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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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GROSVENOR CONTRACTS LEASING LIMITED
CONTENTS
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GROSVENOR CONTRACTS LEASING LIMITED
COMPANY INFORMATION
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GROSVENOR CONTRACTS LEASING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and financial statements for the year ended 31 December 2024.
The principal activities of the Company are long-term vehicle contract hire with maintenance, fleet management and daily vehicle hire brokering. Both owned and managed fleets are predominantly cars and light commercial vehicles with a growing number of plant and other ad-hoc transport items for corporate and business customers.
Market conditions The UK vehicle leasing sector grew modestly by 0.65% in 2024, reflecting resilience amid economic uncertainty. The business leasing market remained stable, supported by the increasing popularity of salary sacrifice schemes. Electric vehicles represented an increasing proportion of the total leasing market, with personal tax incentives being a key driver of this trend. Conversely, van leasing volumes fell in the UK, driven by the prohibitive cost of new diesel vans and limited uptake of electric vans, which remain expensive and logistically challenging. Many businesses opted to extend existing leases rather than upgrading, citing affordability and operational concerns. Company performance The Company delivered a strong performance throughout 2024, despite market pressures stemming from declining used electric vehicle (EV) values. Turnover rose to £66.4 million (2023: £52.7 million), with a reported profit before tax of £8.3 million (2023: £10.2 million). This was also our third most successful year for new vehicle orders, achieved while managing a record number of vehicles in extension. Our strategic focus remains on maintaining a balanced fleet mix, across both cars and light commercial vehicles, and between internal combustion engines (ICE) and battery electric vehicles (BEV). We continue to prioritise quality over volume, and although we have set our highest-ever order target for 2025, we remain committed to securing the right business rather than pursuing growth at the expense of deal quality. The dedication and innovation of our team were recognised with two prestigious industry awards in 2024: “Leasing Company of the Year – up to 20,000 Vehicles” at the Fleet News Awards in March, and “Leasing Innovation of the Year” at the Fleet World Great British Fleet Awards in April. This momentum has carried into 2025, with Grosvenor receiving the “Innovation in SMR” award at the Fleet World Great British Fleet Awards and being Highly Commended in the “Leasing Company of the Year – up to 20,000 Vehicles” category by Fleet News.
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GROSVENOR CONTRACTS LEASING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The key business risks that could affect the Company are set out below.
Economic The primary risk to the Company is volatility in used vehicle values, which can significantly impact closure profits. To mitigate this, we use specialist industry data and apply our extensive experience in vehicle sales, guided by a conservative pricing strategy aligned with our long-term customer focus. Given the uncertainty around EV technology and depreciation, we apply a higher impairment to electric vehicles. Interest Rates Interest rates remained elevated for most of 2024, with modest reductions in August and November. The cost of funds therefore remained high, as the Bank of England continued to balance inflationary pressures with monetary policy decisions. Vehicle Supply / ZEV Mandate Vehicle supply has improved over the past year, enabling delivery of backlogged orders. However, the Zero Emission Vehicle (ZEV) mandate continues to skew powertrain availability, with manufacturers prioritising battery electric vehicles to meet compliance targets. Aftersales Capacity & Agency Model Workshop shortages, parts delays, and rising costs have significantly increased vehicle operating expenses. These pressures are expected to intensify as manufacturers transition to agency sales models. Financial risk management The Company is exposed to financial risks including funding availability, interest rate fluctuations, credit risk, and liquidity risk. Mitigation measures include: • All customers and prospects undergo initial credit checks, with periodic reviews or reassessments for significant credit increases; • Strong relationships with major banks ensure access to competitively priced funding with ample headroom; • Cash is managed prudently, with substantial balances monitored weekly by Directors; and • Fixed-rate loans are used for leased asset purchases, matched to customer rental profiles to mitigate interest rate exposure.
The Directors use a number of key performance indicators to monitor business performance against budget, but the principal measures are:
• Pre-tax profit margin of 12.4% (2023 - 19.4%) • Debtor days at 24.9 (2023 - 34.0) • Staff turnover within the Company was 14.9% (2023 - 13.9%)
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GROSVENOR CONTRACTS LEASING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
In 2024, ESG considerations were central to our decision-making. We actively engaged stakeholders to embed sustainability across the business, with a standout initiative being our ozone EV transition consultancy. This service helps fleet customers become among the greenest in the UK, while our own fleet is now 85% electrified, with 60% fully electric. Thanks to ozone’s whole-life cost guidance, over 75% of Grosvenor’s new car orders now feature zero-emission capability.
Sustainability is deeply rooted in our company culture, supported by senior-level engagement and robust health and wellbeing initiatives. Our team continues to make a genuine impact through volunteering and community support. Despite our growth, we have maintained a strong people-focused philosophy, driven by an enthusiastic team committed to our strategic goals. The table below sets out our usage for the period 1 January 2024 to 31 December 2024. The carbon figures have been calculated using the BEIS 2024 conversion factors and cover total emission data for scopes 1,2 and 3. For the year ended 31 December 2024 Fuel Consumption (kWh) Kg of Co2e Electricity (scope 2) 152,795 31,636 Gas (scope 1) 29,230 5,346 Vehicle Fuel (scope 1) 120,428,992 31,832,736 Total 120,611,017 31,869,719 Annual turnover £66,420,726 Intensity Ratio per £'000 of Turnover 479.8Kg of Co2e For the year ended 31 December 2023 Fuel Consumption (kWh) Kg of Co2e Electricity (scope 2) 145,524 4,947 Gas (scope 1) 26,612 4,868 Vehicle Fuel (scope 1) 94,841,518 25,069,254 Total 95,013,654 25,079,089 Annual turnover £52,667,683 Intensity Ratio per £'000 of Turnover 476.2Kg of Co2e Energy Efficient Actions To improve our energy efficiency and reduce our carbon footprint, we have implemented several initiatives, including: • Electrifying our own fleet (now 85% electrified and 60% fully electric); • Upgrading lighting systems to energy-efficient LEDs across all our showrooms and service areas; • Installing energy management systems to monitor and optimise energy use in real time; • Conducting regular maintenance on our heating, ventilation, and air conditioning (HVAC) systems to ensure they operate at peak efficiency; and • Promoting energy-saving practices among our staff through training and awareness. Commitment to Continuous Improvement We understand that addressing climate change is an ongoing journey, and we are committed to continually improving our energy efficiency and reducing our emissions. In the coming year, we plan to: • Explore renewable energy options at our premises in 2025; and • Continue to enhance our vehicle fleet with higher numbers of electric and hybrid models to reduce fuel consumption.
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GROSVENOR CONTRACTS LEASING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors of Grosvenor Contracts Leasing Limited are required under section 172 of the Companies Act 2006 to act in a way that they consider, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole. In doing so, the directors must have regard (among other matters) to:
• The likely long-term consequences of their decisions; • The interests of the company’s employees; • The need to foster relationships with suppliers, customers, and others; • The impact of the company’s operations on the community and the environment; • The desirability of maintaining a reputation for high standards of business conduct; and • The need to act fairly between members of the company. This statement explains how the directors have had regard to these matters during the year ended 31 December 2024. Considering the long-term The Board conducts regular reviews of the Group’s strategy, business model, and principal risks. In its decision-making, the Board carefully balances short-term performance with long-term sustainability, ensuring the Group remains resilient and well-positioned for future success. Engagement with employees The Board remains committed to fostering a workplace culture that prioritises employee engagement, wellbeing, and continuous development. Throughout the year, we collaborate closely with our inter-departmental Employee Engagement and Wellbeing Teams, actively listening to feedback and implementing initiatives that support a positive and inclusive working environment for all. Relationships with suppliers, customers, and others The Company’s reputation and performance are built on strong, collaborative relationships with our suppliers and customers. Many of these partnerships have been in place for years, reflecting the trust, consistency, and mutual respect that underpin the way we do business. Community and environmental impact The Directors recognise the importance of operating sustainably and responsibly. During the year, we: • Continued to invest in the electrification of our fleet, reducing our carbon footprint; • Expanded our community engagement through charity partnerships and volunteering programmes. Standards of business conduct The Board promotes a culture of integrity, accountability, and transparency. Key steps included: • Regular review of the Group’s ethics and compliance framework; • Ongoing training on anti-bribery, corruption, and data protection. Fair treatment of shareholders The Board is committed to acting fairly between members and ensuring transparency in all decision-making processes. As our shareholders are also directors of the Company, they play an active role in shaping strategic direction and operational decisions, reinforcing a culture of accountability and shared responsibility.
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GROSVENOR CONTRACTS LEASING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Embedding section 172 in governance
Section 172 considerations are embedded within our governance framework. Directors consistently evaluate and challenge decisions on long-term outcomes and the implications for our stakeholders. This approach reinforces our commitment to responsible decision-making and sustainable value creation.
This report was approved by the board and signed on its behalf.
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GROSVENOR CONTRACTS LEASING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation, amounted to £6,192,823 (2023 - £7,842,623).
Dividends of £2,050,000 were paid during the year (2023: £3,681,389).
The Directors who served during the year were:
The Directors intend for the Company to continue its strategy of organic growth.
Due regard is taken of the interests of the Company's employees by ensuring they are kept informed of strategic decisions which may impact all or some employees. Staff turnover is regarded as a key performance indicator given the critical role the workforce contributes to the success of the Company. We place significant emphasis on the wellbeing of our employees.
The Directors recognise the need to develop the Company's business relationships with suppliers, customers, lenders and support services. One or more Directors are in regular contact with key parties and work with these interested parties to foster mutually beneficial and informed relationships.
There have been no significant events affecting the Company since the year end.
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GROSVENOR CONTRACTS LEASING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
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 to 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.
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GROSVENOR CONTRACTS LEASING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
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GROSVENOR CONTRACTS LEASING LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GROSVENOR CONTRACTS LEASING LIMITED
We have audited the financial statements of Grosvenor Contracts Leasing Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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GROSVENOR CONTRACTS LEASING LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GROSVENOR CONTRACTS LEASING LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the 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.
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GROSVENOR CONTRACTS LEASING LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GROSVENOR CONTRACTS LEASING LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙A review of legal and professional expense nominal accounts for any indication of non-compliance with laws and regulations.
∙Performing audit work over the risk of management override of controls, including testing of journal and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias;
∙Reviewing minutes of meetings of those charged with governance; and
∙Reviewing financial statement disclosures and testing to support documentation to assess compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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GROSVENOR CONTRACTS LEASING LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GROSVENOR CONTRACTS LEASING LIMITED (CONTINUED)
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.
for and on behalf of
Milton Keynes, United Kingdom
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
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GROSVENOR CONTRACTS LEASING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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GROSVENOR CONTRACTS LEASING LIMITED
REGISTERED NUMBER: 01565525
BALANCE SHEET
AS AT 31 DECEMBER 2024
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GROSVENOR CONTRACTS LEASING LIMITED
REGISTERED NUMBER: 01565525
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 35 form part of these financial statements.
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GROSVENOR CONTRACTS LEASING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Grosvenor Contracts Leasing Limited is a private company limited by shares, registered in England, registered number 01565525.
The registered office and principal place of business is Balmoral House, Kettering Venture Park, Kettering, Northamptonshire, NN15 6XU. The principal activity of the Company during the year was that of the provision of vehicle contract hire and leasing. The Company's functional and presentational currency is British Pound Sterling and the financial statements are prepared in round pounds.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; and
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Hardwater Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.
Having considered the forecasted performance and cashflow of the Company the Directors have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Company continues to adopt the going concern basis in preparing the annual report and financial statements.
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Assets acquired for use in the business under a Hire Purchase Agreement are capitalised. The interest on the agreement in respect of contract hire, staff and relief vehicles is charged to the Statement of Comprehensive Income or contracts in progress account over the life of the agreement, on a straight line basis. This accounting policy matches the costs with the straight line rental income and is therefore also consistent with the treatment of depreciation relating to the assets.
Where the Company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated in accordance with the above depreciation policies. Future instalments under such leases, net of finance charges, are included within creditors. Rentals payable are apportioned between the finance element, which is charged to the Statement of Comprehensive Income on a straight line basis, and the capital element which reduces the outstanding obligation for future instalments. This accounting policy departs from FRS102 section 11 which states that interest should be allocated during the lease term so as to produce a constant periodic rate of charge on the outstanding obligation. This departure from FRS102 section 11 is required in order to give a true and fair view of the group's income and expenditure deriving from assets on hire purchase. If the accounting policy followed FRS102 section 11 an increase in interest of £2,352,142 (2023 - £4,327,417) would have been charged to the contracts in progress account at the balance sheet date.
Contracts in progress are included in trade creditors and represent the difference between income receivable on contracts and the expenditure incurred on those contracts. An amount is recognised at the commencement of each contract representing a fixed contribution towards overheads.
Other than the contribution towards overheads taken at the commencement of a contract, no profit is taken on open contracts as in the opinion of the directors the outcome of such contracts cannot be assessed until the completion of the contract. Where it is apparent that the net income for contracts for a particular customer or type of vehicle is lower than total expenditure, provision is made against those contracts. Net income means total contract income receivable plus selling price of the vehicle. Indirect overheads are charged to the Statement of Comprehensive Income in the period in which they are incurred. No indirect overheads are carried forward in the contracts in progress account.
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of Comprehensive Income during the period in which they are incurred.
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using different methods as described below.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the the Statement of Comprehensive Income. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the Statement of Comprehensive Income. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled. 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. i) Useful economic lives of tangible fixed assets The useful economic lives used by the Company in respect of tangible fixed assets are set out in the accounting policies. These estimates are the best estimate based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate. The net book value of tangible fixed assets as at 31 December 2024 was £192,865,162 (2023: £166,703,481) after a depreciation charge in the year of £36,163,658 (2023: £31,634,812). ii) Residual value of vehicles In order to determine the rental value to charge for each vehicle contract, management estimate the residual value of each vehicle at the end of the lease term. These estimates are based on experience of the used car markets and are regularly reviewed to ensure appropriate.
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The whole of the turnover is attributable to the principal activity of the Company.
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Taxation (continued)
There are no factors affecting future tax charges.
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 29
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 30
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 31
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Capital redemption reserve
Profit and loss account
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £86,308 (2023 - £66,407).
Contributions totalling £48,014 (2023 - £21,275) were payable to the fund at the balance sheet date and are included in creditors.
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
24.Directors' loans and guarantees
Included in other creditors is an amount due to N M Johnson of £1,229,298 (2023: £1,137,268). Repayments of £1,064,363 (2023: £1,742,288) were made in the year. During the year a further advance of £972,333 (2023: £436,907) was made.
Included in other creditors is an amount due to R S Johnson of £860,917 (2023: £765,466). Repayments of £1,064,363 (2023: £1,742,288) were made in the year. During the year a further advance of £1,023,212 (2023: £355,384) was made. Included in other creditors is an amount due to N M Johnson and R S Johnson of £Nil (2023: £78,725). Repayments of £78,725 (2023: £196,813) were made in the year. During the year a further advance of £Nil (2023: £119,523) was made. All loans are interest free, unsecured and have no set terms for repayment.
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GROSVENOR CONTRACTS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company's ultimate and immediate parent undertaking at the balance sheet date was
Copies of all accounts of the group can be obtained from Balmoral House, Kettering Venture Park, Kettering, Northamptonshire, NN15 6XU. In the opinion of the Directors the ultimate controlling parties of the parent company are
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