Company registration number 03425414 (England and Wales)
LETTING INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
LETTING INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
Mr T Chand
Mr R Patel OBE
Miss K Tak
Mr S Patel
Secretary
Mr T Chand
Company number
03425414
Registered office
Gabrielle House
332-336 Perth Road
Ilford
Essex
IG2 6FF
Auditor
Vision Consulting Accountants Limited
The Gherkin building
28th Floor
30 St Mary Axe
London
EC3A 8EP
LETTING INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
LETTING INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Review of the business
The directors are pleased to report that the company achieved its targeted profit for the year, surpassing £2 million, in line with previous forecasts. This reflects a solid financial performance and the effectiveness of our ongoing strategic efforts.
Significant progress has been made in stabilising the lettings division, allowing us to shift focus towards new areas of growth and diversification. The restructuring of our lettings operations is nearing completion, positioning the business for greater efficiency and future scalability.
Outlook
Looking ahead, the directors remain optimistic about the company’s growth trajectory. With a renewed focus on business development and an increased investment in marketing, we anticipate further improvements in profitability, particularly by 2027.
While the past few years have presented challenges, market conditions have begun to stabilise, and this is already being reflected in the company’s improved performance. We are confident that the foundations laid this year will support sustained success in the years to come.
Principal risks and uncertainties
To achieve the company's business objectives, the directors regularly assess and evaluate the main risks to the
group identified below. The list does not include all risks that the company faces.
Liquidity Risk:
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk:
The company is exposed to interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.
Credit risk:
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Development and performance
The Company achieved transformative growth in the year ended 30 September 2024, underscoring our ability to thrive in a competitive market:
Gross profit more than doubled (106.25% to £4.66 million) from 2023 (£2.25 million), while profit before tax soared by 2072% to £2.26 million, reflecting rigorous cost discipline and operational efficiencies.
These results validate our strategic focus on cost optimisation, portfolio diversification, and partnership development, positioning us strongly for future expansion.
LETTING INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Key performance indicators
The directors consider the following to be the Key Performance Indicators of the Company’s business:
2024
2023
Turnover
£22,288,984
£16,170,274
Gross profit
£4,658,955
£2,258,908
Operating profit
£2,265,908
£460,870
Profit before tax
£2,260,158
£104,082
Shareholders' fund
£4,224,604
£3,710,590
Mr T Chand
Director
24 July 2025
LETTING INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company is that of property management and other related activities.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,100,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr T Chand
Mr R Patel OBE
Miss K Tak
Mr S Patel
Financial instruments
Treasury operations and Financial instruments
The company operates a treasury function which is responsible for managing the liquidity and interest risks associated with the company’s activities.
The company’s principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the company’s activities, and bank overdrafts, loans and corporate bonds, the main purpose of which is to raise finance for the company’s operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. Derivative transactions which the company enters into principally comprise forward exchange contracts. In accordance with company’s treasury policy, derivative instruments are not entered into for speculative purposes.
Auditor
The auditor, Vision Consulting Accountants Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
LETTING INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr T Chand
Director
24 July 2025
LETTING INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LETTING INTERNATIONAL LIMITED
- 5 -
Opinion
We have audited the financial statements of Letting International Limited (the 'company') for the year ended 30 September 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
LETTING INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LETTING INTERNATIONAL LIMITED (CONTINUED)
- 6 -
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Identifying and assessing potential risks related to irregularties
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
The nature of the industry and sector, control environment, business performance including the design of the policies and performance targets.
Results of our enquiries of management.
Any matters we identified having obtained and reviewed the entity’s documentation of their policies and procedures relating to ;
Identifying, evaluating and complying with laws and regulations such as companies act 2006 as applied to limited company and whether management were aware of any instances of non-compliance.
Detecting and responding to the risks of fraud and whether management have knowledge of any actual, suspected or alleged fraud.
Entity's procedures to identify related party transactions.
The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations and
The matters discussed among the audit engagement team where fraud might occur in the financial statements and any potential indicators of fraud.
It is common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the entity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the entity’s ability to operate.
LETTING INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LETTING INTERNATIONAL LIMITED (CONTINUED)
- 7 -
Audit response to risk identified
As a result of performing the above, our procedures to respond to risks identified included the following:
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations having a direct effect on the financial statements.
Enquiring the management regarding related party disclosures and transactions outside the normal course of the business.
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments.
Assessing whether the judgments made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Ghulam Alahi (Senior Statutory Auditor)
For and on behalf of Vision Consulting Accountants Limited, Statutory Auditor
Chartered Accountants
The Gherkin Building
28th Floor
30 St. Mary Axe
London
EC3A 8EP
5 August 2025
LETTING INTERNATIONAL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
22,288,984
16,170,274
Cost of sales
(17,630,029)
(13,911,435)
Gross profit
4,658,955
2,258,839
Administrative expenses
(2,475,341)
(1,852,977)
Other operating income
82,294
55,008
Operating profit
4
2,265,908
460,870
Interest receivable and similar income
7
8,646
6,704
Interest payable and similar expenses
8
(414,396)
(363,492)
Amounts written off investments
9
400,000
-
Profit before taxation
2,260,158
104,082
Tax on profit
10
(646,143)
27,685
Profit for the financial year
1,614,015
131,767
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LETTING INTERNATIONAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
1,614,015
131,767
Other comprehensive income
-
-
Total comprehensive income for the year
1,614,015
131,767
LETTING INTERNATIONAL LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
245,193
184,407
Investment property
13
1,475,000
1,075,000
1,720,193
1,259,407
Current assets
Debtors
14
9,319,989
8,959,731
Cash at bank and in hand
19,840
171,571
9,339,829
9,131,302
Creditors: amounts falling due within one year
15
(3,871,375)
(3,874,854)
Net current assets
5,468,454
5,256,448
Total assets less current liabilities
7,188,647
6,515,855
Creditors: amounts falling due after more than one year
16
(75,000)
Provisions for liabilities
Provisions
18
2,736,567
2,745,165
Deferred tax liability
19
152,476
60,100
(2,889,043)
(2,805,265)
Net assets
4,224,604
3,710,590
Capital and reserves
Called up share capital
21
2
2
Other reserves
22
710,238
410,238
Profit and loss reserves
23
3,514,364
3,300,350
Total equity
4,224,604
3,710,590
The financial statements were approved by the board of directors and authorised for issue on 24 July 2025 and are signed on its behalf by:
Mr T Chand
Director
Company registration number 03425414 (England and Wales)
LETTING INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
2
364,779
3,414,042
3,778,823
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
131,767
131,767
Dividends
11
-
-
(200,000)
(200,000)
Other reserves
-
45,459
(45,459)
-
Balance at 30 September 2023
2
410,238
3,300,350
3,710,590
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
1,614,015
1,614,015
Dividends
11
-
-
(1,100,000)
(1,100,000)
Other reserves
-
300,000
(300,000)
-
Balance at 30 September 2024
2
710,238
3,514,364
4,224,604
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
Letting International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Gabrielle House, 332-336 Perth Road, Ilford, Essex, IG2 6FF.
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 as amended for fair valuing properties; 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:
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: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Lint Group Limited. These consolidated financial statements are available from its registered office, Gabrielle House, 332-336 Perth Road, Ilford, United Kingdom, IG2 6FF.
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 amounts receivable for rents, management fees, maintenance fees, commissions and other income net of VAT.
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.
Revenue from the sale is recognised when the significant risks and rewards have passed to the customer, 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.
Rental income from investment properties is recognised as other operating income.
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.
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
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.
1.7
Cash at bank 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
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Retirement benefits
The pension costs charged in the financial statements represent the contribution payable by the company during the year.
1.13
Leases
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
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.
Investment property is based on fair value measurement. The valuation was performed by directors and their opinion of fair value was primarily derived using comparable recent market value, see note 12 for valuation.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. The assets are estimated to lose their value at the following rates:
Land and buildings leasehold Straight line over the life of the lease
Fixtures, fittings and equipment 20% reducing balance
Motor vehicles 20% reducing balance
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Rent receivable
21,565,799
15,492,519
Maintenance fee receivable
214,989
301,288
Other Income
265,674
74,557
Letting commission
242,522
276,485
Selling commission
-
25,425
22,288,984
16,170,274
2024
2023
£
£
Other revenue
Interest income
8,646
6,704
Rent receivable
82,294
55,003
Sundry income
-
5
Rental income arising in the year from investment properties amounts to £82,294 (2023: £55,003).
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
11,000
Depreciation of owned tangible fixed assets
73,354
49,354
Depreciation of tangible fixed assets held under finance leases
10,079
12,599
Operating lease charges
188,165
173,757
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
4
4
Administration
33
21
Sales
3
3
Total
40
28
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,550,102
936,031
Social security costs
174,042
109,395
Pension costs
17,991
22,906
1,742,135
1,068,332
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
172,019
52,792
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
8,646
6,704
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
42,599
47,997
Other interest on financial liabilities
160,072
137,474
Other interest
211,725
178,021
414,396
363,492
9
Amounts written off investments
2024
2023
£
£
Changes in the fair value of investment properties
400,000
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
421,139
16,796
Adjustments in respect of prior periods
132,628
Total current tax
553,767
16,796
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
92,376
(44,481)
Total tax charge/(credit)
646,143
(27,685)
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:
2024
2023
£
£
Profit before taxation
2,260,158
104,082
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
565,040
26,021
Tax effect of expenses that are not deductible in determining taxable profit
1,181
1,514
Adjustments in respect of prior years
132,628
Group relief
(58,988)
(19,764)
Permanent capital allowances in excess of depreciation
6,282
10,003
Effect of revaluations of investments
(45,459)
Taxation charge/(credit) for the year
646,143
(27,685)
Finance No. 2 Bill 2021 became substantively enacted on 24 May 2021. As a result, deferred tax for timing differences that are forecast to unwind on or after 1 April 2023 will need to be re-measured and recognised at 25% if the company profits are expected to be in excess of £250,000 (or at the marginal rate if profits are expected to be between £50,000 and £250,000) with an adjustment recognised in the 2021 total tax charge.
11
Dividends
2024
2023
£
£
Final paid
1,100,000
200,000
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
12
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023
271,408
813,499
62,995
1,147,902
Additions
15,043
129,177
144,220
At 30 September 2024
271,408
828,542
192,172
1,292,122
Depreciation and impairment
At 1 October 2023
234,291
716,605
12,599
963,496
Depreciation charged in the year
25,131
22,387
35,915
83,433
At 30 September 2024
259,422
738,993
48,514
1,046,929
Carrying amount
At 30 September 2024
11,986
89,549
143,658
245,193
At 30 September 2023
37,117
96,894
50,396
184,407
Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:
2024
2023
£
£
Motor vehicles
40,317
50,396
13
Investment property
2024
£
Fair value
At 1 October 2023
1,075,000
Net gains or losses through fair value adjustments
400,000
At 30 September 2024
1,475,000
Investment property comprises commercial and residential properties. The valuation was made by the directors on an open market value basis by reference to market evidence of transaction prices for similar properties.
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,174,359
1,585,128
Corporation tax recoverable
131,958
264,586
Amounts owed by group undertakings
6,336,835
6,311,489
Other debtors
636,863
715,702
Prepayments and accrued income
39,974
82,826
9,319,989
8,959,731
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
631,992
1,085,651
Other borrowings
17
968,691
968,691
Payments received on account
23,429
124,264
Trade creditors
541,892
441,330
Amounts owed to group undertakings
214,236
212,902
Corporation tax
438,257
58,112
Other taxation and social security
83,760
50,260
Other creditors
554,092
581,690
Accruals and deferred income
415,026
351,954
3,871,375
3,874,854
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
75,000
17
Loans and overdrafts
2024
2023
£
£
Bank loans
175,000
Bank overdrafts
531,992
1,085,651
Other loans
968,691
968,691
1,675,683
2,054,342
Payable within one year
1,600,683
2,054,342
Payable after one year
75,000
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
17
Loans and overdrafts
(Continued)
- 21 -
Bank loans and overdrafts are secured by a fixed and floating charge over the assets of the company. In addition, the directors have also provided personal guarantees.
Other loans represents unsecured loans from a connected trust in which the company is a trustee.
18
Provisions for liabilities
2024
2023
£
£
PAYE and NIC liability
2,736,567
2,745,165
Movements on provisions:
PAYE and NIC liability
£
At 1 October 2023
2,745,164
Payments during the year
(220,000)
Other movements
211,403
At 30 September 2024
2,736,567
The provision relates to PAYE and NIC liabilities for prior years, following from accelerated payment notifications (APN) received from HMRC.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
12,370
19,994
Investment property
140,106
40,106
152,476
60,100
2024
Movements in the year:
£
Liability at 1 October 2023
60,100
Charge to profit or loss
92,376
Liability at 30 September 2024
152,476
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
17,991
22,906
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.
Contributions totaling £4,240 (2023: £2,998) were payable to the fund at the year end and are included in creditors.
.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
22
Other reserves
2024
2023
£
£
At the beginning of the year
410,238
364,779
Additions
300,000
45,459
At the end of the year
710,238
410,238
Other reserves represents fair value gains net of deferred tax on revaluation of investment property.
23
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
3,300,350
3,414,042
Profit for the year
1,614,015
131,767
Dividends declared and paid in the year
(1,100,000)
(200,000)
Other
(300,000)
(45,459)
At the end of the year
3,514,365
3,300,350
24
Operating lease commitments
As lessee
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
24
Operating lease commitments
(Continued)
- 23 -
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 1 year
10,974,000
1,948,000
Years 2-5
15,858,000
2,407,000
26,832,000
4,355,000
As lessor - operating leases
[Further information as appropriate]
2024
2023
Future amounts receivable under operating leases:
£
£
Within 1 year
180,000
180,000
The company owns investments properties for rental purposes. Net rental income earned during the year was £82,294 (2023: £55,003).The properties are expected to generate yields of 7.66 per cent on an ongoing basis. All of the properties have committed tenants for the next 1 year. All operating lease contracts contain market review clauses in the event that the lessee exercises its option to renew. The lessee does not have an option to purchase the property at the expiry of the lease period
25
Related party transactions
Other related parties
Included within other debtors, there is an amount of £591,863 (2023: £667,345) owed by related by companies in which the directors' have control.
Also, included within other creditors, there is an amount of £545,613 (2023: £543,718) owed to related by companies in which the directors' have control.
The company occupies premises owned by its pension scheme. Rent of £76,000 (2023: £76,000) payable during the year.
The company accrued interest of £75,074 (2023: £72,652) on a loan payable to the trust where the directors are the trustees during the year. Included in accruals is an amount of £396,928 (2023: £321,854) relating to the interest on this loan.
LETTING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
26
Directors' transactions
Close family members of the directors are on the payroll and received remuneration of £92,707 (2023: £127,656) during the year.
Included within the cost of sales of the company for the year is rental expenses arising from properties owned by the directors and connected companies of the directors as follows:
Cost of sales - rent paid
2024
2023
Director 1
£638,324
£524,393
Director 2
£1,324,630
£1,113,621
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director 1
-
(33,095)
539,023
(508,095)
(2,167)
Director 2
-
(1,879)
338,902
(339,094)
(2,071)
(34,974)
877,925
(847,189)
(4,238)
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