REGISTERED NUMBER: 09588013 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

LESLIES ISLE OF WIGHT LIMITED

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

9

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

to

16

Notes to the Financial Statements

17

to

29

DIRECTORS:

G L Vanassche

L Vanassche

REGISTERED OFFICE:

341-351 Newport Road

Cowes

Isle of Wight

PO31 8PG

REGISTERED NUMBER:

09588013 (England and Wales)

AUDITORS:

Bright Brown Limited

Chartered Accountants

Statutory Auditor

Exchange House

St. Cross Lane

Newport

Isle of Wight

PO30 5BZ

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

REVIEW OF BUSINESS

Market Condition

The market in 2024 has remained challenging, with trading conditions still tough but showing some signs of stabilisation compared to 2023. New vehicle supply has normalised further, supporting consistent sales activity, although consumer demand continues to be constrained by high interest rates and the ongoing cost-of-living pressures. Used vehicle values, while still requiring careful management, have been more stable throughout the year than in 2023, reducing the sharp volatility previously experienced-particularly in the fully electric vehicle (EV) segment.

Company Position

Leslies Isle of Wight Limited, which operates the Toyota and Hyundai dealerships acquired from a local business, continues to trade successfully and remains owned by Leslies Motors Limited. The company maintains strong franchise relationships with its manufacturer partners, who continue to support the group's growth and investment plans, particularly in the transition to electric vehicles.

Internal

Ownership and management remain stable, with no changes planned. Franchise partners continue to work closely with the company, providing a solid foundation for future development.

Financial

Despite the difficult market conditions, the company has continued to generate a profit in 2024. While profitability is again lower than the levels achieved in 2022 and remains slightly down on 2023, this represents a solid performance given the economic backdrop and is viewed positively by the directors.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the company's strategic direction continue to be subject to several key risks. The directors have identified the following principal areas:

Manufacturers Supply of New and Improved Products

The company remains reliant on the supply of new vehicle products from its manufacturer partners. Risks include:

- Availability of new vehicle products

- Quality of new vehicle products

- Pricing of new vehicle products

The directors remain confident that manufacturers will continue to provide competitively priced, high-quality products. This risk is further mitigated by the group's diversified activities, including used vehicle sales, parts sales, and aftersales service.

Used Vehicle Prices

While used vehicle price volatility remains a core risk, 2024 has seen greater stability compared to the sharp declines experienced in 2023. The company continues to mitigate this risk through close monitoring of market trends, rapid stock turn, and regular re-pricing to maintain competitive positioning.

People and Reputation

The company's success relies heavily on its skilled team and strong reputation. Continuous investment in training, particularly in EV technologies, and regular remuneration reviews help ensure that the company attracts and retains the best talent, even against the backdrop of persistent cost-of-living challenges.

The Competitive Environment

The motor retail sector remains highly competitive. The relaxation of Block Exemption legislation continues to allow independent repairers greater market access. The directors mitigate this risk by maintaining superior customer service standards and leveraging the advantages of holding key manufacturer franchises. The ongoing shift toward EVs reinforces the value of these franchises and supports the company's continued investment in EV infrastructure and staff training.

Other market issues

High interest rates and subdued consumer confidence remain headwinds for the wider automotive sector. The introduction of the UK's Zero Emission Vehicle (ZEV) mandate continues to create uncertainty around new and used EV demand, and the pace of the EV market's growth remains difficult to predict.

ON BEHALF OF THE BOARD:

G L Vanassche - Director

29 September 2025

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

DIVIDENDS

Total distributions for the year ended 31 December 2024 represent adjustments made in respect of financing arrangements with the parent company resulting in a transfer of value under accounting standards. No dividends have been formally declared in the year.

DIRECTORS

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

G L Vanassche

L Vanassche

FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES

The company uses various financial instruments, other than derivatives, which include bank and stocking loans, cash and various items, such as consignment stock, trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the group's operations. Their existence exposes the company to a number of financial risks.

The main risks arising from the company's financial instruments are interest rate risk, liquidity risk and credit risk. The directors review and agree policies for managing each of these risks, which are summarized below. These policies have remained unchanged from previous years.

Interest Rate Risk

The company finances its operations through a mixture of bank and other external borrowings.The company's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. The balance sheet includes trade debtors and creditors, which do not attract interest.

The company policy through the year has been to achieve its objective of managing interest rate risk through day to day involvement of management in business decisions rather than through setting maximum or minimum levels for the level of fixed interest rate borrowings.

Credit Risk

The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparts have high credit ratings assigned by international credit-rating agencies. The principal credit risk therefore arises from its trade debtors.

In order to manage credit risk, the directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the directors on a regular basis in conjunction with debt aging and collection history.

Liquidity Risk

The company seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably.

The company's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.

The directors' review of the business, and their consideration of the risks and uncertainties surrounding the business may be found in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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, Bright Brown Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G L Vanassche - Director

29 September 2025

Opinion

We have audited the financial statements of Leslies Isle of Wight Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Irregularities, including fraud are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

As part of our planning we determined materiality and assessed the risks of material misstatement in the financial statements. Based on our understanding of the company we identified the principal risk as management override of controls.

Audit procedures performed by the engagement team included:

-

A review of journals made in preparing the final results, and a review of accounting estimates made by management.

-

A review of transactions and records to ensure there are no transactions that have no apparent commercial purpose, or that are processed outside of the usual accounting systems.

-

A review of an appropriate sample of vehicles to ensure sufficient evidence has been obtained over valuations in what is a more subjective area of the accounts.

-

Discussions with management, including consideration of any known or suspected instances of fraud or non-compliance with laws or regulations.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment or intentional misrepresentations.

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.

Gavin Kelly ACA (Senior Statutory Auditor)

for and on behalf of Bright Brown Limited

Chartered Accountants

Statutory Auditor

Exchange House

St. Cross Lane

Newport

Isle of Wight

PO30 5BZ

29 September 2025

TURNOVER

3

17,916,628

16,955,410

Cost of sales

16,012,142

15,113,086

GROSS PROFIT

1,904,486

1,842,324

Administrative expenses

1,730,193

1,718,618

174,293

123,706

Other operating income

-

(1

)

OPERATING PROFIT

5

174,293

123,705

Interest receivable and similar income

99,947

87,706

274,240

211,411

Interest payable and similar expenses

6

258,468

221,542

PROFIT/(LOSS) BEFORE TAXATION

15,772

(10,131

)

Tax on profit/(loss)

7

(4,057

)

6,287

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

19,829

(16,418

)

PROFIT/(LOSS) FOR THE YEAR

19,829

(16,418

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

19,829

(16,418

)

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

2,007,299

2,060,800

2,007,299

2,060,800

CURRENT ASSETS

Stocks

11

2,748,576

2,514,225

Debtors

12

1,059,114

999,545

Cash in hand

216

266

3,807,906

3,514,036

CREDITORS

Amounts falling due within one year

13

3,636,347

3,330,594

NET CURRENT ASSETS

171,559

183,442

TOTAL ASSETS LESS CURRENT LIABILITIES

2,178,858

2,244,242

CREDITORS

Amounts falling due after more than one year

14

(2,031,040

)

(2,083,447

)

PROVISIONS FOR LIABILITIES

18

(54,292

)

(58,349

)

NET ASSETS

93,526

102,446

CAPITAL AND RESERVES

Called up share capital

19

1

1

Retained earnings

20

93,525

102,445

SHAREHOLDERS' FUNDS

93,526

102,446

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

G L Vanassche - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1

151,109

151,110

Changes in equity

Dividends

-

(32,246

)

(32,246

)

Total comprehensive income

-

(16,418

)

(16,418

)

Balance at 31 December 2023

1

102,445

102,446

Changes in equity

Dividends

-

(28,749

)

(28,749

)

Total comprehensive income

-

19,829

19,829

Balance at 31 December 2024

1

93,525

93,526

Cash flows from operating activities

Cash generated from operations

1

473,510

675,038

Interest paid

(256,813

)

(219,887

)

Interest element of hire purchase payments paid

(1,655

)

(1,655

)

Tax paid

(11,841

)

(23,826

)

Net cash from operating activities

203,201

429,670

Cash flows from investing activities

Purchase of tangible fixed assets

(23,312

)

(19,238

)

Interest received

99,947

87,706

Net cash from investing activities

76,635

68,468

Cash flows from financing activities

Loan repayments in year

(223,334

)

(323,333

)

Capital repayments in year

(32,156

)

(29,807

)

Equity dividends paid

(28,749

)

(32,246

)

Net cash from financing activities

(284,239

)

(385,386

)

(Decrease)/increase in cash and cash equivalents

(4,403

)

112,752

Cash and cash equivalents at beginning of year

2

(474,001

)

(586,753

)

Cash and cash equivalents at end of year

2

(478,404

)

(474,001

)

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit/(loss) before taxation

15,772

(10,131

)

Depreciation charges

76,813

79,624

Finance costs

258,468

221,542

Finance income

(99,947

)

(87,706

)

251,106

203,329

Increase in stocks

(234,351

)

(363,252

)

Increase in trade and other debtors

(59,569

)

(12,219

)

Increase in trade and other creditors

516,324

847,180

Cash generated from operations

473,510

675,038

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 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

216

266

Bank overdrafts

(478,620

)

(474,267

)

(478,404

)

(474,001

)

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

266

187

Bank overdrafts

(474,267

)

(586,940

)

(474,001

)

(586,753

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

266

(50

)

216

Bank overdrafts

(474,267

)

(4,353

)

(478,620

)

(474,001

)

(4,403

)

(478,404

)

Debt

Finance leases

(34,324

)

32,156

(2,168

)

Debts falling due within 1 year

(223,333

)

50,000

(173,333

)

Debts falling due after 1 year

(1,834,445

)

173,334

(1,661,111

)

(2,092,102

)

255,490

(1,836,612

)

Total

(2,566,103

)

251,087

(2,315,016

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements have been made by the directors in applying the company's accounting policies:

Consignment stock

New vehicles held on consignment are included in stocks where it is considered that the significant risks and rewards of ownership have passed to the company. The directors have assessed that this applies to Hyundai vehicles held on consignment, but the significant risks and rewards of ownership are not transferred on Toyota vehicles held on consignment until the vehicle has been adopted by the company.

At 31 December 2024, the company held £233,602 (2023: £210,637) Toyota vehicles on consignment, funded by a stocking loan to this value.

Stock valuation

Stock valuation is regularly monitored against the age profile and market demand. Management use a number of market tools during the appraisal process including CAP valuation guides. The director maintains oversight of ageing stock profiles and a monthly review of any provision required is performed.

Property, plant and equipment assets

At each reporting date, property, plant and equipment is assessed for any indication of impairment. If such indication exists, the recoverable amount of the asset is determined based on value in use calculations which require estimates to be made of future cash flow.

An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Brand incentives

The company receives income in the form of various incentives which are determined by the brand partners. The amount received is generally based on achieving specific objectives such as a specific sales volume, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfactions survey results and training standards. Objectives are generally set and measured on either a quarterly or annual basis.

Where incentives are based on a specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered or when it is reasonably certain that the related target will be met. Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards, they are recognised as a reduction in cost of sales when it is reasonably certain the incentive will be received for the relevant period.

The company may also receive contributions towards advertising, promotional and rent expenditure. Where such contributions are received they are recognised as a reduction in the related expenditure in the period to which they relate.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the aquisition of a business in 2015, has been fully amortised.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at the following annual rates in order to write off each asset over its estimate useful life:

Freehold property

-

2% on cost, and 15% reducing balance

Short-term leasehold property

-

2% on cost

Plant and machinery

-

15% on reducing balance, and 20% on cost

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

25% on reducing balance

The assets' residual values, useful lives, and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is 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 Income Statement.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Stocks are valued at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow-moving stock.

At each reporting date, the 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 Income Statement.

Consignment vehicles are regarded as being under the control of the company when significant risks and responsibilities of ownership are deemed to have passed to the company in accordance with FRS 102. These values are included with the stocks on the Statement of Financial Position, although legal title has not passed to the company. The corresponding liability is included as new vehicle funding and is recognised within trade creditors.

Financial instruments

The company only has basic financial instruments, which are recognised at amortised cost.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

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

2024

2023

£

£

Sale of goods

16,654,008

15,802,735

Rendering of services

1,225,535

1,110,371

Commissions receivable

37,085

42,304

17,916,628

16,955,410

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,020,690

1,044,289

Social security costs

32,865

30,013

Other pension costs

26,058

28,111

1,079,613

1,102,413

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

2024

2023

Sales

23

23

Aftersales

19

20

Administration

4

4

Directors

2

2

48

49