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Registered number:
FOR THE YEAR ENDED 31 MARCH 2025
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OTTO CAR LIMITED
COMPANY INFORMATION
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OTTO CAR LIMITED
CONTENTS
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OTTO CAR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The principal activity of the company is renting and funding private hire licensed vehicles on short and long term hire through two programmes: short term rentals and Rent to Buy programme providing a one stop solution for finance, insurance and maintenance.
The key financial and other performance indicators during the year were as follows:
2025 2024 Restated Turnover £75.8m £66.0m Gross profit margin 19.4% 21.2% Operating profit £6.1m £7.3m The company remains profitable and we are investing heavily in fleet and risk proprietary technology with our in-house software development team to further enhance our competitive advantage. This investment in developing our own technology will help us to maintain and manage our growth trajectory over the coming years. After extensive consultation with our advisers and reviewing industry standard practices, management reviewed the contractual arrangements in respect of Rent to Buy contracts. Management decided to revise the accounting policy adopted in respect of Rent to Buy contracts and it was decided to re-instate operating leases on our balance sheet as finance leases to better reflect the treatment and nature of Rent to Buy contracts. For clarification, short term rental vehicles still remain as tangible assets on our balance sheet. Management consider that the Rent to Buy contracts meet the definition of finance leases under FRS 102 having considered relevant professional guidance and management consider that this better reflects the nature of the business. This decision was not taken lightly and has required extensive work from all parties involved, which led to the delay in filing our financial statements for the year ended 31 March 2025. However, management and their advisers considered that this was the correct treatment for our Rent to Buy contracts. The change in accounting policy has been applied retrospectively in accordance with FRS 102. As a result, the comparative figures for the prior year have been restated to recognise the assets subject to Rent to Buy contracts as finance lease assets. Please see note 30 for further information. Transport for London legislation requires all newly licensed private hire vehicles after January 1st 2023 to be zero emission compliant. In addition, ride hailing providers such as Uber are committed to having their vehicle fleet in London be 100% battery electric compliant by 2025. Currently only approximately 30% of the private hire fleet in London meets this requirement. Therefore we see significant opportunities for growth over the coming years given the size of the market in London and Otto Car being the largest provider of electric vehicles to the London market. We are one of Europe’s largest electric private hire fleet and our stated aim is to maintain our dominant position in the marketplace through providing great customer service and meeting the needs of our customers with the right product mix of vehicles. We have covered over 140+ million electric miles in the preceding 12 months in our fleet of electric vehicles and we aim to increase this significantly in the coming years. In recent months there has been some competition from manufacturers selling direct to our customer base and competing with us. However a number of manufacturers have retreated from selling direct and latest sales data suggests that drivers are returning to our channel to obtain a vehicle. We are already seeing lower priced EVs enter the market with more to follow that will stimulate demand.
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OTTO CAR LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Economic Risk
Given the current inflationary pressure there is a risk that there may be an impact on customer earnings from a slowdown in the wider economy. Currently however customer earnings remain strong with arrears and defaults in line with projections. We have not seen any substantial increase in defaults or vehicle returns. Fleet utilisation remains high and collections strong. Credit Risk Credit risk is the risk that a counter party will not meet its obligations under our existing financial contracts leading to a financial loss. The company is exposed to credit risk from its operating activities and from its financing activities including deposits with banks. The company manages its credit risk by ensuring that it is exposed only to customers and financial institutions with good credit quality which is based on their activity on the various ride hailing platforms. The company implements a robust credit control operation to collect outstanding arrears. Liquidity Risk Liquidity risk is the risk that the company will encounter difficulty in meeting its obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company’s approach to managing liquidity to meet its liability when due under normal and stressed conditions, without incurring unacceptable losses or risk damage to the company’s reputation by maintaining strong cash balances and punctual collection of weekly rentals. Cyber Risk There is a risk that the company could be targeted by a cyber attack. We have implemented a number of security policies and measures to protect customer data in line with GDPR guidance to mitigate this risk. Supply Risk Supply constraints for new vehicles have eased over the last 12 months and we are working with a wider number of car manufacturers to ensure a constant pipeline of vehicles to meet customer demands. Market forces remain in favour with demand for electric vehicles remaining robust in London and for hybrids in the regions.
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OTTO CAR LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The Directors of Otto Car Limited, in line with section 172 of the Companies Act 2006, and in promoting the success of the company, act in the way that they consider, in good faith, would be most likely to promote the success of the company for the benefit of all stakeholders. In doing so, they have regard to:
(a) the likely consequences of any decision in the long term; (b) the interests of the company's employees; (c) the need to foster the company's business relationships with suppliers, customers and others; (d) the impact of the company's operations on the community and the environment; (e) the desirability of the company maintaining a reputation for high standards of business conduct; and (f) the need to act fairly as between members of the company. We maintain a culture and have values that are reflected in our decision making. All decisions and matters of strategic importance to Otto Car Limited are informed by these factors and reflected in the strategy, budgets and plans of the Company.
This report was approved by the board and signed on its behalf.
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OTTO CAR LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The director presents his report and the financial statements for the year ended 31 March 2025.
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
The profit for the year, after taxation, amounted to £4,701,707 (2024 restated - £2,795,881).
There are dividends of £930,664 declared during the year (2024 - £Nil).
The director who served during the year was:
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OTTO CAR LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
In determining the appropriate basis of preparation for the financial statements, the Director is required to consider whether Otto car can continue in operational existence for the foreseeable future, being a period of not less than twelve months from the date of approval of these financial statements.
Otto Car has been profitable for the last three years and has considerable cash reserves. Based on the latest financial forecast, with the fleet size expected to continue to growth Director believes that the company will continue to trade profitably. Otto Car has secured further finance facilities that will enable it to fund its new purchases for the next 12 months comfortably. Market forces remain in favour with demand for electric vehicles remaining robust in London and for hybrids in the regions.
Transport for London legislation requires all newly licensed private hire vehicles after January 1st 2023 to be zero emission compliant. In addition, ride hailing providers such as Uber are committed to having their vehicle fleet in London be 100% battery electric compliant by 2025.
Currently only approximately 30% of the private hire fleet in London meets this requirement. Therefore we see significant opportunities for growth over the coming years given the size of the market in London and Otto Car being the largest provider of electric vehicles to the London market.
The company's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.
Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
We promote responsible business practice. The directors consider the consequences of all decisions and the impact on the company's stakeholders. We promote relationships with our suppliers which are fair and we seek to benefit to the communities and environments in which we operate.
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OTTO CAR LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Statement of carbon emissions in compliance with Streamlined Energy and Carbon Reporting (SECR) covering energy use and associated greenhouse gas emissions relating to gas, electricity and transport, intensity ratios and information relating to energy efficiency actions.
ESG Reporting 2025 2024
Electricity Usage (kwh) 102,205 69,571 Fuel Usage (kwh) 82,049 156,643 Total (kwh) 184,254 228,679 Carbon Footprint Summary Emission Source Calculated Emissions (CO2e) / tonne Car Emissions from fossil fuels (scope 1) 19.9 36.5 Scope 2 (Indirect gas house emissions - electricity and gas) 20.7 16.8 Total Carbon Emissions 40.6 53.3 Energy Efficiency Action No action taken. Intensity Ratio - Tonnes of C02 / £ million of income 0.71 1.04 Methodology Electricity Usage – we have collated information from all our energy providers invoices over the accounting period. Fuel Usage – we have collected all our fuel invoices over the accounting period and using DEFRA conversion table we have multiplied the fuel litre usage by 9.6 to calculate the equivalent kwh energy usage. Carbon Emissions calculated using DEFRA conversion table electricity – 0.233kg of CO2e per kwh. To calculate the GHG emissions associated with each activity we have converted the data using the calculation: Data x Emission factor = Greenhouse Gas Emissions.
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OTTO CAR LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The auditors, MHA, 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.
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OTTO CAR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OTTO CAR LIMITED
We have audited the financial statements of Otto Car Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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).
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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
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OTTO CAR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OTTO CAR LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
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 Director's Report.
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OTTO CAR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OTTO CAR LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:
∙Obtaining an understanding of the legal and regulatory frameworks that the company operates in;
∙Reviewing correspondence with regulatory authorities;
∙Testing for evidence of management override;
∙Enquiry of management to identify any instances of non-compliance with laws and regulations;
∙Enquiry of management around actual and potential litigation and claims;
∙Enquiry of management to identify any instances of known or suspected instances of fraud;
∙Discussing among the engagement team regarding how and where fraud might occur.
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 Auditors' 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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
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OTTO CAR LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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OTTO CAR LIMITED
REGISTERED NUMBER: 08479726
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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OTTO CAR LIMITED
REGISTERED NUMBER: 08479726
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 37 form part of these financial statements.
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