A to Z Autoparts (Midlands) Ltd.

Registered number

05210705

Report and Financial Statements

30 June 2024

A to Z Autoparts (Midlands) Ltd.
Report and accounts
Contents




Page

Company information	1
Director's report	2
Strategic report	3
Independent auditor's report	5
Income statement	8
Statement of financial position	9
Statement of changes in equity	10
Statement of cash flows	11
Notes to the financial statements	13

A to Z Autoparts (Midlands) Ltd.

Company Information

Director

Mr. Ishtiaq Rehman

Auditors

Kaiser Nouman Nathan LLP

Unit 4

17 Plumbers Row

London

England

E1 1EQ

Bankers

Barclays Bank

15 Colmore Row

Birmingham

West Midlands

B3 2BH

Registered office

106-112 Emily Street

Highgate

Birmingham

West Midlands

B12 0SL

Registered number

05210705

A to Z Autoparts (Midlands) Ltd.
Registered number:		05210705
Director's Report

The director presents his report and financial statements for the year ended 30 June 2024.

Principal activities
The company's principal activity during the year continued to be that of retail trade of motor vehicle parts and accessories.

Dividends
A dividend of £20,000 was declared and paid during the year 30.06.2024. The directors do not recommend the payment of a further dividend.


Director
The following persons served as director during the year:

	Mr. Ishtiaq Rehman

Director's responsibilities

The director is responsible for preparing the report and financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 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 director is required to:
●	select suitable accounting policies and then apply them consistently;
●	make judgements and estimates that are reasonable and prudent;
●	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
●	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


Disclosure of information to auditors

The director confirms that:
●	so far as he is aware, there is no relevant audit information (as defined by section 18 of the Companies Act 2006) of which the company's auditor is unaware; and
●	he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.



This report was approved by the board on 28 August 2025 and signed on its behalf.



Mr. Ishtiaq Rehman
Director
Approved by the board on 28 August 2025

A to Z Autoparts (Midlands) Ltd.
Strategic Report

The director presents his strategic report for the year ended 30 June 2024. Business Overview: A to Z Autoparts (Midlands) Ltd is a leading independent automotive parts distributor operating primarily in the Midlands region. The company services garages through direct deliveries and operates retail shop floors across its branches. Additionally, e-commerce sales through multiple online portals are a key area of growth. Operational Developments: During the year, the company expanded by opening a third branch. This expansion introduced new challenges, particularly around inventory management, with a focus on balancing stock levels across branches to avoid excess stock accumulation while ensuring availability. In response to rising labour costs and increasing delivery expectations from garages, the company has automated more processes and optimized delivery routes, leading to improved operational efficiencies and reduced logistics expenses. Supply Chain: Stock is procured from local and European suppliers, with primary sales targeted within the UK market. The company has had to work closely with suppliers to ensure the third branch was adequately stocked, while maintaining stock balance across all locations. Financial Performance: Despite market pressures, the business achieved modest revenue growth over the prior year. Gross margins faced pressure due to competitive pricing; however, this was partly offset by cost control initiatives. Investments were made to enhance the online ordering platform, facilitating improved order processing and handling increased demand.
A summary of the performance for the year is given below :- Turnover increased by 20.2% to £13.73m, with gross margins increasing to 27.3% (2023: 22.7%), reflecting better pricing strategies and cost efficiencies. Operating performance showed strong improvement year on year, with the gross profit increasing to £3.75m (2023: £2.59m). This suggest enhanced control over direct costs and better utilisation of resources. The state of affairs at the balance sheet date is considered to be strong. The key financial performance indicators for the company are as follows:-
KPI 2024 2023 MEASURE
Gross Profit Margin 27.3% 22.7% Gross Profit/Turnover
Debtor Days 22 days 28 days Trade Debtors/Turnover
Creditor Days 85 days 74 days Trade Creditors/Cost of Sales
Risk and Control Considerations Inventory Management: Inventory management and stock balancing between branches remain a critical focus area. Ongoing monitoring is essential to prevent stock obsolescence, shortages, and excess inventory, which can tie up working capital. Controls include regular stock reviews, automated inventory tracking, and inter-branch stock transfers to maintain optimal levels. Operational Efficiency: Automation and delivery route optimization are key operational controls that have significantly contributed to improved efficiency and cost containment. These initiatives help reduce labour costs, enhance delivery punctuality, and optimize logistics expenses. Digital Transformation: Investments in digital platforms aim to mitigate risks related to order processing errors and customer service delays. Enhancements to the online ordering system and integrated IT controls improve accuracy and customer experience. Customer Retention: Maintaining strong relationships with key customers is vital to sustaining revenue streams. The company employs robust procedures to regularly monitor customer satisfaction, service performance, and evolving needs, enabling proactive responses to market demands.
Competitive Risk: The automotive parts market is highly competitive. The company addresses this by offering a diversified product range tailored to customer requirements and continuously reviewing its cost base to ensure operational efficiency and maintain competitive pricing. Market Conditions: The company faces risks from fluctuations in market demand, economic shifts, and industry trends. Its ability to respond quickly and adapt operations through agile management and strategic planning helps mitigate potential negative impacts. Resource Risk: The directors are confident that the company has adequate financial and operational resources to support its forecasted trading activities. Comprehensive risk management processes are in place to identify, assess, and address uncertainties, safeguarding business continuity. Future developments: The business aims to enhance its online presence, strengthen relationships with existing customers, and expand its reach to a wider market. Employees: The company operates an equal opportunities policy. The aim of this policy is to ensure that there should be equal opportunity for all and this applies to external recruitment, internal appointments, terms of employment, conditions of service and opportunity for training and promotion regardless of gender, ethnic origin or disability. Disabled persons are given full and fair consideration for all types of vacancy in as much as the opportunities available are constrained by the practical limitations of the disability. Should, for whatever reason, an employee of the company become disabled whilst in our employment, every step, where appropriate, will be taken to assist with rehabilitation and suitable re-training. The company maintains its own health, safety and environmental policies covering all aspects of its operations. Regular meetings and inspections take place to ensure all legal requirements are adhered to and that the company is responsive to the needs of the employees and the environment.


This report was approved by the board on 28 August 2025 and signed on its behalf.



Mr. Ishtiaq Rehman
Director
Approved by the board on 28 August 2025

A to Z Autoparts (Midlands) Ltd.
Independent auditor's report
to the members of A to Z Autoparts (Midlands) Ltd.

Qualified opinion

We have audited the financial statements of A to Z Autoparts (Midlands) Ltd. (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements
●	give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
●	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
●	have been prepared in accordance with the requirements of the Companies Act 2006.


Basis of Qualified opinion on financial statements
We were not appointed as auditor of the company until after 30 June 2024 and thus did not observe the counting of physical inventories at the end of the last accounting period. We were therefore unable to satisfy ourselves by alternative means concerning the opening inventory quantities held at 30 June 2024 , which were included in balance sheet at £2,649,048, by using other audit procedure. Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the inventory balance to be required, the strategic report would also need to be amended. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,and we have fulfilled our 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 qualified opinion.
Emphasis of matter
We draw attention to note 2 to the financial statements that describes the directors' assessment for the company to appropriately adopt the going concern basis of accounting in preparing the financial statements. Our opinion is not modified in this respect of this matter.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
●	the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
●	the strategic report and the 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 the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
●	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 directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: "- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the company's sector; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, health and safety legislation. - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary." "We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations." "To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected transactions; - tested the appropriateness of journal entries; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions." "To address the risk that revenue could be misstated due to fraud, we: - obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard; - performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions; - tested a sample of revenue transactions to supporting evidence; and - tested, on a sample basis, revenue related balances in the balance sheet." "In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - enquiring of management as to actual and potential litigation and claims; "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 director 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 for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matters
In the previous year, the company took advantage of audit exemption from Companies Act 2006. Therefore, the prior period financial statements were not subject to audit.

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.


D Bathmanathan
(Senior Statutory Auditor)		Unit 4
for and on behalf of		17 Plumbers Row
Kaiser Nouman Nathan LLP		London
Statutory Auditor		England
29 August 2025		E1 1EQ

A to Z Autoparts (Midlands) Ltd.
Income Statement
for the year ended 30 June 2024


Notes		2024		2023
£			£

Turnover	3	13,728,203		11,421,273

Cost of sales		(9,979,868)		(8,829,907)

Gross profit		3,748,335		2,591,366

Administrative expenses		(4,569,097)		(3,181,846)
Other operating income		1,126,481		911,274

Operating profit	4	305,719		320,794

Profit on sale of fixed assets		17,425		-
Interest payable	6	(51,431)		(38,565)

Profit on ordinary activities before taxation		271,713		282,229

Tax on profit on ordinary activities	7	(146,263)		(40,759)

Profit for the financial year		125,450		241,470

A to Z Autoparts (Midlands) Ltd.
Statement of Financial Position
as at 30 June 2024

Notes			2024			2023
£				£
Fixed assets
Intangible assets	8		59,574			62,812
Tangible assets	9		390,025			417,069
			449,599			479,881

Current assets
Stocks	10	2,649,084			2,135,744
Debtors	11	922,572			913,942
Cash at bank and in hand		1,033,011			446,148
		4,604,667			3,495,834

Creditors: amounts falling due within one year	12	(3,185,058)			(2,260,052)

Net current assets			1,419,609			1,235,782

Total assets less current liabilities			1,869,208			1,715,663

Creditors: amounts falling due after more than one year	13		(554,022)			(587,140)

Provisions for liabilities
Deferred taxation	16		(81,213)			-

Net assets			1,233,973			1,128,523

Capital and reserves
Called up share capital	17		105			105
Profit and loss account	18		1,233,868			1,128,418

Total equity			1,233,973			1,128,523




Mr. Ishtiaq Rehman
Director
Approved by the board on 28 August 2025

A to Z Autoparts (Midlands) Ltd.
Statement of Changes in Equity
for the year ended 30 June 2024

Share		Profit		Total
capital		and loss
account
£		£		£

At 1 July 2022	105		906,948		907,053

Profit for the financial year			241,470		241,470

Dividends			(20,000)		(20,000)

At 30 June 2023	105		1,128,418		1,128,523



At 1 July 2023	105		1,128,418		1,128,523

Profit for the financial year			125,450		125,450

Dividends			(20,000)		(20,000)

At 30 June 2024	105		1,233,868		1,233,973

A to Z Autoparts (Midlands) Ltd.
Statement of Cash Flows
for the year ended 30 June 2024

Notes	2024		2023
£		£
Operating activities
Profit for the financial year	125,450		241,470

Adjustments for:
Profit on sale of fixed assets	(17,425)		-
Interest payable	51,431		38,565
Tax on profit on ordinary activities	146,263		40,759
Depreciation	97,846		104,268
Amortisation of goodwill	5,738		5,613
(Increase)/decrease in stocks	(513,340)		225,852
Increase in debtors	(8,630)		(94,336)
Increase/(decrease) in creditors	904,987		(4,100)
	792,320		558,091

Interest paid	(51,431)		(38,565)
Corporation tax paid	(40,759)		(15,745)

Cash generated by operating activities	700,130		503,781

Investing activities
Payments to acquire intangible fixed assets	(2,500)		(50,000)
Payments to acquire tangible fixed assets	(125,153)		(146,161)
Proceeds from sale of tangible fixed assets	71,776		-

Cash used in investing activities	(55,877)		(196,161)

Financing activities
Equity dividends paid	(20,000)		(20,000)
Repayment of loans	(25,433)		(17,417)
Capital element of finance lease payments	(11,957)		(5,100)

Cash used in financing activities	(57,390)		(42,517)

Net cash generated
Cash generated by operating activities	700,130		503,781
Cash used in investing activities	(55,877)		(196,161)
Cash used in financing activities	(57,390)		(42,517)

Net cash generated	586,863		265,103

Cash and cash equivalents at 1 July	446,148		181,045
Cash and cash equivalents at 30 June	1,033,011		446,148

Cash and cash equivalents comprise:
Cash at bank	1,033,011		446,148



Analysis of Changes in Net Debt
	At 01.07.23		Cash flow	At 30.06.24
	£		£	£
Net cash
Cash at bank and in hand	446,148		586,863	1,033,011
	446,148		586,863	1,033,011

Debt
Debts falling due within 1 year	(75,443)		(926)	(76,369)
Debts falling due after 1 year	(580,381)		26,359	(554,022)
	(655,824)		25,433	(630,391)

Total	(209,676)		612,296	402,620

A to Z Autoparts (Midlands) Ltd.
Notes to the Accounts
for the year ended 30 June 2024

1	Statutory information

	A to Z Autoparts (Midlands) Ltd is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. The presentation currency of the financial statements is the Pound Sterling (£).

2	Summary of significant accounting policies

	Basis of preparation
	These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

	The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the accounting policies. The following principal accounting policies have been applied.

	Going concern
	The director has assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The director has made this assessment in respect to a period of at least twelve months from when the financial statements are authorised for issue. The director has concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as going concern. The director is of the opinion that the company will have sufficient resources to meet its liabilities as they fall due with the continued financial support.

	Comparatives
	In the previous accounting period, the company was entitled to audit exemption under s477 of the Companies Act as at was a small company. Therefore, comparatives were not subject to an audit.

	Critical accounting judgements and key sources of estimation uncertainty

	Significant judgements and estimates
	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 liabilites 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 revison affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
	Tangible fixed assets
	Fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and product life cycles are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

	Stock provision
	Stock is valued at the lower of cost and net realisable value. Management is required to consider the net realisable value of stock and whether an impairment is appropriate. When calculating the stock impairment provision, management considers the nature, condition, ageing and expiry date of stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.

	Deferred tax
	Management is required to assess whether it is appropriate to recognise a deferred tax asset relating to taxable losses available to the company. The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the reversal of losses and other deductions can be deducted. To determine the future taxable profits, reference is made to the latest available forecasts. Therefore, this involves judgement regarding the future financial performance of the company in which a deferred tax asset has been recognised.

	Bad debt provision
	The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

	Turnover
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.

	Sale of goods
	Revenue from the sale of goods is recognised when all of the following conditions are satisfied: - the company has transferred the significant risks and rewards of ownership to the buyer; - the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; - the amount of revenue can be measured reliably; - it is probable that the company will receive the consideration due under the transaction; and - the costs incurred or to be incurred in respect of the transaction can be measured reliably.

	Intangible fixed assets
	Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
	Computer software is being amortised evenly over its estimated useful life of five years.

	Tangible fixed assets

	Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Intangibles

over 20 years

Plant and machinery

20% RB

	Motor Vehicles			20% RB

	Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

	Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
	Stocks
	Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

	At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Taxation
	Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

	Deferred Tax
	Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
	Foreign currency translation
	Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

	Hire purchase and leasing commitments
	Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

	Pension costs and other post-retirement benefits
	The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

	Cash and cash equivalents
	Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

	Provisions and liabilities
	Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the balance sheet.

	Financial instruments
	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. Basic financial liabilities, including trade and other payables, bank loans, loans from fellow Group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method


3	Analysis of turnover					2024		2023
£							£

	Sale of goods					13,728,203		11,421,273

	By geographical market:

	UK					13,728,203		11,421,273


4	Operating profit					2024		2023
£							£
	This is stated after charging:

	Depreciation of owned fixed assets					97,846		104,268
	Amortisation of goodwill					5,738		5,613
	Carrying amount of stock sold					8,979,684		7,966,282


5	Staff costs					2024		2023
£							£

	Wages and salaries					2,300,216		1,493,795
	Social security costs					179,970		101,330
	Other pension costs					29,056		12,398
						2,509,242		1,607,523


	Average number of employees during the year					Number	Number

	Administration					14		9
	Distribution					55		51
	Marketing					7		7
	Sales					30		14
						106		81


6	Interest payable					2024		2023
£							£

	Bank loans and overdrafts					51,431		38,565


7	Taxation					2024		2023
£							£
	Analysis of charge in period
	Current tax:
	UK corporation tax on profits of the period					65,050		40,759

	Deferred tax:
	Origination and reversal of timing differences					81,213		-


	Tax on profit on ordinary activities					146,263		40,759


	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:

						2024		2023
£							£
	Profit on ordinary activities before tax					271,713		282,229

	Standard rate of corporation tax in the UK					25%		19%

£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					67,928		53,624

	Effects of:
	Expenses not deductible for tax purposes					19,096		70,499
	Capital allowances for period in excess of depreciation					(39,399)		(83,364)
	Profit/(Loss) on disposal of fixed assets					17,425

	Current tax charge for period					65,050		40,759


	Factors that may affect future tax charges
	From 1 April 2023, the corporation tax main rate for non-ring fenced profits has been increased to 25% applying to profits over £250,000. A small profits rate (SPR) has also been introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate.

8	Intangible fixed assets							£
	Goodwill:

	Cost
	At 1 July 2023							112,264
	Additions							2,500
	At 30 June 2024							114,764

	Amortisation
	At 1 July 2023							49,452
	Provided during the year							5,738
	At 30 June 2024							55,190

	Carrying amount
	At 30 June 2024							59,574
	At 30 June 2023							62,812


9	Tangible fixed assets
				Plant and machinery		Motor Vehicles		Total
				At cost		At cost
£					£		£
	Cost or valuation
	At 1 July 2023			490,477		478,584		969,061
	Additions			115,520		9,633		125,153
	Disposals			-		(221,061)		(221,061)
	At 30 June 2024			605,997		267,156		873,153

	Depreciation
	At 1 July 2023			251,986		300,006		551,992
	Charge for the year			70,882		26,964		97,846
	On disposals			-		(166,710)		(166,710)
	At 30 June 2024			322,868		160,260		483,128

	Carrying amount
	At 30 June 2024			283,129		106,896		390,025
	At 30 June 2023			238,491		178,578		417,069



10	Stocks					2024		2023
£							£

	Finished goods and goods for resale					2,649,084		2,135,744


11	Debtors					2024		2023
£							£

	Trade debtors					825,753		866,130
	Other debtors					96,819		47,812
						922,572		913,942


12	Creditors: amounts falling due within one year					2024		2023
£							£

	Bank loans					76,369		75,443
	Obligations under finance lease and hire purchase contracts					-		5,198
	Trade creditors					2,318,879		1,787,396
	Corporation tax					65,050		40,759
	Other taxes and social security costs					220,531		162,696
	Other creditors					504,229		188,560
						3,185,058		2,260,052


13	Creditors: amounts falling due after one year					2024		2023
£							£

	Bank loans					554,022		580,381
	Obligations under finance lease and hire purchase contracts					-		6,759
						554,022		587,140


14	Loans					2024		2023
£							£
	Loans not wholly repayable within five years:
	Barclays - Term 5 year, Interest Rate 2.7%					347,366		347,366

	Analysis of maturity of debt:
	Within one year or on demand					76,369		75,443
	Between two and five years					554,022		580,381
						630,391		655,824

	The bank loans are secured a legal charge over a property owend by the director in his personal capacity. Further the lender has the cross guarantee and debenture from the company and M. Deen Limited, a company controlled by the director.


15	Obligations under finance leases and hire purchase					2024		2023
	contracts					£	£

	Amounts payable:
	Within one year					-		5,198
	Within two to five years					-		6,759
						-		11,957

16	Deferred taxation					2024		2023
£							£

	Accelerated capital allowances					81,213		-


						2024		2023
£							£

	Charged to the profit and loss account					81,213		-

	At 30 June					81,213		-

	Defered tax provision balance in the accounts relates to accelerated capital allowances accounted for the future tax rate at 25% (2023:25%)


17	Share capital	Nominal		2024		2024		2023
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		105		105		105


18	Profit and loss account					2024		2023
£							£

	At 1 July					1,128,418		906,948
	Profit for the financial year					125,450		241,470
	Dividends					(20,000)		(20,000)

	At 30 June					1,233,868		1,128,418


19	Dividends					2024		2023
£							£

	Dividends on ordinary shares (note 18)					20,000		20,000

20	Leasing agreements

	Minimum lease payments under non-cancellable operating lease fall due as follows:

						2024		2023
£							£

	Within one year					616,000		606,000
	Between one and five year					1,071,000		1,682,000

						1,687,000		2,288,000



21	Related party transactions

	Included within other debtors is £86,399 (2023: £nil) due from Sirs Logistics Limited, a company controlled by a close family member of the director. Included within other creditors is £53,400 (2023: £nil) due to Sirs Logistics Limited, a company controlled by a close family member of the director. Included in motor expenses are vehicle hire £199,967 (2023: £nil) paid to Sirs Logistics Limited, a company controlled by a close family member of the director. At 30 June 2024, £63,555 (2023: £71,077) was owed to the director by the company. The loan is unsecured, interest-free, and repayable on demand. No guarantees were provided. Included in premises expenses are rent paid to M. Deen Limited, a company controlled by the director amounting to £455,00 (2023: £510,00). Included in other income £1,126,481 (2023: £911,274) received from Automotive Components Distribution Ltd, a company associated with the director. Close family members of the directors were employed by the company during the year. Total remuneration paid to these family members amounted to £120,277 (2023:£96,272). All transactions were undertaken on normal commercial terms.

22	Pension commitments
	The company operates a fully insured defined contribution pension scheme for certain members of staff and the director. The pension charge represents the amounts paid by the company to the fund during the year. Payments during the year, amounted to £29,059 (2023 - £12,398). These contributions are invested separately from the company's assets.

23	Contingent liabilities
	There were no contingent liabilities at either the beginning or the end of the financial year.

24	Auditor liability limitation agreement
	The company has entered into a liability limitation agreement with Kaiser Nouman Nathan LLP in respect of the statutory audit for the year ended 30 June 2024. The proportionate liability agreement follows the standard terms in appendix B to the Financial Reporting Councils' June 2008 Guidance on Auditors Liability Agreements and as approved by the members on 2 July 2025.



25	Presentation currency

	The financial statements are presented in Sterling.

26	Ultimate controlling party
	Mr. Ishtiaq Rehman, controls the company by virture of holding of 66.67% issued share capital and voting rights.

27	Legal form of entity and country of incorporation

	A to Z Autoparts (Midlands) Ltd. is a private company limited by shares and incorporated in England.


28	Principal place of business

	The address of the company's principal place of business and registered office is:

	106-112 Emily Street
	Highgate
	Birmingham
	West Midlands
	B12 0SL