REGISTERED NUMBER: 01407127 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

PARKER MOTOR SERVICES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

9

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

Directors:

W G Parker

S Parker

R D Parker

R W Parker

N J P Parker

M J Parker

J W Parker

J M Parker

H Parker

A D Parker

C A Patterson

Secretary:

J M Parker

Registered office:

6 Foundry Square

Belgrave Gate

Leicester

Leicestershire

LE1 3WW

Registered number:

01407127 (England and Wales)

Auditors:

TC Group

1 Merus Court

Meridian Business Park

Leicester

Leicestershire

LE19 1RJ

The principal activity of the Company during the year continued to be that of the provision of motor spares and accessories.

Business review

The Company's turnover in 2024 totalled £53.4m, which was an increase of 6.2% on 2023 (£50.3m). This was partly due to the expansion of the Company's network to 31 branches during the year, with the opening of 3 new sites in 2024, alongside inflationary increases.

The profit after tax increased from £6.0m in 2023 to £6.6m in 2024. The directors are satisfied with the Company's performance and profitability in a market which remained very competitive.

The Company continues to maintain strong relationships with its suppliers in order to ensure that it can provide quality products to its customers at competitive prices.

Market conditions are expected to remain very competitive in the foreseeable future, however, the directors anticipate continued steady growth in turnover and profitability in the coming year and remain committed to focusing on opportunities for the development and growth of the company's core activity.

Principal risks and uncertainties

The directors consider that the Company has similar potential risks to those faced by other companies in the sector.

Loss of key customers and suppliers

There is a risk over retaining the loyalty of key customers and suppliers. Considerable emphasis is devoted to maintaining service levels with customers and working closely with suppliers on logistical and quality issues to ensure that high levels of performance are achieved.

Credit risk

The inability of customers to pay amounts due to the Company due to financial difficulties is a risk. To minimise this risk, the Company employs pro-active credit control techniques, such as applying appropriate credit limits and monitoring payment patterns and debt levels on a regular basis.

Economic risk

There is a risk of increased interest rates and inflation having an adverse impact on the market place, as well as the risk of unrealistic increases in labour and other costs impacting adversely on the competitiveness of the Company. These risks are mitigated by maintaining strict control over costs and continual monitoring of financial performance.

Financial key performance indicators

The key performance indicators of the Company are turnover, gross margin and net profit, all of which can be evidenced on the Profit and Loss Account. Turnover and gross margin are monitored daily by the directors and overall Company performance is measured on a monthly basis through detailed management accounts.

Other key performance indicators

The Company uses non-financial KPI's as part of its overall assessment strategy. This includes monitoring the number of missed calls at the sales desks in each branch.

Directors' statement of compliance with duty to promote success of the company

Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole. In doing this, Section 172 requires a director to have 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 members of the Company.

The likely consequences of any decision in the long term

By understanding the business and the environment in which it operates, the directors remain mindful of the long term implications that strategic decisions will have for the Company and its stakeholders. There is a clear plan for organic growth which ensures the Company continues to offer a comprehensive and efficient distribution service to customers. This long-term strategy has resulted in the opening of three new sites during the year, with further branches due to open in 2025, satisfying customer and shareholder needs. The directors take care to consider the interests of all stakeholders when deciding on courses of action. Regular meetings take place to discuss business strategy, potential risks and key laws and regulations to ensure operating methods and decisions deliver on the directors' duty of care for the benefit of its members and stakeholders.

The interests of the Company's employees

The directors recognise that the employees are key to the business and its success. They engage with the workforce to ensure that they are fostering an environment that the employees are happy to work in and that best supports their well-being. The directors benefit from having a knowledgeable, experienced senior management team who, along with the directors themselves, are actively involved in the day to day running of the business and maintain regular communication with branch staff. Regular external health and safety checks are carried out which helps support employees' welfare and well-being.

The need to foster the Company's business relationships with suppliers, customers and others

The directors recognise that the success of the Company is also reliant on building strong relationships with suppliers and customers. The directors acknowledge it is their duty to provide value and quality to customers and this can only be achieved by building relationships with key suppliers. The Company has a large and varied supplier base from international to local independent family run businesses.

The impact of the Company's operations on the community and environment

The directors are committed to maintaining positive relationships with the communities in which the Company operates, and recognise the importance of minimising the impact of their operations on the community and environment. Contributions are frequently made to various charitable bodies and the Company strives to support and sponsor local sport teams, clubs and events. Good environmental management is aligned with a focus on cost optimisation and the Company is committed to reducing its carbon emissions.

The desirability of the Company maintaining a reputation for high standards of business conduct

The directors have always maintained a responsible business conduct and strong ethics. They are committed improving quality in all aspects of the business and have implemented policies and procedures in line with regulatory requirements to prevent misconduct and discrimination.

The need to act fairly between members of the Company

The directors openly engage with all shareholders on a regular basis and provide management information to ensure that the long-term strategy is understood. Any course of action is discussed with the interests of all shareholders considered equally.

On behalf of the board:

R D Parker - Director

5 September 2025

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

Principal activity

The principal activity of the company in the year under review was that of the provision of motor spares and accessories.

Dividends

The profit for the year, after taxation, amounted to £6,593,354 (2023 - £6,040,498).

During the year the directors recommended the payment of dividends amounting to £4,754,688 (2023 - £3,805,200).

Future developments

The directors anticipate pressure on gross profit percentage to remain in the future. They will also look to take advantage of any available efficiency savings and to maintain tight control over costs.

Directors

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

W G Parker

S Parker

R D Parker

R W Parker

N J P Parker

M J Parker

J W Parker

J M Parker

H Parker

A D Parker

C A Patterson

Financial instruments

The Company's principal financial instruments comprise of bank balances, trade creditors, trade debtors and loans to the Company from the directors and Parkers Motor Services (Syston) Limited. The main purpose of these instruments is to raise funds for the Company's operations and to finance the Company's operations. The risk attached to these instruments is managed by ensuring that sufficient funds are available to meet amounts as they fall due. There is minimal risk attached to the directors' loan accounts as repayments of amounts due are at the discretion of the directors.

Disabled employees

Applications for employment by disabled persons are given full and fair consideration for all vacancies, having regard to their particular aptitudes and abilities.

In the event of employees becoming disabled, every effort is given to retrain them in order that their employment with the Company may continue.

It is the policy of the Company that training, career development and promotion opportunities should be available to all employees.

Going concern

After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The directors have not identified any material uncertainties in relation to going concern and the Company therefore continues to adopt the going concern basis in preparing its financial statements.

Engagement with employees

Throughout the year the Company has continued to consult and discuss with employees on matters likely to affect their interests. This has been achieved through management meetings, bulletins and ad hoc reports.

Information is provided to employees in order to achieve a common awareness of financial and economic factors affecting the Company's performance.

Environmental matters

The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company is committed to reducing the amount of energy used throughout the business and ultimately reducing its carbon footprint. The Company has complied with all applicable legislation and regulations.

Following a change in reporting requirements, The Companies Act 2006 (Strategic Report and Directors' Report). Regulation 2018 requires Parker Motor Services Limited to disclose annual UK energy consumption and Greenhouse Gas emissions. This is our third report on energy consumption and Greenhouse Gas Emissions.

Consumption (kWh) and Greenhouse Gas emissions (tCO2e) totals

Scope 1 - direct emissions from those activities owned or controlled by the Company. This relates to the combustion of natural gas, and fuels utilised for transportation operations, such as company vehicle fleets.

Scope 2 - energy indirect emissions are those released into the atmosphere in relation to the consumption of purchased electricity in day-to-day business operations.

Scope 3 - other indirect emissions resulting from sources not directly owned by the Company. After careful review of the GHG Protocol, it was deemed that there were no such emissions under Scope 3 that would require disclosure.

Totals

The total consumption (kWh) figures for energy supplies reportable by Parker Motor Services Limited are as follows:

Utility and Scope

2024 Consumption kWh

2023 Consumption kWh

Scope 1 :

Natural gas

257,718

272,756

Fuel consumed for own transport

5,539,496

5,216,922

Scope 2 :

Grid-supplied electricity

578,090

668,343

Total

6,375,304

6,158,021

The total emissions (tCO2e) figures resulting from the above consumption:

Utility and Scope

2024 Consumption tCO2e

2023 Consumption tCO2e

Scope 1 :

Natural gas

47.1

49.1

Fuel consumed for own transport

1,314.6

1,249.1

Scope 2 :

Grid-supplied electricity

119.7

138.4

Total

1,481.4

1,436.6

Intensity ratio

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m of turnover:

tCO2e / £m - 27.75 (2023 - 28.58)

Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2024 UK Government's Conversion Factors for Company Reporting.

Measures taken to improve energy efficiency

The Company is committed to year on year improvements in their operational energy efficiency. Site and transport surveys have been carried out to identify cost effective energy saving opportunities.

During recent years a number of sites have had additional thermal insulation installed above the suspended ceilings, as well as non-LED lighting being replaced with energy efficient LED lights where possible. During 2023, a project to install solar panels at the majority of the Company's sites began, and this has continued into 2024.

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 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; 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.

Disclosure of information to auditors

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

-

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

-

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

Auditors

The auditors, TC Group, will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006 at the forthcoming Annual General Meeting.

On behalf of the board:

R D Parker - Director

5 September 2025

Opinion

We have audited the financial statements of Parker Motor Services Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

-

Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud.

-

Enquiry of entity staff in tax and compliance functions and external advisors to identify any instances of non-compliance with laws and regulations.

-

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

-

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

-

Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.

-

Reviewing minutes of meetings during the year.

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

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

Use of our report

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

Shiran Wynter (ACA) (Senior Statutory Auditor)

for and on behalf of TC Group

1 Merus Court

Meridian Business Park

Leicester

Leicestershire

LE19 1RJ

5 September 2025

Turnover

4

53,391,744

50,262,876

Cost of sales

25,806,964

26,073,233

Gross profit

27,584,780

24,189,643

Distribution costs

1,609,257

1,403,688

Administrative expenses

17,542,116

15,024,028

19,151,373

16,427,716

8,433,407

7,761,927

Other operating income

5

111,431

102,586

Operating profit

7

8,544,838

7,864,513

Interest receivable and similar income

9

64,509

41,230

8,609,347

7,905,743

Interest payable and similar expenses

10

10,480

28,645

Profit before taxation

8,598,867

7,877,098

Tax on profit

11

2,005,513

1,836,600

Profit for the financial year

6,593,354

6,040,498

Other comprehensive income

-

-

Total comprehensive income for the year

6,593,354

6,040,498

Fixed assets

Intangible assets

13

4

4

Tangible assets

14

5,280,661

3,965,582

Investments

15

333

333

5,280,998

3,965,919

Current assets

Stocks

16

10,049,503

8,556,995

Debtors

17

7,300,653

6,946,810

Cash at bank

384,958

485,056

17,735,114

15,988,861

Creditors

Amounts falling due within one year

18

(10,410,414

)

(9,113,854

)

Net current assets

7,324,700

6,875,007

Total assets less current liabilities

12,605,698

10,840,926

Provisions for liabilities

20

(608,626

)

(682,520

)

Net assets

11,997,072

10,158,406

Capital and reserves

Called up share capital

21

7,248

7,248

Retained earnings

22

11,989,824

10,151,158

Shareholders' funds

11,997,072

10,158,406

The financial statements were approved by the Board of Directors and authorised for issue on 5 September 2025 and were signed on its behalf by:

R D Parker - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

7,248

7,915,860

7,923,108

Dividends

-

(3,805,200

)

(3,805,200

)

Total comprehensive income

-

6,040,498

6,040,498

Balance at 31 December 2023

7,248

10,151,158

10,158,406

Dividends

-

(4,754,688

)

(4,754,688

)

Total comprehensive income

-

6,593,354

6,593,354

Balance at 31 December 2024

7,248

11,989,824

11,997,072

1.	GENERAL INFORMATION

The entity is a private company limited by shares which is incorporated in England and Wales, registration number 01407127. The registered office is 6 Foundry Square, Belgrave Gate, Leicester, LE1 3WW.

The principal activity of the Company during the year continued to be that of the provision of motor spares and accessories.

2.	ACCOUNTING POLICIES

Basis of preparing the 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.

After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

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

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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A.

This information is included in the consolidated financial statements of Parkers Motor Services (Syston) Limited as at 31 December 2024 and these financial statements may be obtained from 6 Foundry Square, Belgrave Gate, Leicester, LE1 3WW.

Turnover

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.

Intangible assets

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the Statement of Comprehensive Income over its estimated economic life.

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.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of Comprehensive Income during the period in which they are incurred.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Leasehold property improvements

- 5% or 20% on cost

Plant and Machinery

- 20%, 25% or 33.3% on cost

Motor Vehicles

- 25% on net book value

Fixtures, fittings & equipment

- 10% on cost

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.

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is computed on an average cost basis for each product line. Net realisable value is based on estimated selling price less the estimated cost of disposal.

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 except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Functional and presentation currency

The Company's functional and presentational currency is British Pound Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Operating leases: the company as lessor

Rental income from operating leases is credited to the Statement of Comprehensive Income on a straight-line basis over the lease term.

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Interest Income

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

Finance costs

Finance costs are charged to profit or loss 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.

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

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.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at transaction price, net of transaction costs and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

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

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Impairment of intangible assets and goodwill

The Company considers whether intangible assets and/or goodwill are impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present value of those cash flows.

(ii) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(iii) Stocks provisioning

The Company continues to purchase motor parts for resale. The directors consider the recoverability of the cost of stocks and any associated provisioning required. When calculating the stocks provision, the directors consider the nature and condition of the stocks, as well as applying assumptions around anticipated saleability.

(iv) Impairment of debtors

The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current cred it rating of the debtor, the age profile of debtors and historical experience.

4.

TURNOVER

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

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

2024

2023

£

£

Motor spares and accessories

53,391,744

50,262,876

53,391,744

50,262,876

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

53,391,744

50,262,876

53,391,744

50,262,876

5.	OTHER OPERATING INCOME

2024

2023

£

£

Rents received

111,431

102,586

6.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

11,240,027

9,563,613

Social security costs

1,016,575

839,022

Other pension costs

330,842

321,231

12,587,444

10,723,866

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

2024

2023

Management and Administration

25

25

Other

430

391

455

416

During the year, directors' emoluments (including benefits in kind) totalled £143,246 (2023 - £143,211).

During the year, Company contribution to directors' defined contribution pension schemes totalled £60,000 (2023 - 84,000).