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

General Traffic supplies and distributes high quality components to the automotive industry at competitive prices through a comprehensive and efficient distribution service.

Review of the Business

The group’s sales totalled £81,175,695 in 2024 (2023: £83,192,479) with a profit before tax of £9,415,622 (2023: £13,504,426). The directors acknowledge the decline in turnover and profitability but remain confident in the company’s long term strategy, having taken decisive steps to safeguard margins and build operational resilience.

The modest decrease in sales of £2,016,784 (2.4%) and reduction in profit before tax reflect a combination of internal and external factors, including operational disruption in the North East following the 2023 acquisition and rebranding of N.P. Alliance Ltd. In addition, a competitor’s branch expansion and aggressive pricing strategies impacted market share, however General Traffic chose not to enter a price war and instead focused on protecting margins and maintaining pricing discipline to support its long-term strategy.

In response to these challenges, the company undertook a structural reorganisation and invested in a new distribution centre in the North East to enhance service levels and operational efficiency across the region. These measures are expected to support future growth and strengthen the company’s market position in the long run.

The directors monitor business performance through tracking key performance and strategic indicators on a monthly and quarterly basis. This proactive monitoring ensures that management can swiftly implement corrective actions to mitigate adverse trends or capitalise on emerging opportunities. The company recognises several principal risks and uncertainties that could impact operational and financial performance.

Business Performance and Integration Risk

Following the acquisition and rebranding of N.P. Alliance Ltd in 2023, the company experienced some disruption during the integration process, which led to the departure of key personnel and the loss of certain customer accounts. While such transitional challenges are not uncommon post-acquisition, they had a measurable impact on performance in 2024. The directors responded by changing the regional management structure, increasing investment in staff training and developing a new distribution centre in the North East to strengthen operational stability and enhance customer service. The company continues to monitor KPIs on a daily, monthly and quarterly basis to ensure proactive decision-making and resilience across the network.

Competition and Market Share Risk

The UK automotive aftermarket remains highly competitive and in 2024 the company faced increased pressure from a competitor pursuing rapid expansion with aggressive pricing. While this has resulted in some loss of business, the directors have taken a strategic decision not to engage in unsustainable price wars that would compromise long-term margins. Instead, General Traffic continues to focus on value-added services, brand partnerships and margin protection through disciplined pricing and operational efficiency. The directors believe this long-term approach will enable sustainable growth and protect profitability despite short-term market turbulence.

Inflation and Cost Pressure Risk

Cost inflation remains a significant challenge across all major input areas such as goods purchased, logistics, energy and wages. The company’s operating costs have risen considerably during the year, including a substantial increase in charitable donations. Although general inflation affects the entire industry, General Traffic continues to review and optimise its operations to identify efficiencies and cost-saving opportunities. Where necessary, selling prices may be adjusted to mitigate the impact of rising costs, whilst maintaining competitiveness. The company’s scale, purchasing strategy and supplier relationships support continued margin protection relative to peers.

Supply Chain and Geopolitical Risk

Ongoing global supply chain disruption, particularly around the Red Sea and key Far East freight routes, has affected lead times and freight costs. The company works with a diverse range of suppliers and logistics providers to secure alternative sourcing channels and ensure continued product availability. Stockholding strategies have been adjusted to prioritise high-demand lines and ensure service continuity for customers. Regular communication with suppliers and investment in supply chain systems provide additional agility and visibility, enabling the company to respond quickly to emerging issues.

Strategic initiatives include the negotiation of forward supply agreements, stockpiling of critical components where viable, and the ongoing evaluation of alternative suppliers. The company has also strengthened its logistics infrastructure, exemplified by the opening of a third distribution centre to enhance stockholding capacity and provide additional resilience against supply interruptions. Regular scenario analysis and business continuity planning underpin the company's commitment to sustaining high service levels amid global uncertainties.

Customer and Credit Risk

Economic uncertainty, inflation, and rising interest rates continue to affect customer behaviour and cash flow, increasing the risk of delayed payments or insolvency. Although the company does not have a dependency on any single customer, it remains vigilant in its credit management practices. Thorough credit checks are conducted prior to approving facilities and limits are reviewed regularly. A well-defined credit control policy is in place to manage overdue accounts and the business takes a proactive approach to debt collection to mitigate financial exposure.

Technology and Vehicle Evolution Risk

The automotive industry is experiencing rapid technological change, with the increasing adoption of electric vehicles (EVs), hybrid technologies and advanced driver-assistance systems. These developments may reduce demand for traditional mechanical parts and require changes in product mix and customer training. General Traffic continues to monitor vehicle technology trends and invest in staff development and customer education to support garages and workshops in adapting to evolving service requirements. The company also works closely with industry bodies to ensure that the independent aftermarket is not disadvantaged by OEM restrictions.

Vehicle Parc and Lifecycle Risk

While the proportion of new vehicles in the UK car parc has increased slightly post-pandemic, the average vehicle age continues to trend upwards. This is a favourable development for the independent aftermarket, as older vehicles are more likely to be serviced outside of franchise dealer networks. General Traffic continues to tailor its product and service offering to suit the evolving needs of this maturing car parc, which supports long-term demand for replacement parts and value-driven service providers.

Other Risks

In addition to the principal risks outlined above, the company remains attentive to other potential uncertainties, including regulatory changes (such as environmental or safety regulations), cyber security threats and workforce-related risks. Each of these areas is subject to ongoing monitoring, with mitigation strategies developed and refined as part of the company’s risk management framework.

The key performance indicators that the company regards as important are:

1. The gross profit margin increased to 51.70%, reflecting the company’s ongoing strategy of sourcing more products directly from manufacturers, securing bulk discounts and building long-term supplier partnerships.

2. The ratio of operating expenses to turnover rose to 40.1%, primarily due to inflationary pressures on core costs and a significant increase in charitable donations during the year (£2,631,188 in 2024 compared to £709,815 in 2023).

3. The ratio of operating profit to turnover declined as the rise in administrative expenses outweighed the improvements in gross margin.

4. EBITDA decreased year-on-year, reflecting the impact of higher overheads and a slight reduction in turnover. However, the underlying trading performance remained resilient in a challenging market environment.

General Traffic remains committed to its long-term vision of growth, resilience and value creation. The company’s strategic roadmap is focused on addressing evolving market dynamics, customer expectations and technological advancements. In the medium and long term, the business will prioritise the following key initiatives:

I. Regional Strengthening and Network Optimisation

The company will continue to enhance the efficiency and service capability of its branch network, with a particular focus on maximising the benefits of the newly established distribution centre in the North East. Ongoing review of logistics infrastructure and regional service models will support consistent customer experience and cost-effective delivery performance.

II. Margin Protection and Commercial Discipline

Recognising the ongoing pressures from inflation and aggressive market competition, General Traffic will maintain a firm commitment to commercial discipline. Rather than engaging in unsustainable pricing practices, the company will prioritise protecting gross margins through strategic procurement, supplier negotiations and efficient operations.

III. Digital Innovation and Data-Led Growth

The business will accelerate its digital transformation agenda, investing in platforms that enhance online ordering, stock visibility and customer engagement. Greater use of data analytics will support smarter forecasting, targeted promotions and improved supply chain responsiveness.

IV. Customer Engagement and Value Proposition

General Traffic will continue to differentiate itself through service-led value, leveraging its technical support, product expertise and local service capability. Ongoing investment in training and relationship management will ensure the business remains aligned with the needs of its core customer base.

V. Product Development and Technology Adaptation

As the vehicle parc evolves with increased electrification and advanced vehicle systems, the company will expand its product offering and develop technical competence to meet new demand. General Traffic will work closely with suppliers, trade bodies and training partners to ensure relevance in a rapidly shifting aftermarket environment.

VI. People and Culture

The company acknowledges the importance of developing and retaining a skilled workforce. General Traffic will continue to invest in employee development, leadership training and culture-building initiatives to ensure long-term organisational strength.

VII. Strategic Growth Opportunities

General Traffic will remain alert to opportunities for organic and acquisitive growth. While maintaining its focus on operational stability, the company will explore geographic expansion, selective acquisitions and strategic partnerships that align with its long-term vision.

This is an overview of how the directors performed their duty to promote the success of the company under section 172 of the Companies Act 2006.

Duty to promote the success of the company

In executing our strategy, directors must act in accordance with a set of general duties detailed in section 172 of

the Companies Act 2006. These general duties include a duty to promote the success of the company, and

specifically, to act in a way that the director considers, in good faith, would be most likely to promote the success

of the company for the benefit of its shareholders as a whole and, in doing so, having regard (amongst other

matters) to the:

•    likely consequences of any decisions in the long-term.

•    interests of the company's employees.

•    need to foster the company's business relationships with suppliers, customers, and others.

•    impact of the company's operations on the community and environment.

•    desirability of the company maintaining a reputation for high standards of business conduct; and

•    need to act fairly as between shareholders of the company.

This statement has been prepared in accordance with the requirements of The Companies (Miscellaneous

Reporting) Regulations 2018, which require the company to describe how the directors have had regard to the

matters set out in section 172 of the Companies Act 2006 during the financial year under review. It is noted that

the directors have always acted in accordance with such duties in their decision making and they will continue to

do so. Considering the additional disclosure requirements, we have set out in the strategic report how the directors have fulfilled their duties during the course of the year ended 31 December 2024.

•    The likely consequences of any decisions in the long term:

Directors remain mindful that strategic decisions have long term implications for the company and its stakeholders and these implications are carefully assessed when approving the company’s budget which facilitated the acquisition of N.P. Alliance Limited, fulfilling General Traffic’s commitment to a long-term strategy of market expansion and growth to offer a comprehensive and efficient distribution service to customers. The company has pursued sustainable growth strategies that balance short-term financial objectives with the long-term success and value creation for shareholders. This approach ensure the stability and profitability of the company in the future.

•    The interests of the Company’s employees:

Directors take active steps to ensure that the suggestions, views and interests of staff members are gathered and considered in decision making. Directors benefit from having a knowledgeable, experienced and long-serving senior management team who continue to be actively involved on a daily basis by maintaining regular communication with branch staff. Further examples of how directors engage with staff include provision of regular updates on business performance as KPIs are monitored to assist with linking an element of employee reward to the overall financial success of the company. The General Traffic Academy offers staff the opportunity for career development through various initiatives designed to improve skills, promote growth and nurture new talent. Directors have also enforced regular communication where necessary from General Traffic’s in house human resources department on all matters relating to the welfare and health and safety of all its staff.

•    The need to foster the Company’s business relationships with suppliers, customers and others:

Directors recognise that the success of the company is reliant on developing and maintaining strong relationships with customers and suppliers. Directors acknowledge it is their duty to protect, promote and prioritise customer concerns and interests when making decisions as the foundation of General Traffic’s operation is built on an unwavering commitment to deliver value to customers through procuring a diverse range of brands ranging from OE pedigree to competitively priced aftermarket alternatives. Directors are actively engaged in fostering business relationships with suppliers through agreement of multi-year contracts with key suppliers encompassing growth incentives alongside regular meetings to review performance. General Traffic’s contributions to the RAPID Group and TEMOT International further equip directors with the information and influence required to preserve and grow successful supplier relationships.

•    The impact of the company's operations on the community and environment:

Directors recognise their social responsibility and are committed to delivering a positive impact on the health and well-being of the people and communities in which General Traffic operates. In addition to monetary contributions to charitable bodies locally and globally, directors extend their support to grassroots causes through assisting local sports teams, clubs and community initiatives. Directors are committed to encouraging innovation inside and outside of the business through supporting educational initiatives in partnership with Essa Academy and Alliance Manchester Business School. General Traffic is committed to minimising its environmental impact by reducing both the carbon intensity of its activities and the natural resources it uses through the development and operation of good business practices to manage resources more efficiently. Directors continue to liaise with suppliers to eliminate avoidable plastics in product packaging and utilise route optimisation software to reduce fleet fuel consumption. Directors will continue to keep under review what process changes can be made to General Traffic’s operation to reduce the impact on the environment.

•    The desirability of the company maintaining a reputation for high standards of business conduct:

The directors pride themselves on a long history of responsible business conduct underpinned by strong ethics. In line with regulatory requirements, directors have implemented policies and procedures to prevent misconduct and discrimination. Directors employ a rigorous onboarding process and robust due diligence when establishing relationships with any new suppliers to ensure there is no slavery or forced labour in the supply chain.

•    The need to act fairly as between shareholders of the company:

Directors openly engage with shareholders to ensure long-term strategy and objectives are understood, this close involvement assists greatly in ensuring that their interests are not only aligned but also addressed in an effective manner. Directors recognise their responsibility to extend fair and equal treatment to all shareholders enabling them to benefit from the overall success of General Traffic.

On the basis of the above, the members of the Board consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Companies Act 2006) in the decisions taken during the year ended 31 December 2024.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company and group continued to be that of the provision of motor vehicle parts and accessories.

The results for the year are set out on page 13.

Ordinary dividends were paid amounting to £6,012,000. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

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

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

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

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

The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Following the change in reporting requirements our report on energy consumption and greenhouse gas emissions is set out below:

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £100,000 of turnover, the recommended ratio for the sector.

In order to meet our ESOS (Energy Savings Opportunities Scheme) compliance responsibilities, site and transport surveys have been carried out to identify cost effective energy saving opportunities.

The following energy saving measures have been identified and are currently being considered:

• Radiators behind storage racking to be turned off.

• All heated spaces should be thermally separated from all external areas to avoid heat being lost from the warehouses. The roller shutter doors to the warehouses should be closed when not in use.

• All non-LED lighting to be converted to LED's and lights in less frequently occupied spaces should be placed on motion sensors.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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 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 group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We have audited the financial statements of General Traffic Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 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 group's and the parent company's affairs as at 31 December 2024 and of the group's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

• the parent company 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in

line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the

financial statements from our general commercial and sector experience, and through discussions with the directors

(as required by auditing standards) and discussed with the directors the policies and procedures regarding

compliance with laws and regulations. We communicated identified laws and regulations throughout our team and

remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and

regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial

reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations

as part of our procedures on the related financial statement items.

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance

could have a material effect on amounts or disclosures in the financial statements, for instance through the

imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: laws

related to health and safety, employment laws, gender pay gap, consumer protection and COSHH for the handling

of chemicals and hazardous materials.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to

enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we

did not become aware of any actual or suspected non-compliance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some

material misstatements in the financial statements, even though we have properly planned and performed our audit

in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations

(irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently

limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a

higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and

cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

• Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the

financial statements and any potential indicators of fraud

• Identifying and assessing the design and effectiveness of controls that management have in place to prevent and

detect fraud

• Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether

management have knowledge of any actual, suspected or alleged fraud;

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £7,671,437 (2023 - £9,386,534 profit).

General Traffic Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Rutland Mill, Adelaide Street, Bolton, Lancs, BL3 3NY.

The group consists of General Traffic Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company General Traffic Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

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

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

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is is 5 years.

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

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

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

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

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

In the application of the group’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 of the revision and future periods where the revision affects both current and future periods.

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

The management devise an annual estimate of provisions for stock items based on historical customer data for the products that are held by the business. The value of the stock provision is £976,173 at 31 December 2024 (2023: £626,173).

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

A dividend of £60.00 (2023: £39.50) per ordinary share was paid during the year.

Details of the company's subsidiaries at 31 December 2024 are as follows:

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

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

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The company paid rent on commercial terms of £321,600 (2023: £316,800) to Asante Investment Limited, £177,360 (2023: £150,900) to Yara International Limited and £336,480 (2023: £274,560) to Southern Island Investment Limited during the year.

The company also sold land and buildings on commercial terms amounting to £Nil (2023: £1,993,456) to Yara International Limited.

A H Umarji and I H Umarji are individual beneficial owners of these companies.

The company has availed exemptions available under FRS 102 paragraph 33.1A not to disclose transactions undertaken with wholly owned group companies.

There is no individual or company that is the ultimate controlling party of the company.