Company registration number 02389924 (England and Wales)
MCLEAN & APPLETON (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
MCLEAN & APPLETON (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr G S Williams
Mr P Bennett
Mr S Baldwin
Mr C Petty
Secretary
Mr J S Williams Jnr
Company number
02389924
Registered office
Hatfields
Thornton Road
Pickering
North Yorkshire
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
Bankers
Barclays Bank Plc
Leicester
MCLEAN & APPLETON (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group statement of financial position
12 - 13
Group statement of changes in equity
14
Group statement of cash flows
15
Notes to the group financial statements
16 - 37
Parent company statement of financial position
38
Parent company statement of changes in equity
39
Notes to the parent company financial statements
40 - 42
MCLEAN & APPLETON (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 1 -

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

Fair review of the business

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

 

             2025           2024     %

Vehicle sales        £333.8m          £347.8m     (4.0)%

Units sold         8,380          8,285     1.1%

After sales         £30.9m          £30.6m     1.0%

Service hours sold     62,489          62,076     0.7%

Gross profit margin     9.9%          10.2%     (3.5)%

Profit before tax         £10.0m          £13.6m     (26.2)%

Net profit margin         2.1%          2.7%     (23.7)%

Net assets         £56.8m          £49.6m     14.5%

 

Vehicle sales have decreased £14.0m (-4.0%) driven by a decrease in the average price of vehicles sold (-5.1%) offset slightly by an increased volume (+1.1%)

 

After sales increased during the year by £0.3m (+1.0%) driven by an increased rate (+2.4%) on increased sold hours (+0.7%).             

        

Profit before tax has decreased by £3.6m (-26.2%) driven from reduced margin on both new and used cars.

                                                

The total net assets of the group have increased by £7.2m (+14.5%) as a result of profit after tax for the year of £7.5m less an ordinary dividend of £0.3m.                        

MCLEAN & APPLETON (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 2 -
Principal risks and uncertainties

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

 

Operational risk

The Group’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 Group’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 Group’s profitability and cash flow are affected by changes in market conditions and the Group’s ability to accurately predict these in advance. In a challenging economic environment, the Group 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 Group 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 Group 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 Group 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 Group 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.

 

Information risk

The Group 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 group is funded by a bank loan and overdraft. It is 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.

MCLEAN & APPLETON (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 3 -
Statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006

 

The board of directors of McLean & Appleton (Holdings) 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
MCLEAN & APPLETON (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 4 -

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

Principal activities

The company did not trade but acts as a holding company. Its immediate subsidiary is also a holding company for undertakings principally involved in the motor trade.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £288,500. The directors do not recommend payment of a further 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 G S Williams
Mr J S Williams Snr
(Deceased 19 August 2024)
Mr P Bennett
Mr S Baldwin
Mr C Petty
Supplier payment policy

The group'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 group'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 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.

MCLEAN & APPLETON (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 5 -
Employee involvement

The group'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 group's performance.

Future developments

The directors intend that the group 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 and group will be put at a General Meeting.

Energy and carbon report
2025
2024
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
4,022,684
3,925,345
2025
2024
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
194.00
226.00
- Fuel consumed for owned transport
298.00
197.00
492.00
423.00
Scope 2 - indirect emissions
- Electricity purchased
351.00
385.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
2.00
2.00
Total gross emissions
845.00
810.00
Intensity ratio
Tonnes CO2e per £m
2.3
2.1
MCLEAN & APPLETON (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 6 -
Quantification and reporting methodology

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1st February 2024 to 31st January 2025, pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government’s Streamlined Energy and Carbon Reporting (SECR) policy.

 

Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)’, using DESNZ's 2023 and 2024 conversion factors as applicable. In some cases consumption has been extrapolated from available data or direct comparison made to a comparable period.

 

We report using a financial control approach to define our organisational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2t per turnover £m, which is commonly used in this sector.

Measures taken to improve energy efficiency

During the reporting period we have invested £5.3k in LED lighting upgrades. Our energy management programme, which includes monitoring and targeted reporting of energy consumption on a daily basis at the majority of sites, remains ongoing. Through the service provided by our energy consultants, the energy management programme we run enables us to identify and address any consumption issues as and when they arrive, allowing us to eliminate unnecessary energy waste.

The table above includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio. Turnover has been selected as our Intensity Metric, this is consistent with the majority of the motor trade sector. The Intensity Ratio is therefore calculated as total gross emissions in metric tonnes of CO2 equivalent per turnover £m.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
Mr G S Williams
Director
6 June 2025
MCLEAN & APPLETON (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2025
- 7 -

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 group financial statements in accordance with UK Adopted International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom and have also chosen to prepare the parent company financial statements in accordance with Financial Reporting Standard (FRS) 101 'Reduced Disclosure Framework'. 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 the group financial statements, International Accounting Standard 1 requires that directors:

 

In preparing the parent company 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.

MCLEAN & APPLETON (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MCLEAN & APPLETON (HOLDINGS) LIMITED
- 8 -
Opinion

We have audited the financial statements of McLean & Appleton (Holdings) Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 January 2025 which comprise the group statements of comprehensive income, the group and parent company statement of financial position, the group and parent company statement of changes in equity, the group statement of cash flows and the group and parent company notes to the financial statements, including significant accounting policies.

 

The group financial statements have been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. The financial reporting framework that has been applied in the preparation of the parent company financial statements 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:

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 group and parent 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 group's and parent 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.

MCLEAN & APPLETON (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MCLEAN & APPLETON (HOLDINGS) LIMITED
- 9 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and their 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 parent 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 parent 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;

MCLEAN & APPLETON (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MCLEAN & APPLETON (HOLDINGS) LIMITED
- 10 -

We assessed the susceptibility of the group’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.

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.

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
MCLEAN & APPLETON (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025
- 11 -
2025
2024
Notes
£'000
£'000
Revenue
4
364,993
378,616
Cost of sales
(328,922)
(339,795)
Gross profit
36,071
38,821
Other operating income
168
835
Administrative expenses
(25,494)
(25,432)
Operating profit
5
10,745
14,223
Interest income
9
174
284
Finance costs
10
(896)
(910)
Profit before taxation
10,023
13,597
Income tax expense
11
(2,521)
(3,382)
Profit and total comprehensive income for the year
7,502
10,215
Profit for the financial year is attributable to:
- Owners of the parent company
7,134
9,755
- Non-controlling interests
368
460
7,502
10,215
Total comprehensive income for the year is attributable to:
- Owners of the parent company
7,134
9,755
- Non-controlling interests
368
460
7,502
10,215

The income statement has been prepared on the basis that all operations are continuing operations.

MCLEAN & APPLETON (HOLDINGS) LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2025
31 January 2025
- 12 -
2025
2024
Notes
£'000
£'000
Non-current assets
Goodwill
13
5,549
5,599
Property, plant and equipment
14
28,254
29,257
Right-of-use assets
14
773
438
Investment property
15
933
220
Investments
16
268
308
35,777
35,822
Current assets
Inventories
18
50,358
56,776
Trade and other receivables
19
14,227
14,782
Cash and cash equivalents
11,224
15,420
75,809
86,978
Current liabilities
Trade and other payables
21
45,432
61,422
Current tax liabilities
133
1,254
Borrowings
22
1,741
2,029
Lease liabilities
23
484
243
47,790
64,948
Net current assets
28,019
22,030
Non-current liabilities
Borrowings
22
5,813
7,063
Lease liabilities
23
299
196
Deferred tax liabilities
24
849
971
6,961
8,230
Net assets
56,835
49,622
Equity
Called up share capital
26
500
500
Retained earnings
55,597
48,689
Equity attributable to owners of the parent company
56,097
49,189
Non-controlling interests
738
433
Total equity
56,835
49,622
MCLEAN & APPLETON (HOLDINGS) LIMITED
GROUP STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 JANUARY 2025
31 January 2025
- 13 -
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 02389924 (England and Wales)
MCLEAN & APPLETON (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 14 -
Share capital
Retained earnings
Total
Non-controlling interest
Total
Notes
£'000
£'000
£'000
£'000
£'000
Balance at 1 February 2023
500
47,159
47,659
83
47,742
Year ended 31 January 2024:
Profit and total comprehensive income
-
9,756
9,756
460
10,216
Transactions with owners:
Dividends
12
-
(8,226)
(8,226)
(110)
(8,336)
Balance at 31 January 2024
500
48,689
49,189
433
49,622
Year ended 31 January 2025:
Profit and total comprehensive income
-
7,134
7,134
368
7,502
Transactions with owners:
Dividends
12
-
(226)
(226)
(63)
(289)
Balance at 31 January 2025
500
55,597
56,097
738
56,835
MCLEAN & APPLETON (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2025
- 15 -
2025
2024
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
32
3,243
18,636
Interest paid
(897)
(910)
Income taxes paid
(3,764)
(2,350)
Net cash (outflow)/inflow from operating activities
(1,418)
15,376
Investing activities
Purchase of property, plant and equipment
(827)
(316)
Proceeds from disposal of property, plant and equipment
47
15
Proceeds from disposal of investments
40
-
Interest received
174
284
Net cash used in investing activities
(566)
(17)
Financing activities
Movement on borrowings
(288)
204
Repayment of bank loans
(1,250)
(1,250)
Payment of lease liabilities
(385)
(291)
Dividends paid to equity shareholders
(226)
(8,226)
Dividends paid to non-controlling interests
(63)
(210)
Net cash used in financing activities
(2,212)
(9,773)
Net (decrease)/increase in cash and cash equivalents
(4,196)
5,586
Cash and cash equivalents at beginning of year
15,420
9,834
Cash and cash equivalents at end of year
11,224
15,420
MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
- 16 -
1
Material accounting policies
Company information

McLean & Appleton (Holdings) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hatfields, Thornton Road, Pickering, North Yorkshire, England. The company's principal activities and nature of its operations are disclosed in the directors' report.

 

The group consists of McLean & Appleton (Holdings) Limited and all of its subsidiaries.

1.1
Accounting convention

The financial statements of the group have been prepared in accordance with UK adopted International Accounting Standards (UK IFRS) in conformity with the requirements of the Companies Act 2006, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention, except for the revaluation of investment properties. The principal accounting policies adopted are set out below.

The following exemptions from the requirements of IFRS have been applied in the preparation of the individual parent company's financial statements, in accordance with FRS 101:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company McLean & Appleton (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 January 2025.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Material accounting policies
(Continued)
- 17 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

 

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

 

 

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary.

 

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

1.3
Going concern

The directors have, at the time of approving the financial statements, assessed the Group’s ability to continue as a going concern. This assessment has considered the Group’s financial position, cash flow forecasts, available facilities, and its current and anticipated financial performance. true

 

Based on this review, and having made appropriate enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. Accordingly, the financial statements have been prepared on a going concern basis.

 

The directors have not identified any material uncertainties that may cast significant doubt on the Group’s ability to continue as a going concern.

1.4
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 vehicles is recognised upon delivery and customer acceptance 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 group 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.

 

Interest income, included in revenue, is recognised using the effective interest method. Interest income is measured based on the consideration specified in the contract with a customer. The group recognises interest income when (or as) it satisfies a performance obligation by providing a service to the Employee Car Ownership Scheme.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Material accounting policies
(Continued)
- 18 -
1.5
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 not subsequently reversed.

1.6
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.

 

Assets’ residual values, useful lives and methods of depreciation are reviewed and adjusted if appropriate, at each financial year end.

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:

Land and buildings
Land is not depreciated and buildings 2% straight line
Plant and equipment
20-33% on cost
Right of use assets
Straight line over the life of the lease

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying value is greater than its estimated recoverable amount.

 

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 consolidated income statement.

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.8
Non-current investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for indicators of impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the parent company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Material accounting policies
(Continued)
- 19 -
1.9
Impairment of tangible and intangible assets

At each reporting end date, the group reviews the carrying amounts of its tangible and intangible 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 group 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.

1.10
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.

1.11
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

Financial assets and financial liabilities are recognised when the group 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 group 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.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Material accounting policies
(Continued)
- 20 -

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 group’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.

 

Debt instruments measured at amortised cost

The following financial assets are classified within this category - trade receivables, other receivables and cash at bank. The Group applies the simplified approach permitted by IFRS 9 for trade receivables and contract assets, recognising lifetime expected credit losses from initial recognition. Appropriate allowances for expected credit losses (‘ECLs’) are recognised in profit or loss.

 

Financial liabilities and equity

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the group’s obligations are discharged, cancelled, or they expire.

1.13
Equity instruments

Equity instruments issued by the parent 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 payable at the discretion of the company.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Material accounting policies
(Continued)
- 21 -
1.14
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 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 group’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 and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.

1.15
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

1.17
Leases

At inception, the group 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 group 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.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Material accounting policies
(Continued)
- 22 -

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 group'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 group 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 group's estimate of the amount expected to be payable under a residual value guarantee; or the group'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 group 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.

When the group acts as a lessor, leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees, over the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains lease and non-lease components, the group applies IFRS 15 to allocate the consideration in the contract.

 

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18

Operating segments

 

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.

 

The chief operating decision maker has been identified as the directors.

 

The Board considers that the group’s activity constitutes one operating and one reporting segment, as defined under IFRS 8. Management reviews the performance of the group by reference to total results against budget.

 

The total profit measures are operating profit and profit for the period, both disclosed on the face of the Group Statement of Comprehensive Income. No differences exist between the basis of preparation of the performance measures used by management and the figures in the group financial information.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Material accounting policies
(Continued)
- 23 -
1.19

Financial risk management

The Group's activities expose it to a variety of financial risks, including the effects of changes in debt market prices and interest rates, The Board adopts an ongoing process for identifying, evaluating and managing the significant risks faced by the Group.

 

Market risk - Cash flow interest rate risk

The Group's interest rate risk arises from long-term borrowings, which are issued at a variable rate that exposes the Group to cash flow interest rate risk. The Group's borrowings are denominated in sterling.

 

The interest rate exposure of the Group is managed within the constraints of the Group's business plan and the financial covenant under its facilities.

 

Credit risk

Credit risk arises from cash and deposits with banks as well as credit exposures to customers. Individual customer risk limits are set and the utilisation of these credit limits is regularly monitored.

 

Liquidity risk

Ultimate responsibility for liquidity risk rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of the Group's short, medium and long-term funding and liquidity management requirements.

 

The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows, and matching the maturity profiles of financial assets and liabilities.

2
Adoption of new and revised standards and changes in accounting policies

At the date of authorisation of these financial statements, there are no amended standards and interpretations issued by the IASB that impact the group, as they are either not relevant to the group’s activities or require accounting which is consistent with the group’s current accounting policies.

 

3
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.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements
Transactions with group employees via ECOS

The Group is required to assess the substance of the contracts that are in place with group employees. Management judgement is required to determine whether the performance obligations have been satisfied l and whether the revenue should be recognised in the financial statements.

 

They have assessed the treatment for the recognition of the revenue with group employees and concluded that the performance oblgations are not transferred. As such, revenue has not been accounted for in the financial statements.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
3
Critical accounting estimates and judgements
(Continued)
- 24 -
Leases

The lease payments have been discounted using the incremental borrowing rate. The group 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.

Key sources of estimation uncertainty
Valuation of goodwill

When a business combination takes place, the Group 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 group 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.

 

Details of the key assumptions used for the impairment testing for the year ended 31 January 2025 are provided in note 13.

4
Revenue
2025
2024
£'000
£'000
Revenue analysed by class of business
Vehicle sales
333,773
347,765
After sales
30,941
30,568
Interest income
279
283
364,993
378,616
2025
2024
£'000
£'000
Revenue analysed by geographical market
United Kingdom
364,993
378,616
5
Operating profit
2025
2024
£'000
£'000
Operating profit for the year is stated after charging/(crediting):
Depreciation of property, plant and equipment
1,365
1,283
(Profit)/loss on disposal of property, plant and equipment
(22)
21
Loss on disposal of intangible assets
50
-
Cost of inventories recognised as an expense
326,094
337,110
MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 25 -
6
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
32
30
Audit of the financial statements of the company's subsidiaries
93
76
125
106
For other services
Tax services
22
21
Other services
13
13
Total non-audit fees
35
34
7
Employees

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

2025
2024
Number
Number
Sales
112
117
After sales
180
200
Administration
75
73
Total
367
390

Their aggregate remuneration comprised:

2025
2024
£'000
£'000
Wages and salaries
14,928
15,380
Social security costs
1,421
1,434
Pension costs
462
259
16,811
17,073
MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 26 -
8
Directors' remuneration
2025
2024
£'000
£'000
Remuneration for qualifying services
959
910
Company pension contributions to defined contribution schemes
23
13
982
923

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024 - 4).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£'000
£'000
Remuneration for qualifying services
535
513
Company pension contributions to defined contribution schemes
4
4

The Directors are also considered to be key management personnel.

9
Interest income
2025
2024
£'000
£'000
Interest income
Financial instruments measured at amortised cost:
Bank deposits
174
199
Other interest income on financial assets
-
0
85
Total interest revenue
174
284
10
Finance costs
2025
2024
£'000
£'000
Interest on bank overdrafts and loans
514
571
Interest on lease liabilities
25
10
Other interest payable
357
329
Total interest expense
896
910
MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 27 -
11
Income tax expense
2025
2024
£'000
£'000
Current tax
UK corporation tax on profits for the current period
2,643
3,336
Deferred tax
Origination and reversal of temporary differences
(122)
46
Total tax charge
2,521
3,382

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

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

2025
2024
£'000
£'000
Profit before taxation
10,023
13,598
Expected tax charge based on a corporation tax rate of 25.00% (2024: 24.03%)
2,506
3,268
Effect of expenses not deductible in determining taxable profit
116
16
Permanent capital allowances in excess of depreciation
(101)
98
Taxation charge for the year
2,521
3,382
12
Dividends
2025
2024
2025
2024
Amounts recognised as distributions to equity shareholders:
per share
per share
Total
Total
£
£
£'000
£'000
Interim dividend paid - A shares
4.35
4.35
113
113
Interim dividend paid - B shares
4.35
4.35
113
113
Interim dividend paid - C shares
-
307.69
-
8,000
Total dividends
Interim dividends paid
226
8,226
MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 28 -
13
Intangible assets
Goodwill
£'000
Cost
At 1 February 2023
9,598
At 31 January 2024
9,598
Disposals
(592)
At 31 January 2025
9,006
Amortisation and impairment
At 1 February 2023
3,999
At 31 January 2024
3,999
Eliminated on disposals
(542)
At 31 January 2025
3,457
Carrying amount
At 31 January 2025
5,549
At 31 January 2024
5,599
At 31 January 2023
5,599
MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
13
Intangible assets
(Continued)
- 29 -

Impairment tests for cash generating units containing goodwill or intangible assets with an indefinite life                        

In accordance with IAS 36, 'Impairment of Assets', the group 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

                                        £'000 £'000

Jaguar dealerships                                 -      50

Land Rover dealerships                                 220      220

Shrewsbury Land Rover dealership                        4,300      4,300

Other                                        1,029      1,029

                                     ───── ─────

                                         5,549      5,599

     ───── ─────

 

The recoverable amount of a CGU is determined based 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:

 

The Group has considered and assessed reasonably possible changes to the key assumptions. A growth rate of 3% for the 5 years remaining has been assumed, with a terminal value 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. The sensitivities do not reflect a number of mitigating actions that would be available to management in such circumstances.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 30 -
14
Property, plant and equipment
Land and buildings
Assets under construction
Plant and equipment
Right of use assets
Total
£'000
£'000
£'000
£'000
£'000
Cost
At 1 February 2023
30,571
-
0
5,269
1,293
37,133
Additions
16
-
0
300
417
733
Disposals
-
0
-
0
(507)
(1,138)
(1,645)
At 31 January 2024
30,587
-
0
5,062
572
36,221
Additions
-
0
246
581
728
1,555
Disposals
-
0
-
0
(483)
(135)
(618)
Transfer to investment property
(936)
-
0
-
0
-
0
(936)
At 31 January 2025
29,651
246
5,160
1,165
36,222
Accumulated depreciation and impairment
At 1 February 2023
2,130
-
0
3,731
991
6,852
Charge for the year
397
-
0
605
281
1,283
Eliminated on disposal
-
0
-
0
(471)
(1,138)
(1,609)
At 31 January 2024
2,527
-
0
3,865
134
6,526
Charge for the year
397
-
0
575
393
1,365
Eliminated on disposal
-
0
-
0
(458)
(135)
(593)
On assets reclassified as investment property
(103)
-
0
-
0
(103)
At 31 January 2025
2,821
-
0
3,982
392
7,195
Carrying amount
At 31 January 2025
26,830
246
1,178
773
29,027
At 31 January 2024
28,060
-
1,197
438
29,695

Included within land and buildings above is land with a value of £10.0m (2024: £10.6m) which is not depreciated.

 

Included within land and buildings above is leasehold land and building, with a net book value of £10.5m (2024: £10.7m).

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 31 -
15
Investment property
2025
2024
£'000
£'000
Fair value
At 1 February 2024
220
220
Transfers from owner-occupied property
833
-
0
At 31 January 2025
1,053
220
Accumulated depreciation
Impairment losses
120
-
At 31 January 2025
120
-
0
Carrying value
At 31 January 2025
933
220
At 31 January 2024
220
220

The historical cost of the investment property held throughout the year is £220,000.

 

Also included in investment property is a transfer from fixed assets with a historical cost of £936,450.

 

The directors have assessed the fair value of the investment properties as at the reporting date and believe that the carrying amount approximates fair value. This assessment was based on market data, recent transactions, and other relevant valuation inputs.

16
Investments
Current
Non-current
2025
2024
2025
2024
£'000
£'000
£'000
£'000
Other investments
-
-
268
308
MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
16
Investments
(Continued)
- 32 -

Fair value hierarchy for investments                                

                                         2025     2024    

                                     £'000     £'000

Basis of valuation                            

Level 1 - Quoted prices                                   - -

Level 2 - Observable market data                               268      308

Level 3 - Unobservable data                               - -

 

The intention of a fair value measurement is to estimate the price at which an asset or liability could be exchanged in the market conditions prevailing at the measurement date. The measurement assumes the exchange is an orderly transaction (that is, it is not a forced transaction, involuntary liquidation or distress sale) between knowledgeable, willing participants on an independent basis.                                        

The purpose of the fair value hierarchy is to prioritise the inputs that should be used to measure the fair value of assets and liabilities. The highest priority is given to quoted prices at which a transaction can be entered into and the lowest priority to unobservable inputs.                                    

In accordance with IFRS, the group classifies fair value measurement under the following levels:-                                             

Level 1 - Unadjusted quoted price in an active market for an identical instrument.             

Level 2 - Valuation techniques using observable inputs other than quoted prices within level 1.     

Level 3 - Valuation techniques using unobservable inputs.    

17
Subsidiaries

Details of the company's subsidiaries at 31 January 2025 are as follows:

Name of undertaking
Registered office
Principal activities
Class of
% Held
shares held
Direct
Indirect
Ernest W Hatfield Limited
See below
Dormant
Ordinary
0
100.00
Halifax Garages Limited
See below
Dormant
Ordinary
0
100.00
Hatfields Garages Limited
See below
Garage proprietors
Ordinary
0
100.00
McLean & Appleton Limited
See below
Management and investment holding company
Ordinary
100.00
-
Nationwide Motor Contracts Limited
See below
Operation of an employee car ownership scheme
Ordinary
0
100.00
Warrington Garages Limited
See below
Garage proprietors
Ordinary
0
99.95

All of the subsidiaries have the same registered office being Hatfields, Thornton Road, Pickering, North Yorkshire.

 

Halifax Garages Limited was dissolved on 15 April 2025.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 33 -
18
Inventories
2025
2024
£'000
£'000
New vehicle stock
25,849
30,137
Used, demonstrator and courtesy cars
23,231
25,026
Parts and sundry stock
1,278
1,613
50,358
56,776

A corresponding liability amounting to £38,483k (2024: £45,344k) 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 £392k (2024: £404k).

19
Trade and other receivables
2025
2024
£'000
£'000
Trade receivables
9,433
10,214
VAT recoverable
600
293
Other receivables
3,131
3,131
Prepayments
1,063
1,144
14,227
14,782

2.4% (2024: 1.1%) of trade receivables relate to balances held >90 days. This excludes balances owed from employees relating to the Employee Car Ownership Scheme.

 

20
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

The company applies the simplified approach under IFRS 9 to measure expected credit losses (ECLs) on trade receivables, using a lifetime ECL basis.

 

At the reporting date, the company assessed the ECLs based on historical default rates, the aging of balances, and forward-looking information.

 

The majority of trade receivables are current and relate to long-standing customers with a history of timely payments. Based on this assessment, the company concluded that the expected credit losses on trade receivables are not material and therefore no loss allowance has been recognised.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 34 -
21
Trade and other payables
2025
2024
£'000
£'000
Trade payables
42,382
49,021
Amounts owed to participating interests
-
0
8,000
Accruals
1,719
2,165
Social security and other taxation
1,331
2,236
45,432
61,422
22
Borrowings
Current
Non-current
2025
2024
2025
2024
£'000
£'000
£'000
£'000
Borrowings held at amortised cost:
Bank loans
1,250
1,250
5,813
7,063
Other loans
491
779
-
-
1,741
2,029
5,813
7,063
2025
2024
£'000
£'000
Secured borrowings included above:
Bank loans
7,063
8,313
Other loans
491
779
7,554
9,092

Analysis of borrowings

All bank loans are secured by unscheduled mortgage debentures incorporating a fixed and floating charge over all current and future assets of the group. The bank also holds a first legal charge over a number of the company's properties.

 

Bank loans are repayable in quarterly instalments with final payment in 2027. Interest is charged on a floating rate basis, under which the interest rate will never be less than 1.45%.

 

Other loans are non-interest bearing and have no fixed repayment terms. These loans are recognised initially at fair value, which is determined by discounting expected future cash flows using a market rate of interest. Subsequently, they are measured at amortised cost using the effective interest method. Where there is no expectation of repayment, the loans are classified as equity.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 35 -
23
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
£'000
£'000
Current liabilities
484
243
Non-current liabilities
299
196
783
439
2025
2024
Amounts recognised in profit or loss include the following:
£'000
£'000
Interest on lease liabilities
25
10
24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and prior reporting period.

ACAs
£'000
Liability at 1 February 2023
925
Deferred tax movements in prior year
Charge/(credit) to profit or loss
46
Liability at 1 February 2024
971
Deferred tax movements in current year
Charge/(credit) to profit or loss
(122)
Liability at 31 January 2025
849
25
Retirement benefit schemes
2025
2024
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
462
259

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

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 36 -
26
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£'000
£'000
Authorised
Ordinary shares of £1 each
344
344
344
344
A-F Ordinary shares of £1 each
156
156
156
156
500
500
500
500
Issued and fully paid
Ordinary shares of £1 each
344
344
344
344
A-F Ordinary shares of £1 each
156
156
156
156
500
500
500
500

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

27
Financial instruments
2025
2024
£'000
£'000
Carrying amount of financial assets
Debt instruments measured at amortised cost
51,950
51,337
Equity instruments measured at cost less impairment
-
-
Instruments measured at fair value through profit or loss
268
308
Carrying amount of financial liabilities
Measured at amortised cost
80,601
91,289
28
Capital risk management

The Group’s capital resources consist of share capital, bank and other loans, and cash and cash equivalents. The Group manages its capital to ensure that it will be able to continue as a going concern and to maximise profitability. This is actively management by the Directors.

MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 37 -
29
Related party transactions

Rent was paid to JSW A&M Settlement (21/11/97) of £180k. At the year end a balance of £83k was owed to the trust (2024: £164k).

 

The group owes amounts to the directors and their family members. At the year end these balances totaled £0.4m (2024: £0.6m). During the year, dividends amounting to £226k were paid (2024: £226k) to a director and his wife.

 

At the year end amounts were owed to companies controlled by the directors and their family members of £3.1m (2024: £3.1m). No interest is payable on the loans which are repayable on demand. A dividend of £nil (2024: £8m) was declared, of which £nil (2024: £nil) was paid.

 

During the year, immediate family members of directors received employee benefits of £160k (2024: £164k).

 

During the year, a group company declared a dividend of £63k (2024: £110k) to key management personnel.

 

During the year, key management personnel excluding directors were remunerated £94k (2024: £93k).

30
Controlling party - group

The ultimate controlling party of the group is Mr G S Williams.

31
Controlling party - company

The ultimate controlling party of the company is Mr G S Williams.

32
Cash generated from operations
2025
2024
£'000
£'000
Profit for the year before income tax
10,023
13,598
Adjustments for:
Finance costs
897
910
Investment income
(174)
(284)
(Gain)/loss on disposal of property, plant and equipment
(22)
21
Loss on disposal of intangibles
50
-
Depreciation and impairment of property, plant and equipment
1,365
1,283
Impairment of investments
-
10
Impairment of investment properties
120
-
0
Movements in working capital:
Decrease/(increase) in inventories
6,418
(12,497)
Decrease in trade and other receivables
555
352
(Decrease)/increase in trade and other payables
(15,989)
15,243
Cash generated from operations
3,243
18,636
MCLEAN & APPLETON (HOLDINGS) LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2025
31 January 2025
- 38 -
2025
2024
Notes
£'000
£'000
£'000
£'000
Non-current assets
Investments
35
550
550
Current assets
Trade and other receivables
36
4,663
12,663
Current liabilities
37
-
(8,000)
Net current assets
4,663
4,663
Total assets less current liabilities
5,213
5,213
Equity
Called up share capital
39
500
500
Retained earnings
4,713
4,713
Total equity
5,213
5,213

As permitted by trues408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £226k (2024: £8,226k).

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:
06 June 2025
Mr G S Williams
Director
Company registration number 02389924 (England and Wales)
MCLEAN & APPLETON (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 39 -
Share capital
Retained earnings
Total
£'000
£'000
£'000
Balance at 1 February 2023
500
4,713
5,213
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
8,226
8,226
Dividends
-
(8,226)
(8,226)
Balance at 31 January 2024
500
4,713
5,213
Year ended 31 January 2025:
Profit and total comprehensive income for the year
-
226
226
Dividends
-
(226)
(226)
Balance at 31 January 2025
500
4,713
5,213
MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
- 40 -
33
Accounting policies
Company information

McLean & Appleton (Holdings) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hatfields, Thornton Road, Pickering, North Yorkshire, England. The company's principal activities and nature of its operations are disclosed in the directors' report.

33.1
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 company applies accounting policies consistent with those applied by the group. To the extent that an accounting policy is relevant to both group and parent company financial statements, please refer to the group financial statements for disclosure of the relevant accounting policy.

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

            •Certain disclosures required by IFRS 13 Fair Value Measurement and the disclosures required by
              IFRS 7 Financial Instrument Disclosure.
33.2
Going concern

The directors have at the time of approving the financial statements, 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.

34
Employees

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

2025
2024
Number
Number
Administration
5
5
MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 41 -
35
Investments
Current
Non-current
2025
2024
2025
2024
£'000
£'000
£'000
£'000
Investments in subsidiaries
-
0
-
0
550
550
Fair value of financial assets carried at amortised cost

Except as detailed below the directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Investment in subsidiary undertakings

Details of the company's principal operating subsidiaries are included in note 17.

Movements in non-current investments
Shares in subsidiaries
£'000
Cost or valuation
At 1 February 2024 & 31 January 2025
550
Carrying amount
At 31 January 2025
550
At 31 January 2024
550
36
Trade and other receivables
2025
2024
£'000
£'000
Amounts owed by subsidiary
4,663
12,663
37
Liabilities
2025
2024
Notes
£
£
Trade and other payables
38
-
8,000
38
Trade and other payables
2025
2024
£
£
Amounts owed to participating interests
-
0
8,000
MCLEAN & APPLETON (HOLDINGS) LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 42 -
39
Share capital
Refer to note 26 of the group financial statements.
40
Related party transactions

During the year, McLean & Appleton (Holdings) Limited received dividends of £226k (2024: £8,226k) from companies within the group. At the year end they were owed £4,663k (2024: £12,663k) from a subsidiary.

 

During the year, dividends amounting to £226k were paid (2024: £226k) to a director and his wife.

A dividend of £nil (2024: £8m) was also declared, of which £nil (2024: £nil) was paid, to companies controlled by the directors and their family members.

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