REGISTERED NUMBER: 01532384 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Exhaust Tyres And Batteries (Worcester)

Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

D Giroud

M Illingworth

A Wessels

E Brisard

SECRETARY:

A Wessels

REGISTERED OFFICE:

Unit 15B

Blackpole Trading Estate East

Worcester

WR3 8SG

REGISTERED NUMBER:

01532384 (England and Wales)

SENIOR STATUTORY AUDITOR:

Richard Dunkley FCCA CTA

AUDITORS:

RD Accounting Limited

(Statutory Auditor)

12C Two Locks

Hurst Business Park, Brierley Hill

West Midlands

DY5 1UU

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

REVIEW OF BUSINESS

The results for the year are set out on Page 11.

This year turnover has increased by approximately 8.5%, reflecting the growth of the business, first 6 months volume growth across Retail and Wholesale and overall services growth in Retail.

The gross profit percentage has increased from 40.3% to 42.6%. This increase is due to our overall improvement in product mix sold as well as our retail services growth.

The net balance sheet value has increased by 4.2%. Financial controls continue to be effective. The current ratio has remained stable at 1.48 and debtor days have increased slightly at 48 days (2023 - 43).

Following the acquisition by Bridgestone Corporation the company has continued to grow. New stores have been taken on, which are starting to show a healthy return on investment, and it is anticipated that growth will continue for the foreseeable future.

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks affecting the company are considered to relate to competition from other wholesalers and retailers, employee retention, and external geopolitical factors.

Each of these risk areas along with other areas of the business are continually reviewed and monitored by senior management to ensure they are continually updating their knowledge to minimise the risk impacts to the company's performance and ongoing strategies.

The company's financial risk management objective is broadly to seek to make neither profit nor loss from exposure to currency or interest rate risks, although occasionally it does use forward contracts to try and mitigate the effect of foreign exchange movements. The majority of the company's transactions are in sterling. Its policy is to finance working capital through retained earnings and through borrowings at prevailing market interest rates.

The company does not use hedge accounting. Its policy is to finance fixed assets through fixed rate borrowings from Bridgestone Europe where necessary.

The company's exposure to the price risk of financial instruments is therefore minimal. As the counterparty to most financial instruments is its bankers, it is also exposed to minimal credit and liquidity risks in respect of these instruments.

The company is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures.

The directors do not consider any other risks attaching to the use of financial instruments to be material to an assessment of its financial position or profit.

SECTION 172(1) STATEMENT

The Board met 2 times in 2024 either physically or by video conference. It focused discussions around a few major topics:

- Health and Safety of employees

- Financial health of the company

- Overall business strategy and expansion opportunities

The Board focused mostly on mid and long-term prospects but there some main achievements in 2024, for instance execution of improved price, volume and mix in both retail and wholesale. With specific focus on retail to transform the business from a traditional tyre retailer to an automotive services provider.

The appointment of a new Managing Director, Anton Wessels, appointed to the Board in April 2024.

ON BEHALF OF THE BOARD:

A Wessels - Director

15 August 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the retailing and wholesaling of exhaust, tyres and batteries. The company also performs MOT testing and repairs.

DIVIDENDS

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

DIRECTORS

M Illingworth has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

D Giroud - appointed 10 April 2024

C De Valroger - resigned 24 September 2024

A Wessels - appointed 10 April 2024

E Brisard - appointed 10 April 2024

C Ivill ceased to be a director after 31 December 2024 but prior to the date of this report.

ENGAGEMENT WITH EMPLOYEES AND OTHER BUSINESS RELATIONSHIPS

The Directors are fully committed to policies which ensure equal opportunities for all staff. All sections of the population have equal access to jobs offered by the Company and no person receives less favourable consideration because of personal circumstances.

Information relating to health and safety, conditions of employment and other relevant matters are notified to staff and where necessary meetings are held to discuss the issues in question.

The Company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person.

Where existing employees become disabled, it is the Company's policy, wherever practicable, to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

For its retail and wholesale employees, ETB has a straightforward bonus system.

In retail, employees are awarded bonuses based on the gross profit on strategic lines of products. Gross profit is communicated every day and the bonuses for each member of the team (and for the team as whole) are paid the following month. This transparent virtuous circle allows ETB employees to be motivated and work as a team in each point of sale.

For drivers, bonus are linked to their attendance and the quality of their driving.

Wholesale Business Development Managers receive a % of the Gross Profit of the wholesale warehouses. A bonus scheme for the Wholesale sales office was also implemented.

For careers, ETB has a very strong culture of moving employees up the internal ladder. Many employees start as tyre fitters, then are trained on tyre services, mechanical works. Some are promoted deputy managers and then managers of a retail point of sale. For instance, our current Retail Operations Manager started as an apprentice when a teenager and is now top of the retail network.

This culture of meritocracy and promotion as ETB grows ensures the best development for our employees. Our managers are actually very loyal to ETB and stay a long time with the company, with lower staff turnovers than the industry.

This also allows 2-way feedback between ETB leadership and its employees and managers as they speak the same language and show respect to each other.

A key point is that all ETB leaders were maintained in their position after the acquisition by Bridgestone, which reassured employees internally and our external stakeholders externally (suppliers, landlords, city councils, customers etc.).

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

ETB procurement approach is to create long-term environmental, social and economic benefits for stakeholders across its supply chain. This work aligns with the Bridgestone Group policies. The policy helps identify and evaluate qualified suppliers, promote best practices and serve as a communication and improvement tool for the industry.

ETB's procurement mission is important as customers and consumers are ever more interested in the natural rubber supply chain, including human rights and environmental practices.

ETB proactively identifies, prioritizes and addresses customer quality issues in keeping with the intention of Bridgestone founder to the Group's Mission of "Serving Society with Superior Quality".

CONCLUSION: A CULTURE THAT SUPPORTS SUSTAINABLE GROWTH

As we reflect on the year’s financial performance and navigate an evolving market environment its clear that long term success is not built on numbers alone. It is built on people, those who serve our customers, support our teams and drive continues improvement across every part of the business. That is why we are committed to embedding ETB WE CARE culture across the organisation. This culture is grounded in three pillars:

We care about our people - by investing in their safety, development and well-being.

We care about our customers - by delivering trusted, transparent service with genuine value.

We care about the future of our business - by driving operational excellence, continues learning and responsible growth.

While market conditions remain challenging, our ability to respond with agility, purpose and care will set us apart.

STREAMLINED ENERGY AND CARBON REPORTING

Exhausts Tyres and Batteries (Worcester) Ltd is committed to reducing carbon emissions through operational and technological improvements, wherever possible to include:

- EV chargers are in the process of being fitted to retail depots which will be for customer use.

- Winchester premises now has solar installed.

- All new depots are fitted with LED lighting & motion sensors as acquired.

- There is a plan in place to replace all lighting with LED as older stores require maintenance.

- The business fleet is moving over to hybrid vehicles.

- Utilise products and services that contribute to CO2 emissions reduction.

- Continually improve energy efficiency in operations to reduce total energy consumption.

- Enhance renewable electricity ratio.

- Implementation of Webfleet to curb fuel consumption.

Fuel

kWh per year

Tonnes of Co2e

Business travel

3,941,219

954

Gas in buildings

207,841

38

Non road vehicles

7,683

1.6

Electricity in buildings

2,253,913

467

Water

1.4

Total

6,410,656

1,426

Our intensity ratio (kgCO2e/per full-time UK employee) has increased to is 2,839 (2023: 2,712).

The most recent edition of the GHG Protocol Corporate Accounting and Reporting Standard is used to calculate the emissions of the business

DISCLOSURE IN THE STRATEGIC REPORT

For further items required to be disclosed under Schedule 7 of the Companies Act 2006 see the Strategic Report on page 2.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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), 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 and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

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, RD Accounting Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A Wessels - Director

15 August 2025

Opinion

We have audited the financial statements of Exhaust Tyres And Batteries (Worcester) Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other 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 Statement of Directors' Responsibilities set out on page six, 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:

Ourauditprocess involves determining a suitable materiality level and assessing the overall risk of material misstatement, including how fraud may occur. Our core procedures in relation to fraud and error include:

- Identifying laws and regulations that could reasonably give rise to a material misstatement in the financial statements.

- Enquiring with management and office holders on their own considerations on fraud.

- Considering financial pressures, incentives, opportunity, and motivations that may lead to fraud.

Reviewing areas where management is required to make significant subjective judgements, the key areas identified this year include:

Fixed Asset Valuation

ETB has continued to expand its operations, leading to substantial capital expenditure over recent years. As a result, this is viewed as a key audit area, with particular focus on new additions and their classification, repairs and renewals, depreciation/amortisation estimates, and potential signs of impairment.

Taxation / Deferred taxation

Capital Allowances on new fixed assets are currently a key audit focus. The introduction of the Structural Buildings Allowance (SBAs) and Full Expensing, alongside ETB's continued Capital Expenditure, has led to a complex Capital Allowance claim. Additionally, legal fees for new depot acquisitions are substantial. All analyses, tax calculations, and reconciliations have been thoroughly reviewed and recalculated to ensure confidence that no material misstatements exist.

Accrued income (rebates)

Rebates from suppliers represent another significant audit area. Accrued rebates are difficult to accurately estimate as they depend on the supplier purchase quantities and stock line. Rebates may also not be received until many months after the year end. We review all after date rebates received and compare these to the estimates accrued, we ensure that rebates are complete, and any differences explained.

Stock valuation

Valuation of stock is a significant risk area because of its complex make up. Many factors affect the stock value, such as:

- Foreign Exchange conversions

- Freight costs

- Duty costs

- Delivery delays

- Rebates

Management override

All the above factors are taken into consideration when completing our audit testing on stock valuation. We also use stratified sampling to identify valuation differences within each tyre brand / supplier.

Journal entries

These are reviewed to ensure they are appropriate and not subject to any bias, thus reducing the risk of misstatement due to management override of controls.

Our procedures for each audit area are tailored to the specific risks we have identified for Exhaust Tyres and Batteries (Worcester) Limited and are based on our detailed knowledge and understanding of the entity and its environment.

There are inherent limitations in anyaudit, such that there is a risk we may not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk is also greater for 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.

Richard Dunkley FCCA CTA (Senior Statutory Auditor)

for and on behalf of RD Accounting Limited

(Statutory Auditor)

12C Two Locks

Hurst Business Park, Brierley Hill

West Midlands

DY5 1UU

26 September 2025

TURNOVER

75,324,926

69,392,910

Cost of sales

43,233,108

41,432,857

GROSS PROFIT

32,091,818

27,960,053

Administrative expenses

30,699,257

25,933,138

1,392,561

2,026,915

Other operating income

93,133

45,714

OPERATING PROFIT

4

1,485,694

2,072,629

Interest receivable and similar income

86,588

7,961

1,572,282

2,080,590

Interest payable and similar expenses

5

436,598

452,496

PROFIT BEFORE TAXATION

1,135,684

1,628,094

Tax on profit

6

589,230

694,182

PROFIT FOR THE FINANCIAL YEAR

546,454

933,912

PROFIT FOR THE YEAR

546,454

933,912

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

546,454

933,912

FIXED ASSETS

Intangible assets

7

2,372,318

3,482,132

Tangible assets

8

7,894,201

7,081,583

Investments

9

8,239

8,239

10,274,758

10,571,954

CURRENT ASSETS

Stocks

10

12,343,896

9,646,554

Debtors

11

8,871,472

6,825,834

Cash at bank and in hand

655,954

1,577,303

21,871,322

18,049,691

CREDITORS

Amounts falling due within one year

12

14,741,081

11,037,306

NET CURRENT ASSETS

7,130,241

7,012,385

TOTAL ASSETS LESS CURRENT LIABILITIES

17,404,999

17,584,339

CREDITORS

Amounts falling due after more than one year

13

(2,891,214

)

(3,732,937

)

PROVISIONS FOR LIABILITIES

16

(1,365,516

)

(1,249,587

)

NET ASSETS

13,148,269

12,601,815

CAPITAL AND RESERVES

Called up share capital

17

50

50

Capital redemption reserve

18

50

50

Retained earnings

18

13,148,169

12,601,715

SHAREHOLDERS' FUNDS

13,148,269

12,601,815

The financial statements were approved by the Board of Directors and authorised for issue on 15 August 2025 and were signed on its behalf by:

A Wessels - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

50

11,667,803

50

11,667,903

Changes in equity

Total comprehensive income

-

933,912

-

933,912

Balance at 31 December 2023

50

12,601,715

50

12,601,815

Changes in equity

Total comprehensive income

-

546,454

-

546,454

Balance at 31 December 2024

50

13,148,169

50

13,148,269

1.	STATUTORY INFORMATION

Exhaust Tyres And Batteries (Worcester) 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company continues to adopt the going concern basis in the preparation of its annual financial statements. This is on the basis that the directors believe, having assessed the Company's financial position and business risks, that the Company has adequate resources to continue in operational existence for the foreseeable future.

The functional currency of Exhaust Tyres and Batteries (Worcester) Limited is considered to be Pounds Sterling because that is the currency of the primary economic environment in which the Company operates.

The company has taken advantage of the following disclosure exemption 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.

Preparation of consolidated financial statements

The financial statements contain information about Exhaust Tyres and Batteries (Worcester) Limited as an individual company.

At 31 December 2024 and 31 December 2023 both Exhaust Tyres and Batteries (Worcester) Limited and its immediate parent undertaking, Bridgestone Retail UK Limited (a company registered in Great Britain), are included in the consolidated financial statements of Bridgestone Corporation Group (see note 22 to these financial statements) and therefore no consolidated accounts have been prepared at UK level due to the exemptions offered in Section 401 of the Companies Act 2006.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised on despatch of goods or completion of services performed.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses between 2010-2024 are being amortised evenly over its estimated useful life of 5 years. The goodwill from the acquisitions in 2010 to 2020 has now been fully amortised.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements

-

Straight line over the life of the lease

Plant and machinery

-

10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

20% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

A First In First Out basis is used.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

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.

Investments

Fixed asset investments are stated at cost less provision for permanent diminution in value.

Key assumptions and judgements

The preparation of the financial statements requires management to make estimates, judgements and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, revenue and expenses. Actual results may differ from these estimates.

Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The main estimates and assumptions applied in the preparation of these financial statements are in the following areas:

- useful economic lives of tangible/intangible assets

- stock provisions

- impairment of debtors

It is not considered that any significant risk exists in material adjustments being necessary as a result of the above.

Financial instruments

Financial instruments are recognised when the company becomes party to contractual provisions of the instrument.

Financial assets are offset, with the net amounts presented in the accounts where 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 receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic Financial Liabilities

Basic Financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts, discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of the operations 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 are recognised initially at transaction.

3.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

16,171,213

13,006,348

Social security costs

1,556,372

1,237,464

Other pension costs

312,752

250,633

18,040,337

14,494,445

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

31.12.24

31.12.23

Administration

27

31

Sales

480

420

507

451

The directors' remuneration related to 2 directors (2023: 1 director).

31.12.24

31.12.23

£

£

Directors' remuneration

285,218

90,833

Information regarding the highest paid director for the year ended 31 December 2024 is as follows:

31.12.24

£

Emoluments etc

198,157

4.	OPERATING PROFIT

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

31.12.24

31.12.23

£

£

Hire of plant and machinery

404,416

329,811

Other operating leases

2,848,544

2,356,650

Depreciation - owned assets

1,500,814

1,228,604

Profit on disposal of fixed assets

(672

)

(35,090

)

Goodwill amortisation

1,218,444

1,100,685

Auditors' remuneration

28,000

27,000

Auditors' remuneration for non audit work

33,750

21,174

Foreign exchange differences

60,972

(30,909

)

Other operating leases relates to the rental of properties.

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Bank interest

397,588

437,515

Hire purchase

39,010

14,981

436,598

452,496

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

473,301

250,506

Deferred tax

115,929

443,676

Tax on profit

589,230

694,182

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24

31.12.23

£

£

Profit before tax

1,135,684

1,628,094

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.521%)

283,921

382,944

Effects of:

Expenses not deductible for tax purposes

311,873

279,722

Capital allowances in excess of depreciation

(107,798

)

(251,484

)

Increase in deferred tax liability (see note 17)

115,929

443,676

Taxable losses (brought)/carried forward

-

(160,676

)

Prior year over provision

(14,695

)

-

Total tax charge

589,230

694,182

7.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2024

7,696,626

Additions

108,630

At 31 December 2024

7,805,256

AMORTISATION

At 1 January 2024

4,214,494

Amortisation for year

1,218,444

At 31 December 2024

5,432,938

NET BOOK VALUE

At 31 December 2024

2,372,318

At 31 December 2023

3,482,132

BUSINESS COMBINATIONS

During the year ETB purchased the trade and assets of the following businesses:-

Greenways Tyre & Exhaust Services Ltd - £130,000 (Goodwill £108,628 & Plant £21,372).

The above exclude legal acquisition costs and stamp duty. Goodwill is amortised over 5 years for all of the above business combinations.

8.	TANGIBLE FIXED ASSETS

Leasehold

Plant and

Motor

Computer

improvements

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2024

3,217,868

5,873,198

1,973,227

146,618

11,210,911

Additions

409,214

890,026

1,112,956

47,529

2,459,725

Disposals

-

-

(413,891

)

-

(413,891

)

At 31 December 2024

3,627,082

6,763,224

2,672,292

194,147

13,256,745

DEPRECIATION

At 1 January 2024

785,068

2,202,318

1,064,001

77,941

4,129,328

Charge for year

330,442

592,930

554,640

22,802

1,500,814

Eliminated on disposal

-

-

(267,598

)

-

(267,598

)

At 31 December 2024

1,115,510

2,795,248

1,351,043

100,743

5,362,544

NET BOOK VALUE

At 31 December 2024

2,511,572

3,967,976

1,321,249

93,404

7,894,201

At 31 December 2023

2,432,800

3,670,880

909,226

68,677

7,081,583

The net book value of assets held under Hire Purchase at the year end was £554,346 (2023: £468,544)