390
Depreciation charged in the year
51,135
2,823,617
2,874,752
Eliminated in respect of disposals
-
0
(3,713,408)
(3,713,408)
At 31 August 2024
62,769
9,627,965
9,690,734
Carrying amount
At 31 August 2024
343,293
11,500,425
11,843,718
At 31 August 2023
2,047
13,975,487
13,977,534

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
5,224,114
8,263,000
5,224,114
8,263,000
5,224,114
8,263,000
5,224,114
8,263,000
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
-
0
1,400,000

On 31 March 2024, the company acquired the entire vehicle fleet and associated customer contracts from its wholly owned subsidiary LCB Fleet Ltd for a consideration of £850,000. Following the transaction, the company transferred £479k of the investment balance to Goodwill and impaired the remaining investment balance of £850,000 following the receipt of a dividend for £850,000 paid by LCB Fleet ltd.

LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023
1,400,000
(550,000)
At 31 August 2024
850,000
Impairment
At 1 September 2023
-
Impairment losses
850,000
At 31 August 2024
850,000
Carrying amount
At 31 August 2024
-
At 31 August 2023
1,400,000
14
Subsidiaries

Details of the company's subsidiaries at 31 August 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
LCB Fleet
United Kingdom
Ordinary
100.00

LCB Fleet Limited (SC587642) has taken the exemption from the requirement to have their individual financial statements audited. This exemption is available under section 479A of the Companies Act 2006.

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
11,800
-
0
11,800
-
0
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 29 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,804,647
2,474,117
2,440,659
1,298,646
Amounts owed by group undertakings
-
-
-
353,602
Other debtors
319,169
215,706
59,291
57,557
Prepayments and accrued income
620,944
152,574
620,944
144,714
3,744,760
2,842,397
3,120,894
1,854,519
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
1,494,648
3,234,841
1,494,648
3,066,398
Trade creditors
1,185,005
893,380
746,587
461,469
Corporation tax payable
610,033
630,449
610,033
625,950
Other taxation and social security
589,487
430,939
548,666
424,250
Deferred income
22
101,850
180,787
-
0
33,562
Other creditors
287,353
145,515
287,354
145,515
Accruals
6,941
45,721
1,258
773
4,275,317
5,561,632
3,688,546
4,757,917
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
1,319,947
3,316,442
1,319,947
3,257,876
Other creditors
-
0
352,010
957
352,010
1,319,947
3,668,452
1,320,904
3,609,886
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,494,647
3,234,841
1,494,647
3,066,398
In two to five years
1,319,948
3,316,442
1,319,948
3,257,876
2,814,595
6,551,283
2,814,595
6,324,274
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
19
Finance lease obligations
(Continued)
- 30 -

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Onerous contract provision
-
200,347
-
-
Movements on provisions:
Onerous contract provision
Group
£
At 1 September 2023
200,347
Utilisation of provision
(200,347)
At 31 August 2024
-

The onerous contract provision has been recognised in respect of contractual obligations relating to the service division of LCB Fleet Ltd.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,052,103
1,125,466
Short term timing differences
(7,432)
(480)
1,044,671
1,124,986
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
21
Deferred taxation
(Continued)
- 31 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
1,052,485
942,774
Short term timing differences
(7,603)
(193)
1,044,882
942,581
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 September 2023
1,124,986
942,581
(Credit)/charge to profit or loss
(80,315)
102,301
Liability at 31 August 2024
1,044,671
1,044,882
22
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Deferred income
101,850
180,787
-
33,562
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
10,582
7,299

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
24
Share capital
(Continued)
- 32 -
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference share of £1 each
1
1
1
1
Preference shares classified as equity
1
1
Total equity share capital
201
201
25
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
1,424,899
724,900
1,424,899
724,900
Other movements
-
699,999
-
699,999
At the end of the year
1,424,899
1,424,899
1,424,899
1,424,899
26
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
6,694,360
4,607,528
6,756,298
4,607,528
Profit for the year
2,468,819
2,186,832
2,317,909
2,248,770
Dividends
(100,000)
(100,000)
(100,000)
(100,000)
Other movements
-
-
(70,521)
-
At the end of the year
9,063,179
6,694,360
8,903,686
6,756,298
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 33 -
27
Acquisition of a business
On 30 December 2022 the group acquired 100 percent of the issued capital of LCB Fleet Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, Plant and equipment
1,249,536
-
1,249,536
Trade and other receivables
1,261,290
-
1,261,290
Cash and cash equivalents
238,410
-
238,410
Obligations under finance leases
(431,858)
-
(431,858)
Trade and other payables
(741,997)
-
(741,997)
Provisions (a)
-
(467,953)
(467,953)
Deferred tax
(257,428)
-
(257,428)
Total identifiable net assets
1,317,953
(467,953)
850,000
Goodwill
550,000
Total consideration
1,400,000
The consideration was satisfied by:
£
Cash
700,000
Preference share
700,000
1,400,000
(a) Fair value adjustments
A fair value adjustment for an onerous loss provision has been recorded to reflect the difference in value between the net assets of the company and the future economic benefit of the contracts which LCB Fleet holds.
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition to 31 August 2023:
£
Turnover
2,168,470
Loss after tax
(356,576)
LCB VEHICLES LTD.
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 34 -
28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
39,235
46,260
20,000
24,000
Between two and five years
42,500
81,735
-
20,000
81,735
127,995
20,000
44,000
29
Controlling party
The control of the group is split equally between F Bishop and GMG Holdings Scotland Limited (Company number - SC679714).
30
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
2,468,819
2,186,832
Adjustments for:
Taxation charged
529,644
570,144
Finance costs
540,091
563,416
Gain on disposal of tangible fixed assets
(1,056,499)
(477,544)
Amortisation and impairment of intangible assets
55,000
38,576
Depreciation and impairment of tangible fixed assets
2,876,197
3,200,775
Decrease in provisions
(200,347)
(267,606)
Movements in working capital:
(Increase)/decrease in stocks
(11,800)
33,960
(Increase)/decrease in debtors
(735,912)
507,207
Increase/(decrease) in creditors
201,221
(235,743)
(Decrease)/increase in deferred income
(78,937)
167,201
Cash generated from operations
4,587,477
6,287,218
31
Analysis of changes in net debt - group
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
312,413
646,469
958,882
Obligations under finance leases
(6,551,283)
3,736,688
(2,814,595)
(6,238,870)
4,383,157
(1,855,713)
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