The directors present the strategic report for the year ended 31 October 2024.
The activity of the Group is as a provider of goods and services to the vehicle rental industry, an operator of a vehicle rental franchise business, a provider of vehicle transport and as a vehicle lessor. Its results are therefore significantly influenced by developments within this sector. Companies within the group are as follows:
LCVR Holdings Limited
The holding company of the Group, its primary purpose being shareholder of group companies.
Local Car and Van Rental Limited
The largest company within the group, provides goods and services to rental companies throughout the UK.
Green Motion Car and Van Rental Limited
The UK franchise holder of the Green Motion franchise. Green Motion operates at major UK airports, as well as locations in major towns and cities.
Local Vehicle Transport Limited
A business engaged in vehicle logistics, both for group companies and external customers.
Flexible Rental Solutions Limited
A new venture which offers flexible operating leases to corporate customers, within the maintenance and infrastructure sector.
GAP Leasing Limited – Associate
A short term leasing company providing vehicles primarily to the corporate sector, operated from the Green Motion Manchester site but with Nationwide coverage. The Group holds a minority stake.
Popcorn Rocks Limited - Associate
A Franchisee operating the Green Motion franchise for the Manchester airport in which the Group holds a minority stake.
The Group has delivered a robust financial performance for the year in spite of some severe headwinds in the industry due to its strategy of diversification of activities.
The Group currently has no borrowings apart from vehicle funding, low gearing, good liquidity and a strong balance sheet.
The directors therefore believe that the Group is well placed to take advantage of any opportunities that may arise in the coming year.
The Group’s operations expose it to some financial risks, however the directors ensure that risk is only taken on an informed basis and they recognise that successfully managing these risks can deliver opportunities for the Group.
Liquidity risk
The Group’s operations are funded through positive cash balances, and strong relationships with its funding partners.
Interest rate risk
The Group borrows mainly on variable rate agreements, but leases vehicles to customers on fixed rate contracts. Therefore if interest rates were to rise or fall there would be an impact on the Group’s levels of profit. Although rates reduced during the year, the speed and timing of rate reduction was lower than anticipated at the beginning of the year.
Credit risk
The Group’s credit risk is primarily in two areas, with customers for the payment of vehicle rentals, and with vehicle dealers and manufacturers for the repurchase of vehicles. The Group deals with these risks by careful underwriting, by daily monitoring of debtors, and by swift action to resolve late payments.
Vehicle supply
The year saw a continued return to a more normalized supply of vehicles, although vehicle prices in the first half of the year remain higher than the average in preceding years due to generally high inflation rates in the UK. The Group closely monitors these developments going forward via its experienced purchasing and disposal teams, and the directors remain cautiously optimistic that rental volumes will increase in the coming year due to various opportunities arising during the financial year.
The Group’s business activities and the material factors which affect its future development are set out above. The financial position of the Group is set out in the financial statements and accompanying notes. When assessing the Group’s position, the directors have not identified any uncertainties that cast significant doubt on the ability of the Group to continue as a going concern.
The Group monitors its business performance with reference to the following key performance indicators:
a) Profit before tax.
For the year the Group had a profit before tax of £372,378 compared to the prior year of £5,275,833, however the Group acknowledges that preceding years were exceptional in terms of the used vehicle market and are unlikely to be repeated in the foreseeable future.
The year was challenging in the face of a tough used vehicle market due to a normalization of used vehicle prices generally, relatively high interest rates and competition in the retail rental market from the major rental providers. The Group aims to maximise the profit available for retention in the business and for distribution to shareholders.
The directors anticipate a similarly challenging year in the next financial year although mitigated by a more stable used market and, the directors are however keen to pursue other business opportunities within the sector as they arise. Profit before tax was positive although the business is constantly seeking new business streams. The Group aims to be agile and quick in its decision making in order to pursue new opportunities as they arise.
b) Rental fleet
The change in the value of the rental fleet measures the annual increase or decrease in vehicle fixed assets, expressed as a percentage of the prior year vehicle fixed assets. The Group aims to maximise the number of vehicles available for rental by the business, consistent with achieving the profit objectives, and measures this by the increase in vehicle fixed assets. The rental fleet grew by 20% in the year ended 31 October 2024, and the directors plan to increase the size of the fleet in the coming year in line with customer demand and diversification into alternative business areas where opportunities for solid business growth are identified.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 October 2024.
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £1,031,250. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Risks and uncertainties that face the company, and the key performance indicators for the company are addressed separately in detail within the Strategic report.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of LCVR Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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).
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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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 directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report 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.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the 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 or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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.
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 parent company or to cease operations, or have no realistic alternative but to do so.
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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.
Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.
There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent company's members those matters we are required to state to them in an auditors 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £975,890 (2023 - £3,169,337 profit).
LCVR Holdings Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 1 & 2 Redman Court, Bell Street, Princes Risborough, Buckinghamshire, HP27 0AA.
The group consists of LCVR Holdings Limited and all of its subsidiaries.
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 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company LCVR Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 October 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities other than subsidiary undertakings, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover represents the revenue arising from the group's activities, excluding value added tax. These comprise the hire of vehicles, the sale of new vehicles and the supply of related goods and services. Income derived from leasing vehicles to third parties on operating leases is recognised in turnover on a straight line basis over the life of the asset. All turnover arises in the United Kingdom.
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.
Revenue from the provision of services is recognised when the performance obligations of the service are satisfied, 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.
The franchise fee is written off in equal annual instalments over its useful economic life of 10 years in line with the franchisee agreement.
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 income statement.
Motor vehicles are written down to a directors' estimate of residual value over the holding period, or to their agreed residual value if known.
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
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 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 statement of financial position 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, which include debtors, 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, 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.
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.
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.
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, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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 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 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
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.
The group operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
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 statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the income statement on a straight line basis. This is contrary to the requirements of FRS 102; however the directors consider the difference between this and the effective interest method to be insignificant.
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.
Amounts due from lessees under finance leases are recognised as receivables at the amount of the group’s net investment in the leases. Finance lease income is allocated to accounting periods on a straight line basis. This is not strictly in accordance with the requirements of FRS 102 which requires finance lease income to be allocated so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases. The directors consider the financial difference in the two different approaches to be insignificant.
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.
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.
Fixed asset residual values in relation to motor vehicles are based on either an agreed contracted buy back value or the directors' best estimate for risk vehicles based their knowledge and on the current prevailing market. All other fixed assets are deemed to have a residual value of £nil as they are used in the course of business.
The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
The amortisation of intangible assets is included within administrative expenses.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
The actual charge/(credit) 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:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Freehold land and buildings includes land of £750,000 (2023: £750,000 ) which is not depreciated.
Details of the company's subsidiaries at 31 October 2024 are as follows:
Registered office addresses (all UK unless otherwise indicated):
Local Vehicle Transport Limited and Flexible Rental Solutions are exempt from the requirements relating to the audit of its individual financial statements by virtue of the parent entity's guarantee under section 479A of the Companies Act 2006. The Company Registration Numbers of Local Vehicle Transport Limited and Flexible Rental Solutions are 10612083 and 05816562 respectively.
Details of associates at 31 October 2024 are as follows:
Included within other debtors are short term loans provided to franchisees, repayable over a 12 month period. The implicit rate of interest is variable.
These loans are initially recorded at transaction price. There is no reliable measure of fair value available. As the time value of money is considered to be negligible, the loans are recognised at transaction price, which is considered to be appropriate. There is no change in value reported in the income statement.
All vehicles are supplied under a Vehicle Hire Purchase Agreement.
Obligations under hire purchase contracts are secured against the related assets.
Obligations under hire purchase contracts are secured against the related assets.
Finance lease payments represent rentals payable by the company for rental fleet.
Obligations under hire purchase contracts are secured against the related assets.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is not expected to reverse within 12 months on the basis it relates to accelerated capital allowances. These accelerated capital allowances arise on the acquisition of fleet vehicle assets, and as such, the value of the deferred tax balance is dependent on the fleet size. The deferred tax liability is expected to crystallise in the future.
The rate at which deferred tax is calculated is 25.00% (2023 - 25.00%).
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.
Ordinary non-redeemable shares carrying full voting rights and equal rights to participate in a distribution and on a winding-up.
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:
At the reporting end date the group had contracted with lessees for the following minimum lease payments:
Vehicles are supplied under a Master Lease Agreement which sets out the terms and conditions of use and the financial obligations of the lessee.
Amounts contracted for but not provided in the financial statements:
The remuneration of key management personnel is as follows.
The group made sales of £2,134,916 (2023 - £2,648,552) and purchases of £nil (2023 - £110,301) to an associate of the group. At the balance sheet date, included within debtors is a balance of £226,824 (2023 - £41,680) due from an associate of the group.
Dividends totalling £1,001,250 (2023 - £nil) were paid in the year in respect of shares held by the company's directors and their close family members.