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COMPANY REGISTRATION NUMBER: 07962652

Falcon Coaches Limited

Financial Statements

5 April 2025

Falcon Coaches Limited

Financial Statements

Period ended 5 April 2025

Contents | Page

Strategic report | 1

Directors' report | 3

Independent auditor's report to the members | 5

Statement of comprehensive income | 10

Statement of financial position | 11

Statement of changes in equity | 13

Statement of cash flows | 14

Notes to the financial statements | 15

Falcon Coaches Limited

Strategic Report

Period ended 5 April 2025
Review of the company's business It is the opinion of the directors that the bus industry will continue to expand as a means of public transport in the United Kingdom for the foreseeable future. Recent Government policies and strategic plans seek to promote the bus as a flexible and cost effective means of transport to replace the private car and other modes of transport.t As such the directors continued with their policy of focusing on this sector of the market whilst maintaining other activities such as private hire, and private school and commercial contracts tostabilise the business and manage risk. Accordingly, the directors have continued with their policy of bidding for new bus contracts as they come up for public tender and actively re-tendering to renew when bus contracts come to an end. Success in this area was the prime reason for the Company's continued expansion. Fare subsidies in the nature of flat rate minimum fares have increased bus patronage and revenues in recent years. The Company also operates a fleet of coaches for its private hire and school contracts, both areas of the business that have remained stable during the period. Strict costs control has enabled profit margins to be maintained at 27% (2024 28%).
Key Performance Indicators

|  | 2025 | 2024
|  | £ | £
| Turnover | 12,731,226 | 10,241,337
| Gross profit | 3,386,668 | 2,865,954
| Gross profit margin (%) | 27 | 28
| Net profit before tax | 573,117 | 750,021
| Net profit before tax margin (%) | 5 | 7

Future Developments The Company is participating with Surrey County Council in converting some of its routes to electric bus operation. This is a three-year project for which the company is receiving funding from HM Government and Surrey County Council and is due to go live in 2026. The new electric vehicles will won are for three to five years, it is the opinion of the directors that the Company's bus operations will continue expand. They attribute their success to providing reliable services, customer satisfaction and control of costs. This attention to quality of operation, they will continue to apply in the future.
The principal risks and uncertainties facing the company. The principal risks and uncertainties that face the business are as follows: a The risk of non-renewal of bus contracts at the end of their term. The directors seek to mitigate this risk by providing the best service possible, including a modern up to date bus fleet, clean vehicles, driver courtesy and passenger information policies, maintaining close relationships with Councils and other contractors, keeping a close eye on the market, competitor trends and activities, and maintaining effective cost control. b. Unlicensed competitor activity on routes with the objective of diverting patronage. c. Inflationary pressures in areas beyond the control of the directors such as fuel costs, adverse Government Legislation and reduced national economic activity. The directors are ever watchful for threatening trends and take early remedial action. To this end they participate in industry forums and organisations, liaising with Government representatives on a frequent basis. d. Staff levels, attendance and remuneration offer constant challenges and the directors' policy is to set remuneration levels at competitive rates, reviewed frequently, and pursue a policy of effective staff training to keep a stable work force. Many staff have been with the Company for several years and it is quite common for past leavers to re-apply to work again for the Company.
This report was approved by the board of directors on 2 April 2026 and signed on behalf of the board by:

Mr R S Telling
Director

Registered office:
Little Owl Farm
Halebourne Lane
CHOBHAM
Surrey
GU24 8SL

Falcon Coaches Limited

Directors' Report

Period ended 5 April 2025
The directors present their report and the financial statements of the company for the period ended 5 April 2025 .
Principal activities
The principal activity of the company during the year was the provision of passenger transport services.
Directors
The directors who served the company during the period were as follows:

Mr R S Telling |
Mr S R Telling |
Mr A Telling |

Dividends
The directors do not recommend the payment of a dividend.
Future developments
Future developments of the business have been discoussed in the Strategic Report contained elsewhere within these Accounts.
Financial instruments
The Company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling. The Company does not enter into any formally designated hedging arrangements. The directors' objectives with regard to financial risk is to ensure the Company is able to pay its debts as they fall due and that risks from credit risks are kept low. In managing these risks the Company considers both favourable and stressed economic situations, endeavouring to ensure that there is sufficient headroom to ensure the company's liquidity and limit the impact of other financial risks. The company does not enter into speculate derivatives or trade in financial instruments.
Events after the end of the reporting period
Apart from the Electrification of certain bus routes referred to in the Strategic Plan there are no important future events to report at the date of the Financial Statements.
Other matters
Directors indemnities - The Company has made qualifying third-party indemnity provisions for the benefit of its directors, which were made during the year and remain in force at the date of this report
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 period. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make 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 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 2 April 2026 and signed on behalf of the board by:

Mr R S Telling
Director

Registered office:
Little Owl Farm
Halebourne Lane
CHOBHAM
Surrey
GU24 8SL

Falcon Coaches Limited

Independent Auditor's Report to the Members of Falcon Coaches Limited

Period ended 5 April 2025
Opinion
I have audited the financial statements of Falcon Coaches Limited (the 'company') for the period ended 5 April 2025 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In my opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 5 April 2025 and of its profit for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
Opinions 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 Report of the Directors for the financial period
for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not 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 laws 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 discussions with directors and other management; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including legislation such as the Companies Act 2006, taxation legislation and driving and working time regulations; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; and - reviewing any such correspondence with HMRC, relevant regulators and the company's legal advisors, where applicable. 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 Report of the Auditors. Use of my 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. My audit work has been undertaken so that I might state to the company's members those matters I am required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's members as a body, for my audit work, for this report, or for the opinions I have formed.

Sam Ede
Sam Ede BFP FCA FCCA (Senior Statutory Auditor)
For and on behalf of:
Lewis Brownlee (Chichester) Limited
Statutory Auditors,
Appledram Barns,
Birdham Road, Chichester
West Sussex
PO20 7EQ

2 April 2026

Falcon Coaches Limited

Statement of Comprehensive Income

Period ended 5 April 2025

| 2025 | 2024
Note | £ | £
Turnover | 4 | 12,731,226 | 10,241,337

Cost of sales | 9,344,558 | 7,375,383
| ------------- | -------------
Gross profit | 3,386,668 | 2,865,954

Administrative expenses | 2,690,623 | 2,061,546
|  | ------------ | ------------
Operating profit | 5 | 696,045 | 804,408

Other interest receivable and similar income | 9 | 116 | –
Interest payable and similar expenses | 10 | 123,044 | 54,387
| ------------ | ------------
Profit before taxation | 573,117 | 750,021

Tax on profit | 11 | 415,901 | –
| --------- | ---------
Profit for the financial period | 157,216 | 750,021
| --------- | ---------

Discount to Present Value of non-market long-term loans | – | ( 48,580)
| --------- | ---------
Total comprehensive income for the period | 157,216 | 701,441
| --------- | ---------

All the activities of the company are from continuing operations.

Falcon Coaches Limited

Statement of Financial Position

5 April 2025

| 2025 | 2024
Note | £ | £ | £

Fixed assets

Tangible assets | 13 |  | 2,590,358 | 1,556,321

Current assets

Stocks | 14 | 29,380 |  | 53,911
Debtors | 15 | 1,670,865 |  | 857,593
Cash at bank and in hand | 855,975 |  | 964,307
| ------------ |  | ------------
| 2,556,220 |  | 1,875,811

Creditors: amounts falling due within one year |  |  |
Bank loans and overdrafts | 50,000 |  | 50,000
Trade creditors | 659,295 |  | 579,175
Other creditors including taxation and social security | 16 | 499,330 |  | 352,860
Accruals and deferred income | 822,824 |  | 154,445
| ------------ |  | ------------
| 2,031,449 |  | 1,136,480
| ------------ |  | ------------
Net current assets |  | 524,771 | 739,331
|  | ------------ | ------------
Total assets less current liabilities |  | 3,115,129 | 2,295,652

Creditors: amounts falling due after more than one year |  |  |
Bank loans and overdrafts | 41,667 |  | 91,667
Other creditors including taxation and social security | 17 | 538,639 |  | 242,279
| --------- |  | ---------
|  | 580,306 | 333,946

Provisions

Taxation including deferred tax | 19 |  | 415,901 | –
|  | ------------ | ------------
Net assets |  | 2,118,922 | 1,961,706
|  | ------------ | ------------

Capital and reserves

Called up share capital | 23 |  | 579,800 | 579,800
Profit and loss account |  | 1,539,122 | 1,381,906
|  | ------------ | ------------
Shareholders funds |  | 2,118,922 | 1,961,706
|  | ------------ | ------------

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

Falcon Coaches Limited

Statement of Financial Position (continued)

5 April 2025
These financial statements were approved by the board of directors and authorised for issue on 2 April 2026 , and are signed on behalf of the board by:

Mr R S Telling
Director

Company registration number: 07962652

Falcon Coaches Limited

Statement of Changes in Equity

Period ended 5 April 2025

| Called up share capital | Profit and loss account | Total
| £ | £ | £
At 1 April 2023 | 300,100 | 680,465 | 980,565
Profit for the period |  | 750,021 | 750,021
Other comprehensive income for the period | 22 | – | ( 48,580) | ( 48,580)
| --------- | --------- | ---------
Total comprehensive income for the period | – | 701,441 | 701,441
Conversion of debt to equity | 279,700 | – | 279,700
| --------- | --------- | ---------
Total investments by and distributions to owners | 279,700 | – | 279,700
At 31 March 2024 | 579,800 | 1,381,906 | 1,961,706
Profit for the period |  | 157,216 | 157,216
| --------- | ------------ | ------------
Total comprehensive income for the period | – | 157,216 | 157,216
| --------- | ------------ | ------------
At 5 April 2025 | 579,800 | 1,539,122 | 2,118,922
| --------- | ------------ | ------------

Falcon Coaches Limited

Statement of Cash Flows

Period ended 5 April 2025

| 2025 | 2024
| £ | £

Cash flows from operating activities

Profit for the financial period | 157,216 | 750,021

Adjustments for: |  |
Depreciation of tangible assets | 296,377 | 201,173
Amortisation of intangible assets | – | 17,728
Other interest receivable and similar income | ( 116) | –
Interest payable and similar expenses | 123,044 | 54,387
Gains on disposal of tangible assets | ( 9,074) | ( 235)
Tax on profit | 415,901 | –
Accrued (income)/expenses | ( 388,425) | 130,070

Changes in: |  |
Stocks | 24,531 | ( 3,712)
Trade and other debtors | ( 275,239) | ( 63,916)
Trade and other creditors | 618,327 | ( 23,639)
| --------- | ------------
Cash generated from operations | 962,542 | 1,061,877

Interest paid | ( 123,044) | ( 54,387)
Interest received | 116 | –
| --------- | ------------
Net cash from operating activities | 839,614 | 1,007,490
| --------- | ------------

Cash flows from investing activities

Purchase of tangible assets | ( 640,046) | ( 501,209)
Proceeds from sale of tangible assets | 249,085 | 265,413
| --------- | ------------
Net cash used in investing activities | ( 390,961) | ( 235,796)
| --------- | ------------

Cash flows from financing activities

Proceeds from borrowings | ( 52,634) | 98,849
Proceeds from loans from group undertakings | – | ( 6)
Payments of finance lease liabilities | ( 504,351) | ( 312,192)
| --------- | ------------
Net cash used in financing activities | ( 556,985) | ( 213,349)
| --------- | ------------

Net (decrease)/increase in cash and cash equivalents | ( 108,332) | 558,345
Cash and cash equivalents at beginning of period | 964,307 | 405,962
| --------- | ---------
Cash and cash equivalents at end of period | 855,975 | 964,307
| --------- | ---------

Falcon Coaches Limited

Notes to the Financial Statements

Period ended 5 April 2025
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Little Owl Farm, Halebourne Lane, CHOBHAM, Surrey, GU24 8SL.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The Financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statememnts are rounded to the nearest pound.
Going concern
The directors have carefully considered the company's financial position, liquidity and future performance. As set out in the strategic report, the company has continued to trade strongly throughout the year and the directors believe that it is experiencing good levels of sales growth. Therefore, the directors believe that the company is well placed to manage its business risks successfully. Accordingly, they have a reasonable expectation that the company has adequate resources to to continue in in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Critical judgements and estimation uncertainty The following judgements and estimates have had the most significant effect on the amounts recognised in the financial statements: The directors use their judgement for the estimation of the useful economic lives and expected residual values of motor vehicles.
Turnover recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

| Goodwill | - | 20% straight line
| Media technology costs | - | 33% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

| Leasehold property improvements | - | Written off over lease period
| Plant and machinery | - | 20% straight line
| Fixtures and fittings | - | 33% straight line
| Motor vehicles | - | Written off over 1-15 years
| Equipment | - | Written off over 1-15 years

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and net realisable value.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
Government grants
Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in other income within profit or loss in the same period as the related expenditure.
4. Turnover
Turnover arises from:

| 2025 | 2024
| £ | £
Passenger transport services | 11,465,029 | 9,195,134
UK Govt. Bus Fare Grant | 1,018,984 | 1,002,267
Fuel Subsidy | 199,269 | –
UK Govt. DFT CBSS Grant | – | 18,308
Miscellaneous income | 47,944 | 25,628
| ------------- | -------------
| 12,731,226 | 10,241,337
| ------------- | -------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:

| 2025 | 2024
| £ | £
Amortisation of intangible assets | – | 17,728
Depreciation of tangible assets | 296,377 | 201,173
Gains on disposal of tangible assets | ( 9,074) | ( 235)
| --------- | ---------

A more detailed of the above table is as follows:

|  | 2025 | 2024
|  | £ | £
| Amortisation of intangibles | – | 17,728
| Depreciation of tangible assets - for owned assets | 146,698 | 201,173
| Depreciation of tangible assets -held under finance lease | 149,679 | –
| Auditors remuneration | 17,000 | –
| Operating lease rentals | 1,257,412 | 1,017,411
| Gains on disposal of tangible assets | (9,074) | (235)

6. Auditor's remuneration

| 2025 | 2024
| £ | £
Fees payable for the audit of the financial statements | 17,000 | –
| -------- | ----

7. Staff costs
The average number of persons employed by the company during the period, including the directors, amounted to:

| 2025 | 2024
| No. | No.
Administrative staff | 2 | 2
Management staff | 3 | 3
Traffic | 7 | 6
Engineering | 9 | 7
Cleaners | 7 | 4
Drivers | 98 | 85
| ---- | ----
| 126 | 107
| ---- | ----

The aggregate payroll costs incurred during the period, relating to the above, were:

| 2025 | 2024
| £ | £
Wages and salaries | 6,190,028 | 4,816,004
Social security costs | 670,893 | 487,304
Other pension costs | 110,162 | 88,441
| ------------ | ------------
| 6,971,083 | 5,391,749
| ------------ | ------------

8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:

| 2025 | 2024
| £ | £
Remuneration | 130,000 | 114,407
Company contributions to defined contribution pension plans | 2,931 | 2,828
| --------- | ---------
| 132,931 | 117,235
| --------- | ---------

The number of directors who exercised share options and received shares under a long term incentive scheme during the period was as follows:

| 2025 | 2024
| No. | No.
Directors who received shares under a long term incentive scheme | 2 | 2
| ---- | ----

9. Other interest receivable and similar income

| 2025 | 2024
| £ | £
Interest on bank deposits | 116 | –
| ---- | ----

10. Interest payable and similar expenses

| 2025 | 2024
| £ | £
Interest on obligations under finance leases and hire purchase contracts | 118,328 | 46,626
CBIL interest paid | 4,716 | 6,711
Other interest payable and similar charges | – | 1,050
| --------- | --------
| 123,044 | 54,387
| --------- | --------

11. Tax on profit
Major components of tax expense

| 2025 | 2024
| £ | £

Deferred tax:

Origination and reversal of timing differences | 415,901 | –
| --------- | ----
Tax on profit | 415,901 | –
| --------- | ----

Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the period is higher than (2024: lower than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

| 2025 | 2024
| £ | £
Profit on ordinary activities before taxation | 573,117 | 750,021
| --------- | ---------
Profit on ordinary activities by rate of tax | 143,279 | 187,505
Effect of expenses not deductible for tax purposes | 6,166 | –
Utilisation of tax losses | – | ( 187,505)
Deferred tax not previously recognised | 266,456 | –
| --------- | ---------
Tax on profit | 415,901 | –
| --------- | ---------

12. Intangible assets

| Goodwill | Media technology costs | Total
| £ | £ | £
Cost |  |  |
At 1 April 2024 and 5 April 2025 | 177,503 | 25,316 | 202,819
| --------- | -------- | ---------
Amortisation |  |  |
At 1 April 2024 and 5 April 2025 | 177,503 | 25,316 | 202,819
| --------- | -------- | ---------
Carrying amount |  |  |
At 5 April 2025 | – | – | –
| --------- | -------- | ---------
At 31 March 2024 | – | – | –
| --------- | -------- | ---------

13. Tangible assets

| Land and buildings | Plant and machinery | Fixtures and fittings | Motor vehicles | Equipment | Total
| £ | £ | £ | £ | £ | £
Cost |  |  |  |  |  |
At 1 Apr 2024 | 56,163 | 209,715 | 6,459 | 1,911,319 | 68,916 | 2,252,572
Additions | 277,552 | 69,419 | 2,114 | 1,219,423 | 1,917 | 1,570,425
Disposals | – | ( 13,620) | ( 3,300) | ( 341,029) | ( 30,837) | ( 388,786)
| --------- | --------- | ------- | ------------ | -------- | ------------
At 5 Apr 2025 | 333,715 | 265,514 | 5,273 | 2,789,713 | 39,996 | 3,434,211
| --------- | --------- | ------- | ------------ | -------- | ------------
Depreciation |  |  |  |  |  |
At 1 Apr 2024 | 36,102 | 61,975 | 3,879 | 536,609 | 57,686 | 696,251
Charge for the period | 14,199 | 29,456 | 808 | 247,071 | 4,843 | 296,377
Disposals | – | ( 13,620) | ( 3,300) | ( 101,018) | ( 30,837) | ( 148,775)
| --------- | --------- | ------- | ------------ | -------- | ------------
At 5 Apr 2025 | 50,301 | 77,811 | 1,387 | 682,662 | 31,692 | 843,853
| --------- | --------- | ------- | ------------ | -------- | ------------
Carrying amount |  |  |  |  |  |
At 5 Apr 2025 | 283,414 | 187,703 | 3,886 | 2,107,051 | 8,304 | 2,590,358
| --------- | --------- | ------- | ------------ | -------- | ------------
At 31 Mar 2024 | 20,061 | 147,740 | 2,580 | 1,374,710 | 11,230 | 1,556,321
| --------- | --------- | ------- | ------------ | -------- | ------------

Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

| Motor vehicles
| £
At 5 April 2025 | 1,641,953
| ------------
At 31 March 2024 | 931,130
| ------------

Capital commitments

| 2025 | 2024
| £ | £
Contracted for but not provided for in the financial statements | 2,801,789 | –
| ------------ | ----

14. Stocks

| 2025 | 2024
| £ | £
Raw materials and consumables | 29,380 | 53,911
| -------- | --------

15. Debtors

| 2025 | 2024
| £ | £
Trade debtors | 340,455 | 280,689
Prepayments and accrued income | 1,164,213 | 420,801
Other debtors | 166,197 | 156,103
| ------------ | ---------
| 1,670,865 | 857,593
| ------------ | ---------

16. Other creditors including taxation and social security falling
due within one year

| 2025 | 2024
| £ | £
Social security and other taxes | 168,122 | 162,151
Obligations under finance leases | 317,342 | 187,674
Director loan accounts | – | 2,634
Other Creditors | 13,866 | 401
| --------- | ---------
| 499,330 | 352,860
| --------- | ---------

During the year ended 31 March 2021, the Company received £250,000 in the form of a Coronavirus Business Interruption Support Loan repayable over 6 years from date of receipt, 21 January 2021. During the period, the Company repaid £50,000 of this loan (2024: ££50,000), and a total of £158,334 had been repaid as of 31 March 2025, to give a balance outstanding of £91,666.67 at that date (2024: £141,666.67). Of this, £50,000 is repayable within one year and this is included as a bank loan repayable within one year. The remainder £41,667 is included as a Bank Loan falling due after more than one year.
17. Other creditors including taxation and social security falling
due after more than one year

| 2025 | 2024
| £ | £
Obligations under finance leases | 538,639 | 242,279
| --------- | ---------

18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

| 2025 | 2024
| £ | £
Not later than 1 year | 317,342 | 187,674
Later than 1 year and not later than 5 years | 538,639 | 242,279
| --------- | ---------
| 855,981 | 429,953
| --------- | ---------

Finance lease payments represent rentals payable by the Company for certain items of motor vehicles. No restrictions are placed on the use of the assets. No arrangements have been entered into for contingent rental payments. Finance leases are secured on the related assets.
19. Provisions

| Deferred tax (note 20)
| £
At 1 April 2024 | –
Additions | 415,901
| ---------
At 5 April 2025 | 415,901
| ---------

20. Deferred tax
The deferred tax included in the statement of financial position is as follows:

| 2025 | 2024
| £ | £
Included in provisions (note 19) | 415,901 | –
| --------- | ----

The deferred tax account consists of the tax effect of timing differences in respect of:

| 2025 | 2024
| £ | £
Accelerated capital allowances | 527,696 | –
Unused tax losses | ( 111,795) | –
| --------- | ----
| 415,901 | –
| --------- | ----

21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 110,162 (2024: £ 88,441 ).
As at 5 April 2025 the company had outstanding pension contribution liabilities of £8,710(2024: £10,914).
22. Analysis of other comprehensive income

| Profit and loss account
| £

Period ended 31 March 2024 |
Discount to Present Value of non-market long-term loans | ( 48,580)
| --------

23. Called up share capital
Issued, called up and fully paid

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £ 1 each | 300,100 | 300,100 | 300,100 | 300,100
Ordinary, non-voting, non-participating shares of £ 1 each | 279,700 | 279,700 | 279,700 | 279,700
| --------- | --------- | --------- | ---------
| 579,800 | 579,800 | 579,800 | 579,800
| --------- | --------- | --------- | ---------

Falcon Coaches Limited

Notes to the Financial Statements (continued)

Period ended 5 April 2025
24. Analysis of changes in net debt

| At 1 Apr 2024 | Cash flows | New finance leases | At 5 Apr 2025
| £ | £ | £ | £
Cash at bank and in hand | 964,307 | (108,332) |  | 855,975
Debt due within one year | (240,308) | (1,057,413) | 930,379 | (367,342)
Debt due after one year | (333,946) | (246,360) | – | (580,306)
| --------- | ------------ | --------- | ---------
| 390,053 | ( 1,412,105) | 930,379 | ( 91,673)
| --------- | ------------ | --------- | ---------

25. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:

| 2025 | 2024
| £ | £
Not later than 1 year | 1,328,619 | 1,083,327
Later than 1 year and not later than 5 years | 2,924,582 | 1,921,594
Later than 5 years | – | 120,000
| ------------ | ------------
| 4,253,201 | 3,124,921
| ------------ | ------------

26. Related party transactions
The Company was under the control of Mr R. Telling throughout the current and previous periods, as Managing Director of the Company and 50% shareholder of C&S Transport Holdings Limited, which is the ultimate holding company and 100% shareholder of the Company. A Personal Guarantee given by two directors to a financial institution in respect of an operating lease, for which the total, undiscounted outstanding payments as at 5 April 2025 is £2,619 (2024: £39,292). During the period, the Company purchased a holiday home from a director. The property was acquired for a consideration of £125,000. During the period the Company paid rent amounting to £75,000 (2024: £75,000) to a pension fund which two of the directors are beneficiaries. The directors have defined key management personnel as the directors and the senior leadership team. Key management personnel salaries and other short term benefits totalled £489,438 (2024: £360,814). The Company has taken advantage of exemption, under the terms of FRS 102, not to disclose related party transactions with wholly owned subsidiaries within the group.
27. Controlling party
The ultimate parent company is C&S Transport Holdings Limited, a company registered in England and Wales. The registered office of C&S Transport Holdings Limited is Little Owl Farm, Halebourne Lane, Chobham, Woking, GU24 8SL. The results of Falcon Coaches Limited are not included in the consolidated financial statements of any other company.