ACCOUNTS - Final Accounts

Auditor's remuneration

During the year, the company obtained the following services from the company's auditor:

Registered number: 08398077

LONDON HIRE COMMUNITY SERVICES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

LONDON HIRE COMMUNITY SERVICES LIMITED

COMPANY INFORMATION

Directors	M J Barbrook
	N A Donald
	N C Farr
	London Hire Limited


Registered number	08398077


Registered office	185 Manor Road
	Erith
	Kent
	DA8 2AD


Independent auditor	Barnes Roffe Audit Limited
	Chartered Accountants & Statutory Auditor
	Charles Lake House
	Claire Causeway
	Crossways Business Park
	Dartford
	Kent
	DA2 6QA

LONDON HIRE COMMUNITY SERVICES LIMITED

CONTENTS

	Page
Strategic report	1
Directors' report	2 - 3
Independent auditor's report	4 - 7
Statement of comprehensive income	8
Balance sheet	9
Statement of changes in equity	10
Notes to the financial statements	11 - 21

LONDON HIRE COMMUNITY SERVICES LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 AUGUST 2024

Introduction

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

Business review

The company has experienced a period of difficult trading over the past few years, with a number of new contracts proving logistically challenging. As a result, the previous years' results were unsatisfactory for the board, but we are now pleased to report that progress has been made and the company is trading more in line with expectations by generating a small net profit. This has come through a more hands on approach, and performing a number of root cause analysis reviews, which have been successful.

Principal risks and uncertainties

The principal risks remain the cost of labour, specifically drivers wages, coupled with competitive prices in the market on contracts.

Financial key performance indicators

The company's key financial and other performance indicators during the year were as follows:
- Turnover, which increased from £15,530,013 to £18,024,231
- Gross profit margin, which increased to 16.2% compared with 12.8% last year.

This report was approved by the board on 30 September 2025 and signed on its behalf.

N C Farr

Director

Page 1

LONDON HIRE COMMUNITY SERVICES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 AUGUST 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙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.

Directors

The directors who served during the year were:

M J Barbrook

N A Donald

N C Farr

London Hire Limited

Page 2

LONDON HIRE COMMUNITY SERVICES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

Engagement with employees

During the year, the policy of providing employees with information about the company has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the company's performance. Employees are incentivised where their suggestions lead to cost savings or revenue improvements via payment of bonuses so that they share financially from the savings or profit made. Regular meetings are held between local management and employees to allow a free flow of information and ideas and an annual survey has been initiated to allow employees further opportunity to feedback to management.
Individual departments are regularly involved in discussions about the financial performance of their operation as well as the business as a whole and the competitive environment in which the business operates in. The directors continue to follow prudent strategic decisions safeguarding the performance of the business to the benefit of all employees and their interests.
Employment of people with disabilities
The company takes its responsibilities towards the recruitment of people with a disability seriously; its core product offering and customer base is focussed on improving services to people in society with a disability and we give full consideration to the applications for employment from people with disabilities where the requirements of the job can be adequately fulfilled by their skillsets. Where existing employees are affected by a disability it is the company’s policy wherever practicable and possible to provide continuing employment under normal terms and conditions.
The company will always provide training and career development as well as professional development for employees with disabilities and vulnerabilities wherever appropriate.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Auditor

The auditor, Barnes Roffe Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

N C Farr

Director

Date: 30 September 2025

Page 3

LONDON HIRE COMMUNITY SERVICES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON HIRE COMMUNITY SERVICES LIMITED

Opinion

We have audited the financial statements of London Hire Community Services Limited (the 'company') for the year ended 31 August 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of 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 31 August 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.

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.

Page 4

LONDON HIRE COMMUNITY SERVICES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON HIRE COMMUNITY SERVICES LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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.

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 set out on page 2, 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.

Page 5

LONDON HIRE COMMUNITY SERVICES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON HIRE COMMUNITY SERVICES LIMITED (CONTINUED)

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.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows:
• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• We identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience of the relevant sector;
• The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows;
o Companies Act 2006
o FRS102
o Health and Safety legislation
o Employment legislation
o Tax legislation
o Vehicle operators regulations
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes and inspecting legal correspondence;
• Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of non-compliance throughout the audit; and
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
• Making enquires of management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
• Reviewing the financial statements and testing the disclosures against supporting documentation;
• Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
• Inspecting and testing journal entries to identify unusual or unexpected transactions;
• Assessing whether judgement and assumptions made in determining significant accounting estimates, were indicative of management bias; and
• Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.

Page 6

LONDON HIRE COMMUNITY SERVICES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON HIRE COMMUNITY SERVICES LIMITED (CONTINUED)

The areas that we identified as being susceptible to misstatement through fraud were:
• Management bias in the estimates and judgements made;
• Management override of controls; and
• Posting of unusual journals or transactions.
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.

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.

Mario Cientanni (Senior statutory auditor)

for and on behalf of

Barnes Roffe Audit Limited

Chartered Accountants

Statutory Auditor

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA

Date: 30 September 2025

Page 7

LONDON HIRE COMMUNITY SERVICES LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 AUGUST 2024

	2024	2023
Note	£	£


Turnover		18,024,231	15,530,013
Cost of sales		(15,094,204)	(13,545,347)
Gross profit		2,930,027	1,984,666
Administrative expenses		(2,590,198)	(1,930,250)
Operating profit		339,829	54,416
Income from fixed assets investments		-	42,508
Amounts written off investments		(1)	-
Interest payable and similar expenses	7	(56,131)	(43,138)
Profit before tax		283,697	53,786
Tax on profit	8	(68,178)	2,077
Profit for the financial year		215,519	55,863

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 11 to 21 form part of these financial statements.

Page 8

LONDON HIRE COMMUNITY SERVICES LIMITED

REGISTERED NUMBER: 08398077

BALANCE SHEET

AS AT 31 AUGUST 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	9		91,747		73,898
Investments	10		3		4
			91,750		73,902
Current assets
Debtors: amounts falling due within one year	11	3,689,967		2,732,750
Cash at bank and in hand	12	129,691		51,394
		3,819,658		2,784,144
Creditors: amounts falling due within one year	13	(3,466,949)		(2,629,106)
Net current assets			352,709		155,038
Total assets less current liabilities			444,459		228,940

Net assets			444,459		228,940

Capital and reserves
Called up share capital	15	100	100
Other reserves		500,000	500,000
Profit and loss account		(55,641)	(271,160)
		444,459	228,940

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

N C Farr

Director

Date: 30 September 2025

The notes on pages 11 to 21 form part of these financial statements.

Page 9

LONDON HIRE COMMUNITY SERVICES LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 AUGUST 2024

	Called up share capital	Other reserves	Profit and loss account	Total equity
	£	£	£	£
At 1 September 2023	100	500,000	(271,160)	228,940

Profit for the year	-	-	215,519	215,519
At 31 August 2024	100	500,000	(55,641)	444,459

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 AUGUST 2023

	Called up share capital	Other reserves	Profit and loss account	Total equity
	£	£	£	£
At 1 September 2022	100	500,000	(327,023)	173,077

Profit for the year	-	-	55,863	55,863
At 31 August 2023	100	500,000	(271,160)	228,940

The notes on pages 11 to 21 form part of these financial statements.

Page 10

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

1.	General information

London Hire Community Services Limited is a private company limited by shares and incorporated in England and Wales. The address of the registered office is 185 Manor Road, Erith, Kent, DA8 2AD. The principal activity of the company is the provision of specialised passenger transport.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of London Hire Limited as at 31 August 2024 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

2.3

Exemption from preparing consolidated financial statements

The company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

2.4

Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources received through its invoice discounting facility to continue in operational existence for the foreseeable future. The directors have no reason to believe that these facilities or support will be withdrawn.. Accordingly they continue to adopt the going concern basis in preparing the annual report and accounts.

Page 11

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.6

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.9

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 12

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.11

Invoice discounting

The company discounts its trade debts. The accounting policy is to include trade debtors discounted with recourse under trade debtors due within one year and to record the funds advanced under bank overdrafts within creditors due within one year. Discount fees are charged to the Statement of comprehensive income when payable. Bad debts are borne by the company and charged to the Statement of comprehensive income when reasonably foreseeable.

2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

2.12

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Short-term leasehold property	-	3 years
Fixtures and fittings	-	3 years
Office equipment	-	1-3 years

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 profit or loss.

2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.18

Financial instruments

Page 14

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

2.18

Financial instruments (continued)

The company only enters into basic financial instrument transactions that result in the recognition of the financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

a) Critical judgements in applying the company's accounting policies:
There were no significant judgements exercised by management in the preparation of the financial statements.
b) Key accounting estimates and assumptions:
The company made key accounting assumptions regarding the useful economic life of tangible fixed assets, with this being further described in note 2.12 of the accounting policies.

Fees payable to the company's auditor for the audit of the company's financial statements

9,750

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

Page 15

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

Wages and salaries	11,203,360	10,095,210
Social security costs	426,905	356,086
Cost of defined contribution scheme	181,004	173,628
	11,811,269	10,624,924

The average monthly number of employees, including the directors, during the year was as follows:

	2024	2023
	No.	No.

Employees	550	553

6.	Income from investments
		2024	2023
		£	£

Dividends received from unlisted investments	-	(42,508)
	-	(42,508)

7.	Interest payable and similar expenses
		2024	2023
		£	£

	Bank interest payable	56,131	43,138
		56,131	43,138

Page 16

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024



Total current tax	-	-

Deferred tax
Origination and reversal of timing differences	68,178	(2,077)
Total deferred tax	68,178	(2,077)


		68,178	(2,077)

Profit on ordinary activities before tax

283,697

53,786

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)	70,924	11,833
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	-	(7,911)
Capital allowances for year less than/(in excess of) depreciation	2,013	4,865
Utilisation of tax losses	(70,009)	(13,857)
Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax	(2,928)	5,070
Deferred tax	68,178	(2,077)
Total tax charge for the year	68,178	(2,077)

Factors that may affect future tax charges

The company has losses of £51,301 (2023: £331,339) to carry forward as at 31 August 2024.

Page 17

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

9.	Tangible fixed assets

	Short-term leasehold property	Fixtures and fittings	Total
	£	£	£
Cost or valuation
At 1 September 2023	112,971	67,481	180,452
Additions	111,654	774	112,428
At 31 August 2024	224,625	68,255	292,880
Depreciation
At 1 September 2023	59,374	47,180	106,554
Charge for the year on owned assets	76,951	17,628	94,579
At 31 August 2024	136,325	64,808	201,133
Net book value
At 31 August 2024	88,300	3,447	91,747
At 31 August 2023	53,597	20,301	73,898

10.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 September 2023	4
	Amounts written off	(1)
	At 31 August 2024	3

Page 18

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

Subsidiary undertakings
The following were subsidiary undertakings of the company:
Name	Registered office	Class of shares	Holding

Heart Community Services CIC	185 Manor Road, Erith, Kent, DA8 2AD	Ordinary	97%
Carts & Carriages Limited	185 Manor Road, Erith, Kent, DA8 2AD	Ordinary	100%
London Hire Services Limited	185 Manor Road, Erith, Kent, DA8 2AD	Ordinary	100%

11.

Debtors

					2024	2023
					£	£


Trade debtors	1,881,613	936,736
Amounts owed by group undertakings	1,435,467	1,025,665
Other debtors	95,743	350,615
Prepayments and accrued income	273,232	347,644
Deferred taxation	3,912	72,090
	3,689,967	2,732,750

12.	Cash and cash equivalents
		2024	2023
		£	£

Cash at bank and in hand	129,691	51,394
Less: bank overdrafts	(1,201,073)	(526,166)
	(1,071,382)	(474,772)

Page 19

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

13.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Bank overdrafts	1,201,073	526,166
Trade creditors	787,911	738,125
Amounts owed to group undertakings	172,576	371,244
Other taxation and social security	754,657	465,607
Other creditors	45,188	25,114
Accruals and deferred income	505,544	502,850
	3,466,949	2,629,106

Bank overdrafts are secured over the Trade Debtors to which they relate.

14.	Deferred taxation

	2024	2023
	£	£

At beginning of year	72,090	70,013
Charged to profit or loss	(68,178)	2,077
At end of year	3,912	72,090

The deferred tax asset is made up as follows:
	2024	2023
	£	£

	Tax losses carried forward	3,912	72,090
		3,912	72,090

Page 20

LONDON HIRE COMMUNITY SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

15.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

100 (2023 - 100) Ordinary shares of £1.00 each	100	100

16.	Pension commitments

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 £181,004 (2023 - £173,628). Contributions totalling £17,810 (2023 - £29,522) were payable to the fund at the balance sheet date and are included in creditors.

Not later than 1 year	240,271	57,500
Later than 1 year and not later than 5 years	430,125	117,292
	670,396	174,792

18.	Controlling party

The ultimate parent company is London Hire Limited, a company incorporated in England and Wales with its registered office at 185 Manor Road, Erith, DA8 2AD.

Page 21