STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

EVOGO LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Statement of Directors' Responsibilities

7

Report of the Independent Auditors

8

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

J D Levine

J Tustin

J J Levine

SECRETARY:

J D Levine

REGISTERED OFFICE:

201 Upwell Street

Sheffield

S4 8AL

REGISTERED NUMBER:

04609642 (England and Wales)

SENIOR STATUTORY AUDITOR:

Oliver Jenkins ACCA

AUDITORS:

Hewitt Card Limited

Statutory Auditors

70-72 Nottingham Road

Mansfield

Nottinghamshire

NG18 1BN

About the company

The principal activities of the business is the sales of motor vehicles and related services and the hiring of motor vehicles.

The motor vehicle sales and related services operate from a retail site in Sheffield and trade under the name of 'Mike Brewer Motors'. In addition to the garage itself, customers are served via telephone and email communication channels or via the website www.mikebrewermotors.com where details of vehicles in stock can be viewed.

In addition to this the business also operates it's vehicle rental service from the same facility in Sheffield under the Evogo name.

BUSINESS REVIEW

The directors are pleased with the overall performance of the business for the year, in what has been a challenging environment, both politically and as a result of the ongoing lack of stock availability of new rental vehicles.

The Company has seen a marginal decrease in revenue due to a reduction in the number of vehicles sold and a decrease in rental income as a result of reducing the size of the fleet. The Company has seen a significant reduction to it's gross profit margin due to increases in purchase prices, all of which have not been passed on to the customer, and vehicles purchased at a high price and without discounts during the coronavirus pandemic now being sold with lower levels of profits.

The Company's balance sheet position has also marginally weakened overall at the year end when compared to the previous year.

The key performance indicators by which financial performance is measured are as follows:-

2024

2023

Revenue

£32.5m

£35.7m

Gross profit %

4.65%

11.32%

Number of vehicles sold

1,432

1,508

Live vehicle hire agreements

786

1,066

Total equity

£20.3m

£21.3m

The directors are confident that the business can maintain the current level of activity, despite their expectation that the economic environment will remain difficult throughout the next year due to the availability of new cars.

Employee Strategy

The directors have continued to invest in internal training and all staff are encouraged to attend a minimum level of training workshops within the year. As well as learning new skills the directors feel the training programmes give the employees greater knowledge of the wider business and improve the efficiency in which they can work together.

The directors feel that the internal training has supported the development of many of the team who have progressed to new roles within the company. This also reflects our intention to promote from within where possible.

Customer Strategy

Evogo's aim is to provide customer satisfaction across all areas of it's trade, it's main goals in respect of each of it's operating sectors are;

Vehicle sales: To provide a selection of the highest quality, nearly-new and used cars at some of the most competitive prices in the UK.

Vehicle rental: To provide all of the benefits of owning a vehicle, just like a traditional lease, but with a level of flexibility and a range of choice and cost that is unique.

PRINCIPAL RISKS AND UNCERTAINTIES

The management and execution of the business strategy is subject to a number of risks in addition to those noted in the Directors' report. The key risks to delivering the strategy of the business include but are not limited to:

Competition

The UK vehicle market is highly competitive and customers have a broad choice of retailers. The company primarily competes on the basis of a customer proposition which is focused on choice, value and service. If it fails to compete effectively in any of these areas, does not adapt effectively and quickly to changes in the competitive landscape, the company may fail to attract new customers and lose repeat customers.

Market risk

Due to the market the company operates within, the hire and sale of vehicle operations result in the company acquiring and disposing of significant quantities of vehicles and as such the state of the car market, particularly with regards to residual values, is identified as a potential risk. This risk is minimised by an experienced team who control the acquisition and disposal of vehicles to ensure this risk is minimised.

Brand and Reputation

Developing and maintaining the reputation of the company's brands is of importance to its success, as brand identity is a critical factor in attracting new and repeat customers. Failure to maintain the customer proposition of choice, value and service could damage the company's reputation and brand, result in a loss of customer confidence and impact levels of business. Unfavourable publicity concerning the company or the industry in which it operates could also have an adverse impact.

Availability and terms of customer finance

Customer demand and thus vehicle sales revenue is exposed to the risk of lending institutions reducing, terminating or materially altering the terms and conditions on which they are willing to offer consumer credit to the company's customers. Commission income revenue generated by the company acting as a regulated credit broker could be impacted if either the number of such arrangements reduces, or the structure and amount of commissions earned is altered.

Availability of supply

As the company continues to grow there is a risk that vehicle supply is insufficient to satisfy customer demand or the company's business plan. Relationships with key suppliers are longstanding, however, the company does not have long-term contractual supply arrangements and a reduction in the supply of vehicles could have a material adverse effect on the business.

Regulatory risk

The markets the company operates within are regulated by the FCA. The company has various FCA "permissions" to carry on consumer credit activities from which it derives income. There is a risk that increased regulation or restrictions on the sales process or nature of these products would restrict the income available to the company.

In addition, whilst the directors believe that the company conducts its business in accordance with all applicable regulations and will endeavour to continue to do so, there remains a risk that the regulator will find that the business has not complied fully with such regulations. In such circumstances, the impact to the business of any regulatory fines and other costs, reputations damage and / or loss of FCA authorisation could be material.

Disaster Recovery and Business Continuity

The Company has an understandable reliance on its place of business, IT systems and people. The loss of key components could cause temporary disruption to business processes, whilst the company implements its established and detailed disaster recovery plan, which includes access to offsite facilities available for immediate use.

INDUSTRY RISKS

Vehicle pricing

Fluctuations in prices in the nearly-new and used vehicle market could impact the company's business as it rental fleet of vehicles held within property, planet and equipment would be affected by this in addition to significant inventory of such vehicles.

OEM behaviour

Although the company stocks a diverse range of OEM's s' (Original Equipment Manufacturer) vehicles, should a key OEM fail or experience a significant adverse reputational issue such as a regulatory non-compliance or health and safety based recall which negatively impacts on the desirability of some or all of its models, the Company could be required to dispose of vehicles at a loss or at a substantial discount.

In addition, if the current model of vehicle sales changes (for example, if OEMs fundamentally alter the value chain of new vehicles and their routes to market), the Company's customer base might be altered. Similarly, if the current model of individuals purchasing and owning their own vehicles changes significantly, demand for the Company's services could be adversely affected. Technological advancements could create a different model for owning, buying and selling vehicles which could challenge the Company's business.

Economic conditions

The Company operates in Great Britain and therefore its business is affected by overall economic conditions and the level of customer confidence and spending in the country, including changes in factors such as unemployment, exchange rates, inflation or deflation and the cost of fuel. Whilst the Company's recent performance has remained robust and customer demand for nearly-new and used vehicles is generally considered to be less cyclical than customer demand for new vehicles, there remains a risk that economic conditions could deteriorate and suppress demand for nearly-new and used vehicles.

Liquidity and financing

The Company uses a selection of finance facilities to fund its operations, including a stock financing facility, which is secured against its retail vehicle stocks. A change in the pricing or a reduction in funding parameters and facility limits could significantly constrain the company's ability to trade or the company could be required to dispose of assets at below their market value or at a substantial discount.

Financial instrument risk

The company's principal financial instruments consist of cash, cash equivalents and hire purchase contracts.

Interest rate risk: Hire purchase contracts are entered into with a mix of fixed and variable interest rates, therefore the company can be affected by changes in interest rates.

Liquidity risk: The company minimises this risk by actively managing cash generated from its ordinary activities.

ON BEHALF OF THE BOARD:

J D Levine - Director

24 September 2025

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

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review was that of the hiring of motor vehicles and motor vehicle sales with related services.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

FUTURE DEVELOPMENTS

The outlook for the company is detailed in the Strategic Report.

DIRECTORS

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

J D Levine

J Tustin

J J Levine

Financial Risk Management

The Company's principal financial assets comprise trade and other receivables and cash at bank and in hand. Its principal financial liabilities comprise vehicle stocking facilities and trade and other payables. The main purpose of these financial liabilities is to provide working capital funding to finance the Company's operations. The main risks arising from financial liabilities are therefore funding and liquidity risk, and capital market risk, principally as a result of changes in interest rates.

Price risk, credit risk, foreign exchange risk, funding and liquidity risk

The Company has established objectives and policies to minimise financial risk. Price risks are controlled through the initial buying decisions and the constant monitoring of stock levels and sales data.

The Company trades predominantly with retail customers. Sales to such customers are for cash and/or part exchange, often with finance provided by a selected panel of financial institutions. The majority of the Company's sales are thus for cash or the remittances of funds from financial institutions, which is achieved in a short period after the sale. As such the Company does not consider that it is exposed to credit risk from retail customers. Receivable balances are monitored on an on-going basis with the result that the Company's exposure to bad debts is not considered to be significant. There is no significant concentration of credit risk within the Company. As a consequence, the Directors are satisfied that the Company's exposure to credit risk is acceptable.

With respect to credit risk arising from other financial assets of the Company, which comprise cash and cash equivalents and loans to related parties, the Company's exposure to credit risk arises from the default of counterparties, with a maximum exposure equal to the carrying amount of these instruments. Counterparty credit risk is managed through the monitoring and active management of counterparty balances.

The company requires adequate and appropriate financing facilities to be in place at all times to fund working capital requirements and expansion: The Directors believe that the Company's funding arrangements are adequate for the control of liquidity and cash-flow risks. In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

STREAMLINED ENERGY AND CARBON REPORTING

Greenhouse gas emissions, energy consumption and energy efficiency disclosures have not been provided as the company's energy consumption for year ended 31st December 2024 was less than 40,000 kWh.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Hewitt Card Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J D Levine - Director

24 September 2025

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

Opinion

We have audited the financial statements of Evogo 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 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 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, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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.

We have adopted a risk based approach based upon analytical procedures and knowledge of the clients systems and environment it operates in.

This enables us to design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient and appropriate to provide a basis for the audit opinion.

To obtain an understanding of internal control where relevant to the audit to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

To evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

To conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern.

The likelihood of detecting irregularities is inherently difficult and we have designed our tests and procedures to reduce this risk.

- We have enquired of management and the company's solicitors around actual and potential litigation and claims.

- Review of company minutes of meetings of those charged with governance.

- Reviewing financial statements disclosure and testing supporting documentation to assess compliance with applicable laws and regulations

- Review and testing of management override of controls, including through testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions.

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.

Oliver Jenkins ACCA (Senior Statutory Auditor)

for and on behalf of Hewitt Card Limited

Statutory Auditors

70-72 Nottingham Road

Mansfield

Nottinghamshire

NG18 1BN

24 September 2025

TURNOVER

4

32,477,862

35,670,405

Cost of sales

30,968,112

31,631,466

GROSS PROFIT

1,509,750

4,038,939

Administrative expenses

2,716,030

2,435,418

(1,206,280

)

1,603,521

Other operating income

116,753

112,215

OPERATING (LOSS)/PROFIT

7

(1,089,527

)

1,715,736

Interest receivable and similar income

187,030

159,861

(902,497

)

1,875,597

Interest payable and similar expenses

9

1,547,709

1,912,559

LOSS BEFORE TAXATION

(2,450,206

)

(36,962

)

Tax on loss

10

(1,438,859

)

119,914

LOSS FOR THE FINANCIAL YEAR

(1,011,347

)

(156,876

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,011,347

)

(156,876

)

FIXED ASSETS

Tangible assets

11

24,220,228

29,478,889

Investments

12

567,673

417,673

24,787,901

29,896,562

CURRENT ASSETS

Stocks

13

2,502,897

5,471,846

Debtors

14

12,971,613

14,105,981

Cash at bank and in hand

1,615,764

1,702,161

17,090,274

21,279,988

CREDITORS

Amounts falling due within one year

15

12,603,146

18,318,891

NET CURRENT ASSETS

4,487,128

2,961,097

TOTAL ASSETS LESS CURRENT LIABILITIES

29,275,029

32,857,659

CREDITORS

Amounts falling due after more than one year

16

8,966,882

11,538,165

NET ASSETS

20,308,147

21,319,494

CAPITAL AND RESERVES

Called up share capital

21

35,204

35,204

Share premium

6,999,990

6,999,990

Capital redemption reserve

64,806

64,806

Retained earnings

13,208,147

14,219,494

SHAREHOLDERS' FUNDS

20,308,147

21,319,494

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2025 and were signed on its behalf by:

J D Levine - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

35,204

14,376,370

6,999,990

64,806

21,476,370

Changes in equity

Total comprehensive income

-

(156,876

)

-

-

(156,876

)

Balance at 31 December 2023

35,204

14,219,494

6,999,990

64,806

21,319,494

Changes in equity

Total comprehensive income

-

(1,011,347

)

-

-

(1,011,347

)

Balance at 31 December 2024

35,204

13,208,147

6,999,990

64,806

20,308,147

1.	GENERAL INFORMATION

Evogo Limited has two key motor vehicle business lines.

The company retails motor vehicles, and products ancillary to the sale of vehicles including vehicle guarantees and vehicle protection treatments.

The company also operate a vehicle rental fleet on short term hire contracts.

2.	STATUTORY INFORMATION

Evogo Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost convention unless otherwise specified within these accounting policies.

The financial statements are presented in Sterling (£).

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;

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Evogo Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Evogo Group Limited, 201 Upwell Street, Sheffield, S4 8AL.

Turnover

Turnover 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. Turnover 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 turnover is recognised:

Commissions

Turnover includes commissions received from third party lenders for brokering the sale of motor finance hire purchase agreements. These are credited to the profit and loss account when the brokerage service has been provided, after taking into account expected refunds payable on customer early settlements and defaulted agreements and are stated net of value added tax.

Sale of goods

Turnover 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;

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

Rendering of services

Turnover 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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

25% on reducing balance

Office equipment

-

Straight line over 3 years

Motor vehicles

-

18.5% on cost

Fixture & fittings

-

20% on reducing balance

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

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.

Impairment of fixed assets

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Company estimates the recoverable amount of the asset or, for goodwill, the recoverable amount of the cash-generating unit to which the goodwill belongs.

Shortfalls between the carrying value affixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairments are recognised in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in profit or loss. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset's revised carrying amount (less any residual value) over its remaining useful life. ·

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.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less accumulated impairment.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.

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

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable 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 present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, 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 financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

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, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position 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.

Classification of financial instruments

The Company classifies financial instruments, or their component parts, on initial recognition as financial assets, financial liabilities or equity instruments 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 deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

Financial assets

Financial assets are classified on initial recognition in the following categories: loans and receivables; held at fair value through profit and loss and available for sale. The classification depends upon the purpose for which the assets were acquired.

Financial assets at fair value through the profit and loss include derivatives classified as held for trading. Derivatives, which can be a financial asset or financial liability are initially recognised at fair value and are subsequently re-measured at fair value. The method of recognising the gain or loss depends upon whether the derivative is designated as a hedging instrument and the nature of the hedge arrangement. The Company currently has no hedge arrangements and the gain or loss is recognised in profit or loss in administrative expenses.

Financial liabilities

Financial liabilities are classified on initial recognition as either other financial liabilities measured at amortised cost or at fair value through profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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 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.

Operating leases - the company as lessor

Rental income from assets leased under operating leases is recognised on a straight-line basis over the term of the lease. Rent free periods or other incentives given to the lessee are accounted for as a reduction to the rental income and recognised on a straight-line basis over the lease term.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated, see note 20.

Operating Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease. Lease incentives are recognised over the period of the lease.

Share Capital

Ordinary shares are classified as equity. Costs incurred in issuing equity are deducted from the equity instrument.

Trade receivables

Trade receivables represent the principal amounts outstanding from finance companies in respect of the financed element of sales to customers for motor vehicle and related products. Trade receivables are recognised net of any provision for impairment.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and at bank and deposits held at call with banks. Where applicable, bank overdrafts are shown within borrowings in current liabilities.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest rate 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.

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 the annual general meeting.

Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost using the effective interest rate method.

The effective interest rate method is a method of calculating the amortised cost and allocating the interest cost over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument.

Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables include stocking facilities. These are short term liabilities which are settled on the sale of a vehicle or a fixed maturity not greater than 180 days and as a result form part of the normal business operating cycle.

Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, unless the effect is immaterial.

Trade payables, including stocking finance facilities; are, recognised initially at fair value and

subsequently measured at amortised cost using the effective interest method, unless the effect is immaterial.

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 Company therefore continues to adopt the going concern basis in preparing its financial statements.

4.

TURNOVER

The turnover and loss before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business for the year ended 31 December 2023 is given below:

£

Revenue from finance brokerage

229,383

Revenue from sale of vehicles

30,156,078

Revenue from vehicle rental

5,284,944

35,670,405

This analysis is not considered to be applicable to the year ended 31 December 2024.

All turnover arose within the United Kingdom.

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,652,173

1,540,761

Social security costs

168,181

159,784

Other pension costs

74,149

72,987

1,894,503

1,773,532

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

2024

2023

Employees

47

47

6.	DIRECTORS' EMOLUMENTS

2024

2023

£

£

Directors' remuneration

140,634

143,430

Directors' pension contributions to money purchase schemes

13,907

14,221

Total directors emoluments including social security and pension contribution for the year amounted to £171,439 (2023: £174,934).

7.	OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

2024

2023

£

£

Depreciation - owned assets

1,113,135

567,186

Depreciation - assets on hire purchase contracts

3,301,482

4,287,313

Loss/(profit) on disposal of fixed assets

1,344

(257,469

)

8.	AUDITORS' REMUNERATION

2024

2023

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

14,813

15,000