Company registration number 08127705 (England and Wales)
HENLEY CARS LIMITED
TRADING AS CAR360
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HENLEY CARS LIMITED
TRADING AS CAR360
COMPANY INFORMATION
Directors
Mr S C Parker
Mr P J Brookes
(Appointed 8 February 2024)
Mr J Buxton
(Appointed 8 February 2024)
Miss S J Watson
(Appointed 8 February 2024)
Mr D A Parker
Company number
08127705
Registered office
Unit 1 & 2 Keys Point
Keys Park Road
Hednesford
Staffordshire
United Kingdom
WS12 2FN
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
HENLEY CARS LIMITED
TRADING AS CAR360
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
HENLEY CARS LIMITED
TRADING AS CAR360
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review of the business

The directors of Henley Cars Limited aim to provide a balanced overview of the status and condition of the business during the last financial year. Our review is comprehensive and consistent, taking into account the size and non-complex nature of our business and addresses the risks and uncertainties that our business may be exposed to.

 

The company is pleased to report a year of significant progress, underpinned by strong financial performance, robust operational execution, and a clear focus on customer satisfaction. For the year ended 31 December 2024, profit before tax doubled to £804,163, up from £401,072 in 2023, reflecting both revenue growth and margin discipline.

 

This performance demonstrates the strength of our business model in a competitive market and positions the company for sustained, scalable growth. Our strategy remains centred on delivering value through selective expansion, prudent financial management, and consistently high service standards.

 

Principal risks and uncertainties

The directors consider that the principle risks and uncertainties faced by the company are in the following categories.

 

Economic risk

 

The risk of inflation having an adverse impact upon the used car market. The risk of unrealistic increases in stock and other costs impacting adversely on the competitiveness of the company and its principal customers. The risks are managed by strict control of costs and a team of experienced managers.

 

Interest rate risk

 

The company utilises a number of funding facilities to manage its working capital position. The directors continually monitor their usage to ensure that interest charges are kept to a minimum.

 

Performance and market position

Henley Cars Limited operates in a dynamic and highly competitive used vehicle market, with a particular focus on premium used stock. Despite external economic pressures, we continued to outperform peers through disciplined cost control, strong supplier relationships, and our ability to pivot across brands based on demand and availability.

Our agile, multi-brand approach to inventory management enables us to maintain resilience in the face of supply chain fluctuations, while delivering strong value to customers. The company’s long-standing reputation for ethical trading and service excellence remains a core asset, reinforcing both customer loyalty and supply-side confidence.

Operationally, we remain lean and responsive. Strong cash flow oversight, close monitoring of debtor and creditor positions, and proactive funding strategies ensure we are well-positioned to fund future growth without compromising agility.

 

Strategic Outlook

Looking ahead to 2025 and beyond, we are focused on scaling our footprint, investing in technology and automation, and leveraging data to enhance decision-making across procurement, pricing, and customer experience. The goal is clear: deliver consistent, profitable growth while maintaining the highest standards across the customer journey.

 

We recognise the challenges posed by macroeconomic volatility, inflationary pressures, and interest rate movements. However, our experienced leadership team, combined with tight controls on working capital, give us the flexibility to navigate these uncertainties while continuing to capture market opportunities.

 

Key performance indicators

Operating margin serves as a key indicator of performance and operational efficiency. This increased from 1.4% in 2023 to 1.5% in 2024, reflecting continued improvement in both scale and profitability.

HENLEY CARS LIMITED
TRADING AS CAR360
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

On behalf of the board

Mr S C Parker
Director
24 April 2025
HENLEY CARS LIMITED
TRADING AS CAR360
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of used car sales.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S C Parker
Mr P J Brookes
(Appointed 8 February 2024)
Mr J Buxton
(Appointed 8 February 2024)
Miss S J Watson
(Appointed 8 February 2024)
Mr D A Parker
Auditor

In accordance with the company's articles, a resolution proposing that BK Plus Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 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 of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

HENLEY CARS LIMITED
TRADING AS CAR360
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr S C Parker
Director
24 April 2025
HENLEY CARS LIMITED
TRADING AS CAR360
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HENLEY CARS LIMITED
- 5 -
Opinion

We have audited the financial statements of Henley Cars Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 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 our audit:

HENLEY CARS LIMITED
TRADING AS CAR360
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HENLEY CARS LIMITED (CONTINUED)
- 6 -
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:

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 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.

 

From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

HENLEY CARS LIMITED
TRADING AS CAR360
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HENLEY CARS LIMITED (CONTINUED)
- 7 -

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.

Amy Cotterill ACA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor
Chartered Certified Accountants
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
24 April 2025
HENLEY CARS LIMITED
TRADING AS CAR360
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
2
58,288,056
35,207,512
Cost of sales
(54,875,753)
(32,955,895)
Gross profit
3,412,303
2,251,617
Administrative expenses
(3,538,011)
(2,203,129)
Other operating income
1,014,533
431,269
Operating profit
3
888,825
479,757
Interest receivable and similar income
7
4,123
8
Interest payable and similar expenses
8
(88,785)
(78,693)
Profit before taxation
804,163
401,072
Tax on profit
9
(203,479)
(84,029)
Profit for the financial year
600,684
317,043

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HENLEY CARS LIMITED
TRADING AS CAR360
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
600,684
317,043
Other comprehensive income
Revaluation of tangible fixed assets
100,000
-
0
Tax relating to other comprehensive income
(43,116)
-
0
Total other comprehensive income for the year
56,884
-
0
Total comprehensive income for the year
657,568
317,043
HENLEY CARS LIMITED
TRADING AS CAR360
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,337,249
1,806,288
Current assets
Stocks
12
5,258,936
3,862,361
Debtors
11
1,576,802
324,967
Cash at bank and in hand
1,088,840
807,948
7,924,578
4,995,276
Creditors: amounts falling due within one year
13
(8,118,575)
(5,382,748)
Net current liabilities
(193,997)
(387,472)
Total assets less current liabilities
2,143,252
1,418,816
Creditors: amounts falling due after more than one year
14
(933,903)
(682,558)
Provisions for liabilities
Deferred tax liability
17
301,953
86,430
(301,953)
(86,430)
Net assets
907,396
649,828
Capital and reserves
Called up share capital
19
59
400,059
Share premium account
149,991
149,991
Revaluation reserve
301,446
244,562
Capital redemption reserve
50
50
Profit and loss reserves
455,850
(144,834)
Total equity
907,396
649,828

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 24 April 2025 and are signed on its behalf by:
Mr S C Parker
Director
Company registration number 08127705 (England and Wales)
HENLEY CARS LIMITED
TRADING AS CAR360
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2023
400,059
149,991
244,562
50
(461,877)
332,785
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
-
317,043
317,043
Balance at 31 December 2023
400,059
149,991
244,562
50
(144,834)
649,828
Year ended 31 December 2024:
Profit
-
-
-
-
600,684
600,684
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
100,000
-
-
100,000
Tax relating to other comprehensive income
-
-
(43,116)
-
-
0
(43,116)
Total comprehensive income
-
-
56,884
-
600,684
657,568
Redemption of shares
19
(400,000)
-
0
-
-
-
0
(400,000)
Balance at 31 December 2024
59
149,991
301,446
50
455,850
907,396
HENLEY CARS LIMITED
TRADING AS CAR360
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,104,248
716,077
Interest paid
(88,785)
(78,693)
Net cash inflow from operating activities
1,015,463
637,384
Investing activities
Purchase of tangible fixed assets
(448,408)
(243,520)
Proceeds from disposal of tangible fixed assets
68,214
-
0
Interest received
4,123
8
Net cash used in investing activities
(376,071)
(243,512)
Financing activities
Proceeds from issue of shares
-
0
200,000
Redemption of shares
(400,000)
-
0
Proceeds from new bank loans
756,000
-
0
Repayment of bank loans
(591,672)
(59,970)
Payment of finance leases obligations
(122,828)
92,585
Net cash (used in)/generated from financing activities
(358,500)
232,615
Net increase in cash and cash equivalents
280,892
626,487
Cash and cash equivalents at beginning of year
807,948
181,461
Cash and cash equivalents at end of year
1,088,840
807,948
HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Henley Cars Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 & 2 Keys Point, Keys Park Road, Hednesford, Staffordshire, United Kingdom, WS12 2FN.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is derived based on the satisfaction of performance obligations identified in any given contract with our customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for these goods or services.

Revenue is principally generated from the sale of used motor vehicles. The company recognises revenue on the sale of motor vehicles when they have been supplied to the customer. The associated performance obligation is satisfied on delivery or collection of the product.

 

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Third party valuation
Plant and equipment
3 - 10 years straight line
Fixtures and fittings
2 - 10 years straight line
Computers
3 - 5 years straight line
Motor vehicles
3 - 10 years straight line
Website
3 - 5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities.

HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Car sales
58,288,056
35,207,512
HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Turnover analysed by geographical market
UK
58,288,056
35,207,512
2024
2023
£
£
Other revenue
Interest income
4,123
8
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
159,679
72,128
Depreciation of tangible fixed assets held under finance leases
-
51,970
Profit on disposal of tangible fixed assets
(16)
-
Operating lease charges
106,581
81,797
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,000
8,000
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
350,202
213,625

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
111,541
130,210
Company pension contributions to defined contribution schemes
1,321
1,244
HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administrative staff
3
2
Directors
5
2
Sales representatives
11
7
Aftersales staff
21
11
Valets and drivers
11
6
Total
51
28

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,650,781
1,042,989
Social security costs
203,195
131,707
Pension costs
35,419
19,344
1,889,395
1,194,040
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
4,123
8
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
4,123
8
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
62,457
70,017
Other finance costs:
Interest on finance leases and hire purchase contracts
12,328
8,676
Other interest
14,000
-
0
88,785
78,693
HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
31,072
-
0
Deferred tax
Origination and reversal of timing differences
172,407
84,029
Total tax charge
203,479
84,029

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
804,163
401,072
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
201,041
100,268
Tax effect of expenses that are not deductible in determining taxable profit
4,219
1,414
Tax effect of utilisation of tax losses not previously recognised
-
0
(74,615)
Permanent capital allowances in excess of depreciation
-
0
(27,067)
Tax at marginal rate
(1,781)
-
0
Deferred tax adjustments
-
0
84,029
Taxation charge for the year
203,479
84,029

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
43,116
-
HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Website
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2024
1,198,184
77,914
324,803
41,043
427,182
83,737
2,152,863
Additions
-
0
212,462
306,867
30,509
46,930
62,070
658,838
Disposals
-
0
-
0
-
0
-
0
(126,060)
-
0
(126,060)
Revaluation
100,000
-
0
-
0
-
0
-
0
-
0
100,000
At 31 December 2024
1,298,184
290,376
631,670
71,552
348,052
145,807
2,785,641
Depreciation and impairment
At 1 January 2024
38,184
36,199
129,389
26,068
94,538
22,197
346,575
Depreciation charged in the year
-
0
17,950
41,594
10,167
71,496
18,472
159,679
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(57,862)
-
0
(57,862)
At 31 December 2024
38,184
54,149
170,983
36,235
108,172
40,669
448,392
Carrying amount
At 31 December 2024
1,260,000
236,227
460,687
35,317
239,880
105,138
2,337,249
At 31 December 2023
1,160,000
41,715
195,414
14,975
332,644
61,540
1,806,288
HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
374,342
293,415

Land and buildings with a carrying amount of £1,260,000 were revalued on 18 January 2024 by Colliers International Valuation UK LLP, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Freehold land and buildings
2024
2023
£
£
Cost
896,256
896,256
Accumulated depreciation
(109,884)
(91,959)
Carrying value
786,372
804,297
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,370,079
283,368
Other debtors
85,425
13,420
Prepayments and accrued income
121,298
28,179
1,576,802
324,967
12
Stocks
2024
2023
£
£
Vehicle stock
5,230,064
3,841,737
Vehicle parts
28,872
20,624
5,258,936
3,862,361

The carrying amount of stocks includes £5,023,779 (2023 - £3,683,180) pledged as security for liabilities.

HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
50,400
63,275
Obligations under finance leases
16
98,616
85,156
Payments received on account
15,738
32,191
Trade creditors
7,558,275
4,638,842
Corporation tax
31,072
-
0
Other taxation and social security
52,129
341,455
Other creditors
-
0
1,317
Accruals and deferred income
312,345
220,512
8,118,575
5,382,748

Within trade creditors are vehicle stocking loans totalling £4,673,126 (2023 - £4,198,429) that are secured against the vehicles to which they relate.

 

Obligations under hire purchase are secured against the assets to which they relate.

14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
693,000
515,797
Obligations under finance leases
16
240,903
166,761
933,903
682,558

Obligations under hire purchase are secured against the assets to which they relate.

Amounts included above which fall due after five years are as follows:
Payable by instalments
491,400
-
15
Loans and overdrafts
2024
2023
£
£
Bank loans
743,400
579,072
Payable within one year
50,400
63,275
Payable after one year
693,000
515,797
HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15
Loans and overdrafts
(Continued)
- 24 -

Terms and security

 

Included in borrowings is £743,400 relating to a mortgage which is repayable over 15 years with an interest rate of 3% above the BMW base rate.

 

The company holds a legal charge with BMW Financial Services Ltd, dated 19/09/2024, over the freehold land and building units 1, 2 & 5 Key Point, Keys Park, Hednesford, Cannock, WS12 2FN for this mortgage.

16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
120,892
100,571
In two to five years
300,479
200,739
421,371
301,310
Less: future finance charges
(81,852)
(49,393)
339,519
251,917
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
202,299
29,064
Revaluations
100,482
57,366
Retirement benefit obligations
(828)
-
301,953
86,430
2024
Movements in the year:
£
Liability at 1 January 2024
86,430
Charge to profit or loss
172,407
Charge to other comprehensive income
43,116
Liability at 31 December 2024
301,953
HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,419
19,344

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
59,000
59,000
59
59
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares class 1 of £12500 each
0
16
-
0
200,000
Preference shares class 2 of £12500 each
0
16
-
0
200,000
0
32
-
0
400,000
Preference shares classified as equity
-
400,000
Total equity share capital
59
400,059

A subdivision of the shares took place on 21/12/2023, this changed the £1 shares into £0.001 shares, Simon Parker remained the majority shareholder after this.

 

The ordinary shares carry one vote each with full equity rights.

 

All preference shares were redeemed in the financial year.

20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
40,442
36,094
Between two and five years
64,720
53,284
105,162
89,378
HENLEY CARS LIMITED
TRADING AS CAR360
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
21
Ultimate controlling party

The ultimate controlling party is Mr S C Parker by virtue of him being the majority shareholder of the company.

22
Cash generated from operations
2024
2023
£
£
Profit after taxation
600,684
317,043
Adjustments for:
Taxation charged
203,479
84,029
Finance costs
88,785
78,693
Investment income
(4,123)
(8)
Gain on disposal of tangible fixed assets
(16)
-
Depreciation and impairment of tangible fixed assets
159,679
124,098
Movements in working capital:
Increase in stocks
(1,396,575)
(1,354,596)
Increase in debtors
(1,251,835)
(23,263)
Increase in creditors
2,704,170
1,490,081
Cash generated from operations
1,104,248
716,077
23
Analysis of changes in net funds/(debt)
1 January 2024
Cash flows
New finance leases
31 December 2024
£
£
£
£
Cash at bank and in hand
807,948
280,892
-
1,088,840
Borrowings excluding overdrafts
(579,072)
(164,328)
-
(743,400)
Obligations under finance leases
(251,917)
122,828
(210,430)
(339,519)
(23,041)
239,392
(210,430)
5,921
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