REGISTERED NUMBER: 05861786 (England and Wales)

V12 SPORTS & CLASSICS LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

F Tailor

B A M Y Shaikh

G Woods

SECRETARY:

B A M Y Shaikh

REGISTERED OFFICE:

Unit 23 Harrowbrook Road

Harrowbrook Road

Hinckley

Leicestershire

LE10 3DJ

REGISTERED NUMBER:

05861786 (England and Wales)

AUDITORS:

Burrows Scarborough Limited

(Statutory Auditor)

Sovereign House

12 Warwick Street

Coventry

CV5 6ET

BANKERS:

National Westminster Bank Plc

1 Market Place

Nuneaton

Warwickshire

West Midlands

CV11 4YY

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

V12 Sports and Classics Ltd's primary focus throughout the year was sourcing, preparing, and retailing used cars to the public. The Company, wholly owned by CEO and Founder Farhad Tailor, expects no significant changes to its principal activities in the next financial year.

REVIEW OF BUSINESS

In 2024, the used car market encountered significant difficulties with vehicle price realignments particularly in the first half of the year and economic challenges weighed heavily. The UK's general election, global geopolitical tensions, and inflation affected consumer confidence, resulting in lower retail volumes and margins.

V12's distinctive business model enabled a rapid adaptation to these conditions, emphasising operational efficiency, robust cost management, and outstanding customer service. During the first half year, the Company closed four retail sites - Witham, Luton, Nelson, and Newcastle-to focus on core operations. This move improved performance by July 2024, yielding a positive EBITDA for the full year totalling £3.1m and setting the stage for stronger results in 2025.

Total vehicle sales reached £220m, with adjusted EBITDA at £3.1m (2023: £3.3m) and profit before tax and exceptional items at £257k (2023: £564k), reflecting the impact of challenging first-half trading.

Toward year-end, V12 enhanced its Executive Committee with two senior leaders whose combined experience in motor finance and retail exceeds 50 years.

The transformation strategy continues into 2025 as V12 welcomes new senior team members - a Head of Prep, Head of Sales, and Head of Marketing, each bringing substantial industry expertise. Investment in digital tools, comprehensive systems, and AI supports both the Senior Leadership Team and Executive Committee. Stock quality remains high, with aging inventory at record lows thanks to efficient stock-turn, strategic acquisition, and pricing management. These steps provide a solid foundation for ongoing growth and profitability.

A non-statutory presentation of results from 2024 and 2023 follows, summarising profit/loss, turnover and EBITDA.

- Total Revenue for the year £235m was up by £39.7m (20.3%) on 2023

- Gross profit of £7.88m down by £1.23m (13.5%)

- Operating profit (EBIT) of £2.67m down by £214k (7.4%)

- Profit before tax of £0.256m was down by £0.307m (54.4%)

- EBITDA: £3.1m down by £0.2m (5.2%)

The company's net assets have decreased by £0.47m to £4.48m.

Cash balances at the year-end had increased from £2.86m to £3.66m.

Employee numbers are similar to the previous period, with the average number increasing from 215 to 217.

PRINCIPAL RISKS AND UNCERTAINTIES

Economic Risk

V12 is affected by major shifts in the UK used car market and persistent economic challenges, such as falling real wages. Product, marketing, and pricing strategies are adapted as needed, supported by stringent cost controls. The Company is protected from customer debtor risk by requiring payment before vehicle collection or arranging finance through third-party lenders. Directors regularly assess market conditions and are confident in V12's leadership position.

Credit and Liquidity Risk

Funding comes from shareholder equity, internal revenue, short-term borrowing, and stock financing secured by retail vehicle stock. Strong relationships with lenders are maintained through frequent communications and high-quality management reports. Directors routinely review cash flow and bank covenants to ensure ample liquidity and facility headroom.

Interest Risk

Interest rate risk is tied to the stocking loan facility. Potential rate increases are considered in budgets and forecasts to maintain resilience to changing borrowing costs.

Regulatory and Consumer Finance Risk

V12 holds FCA permissions for regulated credit broking. Regulatory changes or variations in finance availability may affect customers or revenue. The compliance team conducts regular reviews and audits to maintain regulatory standards. Directors work with a broad panel of consumer finance partners to provide competitive rates, upholding the Company's commitment to fair treatment.

Reliance on Staff

Company success relies on retaining and attracting talented staff, particularly in senior management. Challenges in recruiting or retaining key personnel could slow strategic progress or impact performance. V12 fosters an engaged and rewarding culture, regularly reviewing staff performance and policies to stay competitive.

IT Systems and Continuity

Dependable IT infrastructure is vital for operations. Systems are regularly checked and updated to guard against disruptions, supporting business continuity.

Health and Safety

V12 runs multiple departments with diverse risks. The Company recognises the potential for injury, property damage, environmental harm, or reputational impact. Most staff are directly employed, with subcontractors handling valeting and cleaning. Ongoing health and safety reviews and staff training help reduce risks, and written risk assessments are used as needed. Leadership is clearly defined and tiered, ensuring robust controls and supervision. Commitment to a safe workplace is maintained through regular board oversight and transparent reporting.

SECTION 172 OF THE COMPANIES ACT 2006 - DIRECTORS’ DUTIES

Directors acknowledge their responsibility under section 172(1) to act in good faith for the Company's success, considering long-term consequences, employee interests, vital relationships, community and environmental impacts, reputation, and fairness among members.

STRATEGY & FUTURE DEVELOPMENTS

V12 stands out in the used car sector, retailing quality vehicles at some of the UK's lowest prices. All cars undergo in-house preparation and a multi point independent AA inspection, ensuring high value and exceptional service from CEO-controlled premises.

With economic uncertainty, consumers increasingly seek trusted suppliers for used vehicle purchases. V12 is positioned as a reliable choice, offering great value and peace of mind.

The Company remains committed to strengthening its core offer and substantially growing profits year-on-year.

DIRECTORS’ STATEMENT UNDER SECTION 414CZA OF THE COMPANIES ACT 2006

This disclosure details how directors consider section 172(1)(a)-(f) matters and forms the Directors' Statement under section 414CZA.

Employees

A capable, engaged, and skilled workforce is crucial to V12's strategy and long-term success. The Company aims to build a high-performing, unified, committed team.

- Key interests: Career development, reward, engagement, morale, motivation, reputation, training and development, wellbeing, health and safety

- How we engage: Internal communications, training and feedback, competitive pay and benefits, and a culture of integrity at every level

Customers

Customer relationships are prioritised, with needs at the forefront of decision-making.

- Key interests: Safety, quality and reliability, value for money, convenience, customer service, compliance and data protection, choice

- How we engage: Reviewing feedback scores, social media engagement, and training on fair treatment of customers

Suppliers and Partners

Long-term relationships with suppliers cover vehicle sourcing, preparation, and capital projects, ensuring efficient business processes. Contracts and suppliers are regularly reviewed to deliver value and minimise risk.

- Key interests: Logistics efficiency, growth, trade profitability and efficiency, responsible procurement, trust and ethics

- How we engage: Regular meetings, contract negotiation and renewal, clear KPIs, standards, and reporting

ON BEHALF OF THE BOARD:

F Tailor - Director

26 August 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

The total distributions of dividends for the year ended 31 December 2023 will be £594,849.

The directors recommend that no final dividend be paid.

Dividends amounting to £226,500 were paid after the year end but before the date of this report.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

F Tailor

B A M Y Shaikh

G Woods

GOING CONCERN

The directors have evaluated the appropriateness of using the going concern basis in preparing the financial statements and have determined that it remains suitable. Further details can be found in the financial statements.

DIRECTORS’ INDEMNITIES

The Company has arranged qualifying third-party indemnity provisions for its directors. These provisions were established during the financial year and continue to be in effect as of the date of this report.

EMPLOYEE CONSULTATION

The Company maintains a policy of consulting and discussing with employees any matters likely to impact their interests as and when they arise. Information relevant to employees is distributed through bulletins and reports, aiming to foster a shared understanding among all staff of the financial and economic factors influencing the Company's performance.

DISABLED EMPLOYEES

The Company is committed to recruiting disabled individuals for suitable vacancies. All necessary assistance, including initial training courses, is provided. Once employed, a tailored career plan is developed to ensure that each disabled employee receives appropriate opportunities and training. Where possible, arrangements are made for the retraining of employees who become disabled, enabling them to take on roles that align with their skills and abilities.

STREAMLINED ENERGY AND CARBON REPORTING

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

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

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

During the reporting period we've continued to invest in our energy management programme which includes monitoring and reporting of energy consumption at the majority of sites. Through the service provided by our energy consultants, the energy management programme we run enables us to identify and address any consumption issues as and when they arrive, allowing us to eliminate unnecessary energy waste.

The table below includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.

01/01/2024 - 31/12/2024

01/01/2023 - 31/12/2023

Total energy consumption (kWh)

2,435,951

2,478,590

Oil & gas combustion emissions (tCO2e)

226.8

209.0

Purchased electricity emissions (tCO2e)

216.2

218.1

Vehicle fuel combustion emissions, Scope 1 (tCO2e)

41.4

68.7

Vehicle fuel combustion emissions, Scope 3 (tCO2e)

15.1

5.4

Total gross reported emissions (tCO2e)

499.5

501.2

Turnover (£m)

235.2

195.5

Intensity ratio: Turnover (tCO2e/£m)

2.1

2.6

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with section 414C(11) of the Companies Act 2006 (Strategic and Directors' Report) Regulations 2013, the directors have chosen to include the following information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 within the Strategic Report:

- Principal activities and locations

- Future developments for the business

- Financial risk management objectives and policies

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

F Tailor - Director

26 August 2025

Opinion

We have audited the financial statements of V12 Sports & Classics Ltd (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 December 2024 and of its profit 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

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 six, 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 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.

Auditors' 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 a Report of the Auditors 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:

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

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 frameworks that the company operates in and how the company is complying with the legal and regulatory frameworks;

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

- 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.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are employment laws, the health and safety legislation, FRS 102 and the Companies Act 2006 regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements, which included:

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and assessing whether the judgements made in making accounting estimates are indicative of potential bias.

- Enquiring of management around actual and potential litigation and claims, including health and safety.

- Enquiring of company's staff in tax and compliance

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Adam Bexon MChem FCA (Senior Statutory Auditor)

for and on behalf of Burrows Scarborough Limited

(Statutory Auditor)

Sovereign House

12 Warwick Street

Coventry

CV5 6ET

26 August 2025

TURNOVER

3

235,192,538

195,509,590

Cost of sales

227,314,036

186,398,393

GROSS PROFIT

7,878,502

9,111,197

Administrative expenses

6,080,541

6,226,885

1,797,961

2,884,312

Other operating income

872,069

-

OPERATING PROFIT

5

2,670,030

2,884,312

Interest payable and similar expenses

7

2,413,071

2,320,315

PROFIT BEFORE TAXATION

256,959

563,997

Tax on profit

8

128,560

183,339

PROFIT FOR THE FINANCIAL YEAR

128,399

380,658

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

128,399

380,658

FIXED ASSETS

Tangible assets

10

1,853,158

2,001,413

CURRENT ASSETS

Stocks

11

34,272,300

34,369,084

Debtors

12

7,274,946

6,650,569

Cash at bank and in hand

3,663,984

2,861,236

45,211,230

43,880,889

CREDITORS

Amounts falling due within one year

13

40,613,182

39,199,592

NET CURRENT ASSETS

4,598,048

4,681,297

TOTAL ASSETS LESS CURRENT LIABILITIES

6,451,206

6,682,710

CREDITORS

Amounts falling due after more than one year

14

(1,000,000

)

(1,500,000

)

PROVISIONS FOR LIABILITIES

19

(972,233

)

(237,287

)

NET ASSETS

4,478,973

4,945,423

CAPITAL AND RESERVES

Called up share capital

20

1

1

Retained earnings

21

4,478,972

4,945,422

SHAREHOLDERS' FUNDS

4,478,973

4,945,423

The financial statements were approved by the Board of Directors and authorised for issue on 26 August 2025 and were signed on its behalf by:

F Tailor - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1

5,103,102

5,103,103

Changes in equity

Dividends

-

(538,338

)

(538,338

)

Total comprehensive income

-

380,658

380,658

Balance at 31 December 2023

1

4,945,422

4,945,423

Changes in equity

Dividends

-

(594,849

)

(594,849

)

Total comprehensive income

-

128,399

128,399

Balance at 31 December 2024

1

4,478,972

4,478,973

Cash flows from operating activities

Cash generated from operations

1

4,581,852

3,436,679

Interest paid

(2,413,071

)

(2,320,315

)

Tax paid

253,566

(300,000

)

Net cash from operating activities

2,422,347

816,364

Cash flows from investing activities

Purchase of tangible fixed assets

(359,992

)

(733,576

)

Net cash from investing activities

(359,992

)

(733,576

)

Cash flows from financing activities

New loans in year

-

2,000,000

Loan repayments in year

(500,000

)

(775,000

)

Amount advanced to related parties

(577,884

)

(1,045,717

)

Amount repaid by related parties

413,126

-

Equity dividends paid

(594,849

)

(538,338

)

Net cash from financing activities

(1,259,607

)

(359,055

)

Increase/(decrease) in cash and cash equivalents

802,748

(276,267

)

Cash and cash equivalents at beginning of year

2

2,861,236

3,137,503

Cash and cash equivalents at end of year

2

3,663,984

2,861,236

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

256,959

563,997

Depreciation charges

466,103

423,613

Loss on disposal of fixed assets

42,145

-

Finance costs

2,413,071

2,320,315

3,178,278

3,307,925

Decrease/(increase) in stocks

96,784

(4,316,694

)

(Increase)/decrease in trade and other debtors

(717,773

)

185,940

Increase in trade and other creditors

2,024,563

4,259,508

Cash generated from operations

4,581,852

3,436,679

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

3,663,984

2,861,236

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,861,236

3,137,503

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

2,861,236

802,748

3,663,984

2,861,236

802,748

3,663,984

Debt

Debts falling due within 1 year

(500,000

)

-

(500,000

)

Debts falling due after 1 year

(1,500,000

)

500,000

(1,000,000

)

(2,000,000

)

500,000

(1,500,000

)

Total

861,236

1,302,748

2,163,984

1.	STATUTORY INFORMATION

V12 Sports & Classics 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 company's head office is now located at London Road, Hinckley, Leicestershire LE10 1HQ. The company also has various car sales sites around the country. A list of sites can be found on the website www.v12sportsandclassics.co.uk.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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 financial statements have been prepared on a going concern basis, are presented in sterling which is the functional currency of the company and are rounded to the nearest £.

Management have determined that there are no material uncertainties in relation to going concern by considering future cash flows, liquidity and borrowing facilities.

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

The nature of the company's operations and principal activity is that of retailers of second hand motor vehicles and related products, which mainly consist of financial related products such as finance and warranties.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Turnover from the sale of goods and the sale of warranties and GAP insurance is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on collection of the vehicle by the customer.

Turnover from commission is recognised in the Financial statements when the company obtains the rights to receive commissions on contracts.

Other Operating Income

Other Operating Income mainly relates to managment income receivable from a related third party.

Tangible fixed assets

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

Freehold property

-

not provided

Short leasehold improvements

-

10% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

30% on cost

Motor Vehicles

-

25% on cost

Depreciation is not charged on Freehold property as the asset relates to land acquired for storage.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the purchase cost of goods plus any directly attributable costs less any trade discounts and rebates. Net realisable value is calculated using the expected selling price less any associated selling and distributing costs.

Stock is included in the financial statements where in substance the risks and rewards of ownership have been transferred to the company, regardless of whether or not the legal title has been transferred.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 taxation

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.

Warranty provision

The warranty provision is made to reflect the expected post year-end warranty work to be performed by the company on vehicles sold before the year end where other external warranties will not cover such work.

Leasing

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Employee 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.

The amount recognised in the profit & loss account as an expense for defined contribution pension plans is shown in the 'Employees and Directors' note.

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

Financial instruments

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade debtors and creditors, loans from third parties and loans to and from related parties.

Debt instruments that are payable or receivable within one year (which includes all debt instruments included in the financial statements) are measured initially and subsequently at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Judgements and key sources of estimation uncertainty

Many of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimation is contained in these accounting policies and/or the notes to the financial statements and the key areas are summarised below:

Judgements in applying accounting policies

There are no judgements (apart from those involving estimates) that have been made in the process of applying these accounting policies that have had a significant effect on amounts recognised in the financial statements.

Sources of estimation uncertainty

Depreciation rates are based on estimates of the useful lives and residual values of the assets involved (see the Tangible fixed assets accounting policy).

Slow moving stock provisions are based on estimates of the likely recoverable amounts (see the Stocks accounting policy).

Debit back provisions are based on estimates of the value of the likely commission clawbacks.

The warranty provision is based on estimates of the likely warranty claims, based on current costs per policy.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024

2023

£

£

Retail

208,372,128

172,331,180

Auction

11,942,869

9,054,618

Commissions

6,281,619

7,269,208

Warranty & GAP

4,627,882

3,667,877

Other sales

3,968,040

3,186,707

235,192,538

195,509,590

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

235,192,538

195,509,590

235,192,538

195,509,590

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

8,319,872

8,001,815

Social security costs

872,141

835,376

Other pension costs

158,122

135,155

9,350,135

8,972,346

The average number of employees during the year was as follows:

2024

2023

Sales & distribution

196

182

Administration & management

21

33

217

215