Company registration number 11529204 (England and Wales)
LCM CORPORATE SERVICES UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
LCM CORPORATE SERVICES UK LIMITED
COMPANY INFORMATION
Director
D Collins
(Appointed 4 October 2024)
Company number
11529204
Registered office
181 Queen Victoria Street
Bridge House
London
EC4V 4EG
Auditor
Beavis Morgan Audit Limited
82 St John Street
London
EC1M 4JN
LCM CORPORATE SERVICES UK LIMITED
CONTENTS
Page
Director's report
1
Director's responsibilities statement
2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 20
LCM CORPORATE SERVICES UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The director presents his annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of identifying litigation financing opportunities.

Results and dividends

The results for the year are set out on page 6.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

No preference dividends were paid. The director does not recommend payment of a final dividend.

Director

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

P Moloney
(Resigned 21 February 2025)
M Gangemi
(Resigned 5 September 2024)
D Collins
(Appointed 4 October 2024)
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to XX day's purchases, based on the average daily amount invoiced by suppliers during the year.

Auditor

The auditor, Beavis Morgan Audit Limited, 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 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.

On behalf of the board
D Collins
Director
24 April 2025
LCM CORPORATE SERVICES UK LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

The director is 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. He is 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.

LCM CORPORATE SERVICES UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LCM CORPORATE SERVICES UK LIMITED
- 3 -
Opinion

We have audited the financial statements of LCM Corporate Services UK Limited (the 'company') for the year ended 30 June 2024 which comprise the income statement, 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 101 Reduced Disclosure Framework (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 director's 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 director 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 director is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

LCM CORPORATE SERVICES UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LCM CORPORATE SERVICES UK LIMITED
- 4 -
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 director's report.

 

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

 

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

LCM CORPORATE SERVICES UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LCM CORPORATE SERVICES UK LIMITED
- 5 -
Extent to which the audit was 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.

 

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 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.

25 April 2025
Matthew Burge (Senior Statutory Auditor)
For and on behalf of Beavis Morgan Audit Limited
Chartered Accountants
82 St John Street
London
EC1M 4JN
LCM CORPORATE SERVICES UK LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
2024
2023
Notes
£
£
Revenue
3
5,940,783
13,012,770
Administrative expenses
(5,262,719)
(19,121,007)
Management fees receivable
250,210
13,217,685
Exceptional item
4
-
0
(67,053)
Operating profit
5
928,274
7,042,395
Finance costs
8
(100,162)
(1,515)
Profit before taxation
828,112
7,040,880
Tax on profit
9
(201,852)
(1,451,328)
Profit and total comprehensive income for the financial year
626,260
5,589,552

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

LCM CORPORATE SERVICES UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2024
30 June 2024
- 7 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
271,424
24,240
Current assets
Trade and other receivables
11
18,277,541
16,478,623
Cash and cash equivalents
137,910
657,838
18,415,451
17,136,461
Current liabilities
12
(2,756,360)
(1,856,446)
Net current assets
15,659,091
15,280,015
Net assets
15,930,515
15,304,255
Equity
Called up share capital
16
9,500,012
9,500,012
Other reserves
2,630
2,630
Retained earnings
6,427,873
5,801,613
Total equity
15,930,515
15,304,255

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 April 2025 and are signed on its behalf by:
D Collins
Director
Company registration number 11529204
LCM CORPORATE SERVICES UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
Share capital
Other reserves
Retained earnings
Total
£
£
£
£
Balance at 1 July 2022
9,500,012
2,630
212,061
9,714,703
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
5,589,552
5,589,552
Balance at 30 June 2023
9,500,012
2,630
5,801,613
15,304,255
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
-
626,260
626,260
Balance at 30 June 2024
9,500,012
2,630
6,427,873
15,930,515
LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
1
Accounting policies
Company information

LCM Corporate Services UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 181 Queen Victoria Street, Bridge House, London, EC4V 4EG. The company's principal activities and nature of its operations are disclosed in the director's report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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 prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS

 

Where required, equivalent disclosures are given in the group accounts of Litigation Capital Management Limited. The group accounts of Litigation Capital Management Limited are available to the public and can be obtained from the company's website https://www.lcmfinance.com/shareholders/annual-reports-financial-reports/.

Under Companies Act 2006,s454,on a voluntary basis, the members can amend these financial statements if they subsequently prove to be defective.

1.2
Going concern

The director has at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus he continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The company has obtained continuing support from the parent company to meet any current liabilities that the company is unable to for the foreseeable future.

LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 10 -
1.3
Revenue

Revenue is divided between intra-group management fees, and performance fees resulting from litigation financing contracts.

 

Performance fees are derived from the management of litigation projects under externally financed financing arrangements and governed by the agreement with external investors. Performance fees are recognised at the point in time when a judgement has been awarded or a settlement agreement has been agreed on the litigation projects.

1.4
Property, plant and equipment

Property, plant and equipment 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:

Leasehold land and buildings
Over the lease term
Leasehold improvements
100% straight line
Fixtures and fittings
40% reducing balance
Computers
100% 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 income statement.

1.5
Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held on call with financial institutions.

1.6
Trade and other receivables

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses.

1.7
Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year and which are unpaid.

1.8
Issued capital

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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.

LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 11 -
Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
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 inventories or non-current 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.

1.11
Retirement benefits

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

1.12
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.13
Foreign exchange

Foreign currency transactions are translated into the entity’s functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the director is 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, if the revision affects only that period, or in the period of the revision and future periods if 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 outlined below.

Critical judgements
Revenue from contracts with customers

The entity’s active involvement in litigation service contracts to achieve a successful resolution for the client is the predominant purpose of the service provided and accordingly the litigation funding contracts are within the scope of IFRS 15 ‘Revenue from Contracts with Customers’, and so are excluded from the scope of IFRS 9 ‘Financial Instruments’ which would require the recognition of a financial asset for each contract, measured at fair value.

LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Critical accounting estimates and judgements
(Continued)
- 13 -
Performance obligations and recognition of revenue

In the provision of litigation management services and financing of litigation projects, management has determined that there is a single performance obligation and that complete satisfaction of that performance obligation occurs at the point in time when the company achieves a successful resolution for the client as it is the predominant purpose of the service provided. On this basis, revenue is not recognised over time and only recognised at the point in time when the company satisfies that performance obligation.

3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Performance fees
5,940,783
13,012,770
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
5,940,783
13,012,770
LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
4
Exceptional items
2024
2023
£
£
Expenditure
Exceptional item
-
67,053

Exceptional items relate to tribunal costs incurred during the prior year.

5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
46,722
61,126
Depreciation of property, plant and equipment
282,916
16,006
6
Employees

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

2024
2023
Number
Number
11
10

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,832,913
2,576,848
Social security costs
378,643
260,126
Pension costs
54,672
36,655
3,266,228
2,873,629
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
1,166,335
1,019,964
Company pension contributions to defined contribution schemes
28,760
27,500
1,195,095
1,047,464
LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Director's remuneration
(Continued)
- 15 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
780,864
666,214
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on loans
93,070
1,515
Interest on other loans
7,092
-
0
100,162
1,515
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
201,852
1,451,328

The charge for the year can be reconciled to the profit per the income statement as follows:

2024
2023
£
£
Profit before taxation
828,112
7,040,880
Expected tax charge based on a corporation tax rate of 25.00% (2023: 20.50%)
207,028
1,443,091
Effect of expenses not deductible in determining taxable profit
11,019
5,355
Change in unrecognised deferred tax assets
-
0
(1,746)
Permanent capital allowances in excess of depreciation
(2,537)
(2,837)
Depreciation on assets not qualifying for tax allowances
6,975
3,281
Other permanent differences
(20,633)
4,184
Taxation charge for the year
201,852
1,451,328
LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
10
Property, plant and equipment
Leasehold land and buildings
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 July 2023
-
0
20,400
4,095
22,152
46,647
Additions
520,563
-
0
-
0
9,537
530,100
At 30 June 2024
520,563
20,400
4,095
31,689
576,747
Accumulated depreciation and impairment
At 1 July 2023
-
0
3,409
2,124
16,874
22,407
Charge for the year
255,017
16,991
790
10,118
282,916
At 30 June 2024
255,017
20,400
2,914
26,992
305,323
Carrying amount
At 30 June 2024
265,546
-
0
1,181
4,697
271,424
At 30 June 2023
-
0
16,991
1,971
5,278
24,240

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2024
2023
£
£
Net values at the year end
Property
265,546
-
Depreciation charge for the year
Property
255,017
-

The right to use assets relate to business premises leased from Beaumont Business Centres Limited.

11
Trade and other receivables
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Trade receivables
441,570
-
-
-
Amounts owed by fellow group undertakings
17,679,252
16,367,582
-
0
-
0
Other receivables
9,515
6,333
58,300
56,260
Prepayments and accrued income
88,904
48,448
-
-
18,219,241
16,422,363
58,300
56,260
LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
12
Liabilities
2024
2023
Notes
£
£
Trade and other payables
14
2,074,197
309,653
Corporation tax
299,314
1,458,743
Other taxation and social security
113,793
88,050
Lease liabilities
13
269,056
-
0
2,756,360
1,856,446
13
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
276,768
-
Future finance charges and other adjustments
(7,712)
-
Lease liabilities in the financial statements
269,056
-

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
269,056
-
0

The fair value of the company's lease obligations is £269,056. This is assessed by using an incremental borrowing rate of 5.25%.

 

The company leases business premises from Beaumont Business Centres Limited. The contract has been signed for a 1 year period between July 2024 and June 2025, with monthly lease payments of £23,064 payable to the landlord. During the year the company made total lease payments of £267,792 (2023: £209,952).

Other leasing information is included in note 18.
14
Trade and other payables
2024
2023
£
£
Trade payables
17,205
24,608
Amounts owed to fellow group undertakings
1,727,548
230,424
Accruals and deferred income
291,275
46,000
Other payables
38,169
8,621
2,074,197
309,653
LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
54,672
36,655

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.

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
12
12
12
12
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Redeemable preference shares of £1 each
9,500,000
9,500,000
9,500,000
9,500,000
Preference shares classified as equity
9,500,000
9,500,000
Total equity share capital
9,500,012
9,500,012

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. Each share entitles the holder to one vote. The company does not have a limited amount of authorised capital.

 

Redeemable preference shares carry the rights to receive any of the profits of the company available for distribution by way of dividend or otherwise and if there is a return of capital on winding up the assets of the company available for distribution among the members it shall be applied first in repaying in full the holder of the redeemable preference shares.

 

The redeemable preference shares may be redeemed at nominal value at any time specified by the directors of the company, provided that if the company is unable to redeem the shares on the date specified then the company shall redeem such shares on the next date that it is able to do so. The redeemable preference shares do not carry any rights to vote.

Global Loan Agency Services Australia Nominees Pty Limited hold a charge over the assets of the company by means of a supplemental debenture held with the parent company LCM Group Holdings Pty Ltd.

LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
17
Capital and reserves
Called up share capital
This balance represents the nominal value of the shares issued by the company.
Other reserves

This balance represents the foreign exchange reserve.

Profit and loss reserves
This balance represents the accumulation of profits and losses made by the company since its inception, less dividends paid.
18
Other leasing information
Lessee

Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:

2024
2023
£
£
Expense relating to short-term leases
-
217,692
Expense relating to leases of low-value assets
2,263
2,263

Set out below are the future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities:

2024
2023
Land and buildings
£
£
Within one year
276,768
266,976
2024
2023
Operating leases apart from land and buildings
£
£
Within one year
1,697
2,263
Between two and five years
-
1,697
1,697
3,960
Information relating to lease liabilities is included in note 13.
LCM CORPORATE SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
19
Related party transactions

The company has taken advantage of the exemptions available to it under FRS101 Section 8 not to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transactions is wholly owned by such a member.

 

A fixed and floating charge exists over the undertaking of the company with respect to the liabilities of the ultimate controlling party, Litigation Capital Management Limited.

 

Key management personnel have been granted share options in the current year and in prior years by the company's ultimate parent company Litigation Capital Management Limited. All expenses, excluding employer national insurance contributions relating to the Deferred Bonus Share Plan ('DBSP') which have been recognised by LCM Corporate Services UK Limited, have been recognised in Litigation Capital Management Limited's accounts which are available from the company's website https://www.lcmfinance.com/shareholders/annual-reports-financial-reports/.

20
Controlling party

The immediate parent company is LCM Group Holdings Pty Limited, a company registered in Australia, replacing Litigation Capital Management Limited as the immediate parent company. The ultimate parent company is Litigation Capital Management Limited, an Australian company which prepares consolidated accounts for the group. These accounts are available from the company's website https://www.lcmfinance.com/shareholders/annual-reports-financial-reports/.

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