Brent Cars Limited 04794864 false 2023-10-01 2024-09-30 2024-09-30 The principal activity of the company is that of a second hand vehicle retailer. Digita Accounts Production Advanced 6.30.9574.0 true true true Class 1 Class 2 Class 3 true false false false 04794864 2023-10-01 2024-09-30 04794864 2024-09-30 04794864 bus:OrdinaryShareClass1 2024-09-30 04794864 bus:OrdinaryShareClass1 bus:CumulativeShares 2024-09-30 04794864 bus:OrdinaryShareClass2 2024-09-30 04794864 bus:PreferenceShareClass1 bus:Non-cumulativeNon-redeemableShares 2024-09-30 04794864 bus:Consolidated 2024-09-30 04794864 core:AcceleratedTaxDepreciationDeferredTax 2024-09-30 04794864 core:TaxLossesCarry-forwardsDeferredTax 2024-09-30 04794864 core:CapitalRedemptionReserve 2024-09-30 04794864 core:RetainedEarningsAccumulatedLosses 2024-09-30 04794864 core:ShareCapital 2024-09-30 04794864 core:SharePremium 2024-09-30 04794864 core:CurrentFinancialInstruments 2024-09-30 04794864 core:CurrentFinancialInstruments core:WithinOneYear 2024-09-30 04794864 core:CurrentFinancialInstruments core:WithinOneYear 2 2024-09-30 04794864 core:CurrentFinancialInstruments core:Unsecured 2024-09-30 04794864 core:Non-currentFinancialInstruments 2024-09-30 04794864 core:Non-currentFinancialInstruments core:AfterOneYear 2024-09-30 04794864 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-09-30 04794864 core:Goodwill 2024-09-30 04794864 core:Goodwill 1 2024-09-30 04794864 core:PatentsTrademarksLicencesConcessionsSimilar 2024-09-30 04794864 core:BetweenTwoFiveYears 2024-09-30 04794864 core:MoreThanFiveYears 2024-09-30 04794864 core:WithinOneYear 2024-09-30 04794864 core:LandBuildings 2024-09-30 04794864 core:LandBuildings core:LongLeaseholdAssets 2024-09-30 04794864 core:LandBuildings core:OwnedOrFreeholdAssets 2024-09-30 04794864 core:LandBuildings core:ShortLeaseholdAssets 2024-09-30 04794864 core:MotorVehicles 2024-09-30 04794864 core:PlantMachinery 2024-09-30 04794864 core:AllJointVentures 2024-09-30 04794864 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2024-09-30 04794864 core:OtherRelatedParties 2024-09-30 04794864 1 2024-09-30 04794864 bus:FRS102 2023-10-01 2024-09-30 04794864 bus:Audited 2023-10-01 2024-09-30 04794864 bus:FullAccounts 2023-10-01 2024-09-30 04794864 bus:RegisteredOffice 2023-10-01 2024-09-30 04794864 bus:Director1 2023-10-01 2024-09-30 04794864 bus:Director2 2023-10-01 2024-09-30 04794864 bus:Director3 2023-10-01 2024-09-30 04794864 bus:Director4 2023-10-01 2024-09-30 04794864 bus:OrdinaryShareClass1 2023-10-01 2024-09-30 04794864 bus:OrdinaryShareClass1 bus:CumulativeShares 2023-10-01 2024-09-30 04794864 bus:OrdinaryShareClass1 bus:OtherShareType 2023-10-01 2024-09-30 04794864 bus:OrdinaryShareClass2 2023-10-01 2024-09-30 04794864 bus:PreferenceShareClass1 bus:Non-cumulativeNon-redeemableShares 2023-10-01 2024-09-30 04794864 bus:Consolidated 2023-10-01 2024-09-30 04794864 bus:PrivateLimitedCompanyLtd 2023-10-01 2024-09-30 04794864 2 2023-10-01 2024-09-30 04794864 3 2023-10-01 2024-09-30 04794864 core:CapitalRedemptionReserve 2023-10-01 2024-09-30 04794864 core:RetainedEarningsAccumulatedLosses 2023-10-01 2024-09-30 04794864 core:RevaluationReserve 2023-10-01 2024-09-30 04794864 core:ShareCapital 2023-10-01 2024-09-30 04794864 core:SharePremium 2023-10-01 2024-09-30 04794864 core:CopyrightsPatentsTrademarksServiceOperatingRights 2023-10-01 2024-09-30 04794864 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-10-01 2024-09-30 04794864 core:Goodwill 2023-10-01 2024-09-30 04794864 core:Goodwill 1 2023-10-01 2024-09-30 04794864 core:PatentsTrademarksLicencesConcessionsSimilar 2023-10-01 2024-09-30 04794864 core:RecipesFormulaeModelsDesignsPrototypes 2023-10-01 2024-09-30 04794864 core:LandBuildingsUnderOperatingLeases 2023-10-01 2024-09-30 04794864 core:PlantEquipmentUnderOperatingLeases 2023-10-01 2024-09-30 04794864 core:ReportableOperatingSegment1 2023-10-01 2024-09-30 04794864 core:ReportableOperatingSegment2 2023-10-01 2024-09-30 04794864 core:ReportableOperatingSegment3 2023-10-01 2024-09-30 04794864 core:Buildings 2023-10-01 2024-09-30 04794864 core:Land 2023-10-01 2024-09-30 04794864 core:LandBuildings 2023-10-01 2024-09-30 04794864 core:LandBuildings core:LongLeaseholdAssets 2023-10-01 2024-09-30 04794864 core:LandBuildings core:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 04794864 core:LandBuildings core:ShortLeaseholdAssets 2023-10-01 2024-09-30 04794864 core:LeaseholdImprovements 2023-10-01 2024-09-30 04794864 core:MotorVehicles 2023-10-01 2024-09-30 04794864 core:PlantMachinery 2023-10-01 2024-09-30 04794864 core:AllJointVentures 2023-10-01 2024-09-30 04794864 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-10-01 2024-09-30 04794864 core:OtherRelatedParties 2023-10-01 2024-09-30 04794864 core:OtherRelatedParties core:RenderingOrReceivingServices 2023-10-01 2024-09-30 04794864 core:OtherRelatedParties core:SaleOrPurchaseGoods 2023-10-01 2024-09-30 04794864 core:Subsidiary1 2023-10-01 2024-09-30 04794864 core:Subsidiary1 1 2023-10-01 2024-09-30 04794864 core:Subsidiary1 countries:EnglandWales 2023-10-01 2024-09-30 04794864 core:UKTax 2023-10-01 2024-09-30 04794864 1 2023-10-01 2024-09-30 04794864 1 2023-10-01 2024-09-30 04794864 1 2023-10-01 2024-09-30 04794864 countries:EnglandWales 2023-10-01 2024-09-30 04794864 1 2023-10-01 2024-09-30 04794864 2023-09-30 04794864 core:CapitalRedemptionReserve 2023-09-30 04794864 core:RetainedEarningsAccumulatedLosses 2023-09-30 04794864 core:ShareCapital 2023-09-30 04794864 core:SharePremium 2023-09-30 04794864 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-09-30 04794864 core:Goodwill 2023-09-30 04794864 core:PatentsTrademarksLicencesConcessionsSimilar 2023-09-30 04794864 core:CostValuation 2023-09-30 04794864 core:LandBuildings core:LongLeaseholdAssets 2023-09-30 04794864 core:LandBuildings core:OwnedOrFreeholdAssets 2023-09-30 04794864 core:LandBuildings core:ShortLeaseholdAssets 2023-09-30 04794864 core:MotorVehicles 2023-09-30 04794864 core:PlantMachinery 2023-09-30 04794864 core:AllJointVentures 2023-09-30 04794864 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-09-30 04794864 core:OtherRelatedParties 2023-09-30 04794864 2023-01-01 2023-09-30 04794864 2023-09-30 04794864 bus:OrdinaryShareClass1 2023-09-30 04794864 bus:OrdinaryShareClass1 bus:CumulativeShares 2023-09-30 04794864 bus:OrdinaryShareClass2 2023-09-30 04794864 bus:PreferenceShareClass1 bus:Non-cumulativeNon-redeemableShares 2023-09-30 04794864 core:AcceleratedTaxDepreciationDeferredTax 2023-09-30 04794864 core:TaxLossesCarry-forwardsDeferredTax 2023-09-30 04794864 core:CapitalRedemptionReserve 2023-09-30 04794864 core:RetainedEarningsAccumulatedLosses 2023-09-30 04794864 core:ShareCapital 2023-09-30 04794864 core:SharePremium 2023-09-30 04794864 core:CurrentFinancialInstruments 2023-09-30 04794864 core:CurrentFinancialInstruments core:WithinOneYear 2023-09-30 04794864 core:CurrentFinancialInstruments core:WithinOneYear 2 2023-09-30 04794864 core:CurrentFinancialInstruments core:Unsecured 2023-09-30 04794864 core:Non-currentFinancialInstruments 2023-09-30 04794864 core:Non-currentFinancialInstruments core:AfterOneYear 2023-09-30 04794864 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-09-30 04794864 core:Goodwill 2023-09-30 04794864 core:PatentsTrademarksLicencesConcessionsSimilar 2023-09-30 04794864 core:BetweenTwoFiveYears 2023-09-30 04794864 core:MoreThanFiveYears 2023-09-30 04794864 core:WithinOneYear 2023-09-30 04794864 core:LandBuildings 2023-09-30 04794864 core:LandBuildings core:LongLeaseholdAssets 2023-09-30 04794864 core:LandBuildings core:OwnedOrFreeholdAssets 2023-09-30 04794864 core:LandBuildings core:ShortLeaseholdAssets 2023-09-30 04794864 core:MotorVehicles 2023-09-30 04794864 core:PlantMachinery 2023-09-30 04794864 core:AllJointVentures 2023-09-30 04794864 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-09-30 04794864 core:OtherRelatedParties 2023-09-30 04794864 1 2023-09-30 04794864 2 2023-01-01 2023-09-30 04794864 3 2023-01-01 2023-09-30 04794864 core:CapitalRedemptionReserve 2023-01-01 2023-09-30 04794864 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-09-30 04794864 core:RevaluationReserve 2023-01-01 2023-09-30 04794864 core:RevaluationReserve core:LandBuildings 2023-01-01 2023-09-30 04794864 core:ShareCapital 2023-01-01 2023-09-30 04794864 core:LandBuildingsUnderOperatingLeases 2023-01-01 2023-09-30 04794864 core:PlantEquipmentUnderOperatingLeases 2023-01-01 2023-09-30 04794864 core:LandBuildings 2023-01-01 2023-09-30 04794864 core:AllJointVentures 2023-01-01 2023-09-30 04794864 core:AllJointVentures core:RenderingOrReceivingServices 2023-01-01 2023-09-30 04794864 core:AllJointVentures core:SaleOrPurchaseGoods 2023-01-01 2023-09-30 04794864 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-01-01 2023-09-30 04794864 core:OtherRelatedParties 2023-01-01 2023-09-30 04794864 core:OtherRelatedParties core:RenderingOrReceivingServices 2023-01-01 2023-09-30 04794864 core:OtherRelatedParties core:SaleOrPurchaseGoods 2023-01-01 2023-09-30 04794864 core:Subsidiary1 1 2023-01-01 2023-09-30 04794864 core:UKTax 2023-01-01 2023-09-30 04794864 1 2023-01-01 2023-09-30 04794864 2022-12-31 04794864 core:CapitalRedemptionReserve 2022-12-31 04794864 core:RetainedEarningsAccumulatedLosses 2022-12-31 04794864 core:RevaluationReserve 2022-12-31 04794864 core:ShareCapital 2022-12-31 04794864 core:AllJointVentures 2022-12-31 04794864 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2022-12-31 04794864 core:OtherRelatedParties 2022-12-31 xbrli:pure iso4217:GBP xbrli:shares

Registration number: 04794864

Brent Cars Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

Brent Cars Limited

Contents

Company Information

1

Strategic Report

2 to 6

Directors' Report

7 to 9

Statement of Directors' Responsibilities

10

Independent Auditor's Report

11 to 13

Profit and Loss Account

14

Statement of Comprehensive Income

15

Balance Sheet

16

Statement of Changes in Equity

17

Statement of Cash Flows

18

Notes to the Financial Statements

19 to 40

 

Brent Cars Limited

Company Information

Directors

S Winter

G Bird

K J Hector

K K Twine

Registered office

Carbase
Aisecome Way
Weston-Super-Mare
North Somerset
BS22 8NA

Auditors

ML Audit LLP
Statutory Auditors
Winchester House
Deane Gate Avenue
Taunton
Somerset
TA1 2UH

 

Brent Cars Limited

Strategic Report for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is that of a second hand vehicle retailer.

Fair review of the business

Economic Overview
The financial year ended 30 September 2024 was a challenging period for the UK used vehicle sector, and our business was not immune to the significant market headwinds that emerged. The company generated revenues exceeding £150 million, reflecting a resilient top-line performance in the face of a turbulent trading environment. However, the business recorded a pre-tax loss of £2.2 million, compared to a profit in the prior year, primarily due to a sharp and rapid decline in used vehicle prices during the final quarter of 2023.

This market-wide correction in vehicle values, driven by a combination of oversupply, softening consumer demand, and macroeconomic uncertainty, severely impacted gross margins across the industry. Like many of our peers, we were forced to revalue inventory and absorb losses on stock acquired at higher price points earlier in the year. These margin pressures, coupled with inflationary cost increases, contributed to the overall loss for the year.

Encouragingly, both inflation and interest rates have begun to decline, with market consensus anticipating this trend to continue throughout 2025. This easing of financial conditions is expected to reduce funding costs for both consumers and businesses, thereby supporting a recovery in demand. Reflecting these more favourable market dynamics, the business is on track to deliver profitability in the 2024/25 financial year.

Financial headlines and trading performance
Turnover declined by 3% on a pro-rata basis, primarily due to a reduction in the average selling price of used vehicles following the sharp market correction. This decline reflects broader sector trends, as unit volumes remained consistent with the previous year.

Gross profit margin decreased from 7.1% to 6.5%, driven largely by compressed metal margins. However, this headline figure masks a deliberate strategic shift in the last quarter of the year toward sourcing vehicles with stronger margin potential, alongside continued refinement of our dynamic pricing model. These initiatives have begun to deliver positive results in the post-year-end trading period.

Income from finance and insurance products increased by 7%, building on strong growth in the prior year. This uplift reflects improved attachment rates across key ancillary offerings, including warranties, paint protection, and our Carbase Owners Club membership.

We maintained tight control over fixed overheads, limiting cost growth to just 1% despite ongoing inflationary pressures. This reflects our disciplined approach to cost management and operational efficiency.

Rising market interest rates have continued to impact our financing costs. These increased by a further 10% during the year, compounding the significant rises experienced over the previous two years. This increase is largely due to variable-rate arrangements with stocking funders, which are directly impacted by base rate fluctuations.

 

Brent Cars Limited

Strategic Report for the Year Ended 30 September 2024

Operational Highlights
Despite the challenging market conditions, the company demonstrated strong operational resilience. We continued to invest strategically in our digital infrastructure, customer service capabilities, and vehicle sourcing strategies to position the business for long-term, sustainable growth. Our diversified procurement model and disciplined focus on operational efficiency helped to mitigate some of the margin erosion caused by the sharp correction in used vehicle prices.

Customer-centric decision-making remains at the heart of our operations. We leverage proprietary marketing intelligence and a rich dataset encompassing customer demographics, sales analytics, and behavioural insights at key enquiry and purchasing stages. This data-driven approach enables us to refine the customer journey continuously, reduce friction, and automate interactions where appropriate, enhancing both speed and cost efficiency.

Our competitive edge is further strengthened by our advanced pricing and data modelling capabilities, which are designed to optimise stock turn and maximise overall returns. Most recently, we have extended this intelligence to support our procurement team, enhancing their ability to make informed, agile decisions in a dynamic market.

Carbase’s commitment to excellence was once again recognised in 2024, as we were named “Used Car Supermarket of the Year” by CarDealer magazine. The award acknowledged our exceptional service, transparent pricing, advanced use of business intelligence, and a trustworthy digital experience.

Over the past three years, we have also delivered an ambitious People, Learning, and Culture agenda. This has significantly reduced staff turnover through a series of initiatives focused on employee engagement, high-potential development, performance management, and smarter recruitment. Our efforts were validated in November 2023 when we achieved the internationally recognised “Great Place To Work” accreditation at our first attempt, an accolade rarely held by independent UK dealers. We were proud to retain this recognition again in November 2024.
 

Financial position
The company’s financial position continues to be carefully managed, with robust daily cash flow forecasting in place to ensure the maintenance of adequate working capital and access to supportive funding facilities. We maintain regular, transparent engagement with all key financial partners, providing timely updates on performance and reinforcing confidence in our strategic approach to navigating ongoing market challenges.

Despite the difficult trading environment, the company’s cash at bank increased to £3.2 million over the course of the year. This improvement reflects the successful execution of a focused programme of site consolidation, significant cost-saving initiatives, and disciplined cash management. These actions have contributed to a return to profitability in the period following the year-end.

As a clear demonstration of their ongoing commitment to the business, the shareholders invested £1 million in new share capital in September 2024. This injection of equity was made to strengthen the company’s balance sheet and support its continued recovery and growth.

Looking ahead, we remain committed to rigorous cost control and continuous operational optimisation. We will continue to review our cost base, processes, and staffing requirements to ensure the business remains agile, efficient, and well-positioned to sustain the positive momentum through 2025 and beyond.
 

 

Brent Cars Limited

Strategic Report for the Year Ended 30 September 2024

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

 

Unit

2024

2023

Customer review score

%

97

95

Sales growth/(decrease)

%

(3)

7

Operating profit/(loss)

£

(86,099)

1,602,040

Average days in stock

60

69

We always seek to build links with the local community and colleges and are especially keen to encourage young people with good people skills to consider Carbase as a career choice and test their skills in a dynamic retail environment for a multi-award-winning business.

Principal risks and uncertainties

Economic Risk
The company’s performance is directly impacted by the economic environment and any fluctuations in inflation, interest rates, employment levels and consumer confidence. To mitigate this risk the company strives to deliver a balanced offering of competitively priced vehicles and a high level of customer service and after sales care. We continue to deal exclusively in used vehicles and have a wide range of car and van stock covering budget to nearly new vehicles.

Used vehicle Supply Risk
The supply of used vehicles in our preferred age range of stock has been impacted by the pandemic era disruption to new vehicle production and will take several more years to work through the system. Over many years we have built strong and progressive relationships with a wide range of suppliers of used vehicles to help mitigate some of that risk when supply becomes constrained. Additionally, a focus on boosting the number of part exchanges and direct purchases we take in from customers is helping to offset the supply risk. We also maintain headroom on our stock funding facilities to help absorb the higher funding values required in the post Covid period.

Price Risk
Volatility in used vehicle values remains a risk to our vehicle margins. The sharp decline in prices during late 2023 had a material impact on margins and profitability. While prices have begun to stabilise, the market remains sensitive to changes in supply, consumer demand, and macroeconomic conditions. We have developed advanced in-house pricing systems utilising the power of AI, that can re-evaluate the market on a daily basis and constantly adjust our vehicle prices to optimise both stock turn and metal margin.

Compliance Risk
The company is exposed to all the usual laws and regulations plus industry specific regulations around customer finance and insurance products. We use an external compliance company to help monitor our regulatory risk, including regular detailed reviews of our website and sales documentation. We take our responsibilities very seriously and are confident that we continue to be fully compliant with all applicable regulations including the recently introduced Consumer Duty which further strengthens protections for the consumer on regulated products.

 

Brent Cars Limited

Strategic Report for the Year Ended 30 September 2024

Section 172(1) statement

The Directors of Brent Cars Limited are mindful of their duty under Section 172(1) of the Companies Act 2006 to promote the success of the company for the benefit of its members as a whole, while having regard to the broader interests of stakeholders and the long-term impact of their decisions.

In fulfilling this duty, the Directors consider the likely long-term consequences of strategic and operational decisions, the interests of employees, the importance of fostering strong relationships with customers, suppliers, and funding partners, and the company’s impact on the wider community and environment.

Long-term strategy and resilience
The Directors took decisive action in response to the sharp decline in used vehicle prices, including cost control, site consolidation, and investment in digital infrastructure. These actions were taken with a view to ensuring the long-term sustainability and competitiveness of the business.

Engagement with employees

Our employees are fundamental to the long-term success of the business. We are committed to attracting, developing, and retaining top talent by fostering a safe, inclusive, and values-driven workplace. Our culture is underpinned by core values such as integrity and care.

We engage with employees through regular business updates and Q&A sessions hosted by senior leadership, where staff are encouraged to submit questions in advance. We also conduct regular pulse surveys to monitor engagement and identify areas for improvement.

In November 2023, we were proud to achieve Great Place To Work accreditation at our first attempt, an accolade we retained in 2024. This recognition reflects our ongoing efforts to be an employer of choice in the automotive sector.

Customer focus
The Directors continue to place the customer experience at the heart of the company’s strategy. Leveraging data-driven insights and automation, we have enhanced service delivery, reduced friction, and improved responsiveness across the customer journey. Our commitment to excellence was recognised in 2024 when we were named Used Car Supermarket of the Year, reflecting our dedication to transparency, service quality, and innovation.

Our reputation for outstanding customer service remains a key differentiator. We consistently achieve high customer review scores across multiple platforms, and we actively monitor and refine our processes to ensure we deliver a seamless and satisfying experience, from initial enquiry through to aftersales care.
 

 

Brent Cars Limited

Strategic Report for the Year Ended 30 September 2024

Engagement with suppliers, customers and other relationships

We aim to build long-term, mutually beneficial relationships with our suppliers. This includes entering into multi-year agreements with key vehicle providers to help ensure supply stability during periods of market volatility.

We maintain open and transparent communication with our investors, providing regular updates on trading performance and financial strength. We actively seek feedback and respond promptly to investor queries to ensure clarity and confidence in our strategy.
Compliance, particularly in relation to health and safety, remains a top priority. We are uncompromising in our standards to protect both employees and customers.

We also recognise our role in the wider community. We support local causes, sponsor community sports teams, and are mindful of our environmental impact. We continue to engage with local colleges, encouraging young people to explore careers in the automotive retail sector.

Fairness Between Members
As a family-owned business, the interests of our members are closely aligned with the long-term success of the company. The Directors are committed to upholding high standards of business conduct and acting fairly between members of the company. These principles are embedded in the company’s governance and decision-making processes.

Approved by the Board on 26 June 2025 and signed on its behalf by:

S Winter
Director

   
     
 

Brent Cars Limited

Directors' Report for the Year Ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors of the company

The directors who held office during the year were as follows:

S Winter

G Bird

K J Hector

K K Twine

Dividends

The directors recommend a final dividend payment of £Nil be made in respect of the financial year ended 30 September 2024 (2023 - £Nil).

Financial instruments

The company has procedures to identify risk and manage risks that may hinder financial performance objectives. The objective is to limit counterparty exposure, ensure sufficient capital and to mitigate risks identified.

Objectives and policies

The company's objectives are to operate a select number of profitable sites. Appropriate policies have been developed and implemented to identify, evaluate and manage the key risks to help them achieve the objectives.

Price risk, credit risk, liquidity risk and cash flow risk

a) Price risk – The company is exposed to price risk as a result of its operations. However, given the size of the company’s operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company’s operations change in size or nature. The company has no exposure to equity securities price risk as it holds no listed equity investments.

b) Credit risk – The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The credit given to customers is subject to limits which are determined and reassessed by the directors.

c) Liquidity risk – The company actively maintains a mixture of medium-term and short-term debt finance that is designed to ensure it has sufficient available funds for operations and planned expansions.

d) Interest rate cash flow risk – The company has interest bearing liabilities and has opted for variable interest rates.

Energy and carbon report

We have considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. Brent Cars Limited supports these recommendations and are committed to disclosing the relevant information which can be found below.

 

Brent Cars Limited

Directors' Report for the Year Ended 30 September 2024

Governance

In accordance with the Companies (Directors’ Report) Regulations 2018, Brent Cars Limited has prepared the following energy and carbon declaration. The data has been reported for all entities which operate under Brent Cars Limited without exclusion. Brent Cars Limited is not responsible for any energy consumption or emissions outside of the UK.

Emissions and energy consumption

The following standards are used in the calculation of the below disclosures:

• 2019 HM Government Environmental Reporting Guidelines
• GHG Reporting Protocol – Corporate Standard
• 2024 UK Government's Conversion Factors for Company Reporting

Summary of scope 1 (direct) greenhouse gas emissions for the year ended 30 September 2024:

Name and description

Unit of measurement

2024

2023

Natural gas consumption

Metric tonnes CO2e

50.00

26.00

Business transport

Metric tonnes CO2e

259.00

248.00

Additional fuels

Metric tonnes CO2e

51.00

48.00

   

360.00

322.00

Summary of scope 2 (indirect) greenhouse gas emissions for the year ended 30 September 2024:

Name and description

Unit of measurement

2024

2023

Purchased electricity

Metric tonnes CO2e

126.00

101.00

       

Summary of scope 3 (other indirect) greenhouse gas emissions for the year ended 30 September 2024:

Name and description

Unit of measurement

2024

2023

Grey Fleet Transport

Metric tonnes CO2e

2.00

3.00

       

Summary of energy consumption for the year ended 30 September 2024:

Name and description

Unit of measurement

2024

2023

Gas

kWh

273,661.00

140,878.00

Electricity

kWh

610,185.00

487,942.00

Transport fuel

kWh

1,118,180.00

1,090,479.00

Additional fuels

kWh

230,505.00

221,056.00

   

2,232,531.00

1,940,355.00

 

Brent Cars Limited

Directors' Report for the Year Ended 30 September 2024

Intensity ratio

Intensity ratio Tonnes CO2e per £million(revenue). During the year ended 30 September 2024 this was 3.33% (2023 - 3.59%).

Energy effeciency action
2024 saw Brent Cars further increase the number of used electric and hybrid vehicles sold, a number that is set to increase substantially over the next few years. We have installed a number of EV charging points at our key sites to facilitate the sale of all such vehicles and help more customers make the transition to EV’s.

Brent Car’s energy conscious maintenance and procurement policies have led to continuous replacement of existing light fittings with LED installations. As strong lighting is one of the major contributors to our Carbon footprint, this goes a long way to increasing efficiency at our sites.

Future developments

The Directors remain confident in the long-term prospects of the business and are encouraged by the expected the return to profitability in the 2024/25 financial year. This recovery reflects the resilience of our operating model, the effectiveness of the strategic actions taken during a period of significant market disruption, and the strength of our team.

Looking ahead, the business is well-positioned to capitalise on improving market conditions. Easing inflation and falling interest rates are expected to support consumer confidence and reduce funding costs, creating a more favourable trading environment. We will continue to build on the operational and commercial improvements made over the past year, with a focus on enhancing margin performance, optimising stock turn, and driving further efficiencies across the business.

Investment in technology, data intelligence, and customer experience will remain central to our strategy, enabling us to differentiate in a competitive market and respond quickly to changing consumer behaviours. In parallel, we will maintain a disciplined approach to cost control and capital allocation to ensure the business remains agile and financially robust.

The Directors remain optimistic about the year ahead and are confident that the business is firmly on track for sustainable growth and enhanced shareholder value.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors ML Audit LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 26 June 2025 and signed on its behalf by:

S Winter
Director

   
     
 

Brent Cars Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

 

Brent Cars Limited

Independent Auditor's Report to the Members of Brent Cars Limited

Opinion

We have audited the financial statements of Brent Cars Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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 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 were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Brent Cars Limited

Independent Auditor's Report to the Members of Brent Cars Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 10, 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 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud;

 

Brent Cars Limited

Independent Auditor's Report to the Members of Brent Cars Limited

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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.





Mr Robert Cadwallader (Senior Statutory Auditor)
For and on behalf of ML Audit LLP, Statutory Auditor
Winchester House
Deane Gate Avenue
Taunton
Somerset
TA1 2UH

27 June 2025

 

Brent Cars Limited

Profit and Loss Account for the Year Ended 30 September 2024

Note

Year ended 30 September 2024
£

1 January 2023 to 30 September 2023
£

Turnover

3

151,798,811

117,797,229

Cost of sales

 

(141,940,323)

(109,349,044)

Gross profit

 

9,858,488

8,448,185

Administrative expenses

 

(10,108,752)

(7,422,227)

Other operating income

4

164,165

576,082

Operating (loss)/profit

6

(86,099)

1,602,040

Other interest receivable and similar income

7

3,088

70,000

Interest payable and similar expenses

8

(2,130,781)

(1,451,552)

   

(2,127,693)

(1,381,552)

(Loss)/profit before tax

 

(2,213,792)

220,488

Tax on (loss)/profit

12

560,130

358,348

(Loss)/profit for the financial year

 

(1,653,662)

578,836

The above results were derived from continuing operations.

 

Brent Cars Limited

Statement of Comprehensive Income for the Year Ended 30 September 2024

Year ended 30 September 2024
£

1 January 2023 to 30 September 2023
£

(Loss)/profit for the year

(1,653,662)

578,836

Deficit on property, plant and equipment revaluation

-

(220,943)

Total comprehensive (expense)/income for the year

(1,653,662)

357,893

 

Brent Cars Limited

(Registration number: 04794864)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

13

466,704

624,129

Tangible assets

14

2,061,969

3,088,876

Investments

15

20

20

 

2,528,693

3,713,025

Current assets

 

Stocks

16

23,463,933

28,068,447

Debtors

17

6,783,911

6,874,388

Cash at bank and in hand

18

3,162,008

1,526,066

 

33,409,852

36,468,901

Creditors: Amounts falling due within one year

19

(31,880,039)

(34,340,558)

Net current assets

 

1,529,813

2,128,343

Total assets less current liabilities

 

4,058,506

5,841,368

Creditors: Amounts falling due after more than one year

19

(3,018,628)

(4,147,828)

Net assets

 

1,039,878

1,693,540

Capital and reserves

 

Called up share capital

21

1,010,200

925,200

Share premium reserve

22

915,000

-

Capital redemption reserve

22

1,302,654

1,302,654

Profit and loss account

22

(2,187,976)

(534,314)

Total equity

 

1,039,878

1,693,540

Approved and authorised by the Board on 26 June 2025 and signed on its behalf by:
 

S Winter
Director

   
     
 

Brent Cars Limited

Statement of Changes in Equity for the Year Ended 30 September 2024

Share capital
£

Share premium
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 October 2023

925,200

-

1,302,654

(534,314)

1,693,540

Loss for the year

-

-

-

(1,653,662)

(1,653,662)

Total comprehensive income

-

-

-

(1,653,662)

(1,653,662)

New share capital subscribed

85,000

915,000

-

-

1,000,000

At 30 September 2024

1,010,200

915,000

1,302,654

(2,187,976)

1,039,878


 

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 January 2023

925,200

1,302,654

220,943

(1,113,150)

1,335,647

Profit for the year

-

-

-

578,836

578,836

Other comprehensive income

-

-

(220,943)

-

(220,943)

Total comprehensive income

-

-

(220,943)

578,836

357,893

At 30 September 2023

925,200

1,302,654

-

(534,314)

1,693,540

 

Brent Cars Limited

Statement of Cash Flows for the Year Ended 30 September 2024

Note

Year ended 30 September 2024
£

1 January 2023 to 30 September 2023
£

Cash flows from operating activities

(Loss)/profit for the year

 

(1,653,662)

578,836

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

633,074

459,435

Profit on disposal of tangible assets

5

(20,511)

(111,683)

Finance income

7

(3,088)

(70,000)

Finance costs

8

2,130,781

1,451,552

Income tax expense

12

(560,130)

(358,348)

 

526,464

1,949,792

Working capital adjustments

 

Decrease in stocks

16

4,604,514

396,592

Decrease/(increase) in trade debtors

17

737,003

(1,412,875)

(Decrease)/increase in trade creditors

19

(2,151,443)

454,250

Cash generated from operations

 

3,716,538

1,387,759

Income taxes (paid)/received

12

(86,396)

373,931

Net cash flow from operating activities

 

3,630,142

1,761,690

Cash flows from investing activities

 

Interest received

7

3,088

-

Proceeds from sale of joint venture

15

-

400,000

Acquisitions of tangible assets

14

(152,615)

(101,359)

Proceeds from sale of tangible assets

 

724,384

374,882

Dividend income

7

-

70,000

Net cash flows from investing activities

 

574,857

743,523

Cash flows from financing activities

 

Interest paid

8

(2,130,781)

(1,451,552)

Repayment of bank borrowing

 

(135,221)

(674,333)

Proceeds from other borrowing draw downs

 

896,488

361,458

Repayment of other borrowing

 

(1,199,543)

(103,726)

Net cash flows from financing activities

 

(2,569,057)

(1,868,153)

Net increase in cash and cash equivalents

 

1,635,942

637,060

Cash and cash equivalents at 1 October

 

1,526,066

889,006

Cash and cash equivalents at 30 September

 

3,162,008

1,526,066

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Carbase
Aisecome Way
Weston-Super-Mare
North Somerset
BS22 8NA
England & Wales

These financial statements were authorised for issue by the Board on 26 June 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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

Group accounts not prepared

The financial statements present the financial information of the company as an individual undertaking as the subsidiary is a non-trading company and is considered immaterial and therefore group accounts have not been prepared.

Disclosure of long or short period

The accounting period end was changed from 31 December to 30 September during the prior period. Comparative figures are therefore not directly comparable being a 9 month period. The year end was changed to allow for the audit to be conducted when the finance team have more scope to assist with the audit.

Going concern

The financial statements have been prepared on a going concern basis as the directors, through the preparation of cashflow projections, are of the opinion the current cash balance and working capital generated by the company for the foreseeable future will be sufficient to enable the company to meet their liabilities for at least the next twelve months from the date of the approval of the financial statements.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Key sources of estimation uncertainty

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 where the revision affects only that period, or in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Impairment of goodwill
The company considers whether goodwill is impaired. Where an indication of impairment is identified an estimation of recoverable value is made. No indication of impairment existed at the year end. The carrying amount is £466,704 (2023 - £624,129).

Deferred tax asset
The deferred tax asset has been recognised for unutilised tax losses to the extent that it is probable that future taxable profits will be available against which the losses can be utilised. Estimations have been made to predict the expected future profit of the company. The carrying amount is £1,170,000 (2023 - £609,870).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when all of the following conditions are satisfied:
- the amount of revenue can be reliably measured;
- all of the significant risks and rewards of ownership have been transferred to the customer;
- the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the costs incurred or to be incurred in respect of the transaction can be measured reliably;
- it is probable that future economic benefits will flow to the entity; and
- specific criteria have been met for each of the company's activities.

Finance income and costs policy

Interest income and expenses are recognised using the effective interest rate method.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets is reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Research and development

Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off as incurred unless it meets the recognition criteria of a tangible asset as defined by FRS 102 Section 18, in which case it is recognised as an asset of the company.

Intangible assets

Intangible assets acquired in a business combination are recognised as assets at their fair value at the acquisition date. Intangibles are amortised over their useful lives, which shall not exceed ten years if a reliable estimate of their useful lives cannot be made.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful lives as follows:

Asset class

Amortisation method and rate

Goodwill

Straight line over 5 - 7 years

Registered trademarks

Straight line over 5 years

Other intangible assets

Straight line over 2 - 5 years

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Depreciation

Depreciation is charged so as to write off the cost of assets, less any estimated residual value, other than land and properties under construction, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land

Nil

Freehold buildings

Nil

Leasehold land and buildings

Straight line over the life of the lease/ 5% straight line where substance over form has been adopted

Motor vehicles

25% reducing balance

Plant and machinery

10-25% reducing balance

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Business combinations

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree plus costs directly attributable to the business combination.

Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated statement of financial position immediately below goodwill.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell.

Costs incurred in bringing each product to its present location and condition are based on purchase cost plus any reconditioning costs.

Debtors

Trade debtors are amounts due from customers for merchandise sold in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. The aggregate benefit of lease incentives is recognised as a reduction to the expense recognised over the lease term on a straight line basis.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

A dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement as financial assets, financial liabilities or equity instruments.

 Recognition and measurement
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

Financial assets are derecognised when
a) the contractual rights to the cash flows from the asset expire or are settled, or
b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or
c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other payables and loans from related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of estimated cash flows discounted at the liability's original effective interest rate.

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

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

 Impairment
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

3

Turnover

The company's turnover has arisen from continuing operations within the UK. An analysis of the company's turnover for the year by class of business is as follows:

Year ended 30 September 2024
£

1 January 2023 to 30 September 2023
£

Sale of second hand cars

136,199,603

107,129,545

Sale of add on products

13,558,526

9,500,992

Car repair and preparation services

2,040,682

1,166,692

151,798,811

117,797,229

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

Year ended 30 September 2024
£

1 January 2023 to 30 September 2023
£

Miscellaneous other operating income

164,165

576,082

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

Year ended 30 September 2024
£

1 January
2023 to 30
September
2023
£

Gain on disposal of tangible fixed assets

20,511

111,683

6

Operating (loss)/profit

Arrived at after charging/(crediting):

Year ended 30 September 2024
£

1 January
2023 to 30
September
2023
£

Depreciation expense

475,649

339,815

Amortisation expense

157,425

119,620

Operating lease expense - property

1,499,639

1,100,137

Operating lease expense - plant and machinery

75,987

47,243

Profit on disposal of property, plant and equipment

(20,511)

(111,683)

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

7

Other interest receivable and similar income

Year ended 30 September 2024
£

1 January 2023 to 30 September 2023
£

Dividend income

-

70,000

Other finance income

3,088

-

3,088

70,000

8

Interest payable and similar expenses

Year ended 30
September
2024
£

1 January
2023 to 30
September
2023
£

Interest on borrowings

1,523,135

1,021,932

Interest expense on other finance liabilities

607,646

429,620

2,130,781

1,451,552

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

Year ended 30
September
2024
£

1 January
2023 to 30
September
2023
£

Wages and salaries

8,741,897

6,554,243

Social security costs

848,548

614,647

Pension costs, defined contribution scheme

300,223

246,866

Other employee expense

17,661

10,783

9,908,329

7,426,539

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:

Year ended 30 September 2024
No.

1 January 2023 to 30 September 2023
No.

Administration and support

29

33

Sales

76

76

Other departments

99

96

204

205

10

Directors' remuneration

The directors' remuneration for the year was as follows:

Year ended 30
September
2024
£

1 January
2023 to 30
September
2023
£

Remuneration

135,494

96,915

Contributions paid to money purchase schemes

61,321

41,320

196,815

138,235

During the year the number of directors who were receiving benefits was as follows:

Year ended 30 September 2024
No.

1 January 2023 to 30 September 2023
No.

Accruing benefits under money purchase pension scheme

2

2

11

Auditors' remuneration

Year ended 30
September
2024
£

1 January
2023 to 30
September
2023
£

Audit of the financial statements

54,100

20,000

Other fees to auditors

Taxation compliance services

1,865

2,025

All other assurance services

8,150

5,774

10,015

7,799

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024


 

12

Taxation

Tax charged/(credited) in the income statement:

Year ended 30 September 2024
£

1 January 2023 to 30 September 2023
£

Current taxation

UK corporation tax

-

5,821

UK corporation tax adjustment to prior periods

-

(164,169)

-

(158,348)

Deferred taxation

Arising from origination and reversal of timing differences

(560,130)

(200,000)

Tax credit in the income statement

(560,130)

(358,348)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

Year ended 30 September 2024
£

1 January 2023 to 30 September 2023
£

(Loss)/profit before tax

(2,213,792)

220,488

Corporation tax at standard rate

(553,448)

55,122

Effect of expense not deductible in determining taxable profit (tax loss)

119,235

68,090

Decrease from tax losses for which no deferred tax asset was recognised

-

(2,649)

Increase in UK and foreign current tax from unrecognised tax loss or credit

-

5,821

Deferred tax not recognised

(150,054)

-

Increase/(decrease) in UK and foreign current tax from adjustment for prior periods

24,137

(477,240)

Tax decrease from effect of dividends from UK companies

-

(17,500)

Other tax effects for reconciliation between accounting profit and tax expense (income)

-

10,008

Total tax credit

(560,130)

(358,348)

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Difference between accumulated depreciation and capital allowances

(268,107)

-

Tax losses carried forward

1,438,107

-

1,170,000

-

2023

Asset
£

Liability
£

Difference between accumulated depreciation and capital allowances

(357,668)

-

Tax losses carried forward

967,538

-

609,870

-

There are £Nil of unused tax losses (2023 - £2,649) for which no deferred tax asset is recognised in the balance sheet.

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £210,354.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

13

Intangible assets

Goodwill
 £

Registered trademarks
 £

Other intangible assets
 £

Total
£

Cost

At 1 October 2023

1,310,568

300,000

225,001

1,835,569

At 30 September 2024

1,310,568

300,000

225,001

1,835,569

Amortisation

At 1 October 2023

686,439

300,000

225,001

1,211,440

Amortisation charge

157,425

-

-

157,425

At 30 September 2024

843,864

300,000

225,001

1,368,865

Carrying amount

At 30 September 2024

466,704

-

-

466,704

At 30 September 2023

624,129

-

-

624,129

The amortisation of intangible assets is included in administrative expenses in the profit and loss account.

Pledged as security

Intangible assets with a carrying amount of £466,704 (2023 - £624,129) has been pledged as security for some other loans.

Individually material intangible assets

Goodwill
The carrying amount of this asset is £466,704 (2023 - £624,129) and the remaining amortisation period is 3 years and 10 months (2023 - 4 years and 10 months).

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

14

Tangible assets

Freehold buildings
 £

Freehold land
 £

Leasehold land and buildings
 £

Plant and machinery
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 October 2023

274,631

250,462

1,896,213

1,909,067

412,862

4,743,235

Additions

-

-

10,528

56,056

86,031

152,615

Disposals

(246,791)

(250,462)

(126,817)

(5,389)

(219,403)

(848,862)

Transfers

(27,840)

-

27,840

-

-

-

At 30 September 2024

-

-

1,807,764

1,959,734

279,490

4,046,988

Depreciation

At 1 October 2023

14,560

-

633,575

873,932

132,292

1,654,359

Charge for the year

-

-

287,111

124,569

63,969

475,649

Eliminated on disposal

(11,337)

-

(51,324)

(3,657)

(78,671)

(144,989)

Transfers

(3,223)

-

3,223

-

-

-

At 30 September 2024

-

-

872,585

994,844

117,590

1,985,019

Carrying amount

At 30 September 2024

-

-

935,179

964,890

161,900

2,061,969

At 30 September 2023

260,071

250,462

1,262,638

1,035,135

280,570

3,088,876

Restriction on title and pledged as security

Tangible assets with a carrying amount of £2,061,969 (2023 - £3,088,876) have been pledged as security for certain other loans.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

15

Investments

2024
£

2023
£

Investments in subsidiaries

20

20


 

Subsidiaries

£

Cost or valuation

At 1 October 2023 and as at 30 September 2024

20

Carrying amount

At 30 September 2024

20

At 30 September 2023

20

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

N S Smart Repair Limited

Carbase, Aisecome Way, Weston-Super-Mare, North Somerset, BS22 8NA

England and Wales

Ordinary

100%

100%

Subsidiary undertakings

N S Smart Repair Limited

The principal activity of N S Smart Repair Limited is is that of a non-trading company and on 1 April 2025 it was dissolved.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

16

Stocks

2024
£

2023
£

Stocks

23,463,933

28,068,447

Consignment stock is obtained on 30-45 day credit terms. The legal title to the vehicle does not pass to the company until the supplier is in receipt of cleared funds for the full amount of the agreed sales price. If a vehicle remains unsold at the end of the credit period then the company is obligated to purchase that vehicle unless a mechanical problem has been identified. No deposit is required and the final sales price is set when the company sells the vehicle. Due to the “obligation to buy” the consignment stock is recognised as stock in these financial statements. The value of the stock at 30 September 2024 amounted to £5,443,878 (2023 - £8,538,599). An equal amount is held in accruals within creditors.

On rare occasions the company can obtain a small number of vehicles on a sale or return basis. If unsold at the end of the agreed period, the company may choose to purchase or return the vehicles to the supplier, without penalty. These vehicles are typically excluded from stock.

Impairment of stocks

The amount of reversal of impairment recognised in profit or loss is £72,980 (2023 - £Nil).

The carrying amount of stocks pledged as security for liabilities amounted to £23,463,933 (2023 - £28,068,447).

17

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

1,325,225

696,887

Other debtors

 

3,312,197

3,834,595

Prepayments

 

608,181

686,803

Accrued income

 

204,139

968,460

Deferred tax assets

12

1,170,000

609,870

Corporation tax asset

 

164,169

77,773

   

6,783,911

6,874,388

Other debtors includes £350,000 (2023 - £350,000) of unpaid share capital at 30 September 2024.

Details of non-current trade and other debtors

£960,285 (2023 - £547,533) of deferred tax assets is classified as non current.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

18

Cash and cash equivalents

2024
£

2023
£

Cash on hand

1,637

295

Cash at bank

3,160,371

1,525,771

3,162,008

1,526,066

19

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

23

20,800,435

21,356,998

Trade creditors

 

3,841,429

2,354,990

Social security and other taxes

 

449,776

786,554

Outstanding defined contribution pension costs

 

38,156

5,776

Other creditors

 

268,660

460,179

Accruals

 

6,481,583

9,376,061

 

31,880,039

34,340,558

Due after one year

 

Loans and borrowings

23

2,618,087

3,499,800

Other non-current creditors

 

400,541

648,028

 

3,018,628

4,147,828

Accrued expenses includes £5,443,878 (2023 - £8,538,599) of consignment stock liability held at 30 September 2024. These liabilities are only billed to the company when either the vehicle is sold or it reaches the end of the 30-45 day credit terms.

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £300,223 (2023 - £246,866).

Contributions totalling £38,156 (2023 - £5,776) were payable to the scheme at the end of the year and are included in creditors.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

21

Share capital

Authorised, allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Fully paid up ordinary shares of £1 each

585,000

585,000

500,000

500,000

Fully paid up ordinary A and B Shares of £1 each

200

200

200

200

Unpaid shares of £1 each

350,000

350,000

350,000

350,000

Preference shares of £1 each

75,000

75,000

75,000

75,000

1,010,200

1,010,200

925,200

925,200

New shares allotted

During the year 85,000 ordinary shares having an aggregate nominal value of £85,000 were allotted for an aggregate consideration of £1,000,000.

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
The ordinary shares have full voting rights and rights to dividends at the discretion of the directors.

Ordinary A and B shares have the following rights, preferences and restrictions:
The ordinary A & B shares have rights to dividends at the discretion of the directors. The holders of the ordinary A & B shares shall not be entitled to receive notice of meetings or to attend or vote at general meetings of the company.

Preference shares have the following rights, preferences and restrictions:
The Preference shares shall entitle the holder thereof to a fixed preferential dividend at a rate decided by the directors per annum on the amounts for the time being paid up or credited as paid thereon. The said dividend shall rank for payment in priority to the payment of a dividend on any other shares of the company and shall be payable (if and so far as, in the opinion of the directors, the profits of the company justify such payment) annually on a date to be specified by the directors in general meeting. The preference shares shall not confer the right to additional participation in the profits of the company.

The Preference shares shall not be redeemable.

The holders of the Preference shares shall not be entitled to receive notice of meetings or to attend or vote at general meetings of the company.

In a winding up of the company, the preference shares will be repaid in preference over the ordinary shares of the company.

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

22

Reserves

Capital redemption reserve

The capital redemption reserve has arisen due to the company buying back and cancelling preference shares of £1 each. The creation of the capital redemption reserve preserves the capital of the company.

Profit and loss account

This reserve represents accumulated profits net of any distributions made to shareholders.

Share premium reserve

The share premium reserve has arisen due to the company issuing 85,000 new ordinary shares with a nominal value of £1 for £1,000,000.

Revaluation reserve

The revaluation reserve arose due to the company revaluing their freehold land and buildings under the transitional rules of FRS 102 Section 35. This revaluation was extinguished last year when the freehold land and buildings were impaired to their recoverable net realisable value.

The changes to each component of equity resulting from items of other comprehensive income for the prior period were as follows:

2023
Revaluation reserve
£

2023
Total
£

Surplus/(deficit) on property, plant and equipment revaluation

(220,943)

(220,943)

23

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Stocking loan facility

17,885,599

18,020,820

Other borrowings

2,914,836

3,336,178

20,800,435

21,356,998

Non-current loans and borrowings

2024
£

2023
£

Other borrowings

2,618,087

3,499,800

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Stocking loan facility

The company has stocking loans which are denominated in pounds with nominal interest rates of between 5% and 10% per annum. The carrying amount at the year end is £17,885,599 (2023 - £18,020,820).

£17,885,599 (2023 - £18,020,820) is secured by fixed and floating charges over various stock and fixed assets including all freehold property held in the company.

The stocking facility of £17,885,599 (2023 - £18,020,820) is categorised as payable on demand. It is a rolling facility secured against the value of the vehicle stock.

Other borrowings

The company has various private loans from individuals and companies is denominated in pounds with a nominal interest rate of varying amounts up to 10%, and the final instalment is due on 28 February 2030. The carrying amount at year end is £5,532,923 (2023 - £6,835,978).

The loans have varying terms ranging from 2 months notice to 5 years and the majority of investors re-invest when their loans reach maturity.

Loans from connected parties totalling £702,790 (2023 - £2,602,064) are included within the private loans detailed above. These loans become payable if 2 months notice is given, however all these loans are held for long term investment and redemptions are expected to be minimal. The loans are either controlled or strongly influenced by the directors.

24

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

1,459,005

1,457,021

Later than one year and not later than five years

3,589,681

4,521,398

Later than five years

3,335,204

3,851,381

8,383,890

9,829,800

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,575,626 (2023 - £1,147,380).

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

25

Analysis of changes in net debt

At 1 October 2023
£

Financing cash flows
£

Other non-cash changes
£

At 30 September 2024
£

Cash and cash equivalents

Cash

1,526,066

1,635,942

-

3,162,008

Borrowings

Long term borrowings

(3,499,800)

(118,287)

1,000,000

(2,618,087)

Short term borrowings

(21,356,998)

556,563

-

(20,800,435)

(24,856,798)

438,276

1,000,000

(23,418,522)

 

(23,330,732)

2,074,218

1,000,000

(20,256,514)

26

Related party transactions

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

637,161

574,890

Summary of transactions with other related parties

Other related parties include other entities controlled by directors and the immediate families of directors.

During the year other related parties rendered services to the company including commission charges and management charges.

During the year, the company purchased vehicles from other related parties.

The company continued to provide loans to other related parties which were interest free and repayable on demand.

Other related parties continued to provide loans to the company on which interest was charged at varying rates and are repayable under various terms as described in note 23 Loans and borrowings.

 

Income and receivables from related parties

2023

Joint ventures
£

Dividends received

70,000

Receipt of services

161,639

231,639

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Expenditure with and payables to related parties

2024

Other related parties
£

Purchase of goods

85,988,898

Rendering of services

333,835

86,322,733

Amounts payable to related party

268,413

2023

Other related parties
£

Purchase of goods

60,442,739

Rendering of services

460,450

60,903,189

Amounts payable to related party

171,910

Loans to related parties

2024

Key management
£

Other related parties
£

Total
£

At start of period

350,000

2,397,018

2,747,018

At end of period

350,000

2,397,018

2,747,018

2023

Key management
£

Other related parties
£

Total
£

At start of period

350,000

2,397,018

2,747,018

At end of period

350,000

2,397,018

2,747,018

Loans from related parties

2024

Other related parties - stocking loan
£

Key management
£

Other related parties
£

Total
£

At start of period

8,363,985

103,000

2,499,064

10,966,049

Advanced

2,562,244

-

500,000

3,062,244

Repaid

-

-

(1,428,210)

(1,428,210)

Repaid via debt for equity swap

-

-

(1,000,000)

(1,000,000)

At end of period

10,926,229

103,000

570,854

11,600,083

 

Brent Cars Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

2023

Other related parties - stocking loan
£

Key management
£

Other related parties
£

Total
£

At start of period

5,653,944

103,000

2,311,630

8,068,574

Advanced

2,710,041

-

250,000

2,960,041

Repaid

-

-

(62,566)

(62,566)

At end of period

8,363,985

103,000

2,499,064

10,966,049

27

Parent and ultimate parent undertaking

The ultimate controlling party is S Winter, the majority shareholder.