Lyca Leasing (Cormorant) Limited - Accounts to registrar (filleted)

REGISTERED NUMBER: 13607551 (England and Wales)

LYCA LEASING (CORMORANT) LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

Mrs P Subaskaran

REGISTERED OFFICE:

3rd Floor Wallbrook Building

195 Marsh Wall

London

E14 9SG

REGISTERED NUMBER:

13607551 (England and Wales)

ACCOUNTANTS:

Spurling Cannon

Chartered Certified Accountants

424 Margate Road

Westwood

Ramsgate

Kent

CT12 6SJ

CURRENT ASSETS

Debtors

4

70,341,103

73,310,326

Cash at bank

8,128,568

TOTAL ASSETS LESS CURRENT
LIABILITIES

78,469,671

81,438,894

CREDITORS

Amounts falling due after more than one
year

5

(68,309,184

)

(68,262,088

)

NET ASSETS

10,160,487

13,176,806

CAPITAL AND RESERVES

Called up share capital

1

Other reserves

54,283,357

Retained earnings

(44,122,871

)

(41,106,552

)

10,160,487

13,176,806

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2024 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges her responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 17 July 2026 and were signed by:

Mrs P Subaskaran - Director

1.	STATUTORY INFORMATION

Lyca Leasing (Cormorant) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

In the application of the Company's accounting policies, as Directors we are required to make judgements and 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 a continuing basis. Revision 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

The Directors consider that the estimates and judgements that have the most significant risk of causing a material adjustment to the carrying amount of assets or liabilities within the financial year relate to:

1) The estimates and assumptions about operating activity input into the cash flow projections used to determine

(a) whether the investments in the subsidiary companies are impaired and the level of that impairment and

(b) the recoverability of loans to subsidiary companies

2) The weighted average cost of capital and synthetic credit interest spread for a business with an

equivalent credit rating used to discount

(a) the operating cash flows of the subsidiary companies when assessing the value in use for impairment

purposes and

(b) the fair value of the long term loan from a company under common control

3) Going concern and whether there is a severe but plausible likelihood of a loan default scenario and

sufficient associated company support is available

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Going concern

In assessing the appropriateness of the going concern basis, the directors have taken account of all relevant information covering a period of at least 12 months from the date of approval of the financial statements. The company is a non-trading entity that is unlikely to incur expenditure on its own behalf. It may, however, be called up on to provide support through its loan draw down facility to the subsidiary companies' operations but has no obligation to do so. The likelihood of unexpected company liabilities is considered by the directors to be remote.

The entirety of the company's liabilities are due to a related company ("the lender") under the terms of a loan agreement. These liabilities total £118,800,000 plus stamp duty of £715,948 and accrued interest of £3,076,594 discounted at 31 July 2024 to £68,309,184 and are due on 12 October 2031. A risk to the company remains in relation to a loan default scenario where, in the opinion of the lender, a material adverse change in the borrower's business occurs. In those circumstances the lender may choose to treat the loan as due on demand and request repayment. Such an adverse change is only plausible in respect of the operating subsidiaries. The directors have considered the loan note terms and the relationship with the lender.In their opinion the probability of the operating subsidiaries suffering a material adverse change is considered to be unlikely. On this basis, the directors believe that there is not a severe but plausible scenario that would give rise to a default.

The directors are also confident that there will be sufficient appropriate support provided by its associated company loan creditors, although there is no binding commitment to do so, such that the Company will not be expected to settle loan liabilities in such a way as to undermine its ability to continue as a going concern for the foreseeable future. Therefore, the directors consider it appropriate to prepare the financial statements on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2023 - NIL).

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

Amounts owed by group undertakings

70,341,102

73,310,325

Other debtors

1

70,341,103

73,310,326

5.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

2024

2023

£

Amounts owed to group undertakings

68,309,184

68,262,088

The liability due to the Company under common control is a Euro denominated loan equivalent to £118.8 million (2023 - £118.8 million) plus Stamp Duty of £715,948 and accrued interest amounting to £3,076,594 (2023 - £3,029,498) out of a principal facility equivalent to £125m accordance with a formal loan agreement between the Company and Lycatelcom Lda. This loan attracts interest at 1.41% per annum and is repayable at the end of a ten-year term on 12 October 2031. The loan has been discounted to its fair value using (a) an average of the company's equity cost of capital and a synthetic credit interest spread for a business with an equivalent credit rating for the part of the loan that is considered to be risk capital and (b) a rate equivalent to a long term property loan for the part of the loan that is considered to be underpinned by the value of the subsidiary company property, with the adjusting entry being accounted for as a capital contribution within reserves. Under the terms of FRS 102 an annual charge to profit and loss will be added to the outstanding loan balance equivalent to the underlying loan interest plus an annual amortisation charge of the initial loan discounting.

The Escrow account shown in cash at bank contains a sum withheld from the purchase consideration due to the vendors of the company's subsidiaries in 2021 on account of several contingent liabilities of the subsidiary companies. The directors are of the opinion that the sum held in escrow is sufficient to meet the contingent liabilities if or when they crystallise based on documentary evidence received and the fact that two such liabilities have crystallised and been settled after the balance sheet date. The nature and quantum of the contingent liabilities have not been disclosed because the directors consider such information to be commercially sensitive.

6.	RELATED PARTY DISCLOSURES

See note 5 re the loan from Lycatelcom Lda, a company registered in Portugal. As at 31 July 2024, the cumulative balance including accrued interest, but prior to fair value discounting adjustment, was £123,077,322. The interest charge in the period totalled £47,096.

As at 31 July 2024 the company had amounts totalling £65,069,999 due from KIMS Kent Property Holdings Limited. This debt is interest free and repayable on demand.

As at 31 July 2024 the company had amounts totalling £5,000,000 due from KIMS Kent Holdings Limited. This debt is interest free and repayable on demand.

7.	ULTIMATE CONTROLLING PARTY

The company's ultimate parent company is Lyca Leasing Holding Limited, a company incorporated in England and Wales. Lyca Leasing Holding Limited is the ultimate parent of the smallest and largest group for which consolidated financial statements will be prepared and copies can be obtained from its registered office at 3rd Floor Wallbrook Building, 195 Marsh Wall, London, United Kingdom, E14 9SG.

In the opinion of the directors the ultimate controlling party is P Subaskaran by virtue of her shareholding in Lyca Leasing Holding Limited.