ACCOUNTS - Final Accounts

Analysis of the maturity of loans is given below:

Registered number: 01075111

PEARL AUTOMOTIVE LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024


PEARL AUTOMOTIVE LIMITED REGISTERED NUMBER:01075111

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	4		60,344		65,292
Investments	5		80		80
			60,424		65,372
Current assets
Stocks		1,195,342		1,131,056
Debtors: amounts falling due within one year	6	2,209,559		2,149,125
Cash at bank and in hand		20,813		5,217
		3,425,714		3,285,398
Creditors: amounts falling due within one year	7	(2,059,633)		(1,506,094)
Net current assets			1,366,081		1,779,304
Total assets less current liabilities			1,426,505		1,844,676
Creditors: amounts falling due after more than one year	8		(152,778)		(18,586)
Provisions for liabilities
Deferred tax	10	(14,789)		(16,280)
			(14,789)		(16,280)
Net assets			1,258,938		1,809,810

Capital and reserves
Called up share capital		894	894
Share premium account	11	138,156	138,156
Revaluation reserve	11	5,138	6,045
Profit and loss account	11	1,114,750	1,664,715
		1,258,938	1,809,810

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PEARL AUTOMOTIVE LIMITED REGISTERED NUMBER:01075111

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

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

R J Etherington

Director

Date: 26 September 2025

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PEARL AUTOMOTIVE LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2023	894	138,156	7,112	1,369,502	1,515,664

Profit for the year	-	-	-	294,146	294,146
Transfer surplus on revaluation of other fixed assets	-	-	-	1,067	1,067
Transfer to/from profit and loss account	-	-	(1,067)	-	(1,067)

At 1 January 2024	894	138,156	6,045	1,664,715	1,809,810

Profit for the year	-	-	-	309,128	309,128
Transfer surplus on revaluation of other fixed assets	-	-	-	907	907
Dividends: Equity capital	-	-	-	(860,000)	(860,000)
Transfer to/from profit and loss account	-	-	(907)	-	(907)
At 31 December 2024	894	138,156	5,138	1,114,750	1,258,938

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PEARL AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

Pearl Automotive Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pearl House, 2 Armstrong Road, Manor Trading Estate, Benfleet, Essex, SS7 4PW.
The principal activity of the company continued to be that of suppliers of motor trade accessories.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

2.2

Revenue

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

Sale of goods

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

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

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

∙the amount of revenue can be measured reliably;

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

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

2.3

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.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.4

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.

2.5

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

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PEARL AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.6

Pensions

Defined contribution pension plan

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

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

2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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.

2.8

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.

Tangible fixed assets that have been revalued are carried at their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance Sheet date.
Fair values are determined from market based evidence.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case

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PEARL AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.8

Tangible fixed assets (continued)

the excess losses are recognised in profit or loss.

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

Depreciation is provided on the following basis:

Plant and machinery

15%

reducing balance & 33% straight line

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 profit or loss.

2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.10

Stocks

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

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

2.11

Debtors

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

2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 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.

2.13

Creditors

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

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PEARL AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.14

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.

2.15

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 measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.16

Financial instruments

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Basic financial liabilities

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

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

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

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PEARL AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.16

Financial instruments (continued)

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

2.17

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.

Employees

The average monthly number of employees, including directors, during the year was 20 (2023 - 18).

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PEARL AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

4.	Tangible fixed assets

		Plant, machinery and other assets
		£
	Cost or valuation
	At 1 January 2024	230,575
	Additions	5,273
	At 31 December 2024	235,848
	Depreciation
	At 1 January 2024	165,283
	Charge for the year on owned assets	10,221
	At 31 December 2024	175,504
	Net book value
	At 31 December 2024	60,344
	At 31 December 2023	65,292

The plant and machinery was valued on an existing use basis on the 31 December 2015 by the directors and assets with a cost total of £70,874 were revalued at this date. These values were considered by the directors again on the 31 December 2023 and the 31 December 2024 and no revaluation was necessary.

If the plant and machinery had not been included at valuation they would have been included under the historical cost convention as follows:
	2024	2023
	£	£


Cost	70,874	70,874
Accumulated depreciation	(68,832)	(68,471)
Net book value	2,042	2,403

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PEARL AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

5.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2024	80
	At 31 December 2024	80

Debtors

					2024	2023
					£	£


Trade debtors	1,333,743	1,290,604
Amounts owed by group undertakings	717,783	681,475
Other debtors	140,840	164,519
Prepayments and accrued income	17,193	12,527
	2,209,559	2,149,125

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

Bank loans	101,950	41,525
Trade creditors	470,215	553,847
Other taxation and social security	247,848	220,706
Other creditors	922,908	362,911
Accruals and deferred income	316,712	327,105
	2,059,633	1,506,094

The company's invoice discounting which are included within other creditors totalling £925,295 (2023: £362,691), are secured by the way of a fixed and floating charge over the company's book debts and stock.

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PEARL AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

8.	Creditors: Amounts falling due after more than one year
		2024	2023
		£	£

Bank loans	152,778	18,586
	152,778	18,586

Amounts falling due within one year
Bank loans	101,950	41,525
Amounts falling due 1-2 years
Bank loans	83,333	18,586
Amounts falling due 2-5 years
Bank loans	69,444	-

	254,727	60,111

10.	Deferred taxation

	2024	2023
	£	£

At beginning of year	(16,280)	13,382
Charged to profit or loss	1,491	(29,662)
At end of year	(14,789)	(16,280)

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

	Accelerated capital allowances	(14,789)	(16,280)
		(14,789)	(16,280)

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PEARL AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.

Reserves

Share premium account

Share premium represents the excess of proceeds received over the nominal value of new shares issued.

Revaluation reserve

All reserves in respect of the revaluation reserve are non-distributable reserves.

Profit and loss account

All reserves in respect of the profit and loss account are distributable reserves.
Although reserves in the year have fallen, the company has remained profitable, with additional dividends being voted in the year in order to facilitate the purchase of a controlling stake in the company by an Employee Ownership Trust.

12.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £11,226 (2023: £9,625). Contributions totalling £1,027 (2023: £185) were payable to the fund at the balance sheet date and are included in creditors.

13.	Related party transactions
	Included within debtors is a balance due from Pearl Automotive Holdings Limited, the ultimate parent company, of £717,783 (2023: £681,475). No guarantees have been given or received.

14.	Controlling party

The immediate parent company is Pearl Products Holdings Limited.
The ultimate parent company during the year was Pearl Automotive Holdings Limited. Its registered office is Pearl House, 2 Armstrong Road, Manor Trading Estate, Benfleet, Essex, SS7 4PW.
Om 25 October 2024 the ultimate controlling party became the board of trustees of Pearl Automotive Employee Ownership Trust when it acquired 100% of the share capital of Pearl Automotive Holdings Limited.

15.	Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.

The audit report was signed on 26 September 2025 by Trevor McCarthy (Senior Statutory Auditor) on behalf of Venthams.

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