Company Registration No. 05816592 (England and Wales)
Local Car and Van Rental Limited
Annual report and financial statements
for the year ended 31 October 2024
Local Car and Van Rental Limited
Company information
Directors
John Ryan
Shaun Parnaby
Owain Price
John Davies
Karl Gravenor
Gordon Barr
Secretary
Karl Gravenor
Company number
05816592
Registered office
1 & 2 Redman Court
Bell Street
Princes Risborough
Buckinghamshire
HP27 0AA
Independent auditor
Saffery LLP
St John's Court
Easton Street
High Wycombe
HP11 1JX
Business address
1 & 2 Redman Court
Bell Street
Princes Risborough
Buckinghamshire
HP27 0AA
Local Car and Van Rental Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
Local Car and Van Rental Limited
Strategic report
For the year ended 31 October 2024
1

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

Fair review of the business

The principal activity of the Company is as a service provider to the vehicle rental industry. Its results are therefore significantly influenced by developments within this sector.

 

The Company delivered a small financial loss during the year due primarily to weakened demand for used vehicle market, exacerbated by losses on electric vehicles. In addition, interest rates remained higher for longer than anticipated, leading to increased costs. These issues will continue to affect profitability until the middle of the next financial year, although the movement in used vehicle values can never be accurately predicted. In terms of the rental market in general, the directors anticipate a strengthening in 2025 compared to 2024.

 

The Company currently has no borrowings apart from vehicle funding, low gearing, good liquidity and a strong balance sheet.

 

The directors therefore believe that the Company is well placed to take advantage of any opportunities that may arise in the coming year.

Principal risks and uncertainties

The Company’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 Company.

 

Liquidity risk

The Company's operations are funded through positive cash balances, and strong relationships with its funding partners.

 

Interest rate risk

The Company 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 Company’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 Company’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 Company 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 Company 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.

Development and performance

The Company’s business activities and the material factors which affect its future development are set out above. The financial position of the Company is set out in the financial statements and accompanying notes. When assessing the Company’s position the directors have not identified any uncertainties that cast significant doubt on the ability of the Company to continue as a going concern.

Local Car and Van Rental Limited
Strategic report (continued)
For the year ended 31 October 2024
2
Key performance indicators

The Company monitors its business performance with reference to the following key performance indicators:

 

a) Profit before tax.

For the year the Company had a loss before tax of £695,889 compared to the prior year profit before tax of £4,160,947, however the Company 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 Company 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. The directors are however keen to pursue other business opportunities within the sector as they arise. The Company 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 Company 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

Shaun Parnaby
Director
21 March 2025
Local Car and Van Rental Limited
Directors' report
For the year ended 31 October 2024
3

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

Principal activities

The principal activity of the company remains the provision of vehicle supply to a growing network of independent vehicle rental operators.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

John Ryan
Shaun Parnaby
Owain Price
John Davies
Karl Gravenor
Gordon Barr
Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Auditor

Saffery LLP have expressed their willingness to continue in office as auditors of the company.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

 

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Local Car and Van Rental Limited
Directors' report (continued)
For the year ended 31 October 2024
4
Strategic Report

Risks and uncertainties that face the company, and the key performance indicators for the company are addressed separately in detail within the Strategic Report.

On behalf of the board
Shaun Parnaby
Director
21 March 2025
Local Car and Van Rental Limited
Independent auditor's report
To the members of Local Car and Van Rental Limited
5
Opinion

We have audited the financial statements of Local Car and Van Rental Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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.

Local Car and Van Rental Limited
Independent auditor's report (continued)
To the members of Local Car and Van Rental Limited
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 the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Local Car and Van Rental Limited
Independent auditor's report (continued)
To the members of Local Car and Van Rental Limited
7

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 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 company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the 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 financial statement disclosures. We reviewed minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the 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.

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.

Local Car and Van Rental Limited
Independent auditor's report (continued)
To the members of Local Car and Van Rental Limited
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.

Sheryl Davis
Senior Statutory Auditor
For and on behalf of Saffery LLP
21 March 2025
2025-03-21
Statutory Auditors
St John's Court
Easton Street
High Wycombe
HP11 1JX
Local Car and Van Rental Limited
Statement of comprehensive income
For the year ended 31 October 2024
9
2024
2023
Notes
£
£
Turnover
3
35,851,606
23,521,739
Cost of sales
(34,082,782)
(16,409,313)
Gross profit
1,768,824
7,112,426
Administrative expenses
(2,532,601)
(3,050,282)
Operating (loss)/profit
4
(763,777)
4,062,144
Interest receivable and similar income
7
67,888
103,585
Interest payable and similar expenses
8
-
0
(4,782)
(Loss)/profit before taxation
(695,889)
4,160,947
Tax on (loss)/profit
9
(26,125)
2,194,919
(Loss)/profit for the financial year
(722,014)
6,355,866

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

 

There are no recognised gains and losses other than those passing through the statement of comprehensive income.

Local Car and Van Rental Limited
Statement of financial position
As at 31 October 2024
10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
102,424,858
84,259,855
Current assets
Stocks
12
884,367
-
Debtors
13
6,452,460
9,598,748
Cash at bank and in hand
5,815,057
6,514,379
13,151,884
16,113,127
Creditors: amounts falling due within one year
15
(82,142,765)
(72,230,136)
Net current liabilities
(68,990,881)
(56,117,009)
Total assets less current liabilities
33,433,977
28,142,846
Creditors: amounts falling due after more than one year
16
(10,303,813)
(4,316,793)
Provisions for liabilities
Deferred tax liability
19
5,506,912
5,480,787
(5,506,912)
(5,480,787)
Net assets
17,623,252
18,345,266
Capital and reserves
Called up share capital
20
206,250
206,250
Capital redemption reserve
21
15,750
15,750
Profit and loss reserves
17,401,252
18,123,266
Total equity
17,623,252
18,345,266
The financial statements were approved by the board of directors and authorised for issue on 21 March 2025 and are signed on its behalf by:
Shaun Parnaby
Karl Gravenor
Director
Director
Company Registration No. 05816592
Local Car and Van Rental Limited
Statement of changes in equity
For the year ended 31 October 2024
11
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
206,250
15,750
13,829,900
14,051,900
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
6,355,866
6,355,866
Dividends
10
-
-
(2,062,500)
(2,062,500)
Balance at 31 October 2023
206,250
15,750
18,123,266
18,345,266
Year ended 31 October 2024:
Loss and total comprehensive income for the year
-
-
(722,014)
(722,014)
Balance at 31 October 2024
206,250
15,750
17,401,252
17,623,252
Local Car and Van Rental Limited
Notes to the financial statements
For the year ended 31 October 2024
12
1
Accounting policies
Company information

Local Car and Van Rental Limited 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.

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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of LCVR Holdings Limited. These consolidated financial statements are available from its registered office, 1 & 2 Redman Court, Bell Street, Princes Risborough, Buckinghamshire, HP27 0AA.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the revenue arising from the company'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.

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.

1.4
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.

Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
1
Accounting policies (continued)
13

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold land
0%
Freehold buildings
5% straight line
Office equipment
20% - 33% straight line
Fixtures and fittings
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Motor vehicles are written down to a directors' estimate of residual value over the holding period, or to their agreed residual value if known.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

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.

1.7
Cash at bank and in hand

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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors, 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.

Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
1
Accounting policies (continued)
14
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other 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. Accounts payable are classified as 'creditors: amounts falling due within one year' if payment is due within one year or less. If not, they are presented as 'creditors: amounts falling due after more than one year'. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
1
Accounting policies (continued)
15
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax
Deferred taxation is provided at appropriate rates on all timing differences using the liability method only to the extent that, in the opinion of the directors, there is a reasonable probability that a liability or asset will crystallise in the foreseeable future.
1.10
Retirement benefits

The company operates a defined contribution scheme for the benefits of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.11
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 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 leases asset are consumed.

Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
1
Accounting policies (continued)
16

Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’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.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from 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.

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.

Residual values

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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Vehicle leasing and sales
35,851,606
23,521,739
2024
2023
£
£
Other significant revenue
Interest income
67,888
103,585

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
17
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
26,150
21,600
Depreciation of owned tangible fixed assets
657,442
1,929,992
Depreciation of tangible fixed assets held under finance leases
8,070,902
8,488,563
Profit on disposal of tangible fixed assets
(2,202,003)
(9,628,420)
5
Employees

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

2024
2023
Number
Number
Administration
38
33
Sales
5
5
Total
43
38

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,091,039
2,359,190
Social security costs
285,783
310,224
Pension costs
354,654
341,515
2,731,476
3,010,929
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
573,073
1,071,205
Company pension contributions to defined contribution schemes
54,801
71,307
627,874
1,142,512

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 5).

Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
6
Directors' remuneration (continued)
18
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
129,461
473,593
Company pension contributions to defined contribution schemes
6,667
-
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
67,888
103,585
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
-
0
4,782
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
278,821
Deferred tax
Origination and reversal of timing differences
26,125
579,724
Adjustment in respect of prior periods
-
0
(3,053,464)
Total deferred tax
26,125
(2,473,740)
Total tax charge/(credit)
26,125
(2,194,919)
Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
9
Taxation (continued)
19

The actual charge/(credit) for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(695,889)
4,160,947
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
(173,972)
937,045
Tax effect of expenses that are not deductible in determining taxable profit
7,015
(6,136)
Adjustments in respect of prior years
-
0
278,821
Group relief
291,455
145,021
Permanent capital allowances in excess of depreciation
(101,976)
(557,716)
Depreciation on assets not qualifying for tax allowances
3,603
4,001
Deferred tax adjustments in respect of prior years
-
0
(3,053,464)
Difference in deferred tax rate
-
0
57,509
Taxation for the year
26,125
(2,194,919)
10
Dividends
2024
2023
£
£
Interim paid
-
0
2,062,500
Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
20
11
Tangible fixed assets
Freehold buildings
Office equipment
Fixtures and fittings
Rental fleet
Total
£
£
£
£
£
Cost
At 1 November 2023
1,288,629
239,897
69,452
91,019,902
92,617,880
Additions
45,085
9,679
5,298
103,832,294
103,892,356
Disposals
-
0
-
0
-
0
(86,598,867)
(86,598,867)
At 31 October 2024
1,333,714
249,576
74,750
108,253,329
109,911,369
Depreciation and impairment
At 1 November 2023
163,543
112,509
46,059
8,035,914
8,358,025
Depreciation charged in the year
24,341
43,896
10,984
8,649,123
8,728,344
Eliminated in respect of disposals
-
0
-
0
-
0
(9,599,858)
(9,599,858)
At 31 October 2024
187,884
156,405
57,043
7,085,179
7,486,511
Carrying amount
At 31 October 2024
1,145,830
93,171
17,707
101,168,150
102,424,858
At 31 October 2023
1,125,086
127,388
23,393
82,983,988
84,259,855

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

2024
2023
£
£
Rental fleet
98,186,016
75,495,554

Freehold land and buildings includes land of £750,000 (2023: £750,000) which is not depreciated.

12
Stocks
2024
2023
£
£
Finished goods and goods for resale
884,367
-
0
Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
21
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,116,210
4,978,127
Amounts owed by group undertakings
120,540
81,020
Finance leases receivable
567,274
1,319,801
Other debtors
55,350
35,730
Prepayments and accrued income
958,762
1,530,315
5,818,136
7,944,993
2024
2023
Amounts falling due after more than one year:
£
£
Finance leases receivable
634,324
1,653,755
Total debtors
6,452,460
9,598,748
14
Finance lease receivables
2024
2023
£
£
Gross amounts receivable under finance leases:
Within one year
633,586
1,474,251
In two to five years
684,199
1,768,630
1,317,785
3,242,881
Unearned finance income
(116,187)
(269,325)
Present value of minimum lease payments receivable
1,201,598
2,973,556
The present value is receivable as follows:
Within one year
567,274
1,319,801
In two to five years
634,324
1,653,755
1,201,598
2,973,556
Analysis of finance leases

All vehicles are supplied under a Vehicle Hire Purchase Agreement.

Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
22
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
73,447,776
63,730,781
Trade creditors
2,238,796
3,450,923
Amounts owed to group undertakings
5,057,395
4,071,270
Corporation tax
28,821
33,334
Other taxation and social security
290,491
83,738
Accruals and deferred income
1,079,486
860,090
82,142,765
72,230,136
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
10,303,813
4,316,793
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
73,447,776
63,730,781
In two to five years
10,303,813
4,316,793
83,751,589
68,047,574

Finance lease payments represent rentals payable by the company for rental fleet under hire purchase arrangements.

 

Obligations under hire purchase contracts are secured against the related assets.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
354,654
341,515

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
23
19
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
6,042,929
5,480,787
Tax losses
(536,017)
-
5,506,912
5,480,787
2024
Movements in the year:
£
Liability at 1 November 2023
5,480,787
Charge to profit or loss in respect of timing differences in the year
26,125
Liability at 31 October 2024
5,506,912

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%).

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
206,250
206,250
206,250
206,250

The ordinary shares have full and equal rights to participate in voting and entitle the holder to an equal share of dividend payments or other distributions, including distributions made on winding up of the company.

21
Capital redemption reserve

The capital redemption reserve is a non-distributable reserve into which amounts are transferred following the redemption or purchase of a company's own shares out of distributable profits.

Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
24
22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
180,193
60,632
23
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
235,676
1,138,645
Between two and five years
139,188
274,644
374,864
1,413,289
Lessor

At the reporting end date the company had contracted with lessees for the following minimum lease payments:

2024
2023
£
£
Within one year
4,490,557
7,039,042
Between two and five years
624,365
3,237,175
5,114,922
10,276,217

Vehicles are supplied under a Master Lease Agreement which sets out the terms and conditions of use and the financial obligations of the lessee.

24
Related party transactions

The company made sales of £1,919,839 (2023 - £2,380,865) and purchases of £nil (2023 - £110,301) to an associate of the parent company.

Local Car and Van Rental Limited
Notes to the financial statements (continued)
For the year ended 31 October 2024
25
25
Controlling party

The immediate and ultimate parent undertaking is LCVR Holdings Limited, a company registered in England and Wales.

 

The consolidated accounts of LCVR Holdings Limited, in which this Company is included, are available to the public. This is the largest and smallest group of undertakings for which group financial statements, including the results of the company, are produced.

 

The ultimate controlling party is deemed to be John Ryan by virtue of his shareholding.

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