REGISTERED NUMBER: 05790190 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 30 June 2024

for

Auto Capital Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTOR:

S Adam

REGISTERED OFFICE:

Primera Accountants Limited Spitalfields

1 Stirling Way

Borehamwood

Hertfordshire

WD6 2FX

REGISTERED NUMBER:

05790190 (England and Wales)

AUDITORS:

TC Group

Statutory Auditor

First Floor

Spitalfields House

Stirling Way

Borehamwood

Hertfordshire

WD6 2FX

The director presents his strategic report for the year ended 30 June 2024.

REVIEW OF BUSINESS

Founded in 2006 and strategically located in one of London's main commercial and commuter routes, the M1 and North Circular, outside the congestion charge zone. Auto Capital is one of the UK's leading suppliers of quality used commercial vehicles, stocking over 400 used commercial vehicles.

Our current flagship location with over 3 acres contains just over 400 large vehicles. Departments include sales (new and pre-owned), service and customer services. Customers also benefit from our own in-house prep and repair area and a purpose built, state of the art turntable photo booth. We have invested in purpose designed indoor and outdoor LED lighting that allows customers to view and inspect vehicles no matter whatever the weather, day or night.

Auto Capital Limited's mission is to deliver credit lease and purchase financing, consulting, training and ongoing support that will provide the dealership with the skills and services we need to improve our competitive posture and increase profitability. Areas of focus include sales techniques, leasing, finance and insurance.

Auto Capital is now supplying Brand New and Preowned Electric vans as well as Euro 6 Diesel Engine Vans. Due to increased interest rates, customers who buy the vehicles under finance arrangements find it more costly to acquire the vehicles. Hence the company has adopted a shift to stocking affordable makes and models in the current economic climate.

Auto Capitals's click and collect and distance sales is working smoothly and swiftly after investment on our CRM , Marketing and virtual vehicle walk around videos. The revenue in the current year has increased by approximately 18.7%, , mainly due to the fact that in previous years the higher sales was driven by change in legislation as a result of ULEZ charge. Gross profit margin also increased by circa 17.32%, due to increases costs, drop in stock values and higher inflation during the year to 30 June 2023. The company made an operating profit of £218K (2023 - £79k). The director is satisfied with the performance of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The Director determined the key risks and uncertainties to be competitors, interest rate rises, liquidity and accounting information systems.

Competitors - Our main competitors lack not only the stock and location that has helped us stay ahead of the curve but more essentially, the service. We know what our customers' needs and wants are. With having a hands-on management approach, we have been able to read the market well with a just in time approach, that has enabled us to front run all our competitors.

Interest rate rises - Rises in interest rates has meant that customers find it difficult to finance vehicle purchases as a result of increased finance costs. Auto Capital has relationships with various finance houses to attract the best rates for our customers subject to credit scoring.

Liquidity and accounting information - The company has adequate financial headroom and maintains a close eye on its liquid working capital and also has robust accounting information enabling the management to make sound business decisions.

Financial key performance indicators

The key performance indicators used by the Director are across all benchmarks, turnover and gross profit margin.

Turnover increased by £3.05m (18.71%) and a gross profit of £3.25m (17.32%) being generated.

2024

2023

£

£

Turnover

19,370,648

16,317,190

Gross profit

2,201,568

1,875,782

Gross profit margin

11.36%

11.50%

Operating profit

218,700

78,540

Operating profit margin

1.12%

0.48%

Other Key Performance indicators

The other key performance indicator the Director uses is that of customer satisfaction levels. Customer satisfaction

levels remain high with the Company having strong repeat business customer levels.

This is linked to our staff retention levels. Our goal is to continually prepare our company for growth by providing

personnel training at all levels and by encouraging our staff to excel and advance within the organization.

Future developments

As a Company we are very optimistic for the future and this is why we are working towards building up a huge retail

customer base and seeing repeat customers profile expand year on year.

The company continues to invest more in our online presence and try to offer our customers the same experience

that they would get face to face but online. This will be done by better quality pictures, live videos and individual

tours. Full comprehensive checklists are uploaded, click and collect or delivery service with every vehicle. Our aim

is to offer transparency with a streamlined service.

ON BEHALF OF THE BOARD:

S Adam - Director

9 May 2025

The director presents his report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale and repair of motor vehicles.

DIVIDENDS

DIRECTOR

S Adam held office during the whole of the period from 1 July 2023 to the date of this report.

Post reporting date events

There have been no significant events affecting the company since the year end.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium sized companies exemption.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S Adam - Director

9 May 2025

Opinion

We have audited the financial statements of Auto Capital Limited (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 June 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 director's 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 director 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 the audit:

-	the information given in the Strategic Report and the Report of the Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation including compliance with customs regulations, data protection, anti-bribery, employment, and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- obtaining an understanding of the policies and procedures including internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations in order to design audit procedures that are appropriate in the circumstances (but not not for the purpose of expressing an opinion on the effectiveness of the company's internal control).

To address the risk of fraud through management bias and override of controls, we:

- identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, design and performed audit procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion

-performed analytical procedures to identify any unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates in relation to income recognition, collectability of debtors, impairment of tangible assets and valuation of stock were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors;

-evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (i.e. gives a true and fair view);

-reading the minutes of meetings of those charged with governance;

-enquiring of management as to actual and potential litigation and claims;

-reviewing correspondence with HMRC and the company's legal advisors; and

- Concluding on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve collusion, forgery, deliberate concealment and omissions, misrepresentations, or the override of internal control.

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.

Sadikali Gulamabas Premji (Senior Statutory Auditor)

for and on behalf of TC Group

Statutory Auditor

First Floor

Spitalfields House

Stirling Way

Borehamwood

Hertfordshire

WD6 2FX

9 May 2025

REVENUE

4

19,370,648

16,317,189

Cost of sales

17,169,080

14,441,408

GROSS PROFIT

2,201,568

1,875,781

Administrative expenses

1,990,469

1,826,442

211,099

49,339

Other operating income

5

7,601

29,201

OPERATING PROFIT

7

218,700

78,540

Interest payable and similar expenses

8

35,224

68,885

PROFIT BEFORE TAXATION

183,476

9,655

Tax on profit

9

47,888

3,371

PROFIT FOR THE FINANCIAL YEAR

135,588

6,284

PROFIT FOR THE YEAR

135,588

6,284

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

135,588

6,284

FIXED ASSETS

Property, plant and equipment

11

17,551

23,484

CURRENT ASSETS

Inventories

12

8,011,817

6,599,844

Debtors

13

534,201

431,728

Cash at bank and in hand

567,898

3,068,291

9,113,916

10,099,863

CREDITORS

Amounts falling due within one year

14

2,669,425

1,346,893

NET CURRENT ASSETS

6,444,491

8,752,970

TOTAL ASSETS LESS CURRENT LIABILITIES

6,462,042

8,776,454

PROVISIONS FOR LIABILITIES

16

6,000

6,000

NET ASSETS

6,456,042

8,770,454

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

6,455,942

8,770,354

SHAREHOLDERS' FUNDS

6,456,042

8,770,454

The financial statements were approved by the director and authorised for issue on 9 May 2025 and were signed by:

S Adam - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2022

100

11,214,070

11,214,170

Changes in equity

Dividends

-

(2,450,000

)

(2,450,000

)

Total comprehensive income

-

6,284

6,284

Balance at 30 June 2023

100

8,770,354

8,770,454

Changes in equity

Dividends

-

(2,450,000

)

(2,450,000

)

Total comprehensive income

-

135,588

135,588

Balance at 30 June 2024

100

6,455,942

6,456,042

Cash flows from operating activities

Cash generated from operations

1

292,187

5,597,465

Interest paid

(35,224

)

(68,885

)

Tax paid

(307,356

)

(888,972

)

Net cash from operating activities

(50,393

)

4,639,608

Cash flows from financing activities

Equity dividends paid

(2,450,000

)

(2,450,000

)

Net cash from financing activities

(2,450,000

)

(2,450,000

)

(Decrease)/increase in cash and cash equivalents

(2,500,393

)

2,189,608

Cash and cash equivalents at beginning of year

2

3,068,291

878,683

Cash and cash equivalents at end of year

2

567,898

3,068,291

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.6.24

30.6.23

£

£

Profit before taxation

183,476

9,655

Depreciation charges

5,935

8,093

Finance costs

35,224

68,885

224,635

86,633

(Increase)/decrease in inventories

(1,411,973

)

3,417,932

(Increase)/decrease in trade and other debtors

(1,046,098

)

5,136,368

Increase/(decrease) in trade and other creditors

2,525,623

(3,043,468

)

Cash generated from operations

292,187

5,597,465

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 June 2024

30.6.24

1.7.23

£

£

Cash and cash equivalents

567,898

3,068,291

Year ended 30 June 2023

30.6.23

1.7.22

£

£

Cash and cash equivalents

3,068,291

878,683

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.23

Cash flow

At 30.6.24

£

£

£

Net cash

Cash at bank and in hand

3,068,291

(2,500,393

)

567,898

3,068,291

(2,500,393

)

567,898

Total

3,068,291

(2,500,393

)

567,898

1.	STATUTORY INFORMATION

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

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

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.

Turnover

Revenue 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 at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Tangible fixed assets

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

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment 25% reducing balance

Fixture and fittings 25% reducing balance

Computers 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include debtors 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and 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 re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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 payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

4.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

30.6.24

30.6.23

£

£

Vehicles sales and ancillary s

19,152,521

16,116,477

Commissions receivable

218,127

200,712

19,370,648

16,317,189

5.	OTHER OPERATING INCOME

30.6.24

30.6.23

£

£

Coronavirus job retention sche me grant

-

2,201

Rent receivable

-

27,000

Other income

7,601

-

7,601

29,201

6.	EMPLOYEES AND DIRECTORS

30.6.24

30.6.23

£

£

Wages and salaries

99,219

61,752

Other pension costs

795

298

100,014

62,050

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

30.6.24

30.6.23

Management

1

1

Finance

1

1

Sales

6

4

8

6

30.6.24

30.6.23

£

£

Director's remuneration

3,120

-

7.	OPERATING PROFIT

The operating profit is stated after charging:

30.6.24

30.6.23

£

£

Hire of plant and machinery

7,087

6,317

Other operating leases

825,856

805,060

Depreciation - owned assets

5,933

8,094

Auditors' remuneration

9,750

-

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.6.24

30.6.23

£

£

Bank loan interest

35,224

54,820

Interest on Overdue Taxation

-

14,065

35,224

68,885

9.

TAXATION

Analysis of the tax charge

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

30.6.24

30.6.23

£

£

Current tax:

UK corporation tax

47,888

3,371

Tax on profit

47,888

3,371

10.

DIVIDENDS

30.6.24

30.6.23

£

£

Ordinary shares shares of £1 each

Interim

2,450,000

2,450,000