The director presents the strategic report for the year ended 31 December 2024.
LCAE Group Limited, incorporated on 31 October 2022, functions as the parent entity within the Group. It holds two subsidiaries: LCA London Ltd and LCA Education Ltd. Both subsidiaries are actively engaged in the delivery of university-level education services, with a strategic focus on academic excellence, student experience, and institutional growth.
During the reporting period, the Group continued to offer a range of undergraduate and postgraduate programmes through established academic partnerships with Anglia Ruskin University, the University of Northampton, and the University of Bolton. In 2024, the Group expanded its academic portfolio through its subsidiary, LCA Education Ltd, which entered into a new academic agreement with the University of Central Lancashire. As a result, undergraduate courses commenced at the London campus in January 2024.
In the current landscape of higher education, characterised by rapid technological advancements and evolving student expectations, the group has remained agile and responsive to industry trends. We have embraced digital transformation, enhancing our teaching infrastructure to support both remote and hybrid learning models, ensuring our students receive excellent tuition regardless of their location.
Students are at the heart of our offer and our group. We have greatly increased our focus on reinvestment to improve the quality of life and learning of our students. To further support our students, we have established ongoing initiatives such as Hardship Fund and Attendance Bursary, providing crucial financial assistance and support.
The group has continued to operate administrative and teaching space across central and east London and Manchester. The group has invested heavily in support for people with disabilities, ensuring our facilities and services are inclusive and accessible. The group has continued to operate its well-being support department and associated services for both students and staff, recognising the ongoing importance of mental health.
The group's turnover decreased by 6.1% from £74.7m in 2023 to £70.1m 2024 and the cost of sales marginally decreased from £36.05m in 2023 to £33.68m in 2024. As a result, the Gross Profit reduced by 14.6%, from £38.7m in 2023 to £36.4m in 2024. Despite the decline in revenue, the company managed to keep a strong financial position by reducing liabilities and effectively managing costs, resulting in a 3.9% increase in net assets, from £69.1m in 2023 to £71.8m in 2024.
The decrease in revenue and profit compared to 2023 reflects a reduction in the number of students, as the rate of course completions has outpaced new registrations. During the Covid-19 pandemic, new registrations surged, but this effect has since normalised, impacting overall student numbers. However, we are now seeing a gradual increase in new student registrations.
The group had no bank borrowings or overdrafts at the year-end and is building a cash reserve to invest in buildings, facilities, and personnel for the benefit of the student population. Consequently, the group's cash position remains at £47.3m by the end of 2024, earning £2.7m in interest income on this balance.
Future developments
Director continues to review the strategy and business models to improve the efficiency of the organisation, to invest in up to date facilities in order to enhance the students' learning experience and outcome. The plan going forward is to build upon efforts already made to increase the new range of course offering.
This has already resulted in maintaining the student numbers since the year end and expected to continue to the next financial year. The group strives to provide high quality education and develop good relationship with students and lecturers.
The principal risks facing the group is the failure to recruit sufficient students at each recruitment cycle. The group mitigates this risk by closely monitoring the student recruitment numbers and adapts its courses by, introducing a wider range of popular courses and discontinuing courses that are no longer in demand.
Due to close involvement of senior management, general business risk is identified and addressed on a regular basis. The board of directors review the risk assessment and the management response on a quarterly basis, ensuring proactive approach to risk management. The principal uncertainties facing the group are the general political and economic conditions which can impact both student enrollment and overall business operations. By staying vigilant and adaptable, the company aims to navigate these uncertainties and maintain steady growth.
The group uses various financial instruments including cash, debtors and creditors to manage the working capital of the group.
The director monitors the performance of the group by using a number of financial and non-financial performance indicators. The turnover and student numbers are primary KPIs, regularly reviewed to ensure that they remain appropriate and relevant to monitor the challenges, complexities and improvements in the business.
| 2024 | 2023 | YoY Change |
Turnover | £70.1m | £74.7m | -6.1% |
Student no as at year end | 8,285 | 8,312 | -0.3% |
In addition to these main KPIs, the following non-financial KPIs closely reviewed to assess the progress of the group’s strategy and objectives.
Student Engagement, Satisfaction, and Progression:
Measured against expectations set by the board to ensure alignment with organizational goals.
Student Numbers:
Compared to forecast targets to assess enrollment performance.
Quarterly Performance and Working Capital:
Monitored against the budget to ensure financial health and operational efficiency.
Variance Analysis:
Conducted on an ongoing basis to compare actual results against the budget, identifying discrepancies and areas for improvement.
ARU’s Educational KPIs:
Performance monitored against Anglia Ruskin University's KPIs, focusing on the National Student Survey (NSS), Graduate Outcomes, and Access and Widening Participation.
Student Continuation, Completion, and Progression Rates:
Overseen to ensure compliance with the Office for Students B3 minimum thresholds.
Employee's training and development
To achieve our ambitious goals, we require people who are committed and prepared to embrace our corporate philosophy. We offer plenty of opportunities for career advancement and skill improvement. Training is a continuous process, and whilst basic job training is given, people with commitment and an aptitude for challenges are selected for training for growth and higher responsibilities.
Slavery and Human trafficking statement
We have a zero tolerance to slavery in all its forms and are committed to implementing business practices that do not allow any form of slavery to take place, whether internally or as part of our supply chain. Our supply chain includes procurement of study materials, purchase of fixed assets and employing contractors for setting up the classrooms. We carry out an annual review of our Anti-Slavery Policy to determine whether it may be improved for better understanding and applicability.
Supplier relationships
Our suppliers play a pivotal role to our business, in which we use the highest standard study text, and which are delivered to us promptly. Our suppliers keep us informed of any supply chain challenges, and notwithstanding the consequences of the global pandemic we have maintained strong relationships with our key suppliers. We are regularly in contact with our suppliers thereby ensuring our staff retain an open relationship, and our suppliers are always aware of our ongoing requirements.
Customer relationships
Our students are kept up to date with business achievements, future strategy and ongoing business activities and future developments, with a view to nurturing long term partnerships. Our objective is to provide the best level of student service, fulfilling our student's demands and ensuring that the delivery of lectures are of the highest standard, and are delivered in accordance to the university standard. Our staff and management continuously work hard to ensure that we improve the student's quality of life and learning.
On behalf of the board
The director presents his annual report and audited financial statements for the year ended 31 December 2024.
The results for the year are set out on page 11.
Ordinary dividends were paid amounting to £8,000,000. The director does not recommend payment of a further dividend.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
The group's subsidiary company - LCA Education Ltd made the following political donations in the current year:
The Conservative Party - £ 50,000
The group's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Details on how the Group has fostered relationships with suppliers, customers and others can be found within the Group’s Section 172 statement in the Strategic Report.
Post balance sheet events are set out in note 23 to the financial statements.
The Group’s future developments are set out in the Group Future development section of the Strategic Report.
The auditor,King & King, Chartered Accountants and Statutory Auditor is deemed to be reappointed under section 487(2) of the Companies Act 2006.
LCA London Limited’s environmental performance information is presented in accordance with the Streamlined Energy and Carbon Reporting (“SECR”) Policy. The table below represents LCA London Limited’s energy use and greenhouse gas (GHG) emissions from electricity and fuel for the annual reporting period 01/01/2024 to 31/12/2024. The scope of the reporting includes all UK operations.
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.
We have installed smart meters, energy saving equipment and lights across all sites and increased video conferencing technology for staff meetings, to reduce the need for travel between locations.
The director has prepared financial forecasts, which include sensitivities taking into account plausible downside scenarios likely to arise from unexpected costs. The director has reasonable expectation that the group has adequate resources to cope with any downside scenario for at least twelve months from the date of approval of the accounts.
We have audited the financial statements of LCAE GROUP LTD (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatements in respect of irregularities including fraud and non-compliance with laws and regulations, we consider the following:
Enquiry of management, those charged with governance around actual and potential litigation and claims.
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
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.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £20,227,546 (2023 - £9,988,750 profit).
LCAE GROUP LTD (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 19 Charterhouse Street, London, UK, EC1N 6RA.
The group consists of LCAE GROUP LTD and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. Prior period comparatives have been reclassified to align to the current period presentational approach.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company LCAE GROUP LTD together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
LCAE Group Limited, incorporated on 31 October 2022, acquired 100% of the equity shares of LCA London Limited through a share-for-share exchange. Subsequently, on 01 January 2023, LCAE Group Ltd acquired 100% of the equity shares of LCA Education Ltd, also via a share-for-share exchange. Consequently, the consolidated group financial statements have been prepared as if the group had been in continuous existence.
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Turnover is measured at the fair value of the consideration receivable for higher educational and related services rendered, net of discounts and recorded over the period of course.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
The asset's residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any is accounted for prospectively.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The group has entered into property leases. As management have determined that the group has not obtained substantially all the risks and rewards of ownership of these properties, the leases have been classified as operating leases and accounted for accordingly.
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.
The group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.
Deferred tax assets are recognised for deductible temporary differences only if the group considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Provision is made for dilapidations. This requires management's best estimate of the expenditure that will be incurred based on contractual requirements. In addition, the timing of the cash flows and the discount rates used to establish net present value of the obligations require management's judgement.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The directors' remuneration is only payable to the director, Dr R Gill.
One director (2023 : One) is member of defined contribution scheme.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
In the Spring budget 2021, the UK Government announced that from 01 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantially enacted on 24 May 2021, for the financial year ended 31 December 2023. The current weighted average tax rate was 25%.
Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.
Details of the company's subsidiaries at 31 December 2024 are as follows:
The ultimate controlling party is Dr R Gill owns 100% of the issued ordinary equity share capital of LCAE Group Limited.
"Ordinary A Share" is entitled to appoint two directors and two votes in the board of the subsidiary company, LCA London Limited but not entitled to any dividend or distribution rights.
Other debtors include an amount of £8,009,699 (2023: £7,840,699 ) due from Peninsula Investment Property Limited, a related party on which there is a significant influence by the director of the company. This amount is unsecured, repayable on demand, and non-interest bearing.
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of payment and are repayable on demand.
Other creditors include £406,262 (2023: £418,792 ) loan from the director Dr R Gill and which is unsecured, repayable on demand and is non-interest bearing.
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of payment and are repayable on demand.
As part of the group's property leasing arrangements there is an obligation to repair damages which incur during the life of the lease, such as wear and tear. The cost is charged to profit and loss as the obligation arises. The provision is expected to be utilised between 2021 to 2036 as the leases terminate.
Due to a number of leased properties in the group and the difficulties in predicting expenditure that will be required on return of a property to the landlord many years in the future, the dilapidations provision is considered a source of significant estimation uncertainty. The provision has been calculated using historical experiences of actual expenditure incurred on dilapidations and estimated lease termination dates. The director considered the possible range of dilapidations provision at 31 December 2024 the most likely amount within the range has been recognised in the balance sheet.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse by £32,650 within next 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
There is a single class of ordinary shares. There are no restrictions on the distribution of the dividends and the repayment of capital.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Operating lease rent is recognised as an expense in the year amount to £8,311,522 (2023: - £6,975,073 ).
No events or transactions except below occurred after the reporting date that require adjustment or disclosure in the financial statements.
In September 2025, the subsidiary company - LCA London Ltd entered into a ten-year operating lease for part of the 5th floor of the Import Building. The lease requires annual rental payments, which are settled on a yearly basis.
In connection with this leasehold property, LCA London Ltd has made a capital commitment of £3,000,000 plus VAT. This commitment relates to refurbishment works, as well as the acquisition of plant, machinery, and furniture. The company has adequate cash to meet these rent and capital commitments.
During the year the group entered into the following transactions with related parties:
These transactions represents the inter company fund transfers.
The following amounts were outstanding at the reporting end date:
During the year, the group has taken advantage of the exemption and has not disclosed transactions and balances with its wholly owned group companies.