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

2024 sales continued at a good level in all sectors maintaining the trends experienced over the last few years. Gross margin decreased compared with prior year. Other operating charges decreased compared with the prior year, despite the continuation of investing in new product design and improving the ERP system. This long-term investment programme has set the company in a good position to expand sales into new markets, whilst leveraging the newly developed products to increase sales to existing customers. Our efforts were rewarded with the prestigious IAAF (Independent Automotive Aftermarket Federation) award of Product of the Year for the second year running, this time for our newly introduced range of AdBlue Injectors. The company continues to monitor changing automotive technology, exploring opportunities created by increasingly stringent exhaust emission controls and the continued rapid introduction of Battery Electric Vehicles (BEV).

To fund the company’s operations the company uses financial facilities, comprising borrowings, cash and other liquid resources, along with various other items such as trade debtors and creditors that arise directly from its operations. The company also uses derivatives in the form of forward exchange contracts to manage foreign exchange risks. The main risks arising from the company’s financial facilities and instruments are interest rate risk, liquidity risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous periods.

Interest rate risk

The company finances its operations through a mixture of retained earnings and bank borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Primarily this is achieved through retained earnings or through loans. Short term flexibility is achieved by using the credit facility.

The company has a CBILS loan, and its parent undertaking also has two term loan facilities that have a debt service covenant attached. In 2023, the group breached this debt service covenant, however the bank supported the group by waiving the breach and amended the covenant for 2024 to focus on LTV. In 2024, the group complied with the LTV covenant. All interest and capital repayments have been paid when falling due.

At the reported balance sheet date, there is a term loan facility which was due for renewal in October 2024 and has been formally extended to July 2025. There is also another term loan facility due for renewal in October 2025. The directors undertook a refinancing exercise to refinance all loans in the group on new commercial terms in the first half of 2025. On 31st July 2025, the group entered into a refinancing agreement with NatWest Bank to replace its previous borrowing facilities which included a CBILS loan, bank loans and discounting facilities previously held with Barclays Bank. The new consolidated loan has financial covenants attached and is expected to have a significant positive impact on the group’s liquidity by substantially reducing immediate repayment obligations and lowering finance costs. The directors are investing in systems, identifying cost savings and streamlining processes to deliver efficiencies to manage working capital.

Foreign currency risk

The company is exposed to transaction and translation foreign exchange risk. To manage this risk, the company enters into forward exchange contracts and maintains bank balances in foreign currencies to settle its liabilities as they fall due.

Export market risk

In 2022, the company moved its export packing and distribution business to their Poland facility so that all EU shipments were distributed from Poland instead of the UK. This allowed the company to reduce the Brexit risk and ensured a more consistent and reliable delivery service to customers based in the EU.

Defined benefit pension scheme

The company operates a defined benefit pension scheme. To limit the company's exposure to future potential pension liabilities, the pension scheme is closed to future accrual.

The directors are satisfied with the performance in the year and will continue to focus on improving sales, profitability and cash position for the remainder of 2025 and future years.

Other key performance indicators

Trading outlook

We focus a lot of effort on product range coverage, that is, the number of vehicle types and models for which we can offer a replacement part in each product category. We remain ahead of all our competitors in most product categories that we serve.

The trading outlook for 2025 remains positive. Although tracking behind 2024’s sales performance, a number of sales opportunities have been implemented and more are being actively explored which are expected to increase trading going forward beyond 2025. The ability to distribute next day across most of the EU, from our Polish Distribution Centre, continues to open exciting opportunities to win new customers. We are the leaders in our domestic market. Our differentiation strategy allows us to offer multiple brands, each providing for a different customer need.

The company has a strong balance sheet, a talented and flexible workforce, and a modern and comprehensive infrastructure.

We believe that the strategic changes SMP Europe has made over the last 5 years position us well to be able to expand our business in 2025 and beyond.

Directors' statement of compliance with duty to promote the success of the company (Section 172(1) statement)

The directors have acted in the way they consider, in good faith, promotes the success of the company for the benefit of its members as a whole, and in doing so have given regard to (amongst other matters):

Business relationships

Having traded for over 50 years, the need to build strong, collaborative, long-standing relationships with both our clients and suppliers is paramount to the success of the company and its longevity. As such, the company endeavours to enter into clear and fair contracts and we continually develop strategies to maintain and grow our client base and further improve relationships with our suppliers with a long-term perspective.

Employees

The company is committed to promoting an engaged and healthy workforce, recognising the importance of both physical and mental wellbeing. People are at the heart of delivering quality specialist services both internally and externally. For our business to continue to succeed we continually manage our people’s performance, encourage progression through appropriate training and development and we regularly engage with our employees through regular team meetings and an open-door policy. Employees have also been encouraged to present their suggestions and views on the company’s performance.

Community, charity and environment

The company’s approach is to use our long-standing position to create positive change for the people and communities we interact with through several initiatives. We run a program annually where our employees get the opportunity to support local charities by volunteering our time and carrying out fundraising days to raise awareness of the causes we value.

Culture and values

The company recognises the importance of having the right corporate culture. Our long-term success depends on achieving our strategic goals the right fair way, so we look after the best interests of our shareholders, clients, people, suppliers and other stakeholders.

Shareholders

The executive team is committed and openly engaged with our shareholders through regular board meetings and effective dialogue. The shareholders, some of which are also directors, are actively engaged in understanding our strategy, culture, people and the performance of our shared objectives for the short, mid and longer terms.

Political donations

The company does not make any donations to any political party or organisation.

On behalf of the Board

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

The loss for the year, after taxation, amounted to £8,871 (2023: profit of £78,693).

During the year, the company paid dividends of £418,000 (2023: £350,000).

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company's streamlined energy and carbon reporting disclosure has been included in the Standard Motor Products Holdings Limited consolidated accounts.

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standards 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 UK 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in the directors’ reports may differ from legislation in other jurisdictions.

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (strategic report and directors' report) Regulations 2013 to set out in the company's strategic report information required by the large and medium-sized companies and groups (accounts and reports) Regulations Schedule 7 to be contained in the directors' report.

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

•    so far as the director is aware, there is no relevant audit information of which the company and the

company's auditor is unaware, and

•    the director has taken all the steps that ought to have been taken as a director in order to be aware of any

relevant audit information and to establish that the company's auditor is aware of that information.

We have audited the financial statements of Standard Motor Products Europe Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 directors' report.

We have nothing to report in respect of the following matters in relation to which 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.

As explained more fully in the directors' responsibilities statement, 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 is 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.

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 an auditor's report 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

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

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 an auditor's report 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 15 to 32 form part of these financial statements.

The notes on pages 15 to 32 form part of these financial statements.

The notes on pages 15 to 32 form part of these financial statements.

Standard Motor Products Europe Limited is a limited liability company incorporated and domiciled in the United Kingdom. The address of the registered office is shown on the company information page.

The financial statements are prepared in Sterling (£) which is the functional currency of the company. The financial statements are prepared for the year ended 31 December 2024 (2023: year ended 31 December 2023).

The financial statements have been prepared on a going concern basis under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements of the company have been prepared on a going concern basis as at the time of signing these accounts the directors have reviewed current trade, forecasts to December 2026 and have concluded that the company will continue to trade within the facilities expected to be available to it for a period of at least 12 months.true

At the year end, the group complied with the financial covenant linked to two term loans and all interest and capital repayments have been paid when due.

On 31st July 2025, the group entered into a refinancing agreement with NatWest Bank to replace its previous borrowing facilities which included a CBILS loan, bank loans and discounting facilities previously held with Barclays Bank. This refinancing is expected to have a significant positive impact on the group’s liquidity by substantially reducing immediate repayment obligations and lowering finance costs.

It is for all these reasons that the directors have concluded that the company will have adequate resources to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover 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:

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 turnover 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.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the statement of comprehensive income over its useful economic life. Its useful economic life was assessed as ten years from the date of transition to FRS 102.

Computer software

Computer software costs are initially recognised at cost. After recognition, under the cost model, computer software costs are measured at cost less any accumulated amortisation and any accumulated impairment losses. The computer software is considered to have a finite useful life of 10 years.

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.

Repairs and maintenance are charged to the statement of comprehensive income during the period in which they are incurred.

Depreciation is provided on the following basis:

Freehold land is not depreciated.

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.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined, which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised as an expense where the carrying amount exceeds the recoverable amount.

Investments in subsidiaries are initially valued at cost and reviewed annually for signs of impairment. If an impairment loss is identified, this is recognised immediately in the statement of comprehensive income and the value of the investment is reduced accordingly.

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

Cash and cash equivalents include cash in hand and balances held with banks that are readily available for use.

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

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

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Changes in the fair value of derivatives are recognised in the statement of comprehensive income in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Defined contribution pension plan

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

The contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Defined benefit pension plan

The company also operates a defined benefit plan for certain employees and the pension charge is based on the last actuarial valuation completed as at 30 September 2022, updated by an independent qualified actuary at 31 December 2024 using revised assumptions that are consistent with requirements of Financial Reporting Standard 102 Section 28. The assets of the scheme are held separately from those of the company. From March 2001 the scheme was closed to new entrants.

In accordance with FRS 102, the regular service cost of providing retirement benefits to employees during the period, together with the cost of any benefits relating to past service is charged to operating profit in the period.

The net interest element is determined by multiplying the net defined benefit asset by the discount rate at the start of the period, taking into account any changes in the net defined benefit asset during the period as a result of contribution and benefit payments. The net interest is recognised in the statement of comprehensive income as other finance income.

Re-measurements comprising actuarial gains and losses and the return on the net defined benefit asset (excluding amounts included in net interest) are recognised in other comprehensive income in the period in which they occur.

The defined net benefit pension asset in the balance sheet comprises the total of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds) less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information.

The deferred tax as a result of the surplus within the defined benefit pension scheme is included as a provision.

Exceptional costs

Exceptional costs are non-recurring costs and are deemed exceptional by their size or nature. Exceptional costs are charged as an expense to the statement of comprehensive income in the year that the company becomes aware of the obligation.

The directors make estimates and assumptions concerning the future. The directors are also required to exercise judgement in the process of applying the company’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that would have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities are addressed below:

The directors review the market value of and demand for its stocks on a periodic basis to ensure stock is recorded in the financial statements at the lower of cost or net realisable value. Any provision for impairment is recorded against the carrying value of stocks. The directors use their knowledge of market conditions, historical experiences and estimates of future events to assess future demand for the company's products and achievable selling prices.

The company has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including life expectancy, salary increases, asset valuations and the discount factor on corporate bonds. The directors estimate these factors in determining the net pension obligation on the balance sheet. The assumptions reflect historical experience and current trends. See Note 26 for the disclosures relating to the defined benefit pension scheme.

The whole of turnover is attributable to the company's principal activity being the manufacturer of parts and accessories for motor vehicles.

Turnover by geographical market has not been disclosed as the directors consider that such disclosure would be seriously prejudicial to the interests of the company.

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023: 2).

The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount credited to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Computer software has not been amortised as the assets within this category are not available for use.

Freehold land and buildings includes land of £1,320,000 (2023: £1,320,000) which is not depreciated.

Details of the company's subsidiaries at 31 December 2024 are as follows:

All subsidiary undertakings, except Kerr Nelson Limited and Standard Motor Products Europe Sp.zo.o, share the same registered office as Standard Motor Products Europe Limited. Details can be found on the company information page.

The registered office of Kerr Nelson Limited is C/O Thomas Barrie & Co Llp, Atlantic House, 1a Cadogan Street, Glasgow, G2 6QE.

The registered office of Standard Motor Products Europe Sp.zo.o is 129 Boleslawa Chrobrego Street, 87-100 Torun, NIP 7822688960, Regon 366708646.

An impairment loss of £207,653 (2023: impairment gain of £35,664) was recognised in cost of sales during the year due to slow-moving and obsolete stock.

An impairment loss of £22,996 (2023: £17,230) was recognised in administrative expenses due to irrecoverable trade debtors.

Amounts owed by group undertakings are repayable on demand and interest is charged at 3%.

See Note 21 for terms of the bank loans.

The credit facility is secured over certain amounts included within trade debtors.

Amounts owed to group undertakings are interest free and repayable on demand.

The bank loans are secured by a fixed and floating charge against all assets of the company and its parent undertaking by way of a cross guarantee and debenture.

Interest is charged on the bank loan at 2.95% above the Bank of England base rate and is repayable in instalments to May 2026.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Amounts contracted for but not provided in the financial statements:

The company has given an unlimited guarantee in favour of its parent undertaking in respect of bank borrowings. At 31 December 2024, the total bank borrowings of the parent undertaking amounted to £1,951,556 (2023: £2,133,939).

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost represents contributions payable by the company to the fund and amounted to £252,838 (2023: £307,536).

Defined benefit pension

The company also participates in a defined benefit pension scheme to provide benefits to directors and employees. The defined benefit section was closed to new entrants and future accrual from March 2001. The scheme is set up under trust and its assets are therefore independent to those of the company. The related costs are assessed in accordance with advice of the professionally qualified actuary. The most recent actuarial valuation of the scheme, at 30 September 2022, has been updated by an independent qualified actuary at 31 December 2024 using revised assumptions that are consistent with the requirements of Financial Reporting Standards 102 Section 28. Investments have been valued for this purpose, at fair value, including equities at the bid price.

Assumed life expectations on retirement at age 65:

Amounts taken to other comprehensive income

The cumulative amount of actuarial losses recognised in the statement of comprehensive income was £27,000 (2023: £315,000).

The company expects to contribute £75,000 to its defined benefit pension scheme in 2025.

The mortality assumptions for the scheme liabilities at 31 December 2024 have been based on the S3PA base tables (CMI 2023 mortality projections Sk = 7) (2023: CMI 2022 mortality projections Sk = 7) and include a long term rate of improvement of 1.25% (2023: 1.25%).

The actuarial valuation as at 31 December 2024 assumes that 100% of members will commute the maximum amount of pension for cash retirement.

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

The defined benefit obligations arise from plans funded as follows:

Movements in the fair value of plan assets

The actual return on plan assets was (£105,000) (2023: £108,000).

Fair value of plan assets at the reporting period end

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

At 31 December 2024, the company had entered into contracts for the forward purchase of US Dollars for the contract value of €6,248,588 (2023: €4,678,662). There were no transaction costs for these contracts.

The contracts mature between the months of January 2025 and September 2025.

On 31 July 2025, subsequent to the reporting date, the company entered into a refinancing agreement with NatWest Bank to replace its previous borrowing facilities, which included a CBILS loan, bank loans, and discounting facilities previously held with Barclays Bank.

The outgoing loans carried higher market interest rates, and one loan had an imminent balloon payment due within 12 months. Under the new arrangement, the loans were refinanced over a 20-year term at an interest rate of 2.15% above the Bank of England base rate. Additionally, new discounting facilities were provided to replace those previously held with Barclays.

At the balance sheet date of 31 December 2024, there were no breaches of loan covenants, although a covenant waiver had been granted by the lender during 2024. The refinancing was not completed at the balance sheet date and did not relate to conditions existing at that time. Accordingly, the financial statements have not been adjusted to reflect this transaction.

Management considers that this refinancing will have a significant positive impact on the company’s liquidity and financial stability by substantially reducing immediate repayment obligations and lowering financing costs.

As permitted by FRS 102 section 33.1A, the company has taken advantage of the disclosure exemptions available under the standard in relation to related party transactions with wholly owned group companies. Where required, equivalent disclosures are given in the group accounts of Standard Motor Products Holdings Limited. The group accounts for Standard Motor Products Holdings Limited are available to the public and can be obtained as set out in Note 31.

The company's immediate and ultimate parent undertaking is Standard Motor Products Holdings Limited, a company registered in England & Wales.

Standard Motor Products Holdings Limited is ultimately controlled by I L Turner and M Turner.

Standard Motor Products Holdings Limited is the largest and smallest group for which consolidated accounts are prepared, copies of which can be obtained from Companies House, Cardiff, CF14 3UZ.