ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 00612059

CROYLAND MOTORS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

CROYLAND MOTORS LIMITED

CONTENTS

	Page
Company Information	1
Strategic Report	2 - 4
Directors' Report	5 - 7
Independent Auditor's Report	8 - 11
Statement of Comprehensive Income	12
Balance Sheet	13
Statement of Changes in Equity	14
Notes to the Financial Statements	15 - 29

CROYLAND MOTORS LIMITED

COMPANY INFORMATION

Directors	A J Frid
	N M Johnson
	R S Johnson
	R A Reynolds
	M N Swindells
	L M Stevenson (appointed 1 July 2025)


Company secretary	A J Frid


Registered number	00612059


Registered office	Balmoral House
	Kettering Venture Park
	Kettering
	Northamptonshire
	NN15 6XU


Independent auditor	MHA
	The Pinnacle
	150 Midsummer Boulevard
	Milton Keynes
	MK9 1LZ


Bankers	Barclays Bank plc
	1 Churchill Place
	London
	E14 5HP

Page 1

CROYLAND MOTORS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The Directors have pleasure in presenting their report and the financial statements of the Company for the year ended 31 December 2024.
Principal activity
The Company’s core activities are retailing used cars, light commercial vehicles (LCVs) and leisure vehicles. During the trading year it also distributed new Swift Motorhomes and Camper King camper conversions, provided vehicle repair services and operated a Shell-branded forecourt.

Business review

The UK automotive sector grew in 2024, with 1.95M new registrations (up 8% year-on-year). Electric vehicles accounted for 27% of sales (approx. 525,000 units), supported by new models, better charging infrastructure, and government incentives.
The Zero Emission Vehicle (ZEV) mandate required 22% of new car sales and 10% of LCV sales to be electric, accelerating investment in electrification but exposing supply chain, pricing, and adoption challenges, particularly for fleet and private buyers. The used EV market remains hesitant, with affordability and battery health still limiting consumer confidence.
Company performance
Turnover rose £1984k (6.9%) to £30.7M, but gross profit fell £333k, resulting in a net loss of £86k. This was due to a year-end stock adjustment following a strategic decision to reduce leisure vehicle inventory, reflecting subdued demand as international travel resumed. The Board has since ended partnerships with Swift Motorhomes and Camper King.
Used car and van turnover grew 2.1%, driven by higher values rather than volume growth. Competitive sourcing conditions continued to pressure margins.
Aftersales departments performed strongly, achieving 24% gross profit growth, supported by a new Class 4 MOT station, in-house pre-delivery work, and a parts department.
Fuel sales increased £1.4M, delivering a £49k margin improvement, aided by stable prices despite EV growth.

Page 2

CROYLAND MOTORS LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties

The key business risks the Company may be exposed to are set out below.
Used vehicle stock
Supply remained challenging, with prices stabilising but desirable stock scarce. Leisure vehicle demand fell as overseas travel returned above pre-pandemic levels.
Credit risk
Exposure is tightly managed. Vehicles are released only after cleared funds, and fuel accounts are monitored with facilities withdrawn for late payment.

Competition risk
Consumer behaviour is shifting online. The Company has strengthened its digital presence while maintaining face-to-face engagement through a hybrid sales model.
Emerging risk
The transaction to EV is the biggest emerging risk to the Company, regulatory pressures and consumer shifts require adapting stock, upskilling staff, and investing in EV servicing and charging capacity. The Company continues to align strategy with market developments.
Financial risk management
The activities of the Company expose us to a number of financial risks including the availability of funding to acquire vehicles, interest rate movements, credit risk, and liquidity risk. Measures taken to address these risks are:

∙Secure payment practices (vehicles released only upon cleared funds);

∙We maintain excellent and long-term relationships with several high street banks together with manufacturer-based finance houses. We have ample spare capacity to ensure continuous and competitively priced borrowing; and

∙The Company manages risk by ensuring adequate liquidity to meet foreseeable needs.

Page 3

CROYLAND MOTORS LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Financial key performance indicators

The Directors use a number of key performance indicators to monitor business performance against budget, but the principal measures are:

KPI 2024 2023 Movement
Turnover £30,723,237 £28,739,304 £1,983,933
Gross Profit £1,976,893 £2,310,137 (£333,244)
Fuel Station Gross Profit £644,706 £579,968 £64,738
Pre-Tax Profit margin % -2.85% 1.31% (4.16%)
Average Age of stock (days) 35 66 (31)
Staff Turnover % 17% 23% (6%)

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

................................................

N M Johnson

Director

Date: 23 September 2025

Page 4

CROYLAND MOTORS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

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

Principal activity

The principal activity of the Company during the year was that of used car, LCV and leisure vehicle retailing, new Swift Motorhome distribution, cosmetic and mechanical vehicle repairs and operation of a Shell forecourt facility.

Results and dividends

The loss for the year, after taxation, amounted to £85,668 (2023 - profit £278,070).

No dividends were paid during the year (2023: £Nil).

Directors

The Directors who served during the year were:

A J Frid

N M Johnson

R S Johnson

R A Reynolds

M N Swindells

Future developments

The Directors intend for the Company to continue its strategy of organic growth.

Engagement with suppliers, customers and others

The Directors recognise the need to foster the Company's business relationships with suppliers, customers, lenders and support services. One or more directors are in regular contact with key parties and work with these interested parties to foster mutually beneficial and informed relationships.

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the Directors is aware, there is no relevant audit information of which the Company's auditor is unaware; and

∙the Directors has taken all the steps that ought to have been taken as a Directors in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 5

CROYLAND MOTORS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory
changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA
Audit Services LLP.
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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; and

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

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.

Page 6

CROYLAND MOTORS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

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

................................................

N M Johnson

Director

Date: 23 September 2025

Balmoral House

Kettering Venture Park

Kettering

Northamptonshire

NN15 6XU

Page 7

CROYLAND MOTORS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CROYLAND MOTORS LIMITED

Opinion

We have audited the financial statements of Croyland Motors Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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 Company's affairs as at 31 December 2024 and of its loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Page 8

CROYLAND MOTORS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CROYLAND MOTORS LIMITED (CONTINUED)

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.

Opinion on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 6, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 9

CROYLAND MOTORS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CROYLAND MOTORS LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

∙Enquiry of management and those charged with governance around actual and potential litigation and claims;

∙Performing audit work over the risk of management override of controls, including testing of journal and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias;

∙Reviewing minutes of meetings of those charged with governance; and

∙Reviewing financial statement disclosures and testing to support documentation to assess compliance with applicable laws and regulations.

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 Auditor's Report.

Page 10

CROYLAND MOTORS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CROYLAND MOTORS LIMITED (CONTINUED)

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.

Victoria Brown FCA (Senior Statutory Auditor)

for and on behalf of

MHA, Statutory Auditor

Milton Keynes, United Kingdom

24 September 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).

Page 11

CROYLAND MOTORS LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	30,723,237	28,739,304
Cost of sales		(28,746,344)	(26,429,167)
Gross profit		1,976,893	2,310,137
Administrative expenses		(2,126,303)	(2,007,951)
Other operating income	5	195,000	195,000
Operating profit	6	45,590	497,186
Interest receivable and similar income		23,990	-
Interest payable and similar expenses	11	(157,018)	(119,524)
(Loss)/profit before tax		(87,438)	377,662
Tax on (loss)/profit	12	1,770	(99,592)
(Loss)/profit for the financial year		(85,668)	278,070

There were no recognised gains and losses for 2024 or 2023 other than those included in the Statement of Comprehensive Income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 15 to 29 form part of these financial statements.

Page 12

CROYLAND MOTORS LIMITED

REGISTERED NUMBER: 00612059

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	13		1,069,905		1,142,838
Current assets
Stocks	14	4,747,190		5,378,318
Debtors: amounts falling due within one year	15	761,585		612,669
Cash at bank and in hand		665,542		956,297
Current liabilities		6,174,317		6,947,284
Creditors: amounts falling due within one year	16	(3,812,232)		(4,565,091)
Net current assets			2,362,085		2,382,193
Total assets less current liabilities			3,431,990		3,525,031
Provisions for liabilities
Deferred tax	17		(14,138)		(21,511)
Net assets			3,417,852		3,503,520

Capital and reserves
Called up share capital	18	250,000	250,000
Profit and loss account	19	3,167,852	3,253,520
		3,417,852	3,503,520

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

N M Johnson

Director

Date: 23 September 2025

The notes on pages 15 to 29 form part of these financial statements.

Page 13

CROYLAND MOTORS LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2023	250,000	2,975,450	3,225,450
Comprehensive income for the year
Profit for the year	-	278,070	278,070

At 1 January 2024	250,000	3,253,520	3,503,520
Comprehensive income for the year
Loss for the year	-	(85,668)	(85,668)
At 31 December 2024	250,000	3,167,852	3,417,852

The notes on pages 15 to 29 form part of these financial statements.

Page 14

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

Croyland Motors Limited is a private company limited by shares, domiciled in England and Wales, registered number 00612059.
The registered office is Balmoral House, Kettering Venture Park, Kettering, NN15 6XU, whilst the principal place of business is St Davids Road, Rushden, NN10 6GA.
The Company's functional and presentational currency is British Pound Sterling and the financial statements are prepared in round pounds.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; and

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Hardwater Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.

2.3

Going concern

Having considered the forecasted performance and cashflow of the Company the Directors have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future. Accordingly the Company continues to adopt the going concern basis in preparing the annual report and financial statements.

Page 15

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

2.6

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

2.7

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 16

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.10

Tangible fixed assets

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

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 17

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.10

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a straight line or reducing balance basis.

Depreciation is provided on the following basis:

Property improvements	-	1%	straight line or 10% to 50% reducing balance
Plant and machinery	-	10%	to 50% reducing balance
Fixtures and fittings	-	25%	to 50% reducing balance
Computer equipment	-	25%	to 50% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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

2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 18

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through the Statement of Comprehensive Income) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

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

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the Statement of Comprehensive Income.

Basic financial liabilities

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 Company after the deduction of all its liabilities.

Page 19

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.13

Financial instruments (continued)

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through the Statement of Comprehensive Income). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 20

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company’s accounting policies, which are described in note 2, management is required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

i) Stock provisions
The key source of estimation uncertainty that has a significant effect on the amounts recognised in the financial statements is the valuation of stock. The risk exists that cost is in excess of the net realisable value, and provisions are not made, and vice versa. Management are involved in making these decisions on a line by line basis. The stock provision at the year end is £135,247 (2023: £99,838).

ii) Useful economic lives of tangible fixed assets

The useful economic lives used by the Company in respect of tangible fixed assets are set out in the accounting policies. These estimates are the best estimate based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate. The net book value of tangible fixed assets is £1,069,905 (2023: £1,142,838).

Vehicle sales	22,740,054	22,262,298
Commission earned	262,689	306,590
Other sales	478,359	383,275
Forecourt sales	7,242,135	5,787,141
	30,723,237	28,739,304

Analysis of turnover by country of destination:

					2024	2023
					£	£

	United Kingdom	30,723,237	28,739,304

Page 21

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

5.	Other operating income
		2024	2023
		£	£

	Sundry income	195,000	195,000

Depreciation on tangible fixed assets

152,964

147,718

Fees payable to the Company's auditor for the audit of the Company's financial statements

17,655

16,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 22

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Wages and salaries	1,615,542	1,388,228
Social security costs	167,918	167,291
Cost of defined contribution scheme	34,236	30,730
	1,817,696	1,586,249

The average monthly number of employees, including the Directors, during the year was as follows:

	2024	2023
	No.	No.

Production	20	19
Administration	13	10
Management	1	2
Sales	17	15

	51	46

9.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	91,326	204,772
Company contributions to defined contribution pension schemes	1,451	2,593
	92,777	207,365

During the year retirement benefits were accruing to 2 Directors (2023 - 2) in respect of defined contribution pension schemes.
The directors are deemed to be the key management personnel of the Company.

10.	Interest receivable
		2024	2023
		£	£

Other interest receivable

23,990

Page 23

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.	Interest payable and similar expenses
		2024	2023
		£	£

	Other loan interest payable	157,018	119,524
		157,018	119,524

Corporation tax
Current tax on loss/profits for the year	5,603	108,708

Total current tax	5,603	108,708

Deferred tax
Origination and reversal of timing differences	(7,373)	(9,116)
Total deferred tax	(7,373)	(9,116)


	Taxation on loss/profit on ordinary activities	(1,770)	99,592

Page 24

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.Taxation (continued)

(Loss)/profit on ordinary activities before tax

(87,438)

377,662

(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)	(21,860)	88,751
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	-	1,396
Depreciation in excess of Capital allowances for year	4,504	9,351
Timing difference leading to an increase in taxation	-	94
Group relief	15,858	-
Marginal relief	(272)	-
Total tax charge for the year	(1,770)	99,592

Factors that may affect future tax charges

There are no factors affecting future tax charges.

Page 25

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.	Tangible fixed assets

	Property improve- ments	Plant and machinery	Fixtures and fittings	Computer equipment	Total
	£	£	£	£	£
Cost
At 1 January 2024	856,726	973,687	359,531	30,189	2,220,133
Additions	19,675	121,322	5,327	7,808	154,132
Disposals	-	(111,351)	-	-	(111,351)
At 31 December 2024	876,401	983,658	364,858	37,997	2,262,914
Depreciation
At 1 January 2024	241,407	566,018	252,697	17,173	1,077,295
Charge for the year	24,596	101,566	22,409	4,393	152,964
Disposals	-	(37,250)	-	-	(37,250)
At 31 December 2024	266,003	630,334	275,106	21,566	1,193,009
Net book value
At 31 December 2024	610,398	353,324	89,752	16,431	1,069,905
At 31 December 2023	615,319	407,669	106,834	13,016	1,142,838

The purchase cost of the freehold property to which the property refurbishments relate is recorded in the financial statements of Croyland Rentals Limited, a fellow subsidiary.
Plant and machinery includes motor vehicles with a net book value of £203,253 (2023: £261,476).

14.	Stocks
		2024	2023
		£	£

	Finished goods and goods for resale	4,747,190	5,378,318

Page 26

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.

Debtors

					2024	2023
					£	£


Trade debtors	108,669	259,840
Amounts owed by group undertakings	336,691	185,872
Other debtors	182,462	73,469
Prepayments and accrued income	133,763	93,488
	761,585	612,669

Amounts owed by group undertakings are interest free, unsecured and repayable on demand.

16.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Trade creditors	1,812,657	907,020
Amounts owed to group undertakings	1,165,909	3,291,255
Corporation tax	-	58,193
Other taxation and social security	286,670	65,651
Other creditors	473,316	184,331
Accruals and deferred income	73,680	58,641
	3,812,232	4,565,091

Amounts owed to group undertakings are interest free, unsecured and repayable on demand.

Page 27

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.	Deferred taxation

		2024
		£

	At beginning of year	21,511
	Charged to the Statement of Comprehensive Income	(7,373)
	At end of year	14,138

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

Accelerated capital allowances	15,099	22,996
Other timing differences	(961)	(1,485)
	14,138	21,511

18.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

250,000 (2023 - 250,000) Ordinary shares of £1.00 each	250,000	250,000

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

19.

Reserves

Profit and loss account

Includes all current and prior period retained profits and losses less any dividends paid.

20.	Contingent liabilities

The Company has provided a guarantee of indemnities and standby letters of credit facility in respect of fuel payments to Shell for £185,000 (2023: £185,000).

Page 28

CROYLAND MOTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21.	Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £34,236 (2023: £30,730). Contributions totalling £6,722 (2023: £5,939) were payable to the fund at the balance sheet date and are included in creditors.

Not later than 1 year	238,958	258,915
Later than 1 year and not later than 5 years	390,000	623,250
	628,958	882,165

During the year, £258,915 (2023: £81,469) was included in the Statement of Comprehensive Income in relation to operating leases.

23.	Related party transactions
	During the year, the company made sales of £5,437 (2023: £8,302) and purchases of £37,229 (2023: £Nil) from A. & P. Builders Limited, a company owned by the spouse of a director. At the year end, the balance owed to the Company from A. & P. Builders Limited was £542 (2023: £1,320).

24.	Controlling party

The Company's ultimate parent undertaking at the balance sheet date was Hardwater Holdings Limited, a company incorporated in England which heads both the smallest and largest group of which Croyland Motors Limited is a member.
Copies of all accounts of the Group, including the consolidated financial statements, can be obtained from Balmoral House, Kettering Venture Park, Kettering, Northamptonshire, NN15 6XU.
In the opinion of the directors the ultimate controlling parties of the parent company are N M Johnson and R S Johnson.

Page 29