Introduction

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

These financial statements represent the consolidated financial statements of Standard Motor Products Holdings Limited and its company only 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 due to a larger stock obsolescence provision in the year. Overheads were reduced compared with the prior year as a result of a cost-saving exercise, whilst continuing to invest in new product design and improving the ERP system. This long-term investment programme has set the group 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 group continues to monitor changing automotive technology, exploring opportunities created by increasingly stringent exhaust emission controls and the continued rapid introduction of Battery Electric Vehicles (BEVs).

To fund the group’s operations the group 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 group also uses derivatives in the form of forward exchange contracts to manage foreign exchange risks. The main risks arising from the group’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.

Financial key performance indicators

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

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 group 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.

The directors, both individually and collectively, believe they have acted in good faith, promoting the success of the group 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 group and its longevity. As such, the group 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 group 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 group’s performance.

Community, charity and environment

The group’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 programme 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 group 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 group 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 profit for the year, after taxation, amounted to £142,672 (2023: profit of £212,854).

Ordinary dividends were paid amounting to £418,000. The directors do not recommend payment of a further dividend.

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

The SECR disclosure presents our carbon footprint within the United Kingdom across Scope 1 & 2 emissions, an appropriate intensity metric, the total energy use of electricity, gas and transport fuel and an energy efficiency action summary taken during the relevant financial year.

The group has taken the exemption available to it to not include subsidiary companies who in their own right are not obliged to report under SECR regulations. The below review therefore only relates to UK-based group companies.

UK greenhouse gas emissions and energy use data for the period 1 January 2024 to 31 December 2024:

Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2024 UK Government's Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per production hour which has been calculated at 0.00078 (2023: 0.00071).

Measures taken to improve energy efficiency

As part of the group's ISO14001 accreditation, we have a commitment and policy of ongoing improvements to be as efficient as possible with all energy use.

The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The group 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 group'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.true

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 group'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 and the group's auditor is aware of that

information.

We have audited the financial statements of Standard Motor Products Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 group's and the parent company's affairs as at 31 December 2024 and of the group's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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 parent 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 parent 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 entity 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 notes on pages 17 to 41 form part of these financial statements.

The notes on pages 17 to 41 form part of these financial statements.

The notes on pages 17 to 41 form part of these financial statements.

The notes on pages 17 to 41 form part of these financial statements.

Standard Motor Products Holdings Limited (the ‘company’) and its subsidiary undertakings (the ‘group’) are limited companies incorporated and domiciled in the United Kingdom and Poland. The address of the company’s registered office is disclosed on the company information page, and for the Polish subsidiary, the registered office addresses are disclosed in Note 14.

The financial statements are prepared in Sterling (£), which is the functional currency of the group. 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 costs convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standards applicable in the UK and the Republic of Ireland and Companies Act 2006.

The preparation of the financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group’s accounting policies, (see Note 2).

The company has taken advantage of the exemptions allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

The consolidated financial statements present the results of the company and its own subsidiaries ('the group') as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of the business combinations using the purchase method. In the balance sheet, the acquirer’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

The financial statements of the group 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 group will continue to trade within the facilities expected to be available to it for a period of at least 12 months.

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. Consequently, in accordance with FRS102, the impacted loans have been re-classified from due within one year which has improved the group’s net current asset position compared to the previous financial year.

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 and group 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 group and 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:

Turnover from the sales of goods is recognised when all of the following conditions are satisfied:

• The group has transferred the significant risks and rewards of ownership to the buyer;

• The group 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 group will receive the consideration due under the transactions; 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 of 20 years.

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.

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 measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid. Investments are 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 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 is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

The group 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.

The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income, or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the statement of comprehensive income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

The provision for warranty claims is based on a percentage of sales using historic claim data.

Defined contribution pension plan

The group 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 group 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.

Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the lease term.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive income within 'Administrative Expenses'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Finance costs

Finance costs are charged to the statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Interest income

Interest income is recognised in the statement of comprehensive income using the effective interest method.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

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 which have a significant risk of causing a material adjustment to the carrying amount 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 group 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 29 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 group.

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

Their aggregate remuneration comprised:

The company has no employees other than the directors, some of which are remunerated via a subsidiary company, Standard Motor Products Europe Limited.

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

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

Computer software assets of £1,396,280 (2023: £1,004,335) have not been amortised as the assets were not available for use at the balance sheet date.

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 Holdings 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 Euope Sp.zo.o is 129 Boleslawa Chrobrego Street, 87100 Torun, NIP 7822688960, Regon 366708646.

An impairment loss of £207,653 (2023: impairment gain of £35,664) was recognised in cost of sales against stock 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 22 for terms of bank loans and other 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.

See Note 22 for terms of bank loans and other loans.

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

Included within bank loans are loans which are repayable in instalments to October 2025 and October 2024 and incur interest at 8.64% and 8.43%.

Also included within bank loans is a loan which are repayable in instalments to May 2026 and incur interest at 2.95% above the Bank of England base rate.

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

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances and timing differences that are expected to mature within the same period.

During the year, on 25 January 2024 55,008 A Ordinary shares of £0.0001 each were redesignated as B Ordinary shares of £0.0001 each.

All shares rank pari passu.

Following the re-purchase of shares by the company this is the nominal value of the re-purchased shares.

The difference between the cost of investment including the nominal value of the share capital and the fair value of assets and liabilities acquired on a business combination.

The foreign exchange reserve includes the movement in opening reserves of foreign subsidiaries due to foreign exchange rates.

The profit and loss accounts includes all current and prior periods retained profits and losses less dividend paid.

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

Amounts contracted for but not provided in the financial statements:

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

Defined benefit pension

The group 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 group. 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:

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

Amounts taken to other comprehensive income

Movements in the present value of defined benefit obligations

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 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.

The group has taken advantage of the exemption available under FRS 102 Section 33.1A, not to disclose transactions with wholly owned subsidiary companies.

At the year end, £11,776 (2023: £180,751) was due from certain shareholders of the company and is included within other debtors. Interest is charged at 2.5% amounted to £3,726 (2023: £4,879).

Key management personnel remuneration was £916,501 (2023: £740,198).

During the year dividend totalling £398,000 (2023: £350,000) were paid to certain directors of the company and dividends totalling £20,000 (2023: £Nil) were paid to a trust of which certain close family members of a director are beneficiaries.

The directors consider the company's ultimate controlling party to be I L Turner and M Turner.

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.