REGISTERED NUMBER: 00842799 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

THE WATLING TYRE SERVICE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

Mrs K F Flury

R J Flury

Miss M K Flury

P G Laming

N Payne

REGISTERED OFFICE:

1-3 Pelham Road

Gravesend

Kent

DA11 0HN

REGISTERED NUMBER:

00842799 (England and Wales)

AUDITORS:

Carleys

Statutory Auditor

Second Floor South

The Fitted Rigging House

The Historic Dockyard

Chatham

Kent

ME4 4TZ

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

REVIEW OF BUSINESS

Business review

The company operates a number of tyre and motor accessory outlets throughout Kent and Sussex.

The directors are satisfied with the company's performance during the financial year given the current economic trading conditions. The company will continue to explore opportunities to consolidate and expand its operations in the future.

Fair review of business and key performance indicators

The directors consider that the key financial performance indicators (KPIs) are those factors by reference to which the performance, development and strength of the company's business can be measured by its members. These KPIs comprise turnover, gross margins and net assets.

- Turnover for the year risen by 3.16% to £21.3m (2023: £20.66m);

- Gross margin for the year increased to 41.03% (2023: 39.9%);

- Net assets increased to £10.13m (2023: £10.06m).

Principal risks and uncertainties

The operations and management of the business are subject to a number of risks. These risks are reviewed by the directors on an ongoing basis. The main risks identified by the directors are as follows :-

- The tyre and motor accessory retailing sector is a highly competitive market, with principal competitors being national distributors. The principal factors affecting the competitiveness are price and customer service;

- General business and economic conditions within the UK economy and the worldwide supply chain connected to the tyre industry could have an impact on the company's profitability;

Financial risk management objectives and policies

The company's principal financial instruments comprise cash balances. These facilities are used to provide working capital for the company.

The main financial risks related to these facilities are credit risk and liquidity risk. The company mitigates its credit risk by carrying out credit checks and status enquiries on account customers and suppliers, and by regularly reviewing its debtors and credit limits offered. Exposure to liquidity risk is mitigated by ensuring that the company has sufficient funds available for day-to-day operations through management of its cash facilities.

ON BEHALF OF THE BOARD:

Mrs K F Flury - Director

29 September 2025

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

DIVIDENDS

The total distribution of dividends in the year ended 31 December 2024 is £825,117 (2023: £317,136).

DIRECTORS

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

Mrs K F Flury

R J Flury

Miss M K Flury

P G Laming

N Payne

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). 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.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Mrs K F Flury - Director

29 September 2025

Opinion

We have audited the financial statements of The Watling Tyre Service 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 three, 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:

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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, our approach was as follows:

- we obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that are applicable to the company and of how the company is complying with those frameworks;

- we enquired of management about their own identification and assessment of the risks of irregularities, including any known instances of fraud;

- we discussed matters concerning non-compliance with laws and regulations and how fraud might occur including assessment of how the financial statements might be susceptible to fraud.

As a result of these procedures we consider that the most significant laws and regulations relating to the financial statements are FRS102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to enable us to detect non-compliance with significant laws and regulations which may have a material impact on the financial statements which included reviewing disclosures within the financial statements and inspecting correspondence with tax authorities.

We considered the risk of fraud through management override and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. In response, we incorporated testing of the appropriateness of journal entries, assessing judgements made by management in making accounting estimates and evaluating the business rationale for any significant unusual transactions or those outside the normal course of business.

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.

Claire M Ralph FCCA ACA (Senior Statutory Auditor)

for and on behalf of Carleys

Statutory Auditor

Second Floor South

The Fitted Rigging House

The Historic Dockyard

Chatham

Kent

ME4 4TZ

29 September 2025

TURNOVER

21,310,813

20,657,227

Cost of sales

12,567,319

12,412,111

GROSS PROFIT

8,743,494

8,245,116

Distribution costs

6,178,480

5,778,706

Administrative expenses

1,555,375

1,505,726

7,733,855

7,284,432

OPERATING PROFIT

4

1,009,639

960,684

Interest receivable and similar income

162,245

114,162

PROFIT BEFORE TAXATION

1,171,884

1,074,846

Tax on profit

5

279,558

268,462

PROFIT FOR THE FINANCIAL YEAR

892,326

806,384

PROFIT FOR THE YEAR

892,326

806,384

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

892,326

806,384

FIXED ASSETS

Tangible assets

7

1,072,096

1,214,183

Investments

8

4,090

4,090

1,076,186

1,218,273

CURRENT ASSETS

Stocks

9

1,672,347

1,940,369

Debtors

10

7,803,020

7,658,475

Cash at bank and in hand

3,351,433

2,728,395

12,826,800

12,327,239

CREDITORS

Amounts falling due within one year

11

3,563,554

3,262,704

NET CURRENT ASSETS

9,263,246

9,064,535

TOTAL ASSETS LESS CURRENT LIABILITIES

10,339,432

10,282,808

PROVISIONS FOR LIABILITIES

13

205,082

215,667

NET ASSETS

10,134,350

10,067,141

CAPITAL AND RESERVES

Called up share capital

14

75

75

Capital redemption reserve

15

25

25

Retained earnings

15

10,134,250

10,067,041

SHAREHOLDERS' FUNDS

10,134,350

10,067,141

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mrs K F Flury - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

75

9,577,793

25

9,577,893

Changes in equity

Profit for the year

-

806,384

-

806,384

Total comprehensive income

-

806,384

-

806,384

Dividends

-

(317,136

)

-

(317,136

)

Balance at 31 December 2023

75

10,067,041

25

10,067,141

Changes in equity

Profit for the year

-

892,326

-

892,326

Total comprehensive income

-

892,326

-

892,326

Dividends

-

(825,117

)

-

(825,117

)

Balance at 31 December 2024

75

10,134,250

25

10,134,350

1.	STATUTORY INFORMATION

The Watling Tyre Service 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 presentation currency is Sterling (£).

Financial Reporting Standard 102 - reduced disclosure exemptions

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 The Watling Tyre Service 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, Watling Holdings Limited, 1-3 Pelham Road, Gravesend, Kent DA11 0HN.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Tangible fixed assets

Tangible fixed assets are initially recognised at purchase cost. Purchase cost includes costs directly attributable to making the asset capable of operating as intended. Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Leasehold buildings - amortised over the period of the lease on a straight-line basis

Plant and machinery etc - 25% on cost

Freehold land and buildings are not depreciated. This represents a departure from the provisions of the Companies Act 2006. The company has a policy and practice of regular maintenance and repair, the charges for which are recognised in the income statement as incurred. The company believes that such a policy ensures that the residual value of its property at the balance sheet date is maintained at a level which is not materially different from the carrying amount of the asset. As such, no depreciation charge is made on the grounds that any such charge would be immaterial.

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.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

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

Financial instruments

The company's accounting policies relating to financial instruments are as follows:-

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.

Creditors

Short term trade 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.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty or notice, and are measured at the transaction price.

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.

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.

Government grants

Grant income is recognised using the accrual model in the period in which it becomes receivable.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

4,580,293

4,426,513

Social security costs

467,002

469,411

Other pension costs

213,280

157,657

5,260,575

5,053,581

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

2024

2023

118

121

2024

2023

£

£

Directors' remuneration

285,395

422,443

Directors' pension contributions to money purchase schemes

24,803

16,873

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

111,517

155,035

Pension contributions to money purchase schemes

11,780

7,853

4.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

120,532

144,132

Other operating leases

578,749

449,899

Depreciation - owned assets

363,887

328,236

Profit on disposal of fixed assets

(13,085

)

(17,697

)

Auditors' remuneration

40,033

48,200

5.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

290,143

172,430

Deferred tax

(10,585

)

96,032

Tax on profit

279,558

268,462

UK corporation tax has been charged at 25% (2023 - 23.52%).

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit before tax

1,171,884

1,074,846

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

292,971

252,804

Effects of:

Capital allowances in excess of depreciation

(2,828

)

(80,845

)

Deferred taxation movement

(10,585

)

96,032

Prior period adjustment

-

471

Total tax charge

279,558

268,462

6.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £1 each

Interim

825,117

317,136

7.	TANGIBLE FIXED ASSETS

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

COST

At 1 January 2024

260,688

1

991,672

Additions

-

-

44,423

Disposals

(260,688

)

-

-

At 31 December 2024

-

1

1,036,095

DEPRECIATION

At 1 January 2024

-

1

844,152

Charge for year

-

-

52,059

Eliminated on disposal

-

-

-

At 31 December 2024

-

1

896,211

NET BOOK VALUE

At 31 December 2024

-

-

139,884

At 31 December 2023

260,688

-

147,520

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 January 2024

834,584

1,050,870

3,137,815

Additions

1,475

506,884

552,782

Disposals

-

(187,149

)

(447,837

)

At 31 December 2024

836,059

1,370,605

3,242,760

DEPRECIATION

At 1 January 2024

687,858

391,621

1,923,632

Charge for year

23,302

288,526

363,887

Eliminated on disposal

-

(116,855

)

(116,855

)

At 31 December 2024

711,160

563,292

2,170,664

NET BOOK VALUE

At 31 December 2024

124,899

807,313

1,072,096

At 31 December 2023

146,726

659,249

1,214,183

8.	FIXED ASSET INVESTMENTS

2024

2023

£

£

Shares in group undertakings

25,295

25,295

Loans to group undertakings

(21,205

)

(21,205

)

4,090

4,090

Additional information is as follows:

Shares in

group

undertakings

£

COST

At 1 January 2024

and 31 December 2024

25,295

NET BOOK VALUE

At 31 December 2024

25,295

At 31 December 2023

25,295

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Canterbury Tyre Distributors Limited

Registered office: 1-3 Pelham Road, Gravesend, Kent DA11 0HN

Nature of business: Dormant

%

Class of shares:

holding

Ordinary £1

100.00

2024

2023

£

£

Aggregate capital and reserves

(21,205

)

21,205

Loans to

group

undertakings

£

At 1 January 2024

and 31 December 2024

(21,205

)

9.

STOCKS

2024

2023

£

£

Finished goods

1,672,347

1,940,369

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

1,998,471

1,854,077

Amounts owed by group undertakings

5,641,393

5,655,284

Prepayments and accrued income

163,156

149,114

7,803,020

7,658,475

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

2,829,803

2,518,919

Tax

290,143

171,963

Social security and other taxes

152,648

142,877

VAT

204,574

234,199

Accruals and deferred income

86,386

194,746

3,563,554

3,262,704

12.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2024

2023

£

£

Within one year

30,850

48,863

In more than five years

92,675

54,675

123,525

103,538