WARRINGTON GARAGES LIMITED
COMPANY INFORMATION
Directors
Mr G S Williams
Mr P Bennett
Secretary
Mr J S Williams Jnr
Company number
01983517
Registered office
Hatfields
Thornton Road
Pickering
North Yorkshire
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
Bankers
Barclays Bank Plc
Leicester
WARRINGTON GARAGES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
WARRINGTON GARAGES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025

The directors present the strategic report for the year ended 31 January 2025.

Review of the business

The key financial and other performance indicators during the year were as follows:

 

2025         2024      %         Movement

 

Vehicle sales £333.7m £347.8m (4.1)% £(14.1m)

Units sold        8,336     8,285         0.6%         51

After sales     £31.0m     £30.6m     1.5%         £0.4m

Service hours sold 62,489      62,076         0.7%         413

Gross profit margin     9.8%     10.2%     (4.1)%         (0.4)%

Profit before tax     £9.8m     £12.2m     (19.2)%         £(2.4m)

Net profit margin         2.7%     3.2%     (16.2)%         (0.5)%

Net assets     £28.6m     £28.8m     (0.7)%         £(0.2m)

 

 

Vehicle sales decreased by £14.1m (-4.1%) driven by a decrease in the average price of vehicles sold (-4.6%) offset slightly by an increased volume (+0.6%).

After sales increased during the year by £444k (+1.5%) driven by an increased rate (+2.4%) and increased hours sold (+0.7%).    

Profit before tax has decreased by £2.4m (-19.2%) driven by reduced margins on both new and used cars.

The total net assets of the company have decreased by £0.2m (-0.7%) as a result of profit after tax for the year of £7.4m less a dividend of £7.6m.                

Principal risks and uncertainties

The principal risks and uncertainties facing the company are as follows:

 

Operational risk

The company’s ability to supply quality vehicles at the right price for sale to the public is largely reliant on the vehicle manufacturers. Any failure in the supply chain would present a risk to the company’s ability to meet customer requirements and financial goals. Risk is managed through regular and proactive dialogue with suppliers to ensure customer demand is met through reliable delivery of vehicles and associated products.

 

Market and strategic risks

The company’s profitability and cash flow are affected by changes in market conditions and the company’s ability to accurately predict these in advance. In a challenging economic environment, the company places increasing emphasis on the careful management of used vehicle activity, both in terms of ensuring appropriate stock levels and values attributed to used and traded vehicles. This provides the company with protection against any shortfall in new vehicle demand.

 

Competitive risk

The market place continues to be competitive but the business is well placed to benefit from its leading reputation in the regions in which it operates. The company aims to mitigate the risk by ensuring it offers competitively priced products and delivers a high standard of service to all its customers.

 

Regulatory compliance risk

The company is subject to regulatory compliance risk being failure to comply with laws, regulations and codes set by the Health and Safety Executive, Financial Conduct Authority and local authorities. Non-compliance could lead to fines, public reprimand or the suspension from selling general insurance and consumer credit products.

 

Management risk

The company is dependent on the members of its senior management team and the loss of such individuals could have an adverse effect on the business. Furthermore, failure to attract, develop and retain staff of a sufficient calibre could affect the ability of the business to grow.

- 1 -
WARRINGTON GARAGES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025

Information risk

The company is dependent on the continuous operation of its information technology and computer systems which are vulnerable to damage, failure and sabotage. Whilst safeguards, such as insurance, anti-virus software and employee awareness, are in place such a disaster could have a detrimental effect on the business.

 

Financial risk

The company is funded by retained profits. It is not therefore exposed to the level and types of borrowing that in the event of anticipated interest rate rises, would significantly affect the stability of the business nor is it subject to the risks of extending unacceptable amounts of credit to customers.

Promoting the success of the company

 

The board of directors of Warrington Garages Limited consider that they have acted in a way that they consider would be most likely to promote the success of the company for the benefit of its members as a whole in the decisions taken. During the year ended 31 January 2025, key decisions taken by the board included:

 

On behalf of the board

Mr G S Williams
Director
6 June 2025
- 2 -
WARRINGTON GARAGES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2025

The directors present their annual report and financial statements for the year ended 31 January 2025.

Principal activities

The principal activity of the company is that of garage proprietors.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £7,562,500. 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 J S Williams Snr
(Deceased 19 August 2024)
Mr G S Williams
Mr P Bennett
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

As a business we do not have standard payment terms for qualifying contracts. The most frequently used payment terms for purchase ledger are 30 days from the end of the month of the invoice date.

 

For vehicle purchases the most frequently used terms are those with the vehicle manufacturer. For new vehicle purchases this is 1 year from date of adoption unless the vehicle is registered within the year at which point the registration date would be the due date. For used vehicle purchases payment is due immediately. Vehicle payments to the manufacturer are taken automatically by direct debit therefore payment dates are controlled by the supplier.

 

The business does not have a formal dispute resolution process for qualifying contracts. Any complaint or concern will be considered by the accounts department at each dealership and escalated to the dealership Head of Business or Head Office as appropriate. We strive to resolve any dispute amicably and as quickly as possible.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company's continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

- 3 -
WARRINGTON GARAGES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information of 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 group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Future developments

The directors intend that the company continues to evaluate each opportunity to grow the business. The geographical location being the logical driver.

Auditor

In accordance with the company's articles, a resolution proposing that Barlow Andrews LLP be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

This company is a qualifying entity for the purposes of FRS 101, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company. The company has therefore taken advantage of exemptions from the disclosure requirements relating to energy and carbon reporting.

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.

On behalf of the board
Mr G S Williams
Director
6 June 2025
- 4 -
WARRINGTON GARAGES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2025

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.

- 5 -
WARRINGTON GARAGES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WARRINGTON GARAGES LIMITED
Opinion

We have audited the financial statements of Warrington Garages Limited (the 'company') for the year ended 31 January 2025 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, 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 101 ‘Reduced Disclosure Framework’ (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:

- 6 -
WARRINGTON GARAGES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WARRINGTON GARAGES LIMITED (CONTINUED)
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- 7 -
WARRINGTON GARAGES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WARRINGTON GARAGES LIMITED (CONTINUED)

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.

Emma Woods (Senior Statutory Auditor)
For and on behalf of Barlow Andrews LLP, Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
6 June 2025
- 8 -
WARRINGTON GARAGES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025
2025
2024
Notes
£
£
Revenue
3
364,673,294
378,333,419
Cost of sales
(328,987,005)
(339,724,424)
Gross profit
35,686,289
38,608,995
Administrative expenses
(24,024,505)
(24,539,624)
Other operating income
37,002
33,882
Operating profit
4
11,698,786
14,103,253
Investment income
7
-
84,569
Finance costs
8
(1,913,930)
(2,027,119)
Profit before taxation
9,784,856
12,160,703
Tax on profit
9
(2,420,303)
(2,951,666)
Profit and total comprehensive income for the financial year
7,364,553
9,209,037
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
- 9 -
WARRINGTON GARAGES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2025
31 January 2025
2025
2024
Notes
£
£
£
£
Non-current assets
Intangible assets - goodwill
11
4,520,000
4,570,000
Property, plant and equipment
12
1,325,575
1,045,001
Right-of-use assets
12
-
0
438,696
5,845,575
6,053,697
Current assets
Inventories
13
48,842,150
56,775,719
Trade and other receivables
14
7,513,205
5,425,341
Cash and cash equivalents
35,636,189
34,144,100
91,991,544
96,345,160
Current liabilities
15
(69,112,848)
(73,389,030)
Net current assets
22,878,696
22,956,130
Total assets less current liabilities
28,724,271
29,009,827
Non-current liabilities
15
(107,997)
(195,606)
Net assets
28,616,274
28,814,221
Equity
Called up share capital
20
100,050
100,050
Share premium account
21
10,950
10,950
Retained earnings
28,505,274
28,703,221
Total equity
28,616,274
28,814,221
The financial statements were approved by the board of directors and authorised for issue on 6 June 2025 and are signed on its behalf by:
Mr G S Williams
Director
Company registration number 01983517 (England and Wales)
- 10 -
WARRINGTON GARAGES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
Share capital
Share premium account
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 February 2023
100,050
10,950
27,104,184
27,215,184
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
9,209,037
9,209,037
Transactions with owners:
Dividends
10
-
-
(7,610,000)
(7,610,000)
Balance at 31 January 2024
100,050
10,950
28,703,221
28,814,221
Year ended 31 January 2025:
Profit and total comprehensive income
-
-
7,364,553
7,364,553
Transactions with owners:
Dividends
10
-
-
(7,562,500)
(7,562,500)
Balance at 31 January 2025
100,050
10,950
28,505,274
28,616,274
- 11 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
Company information

Warrington Garages Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hatfields, Thornton Road, Pickering, North Yorkshire.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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 on the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The following exemptions from the requirements of IFRS have been applied in the preparation of these financial statements, in accordance with FRS 101:

 

 

As the consolidated financial statements of the ultimate parent undertaking include the equivalent disclosures, the Company has also taken the exemptions under FRS 101 available in respect of the following disclosures:

 

Warrington Garages Limited is under the control of McLean & Appleton Limited which is under the ultimate control of McLean & Appleton (Holdings) Limited. The results of Warrington Garages Limited are included in the consolidated financial statements of McLean & Appleton (Holdings) Limited which are available from their registered office, Hatfields, Thornton Road, Pickering, North Yorkshire.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany 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.

- 12 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and from services is recognised when the service has been completed. For both goods and services recognition of revenue also required that the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is when the vehicle is transferred to the customer.

 

Revenue from service contracts is recognised at a fixed price once the service has been provided.

 

1.4
Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is subsequently reversed if, and only if, the reasons for the impairment loss have ceased to apply.

1.5
Property, plant and equipment

Property, plant and equipment 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:

Plant and machinery
20-33% on cost
Right of use asset
Straight line over the term of the lease

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 recognised in the statement of comprehensive income.

1.6
Impairment of tangible and intangible assets

At each reporting 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.

- 13 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)

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.

1.7
Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is calculated net of incentives received from manufacturers.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Provision is made where necessary for obsolete, slow moving and defective inventory.

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.9
Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially recognised at their fair value plus directly attributable transaction costs for all financial assets or financial liabilities not classified at fair value through profit or loss.

 

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when the company has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

 

Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or when the entity transfers the financial asset and the transfer qualifies for derecognition. Financial liabilities are derecognised when they are extinguished. This occurs when the obligation specified in the contract is discharged, cancelled or expires.

Classification of financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value.

 

Debt instruments that meet the following conditions are subsequently measured at amortised cost:

 

The business model

An assessment of business models for managing financial assets is fundamental to the classification of a financial asset. The company determines the business models at a level that reflects how the group of financial assets are managed together to achieve a particular business objective.

 

The company’s business model does not depend on management’s intentions for an individual instrument, therefore the business model assessment is performed at a higher level of aggregation rather than on an instrument-by-instrument basis.

- 14 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)

Debt instruments measured at amortised cost

The following financial assets are classified within this category - other receivables and cash at bank. Appropriate allowances for expected credit losses (‘ECLs’) are recognised in profit or loss.

 

Interest income is recognised using the effective interest method and is included in the line item ‘Investment income’.

 

Financial liabilities and equity

1.10
Equity instruments

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

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences. Such liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.13
Retirement benefits

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

- 15 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
1.14
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

- 16 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
2
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements
Valuation of goodwill

When a business combination takes place, the company is required to assess whether there are any additional intangible assets arising separately from goodwill. Management judgement is required to determine whether an intangible asset can be separately identified, what fair value should be ascribed to the asset and its attributable useful life.

 

The company tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy. The recoverable amounts of cash generating units have been determined based on value in use calculations. These calculations require the use of estimates.

Interest rate on leased assets

The lease payments have been discounted using the incremental borrowing rate. The company has used rates of 2% for property leases and 5% for motor vehicle leases. These are the rates that management have assessed to be secured if funds were borrowed for assets of a similar nature with similar terms, security and conditions.

 

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option. Extension and termination options are only included in the lease term if the lease is reasonably certain to be extended or not terminated.

3
Revenue

An analysis of the company's revenue is as follows:

2025
2024
£
£
Revenue analysed by class of business
Garage proprietors
364,673,294
378,333,419
2025
2024
£
£
Revenue analysed by geographical market
United Kingdom
364,673,294
378,333,419
- 17 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of property, plant and equipment
780,813
828,181
(Profit)/loss on disposal of property, plant and equipment
(22,322)
21,042
Loss on disposal of intangible assets
50,000
-
Cost of inventories recognised as an expense
326,158,928
337,113,268
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
65,000
57,000
6
Employees

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

2025
2024
Number
Number
Sales
111
117
After sales
180
200
Administration
53
53
Total
344
370

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
13,264,762
13,747,302
Social security costs
1,220,850
1,246,010
Pension costs
230,692
233,199
14,716,304
15,226,511
7
Investment income
2025
2024
£
£
Interest income
Other interest income
-
0
84,569
- 18 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
8
Finance costs
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
12,404
9,899
Interest on other loans
1,901,526
2,017,220
1,913,930
2,027,119
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
2,420,303
2,951,666

The rate of corporation tax increased from 19% to 25% from 1 April 2023.

The charge for the year can be reconciled to the profit per the income statement as follows:

2025
2024
£
£
Profit before taxation
9,784,856
12,160,703
Expected tax charge based on a corporation tax rate of 25.00% (2024: 24.03%)
2,446,214
2,922,234
Effect of expenses not deductible in determining taxable profit
8,224
2,745
Permanent capital allowances in excess of depreciation
(34,135)
26,687
Taxation charge for the year
2,420,303
2,951,666
10
Dividends
2025
2024
2025
2024
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
A Ordinary shares
Final dividend paid
75.00
75.00
7,500,000
7,500,000
B Ordinary shares
Final dividend paid
1,250.00
2,200.00
62,500
110,000
Total dividends
Final dividends paid
7,562,500
7,610,000
- 19 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
11
Intangible fixed assets
Goodwill
£
Cost
At 31 January 2024
5,894,957
Disposals
(592,000)
At 31 January 2025
5,302,957
Amortisation and impairment
At 31 January 2024
1,324,957
Eliminated on disposals
(542,000)
At 31 January 2025
782,957
Carrying amount
At 31 January 2025
4,520,000
At 31 January 2024
4,570,000
Impairment tests for cash generating units

In accordance with IAS 36, 'Impairment of Assets', the company tests goodwill for impairment annually.

 

For the purposes of impairment testing of goodwill and other indefinite life assets, the directors recognise the Group's Cash Generating Units ("CGU"s) to be connected groupings of dealerships acquired together.

2025
2024
£
£
Jaguar dealerships
-
50,000
Land Rover dealerships
220,000
220,000
Shrewsbury Land Rover dealership
4,300,000
4,300,000

The recoverable amount of a CGU is determined based on on value-in-use calculations. These calculations use post-tax cash flow projections in perpetuity.

 

The key assumptions for the value in use calculations are those regarding the discount rates, growth rates and expected changes to gross profits and direct costs during the year:

 

An annual growth rate of 3% is assumed for the first 5 years, then a terminal value is applied. A risk adjusted post-tax discount rate reflecting the group's Weighted Average Cost of Capital ("WACC") of 13.3% (2024: 13.8%) is applied. A post-tax WACC of 34% has to be applied before any impairment arises. A negative growth rate of 21% has to be applied before any impairment arises.

- 20 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
12
Property, plant and equipment
Plant and machinery
Right of use asset
Total
£
£
£
Cost
At 1 February 2024
4,775,609
572,404
5,348,013
Additions
549,760
97,186
646,946
Disposals
(424,768)
(135,011)
(559,779)
At 31 January 2025
4,900,601
534,579
5,435,180
Accumulated depreciation and impairment
At 1 February 2024
3,730,608
133,708
3,864,316
Charge for the year
516,614
264,199
780,813
Eliminated on disposal
(400,513)
(135,011)
(535,524)
At 31 January 2025
3,846,709
262,896
4,109,605
Carrying amount
At 31 January 2025
1,053,892
271,683
1,325,575
At 31 January 2024
1,045,001
438,696
1,483,697
13
Inventories
2025
2024
£
£
New vehicle stock
25,142,467
30,136,736
Used, demonstrator and courtesy cars
22,421,974
25,026,266
Parts and sundry stock
1,277,709
1,612,717
48,842,150
56,775,719

A corresponding liability amounting to £37,409,862 (2024: £45,344,294) is held in trade payables in respect of vehicle stocks invoiced not yet paid.

 

Inventories are stated after unrealised provisions for impairment at 31 January 2025 of £391,615 (2024: £404,275).

14
Trade and other receivables
2025
2024
£
£
Trade receivables
5,646,105
4,600,337
Amounts owed by fellow group undertakings
1,069,349
-
0
Prepayments and accrued income
797,751
825,004
7,513,205
5,425,341
- 21 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
14
Trade and other receivables
(Continued)

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

 

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

The company has reviewed trade receivables and does not consider there to be any expected credit losses that need to be accounted for.

15
Liabilities
Current
Non-current
2025
2024
2025
2024
Notes
£
£
£
£
Trade and other payables
17
67,579,687
69,991,311
-
0
-
0
Corporation tax
93,911
976,259
-
-
Other taxation and social security
1,269,700
2,178,001
-
-
Lease liabilities
18
169,550
243,459
107,997
195,606
69,112,848
73,389,030
107,997
195,606
16
Fair value of financial liabilities

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

17
Trade and other payables
2025
2024
£
£
Trade payables
40,995,311
48,810,154
Amounts owed to fellow group undertakings
25,299,918
19,256,700
Accruals and deferred income
1,284,458
1,924,457
67,579,687
69,991,311

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

- 22 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
18
Lease liabilities

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2025
2024
£
£
Current liabilities
169,550
243,459
Non-current liabilities
107,997
195,606
277,547
439,065
2025
2024
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
12,404
9,899

The total cash outflow during the year in relation to lease liabilities was £271,107 (2024: £301,021).

19
Retirement benefit schemes
Defined contribution schemes

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.

The charge to profit and loss in respect of defined contribution schemes was £230,692 (2024 - £233,199).

20
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
100,000
100,000
100,000
100,000
B Ordinary shares of £1 each
50
50
50
50
100,050
100,050
100,050
100,050

The holders of A Ordinary and B Ordinary shares are entitled to receive dividends and are entitled to one vote per share at meetings of the Company. All A Ordinary and B Ordinary shares rank equally with regard to the Company's residual assets.

21
Share premium account
2025
2024
£
£
At the beginning and end of the year
10,950
10,950
- 23 -
WARRINGTON GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
22
Contingent liabilities

The company is party to composite guarantees given to its bankers in respect of overdrafts and loans granted to its parent company and fellow subsidiaries. The maximum involved under these guarantees at 31 January 2025 was £31.5m (2024: £27.0m).

 

The company is also party to composite guarantees in respect of the directors' and other loan accounts included within McLean & Appleton Limited. The maximum involved under these guarantees at 31 January 2025 was £0.5m (2024: £0.8m).

23
Related party transactions

During the year, dividends of £62,500 (2024: £110,000) were declared to key management personnel via their ownership of the ordinary B shares.

24
Controlling party

The company's immediate parent is McLean & Appleton Limited.

 

Its ultimate parent undertaking is McLean & Appleton (Holdings) Limited and it is under the ultimate control of Mr G S Williams.

 

The company is included in the consolidated accounts of McLean & Appleton (Holdings) Limited which are available from its registered office, Hatfields, Thornton Road, Pickering, North Yorkshire.

- 24 -
2025-01-312024-02-01Mr J S Williams SnrMr G S WilliamsMr P BennettMr J S Williams JnrtruefalseCCH SoftwareiXBRL Review & Tag 2024.2019835172024-02-012025-01-3101983517bus:Director22024-02-012025-01-3101983517bus:Director32024-02-012025-01-3101983517bus:CompanySecretary12024-02-012025-01-3101983517bus:Director12024-02-012025-01-3101983517bus:RegisteredOffice2024-02-012025-01-3101983517bus:Agent12024-02-012025-01-31019835172025-01-31019835172023-02-012024-01-3101983517core:ContinuingOperations2024-02-012025-01-3101983517core:RetainedEarningsAccumulatedLosses2024-02-012025-01-3101983517core:RetainedEarningsAccumulatedLosses2023-02-012024-01-3101983517core:Goodwillcore:ContinuingOperations2025-01-3101983517core:Goodwillcore:ContinuingOperations2024-01-3101983517core:PlantMachinery2024-01-3101983517core:PlantMachinery2025-01-3101983517core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2025-01-3101983517core:ContinuingOperations2025-01-3101983517core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-01-31019835172024-01-3101983517core:BetweenOneFiveYears2024-01-3101983517core:CurrentFinancialInstruments2025-01-3101983517core:CurrentFinancialInstruments2024-01-3101983517core:Non-currentFinancialInstruments2025-01-3101983517core:Non-currentFinancialInstruments2024-01-3101983517core:ShareCapital2025-01-3101983517core:ShareCapital2024-01-3101983517core:SharePremium2025-01-3101983517core:SharePremium2024-01-3101983517core:RetainedEarningsAccumulatedLosses2025-01-3101983517core:RetainedEarningsAccumulatedLosses2024-01-3101983517core:SharePremium2023-01-3101983517core:RetainedEarningsAccumulatedLosses2023-01-3101983517core:ShareCapitalOrdinaryShares2025-01-3101983517core:ShareCapitalOrdinaryShares2024-01-3101983517core:Held-to-maturityFinancialAssets2024-02-012025-01-3101983517core:LoansReceivables2024-02-012025-01-3101983517core:Goodwill2024-01-3101983517core:Goodwill2025-01-3101983517core:Goodwill2024-02-012025-01-3101983517core:Goodwill2024-01-3101983517core:PlantMachinery2024-01-3101983517core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-01-31019835172024-01-3101983517core:PlantMachinery2024-02-012025-01-3101983517core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-02-012025-01-3101983517core:CurrentFinancialInstrumentscore:WithinOneYear2025-01-3101983517core:CurrentFinancialInstrumentscore:WithinOneYear2024-01-3101983517core:Non-currentFinancialInstrumentscore:AfterOneYear2025-01-3101983517core:Non-currentFinancialInstrumentscore:AfterOneYear2024-01-3101983517bus:PrivateLimitedCompanyLtd2024-02-012025-01-3101983517bus:FRS1012024-02-012025-01-3101983517bus:Audited2024-02-012025-01-3101983517bus:FullAccounts2024-02-012025-01-31xbrli:purexbrli:sharesiso4217:GBP