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

The principal activity of the company is the design, manufacture and sale of cars for motorsport competition entry together with associated on-event support, parts supply and rebuild services.

Company turnover totalled £46.6m (2023: £44.4m) with a reported operating profit of £6.4m (2023: loss of £252k).

The M-Sport Ford World Rally Team participated in all thirteen rounds of the FIA World Rally Championship (WRC) with Adrien Fourmaux securing five podium finishes behind the wheel of the Ford Puma Hybrid Rally1. In a continued commitment to developing the next generation of rally talent, Grégoire Munster and Mārtiņš Sesks were also given an opportunity to drive the top-specification world rally car.

Success continued in the lower formulas with notable achievements across the UK and Ireland where the Ford Fiesta Rally2 secured the Irish Tarmac Championship, BTRDA Gold Star, Motorsport UK English Championship and the Motorsport UK Asphalt Championship. The Rally2 and Rally1 predecessors also continued to yield success on a global stage, with the Fiesta R5 and RS WRC taking our customers to championship success in Turkey, Slovakia, Canada and Iceland.

The UK based rally raid team completed its first Dakar Rally at the start of the year, learning much about the complexities of the legendary event before embarking on a year-long program of testing and development in the evolution of the new Ford Raptor T1+ ahead of next year’s entry.

The company’s operations expose it to a variety of financial risks that include the effects of credit risk, liquidity risk, currency risk and interest rate risk.

The company has a risk management programme in place which seeks to limit the adverse effects on financial performance by monitoring levels of debt finance and related finance costs.

Given the size of the company the directors have not delegated the responsibility of monitoring financial risk to a subcommittee of the board. The policies set by the board of directors are implemented by the company’s finance department.

The company manages currency risk by matching same-currency customer receipts to supplier payments where possible. Additional requirements are covered by a combination of spot and forward transactions on the currency markets.

The company’s debt is lent on a fixed rate. The group does not use derivative financial instruments to manage interest rate costs and no hedge accounting is applied.

The company operates principally in the motorsport sector which is regulated by the FIA. Changes in the regulations can result in additional costs to the company for its products to remain approved. The company liaises closely with industry regulators to manage this risk.

As directors of the company, we have and continue to act in a way that we consider, in good faith, to be most likely to promote the continuing success of the company for the benefit of its members, and in doing so had regard, amongst other matters, to the:

• likely consequences of any decisions in the long term;

• interests of the company’s employees;

• need to foster the company’s business relationships with suppliers, customers and others;

• impact of the company’s operations on the community and the environment;

• desirability of the company maintaining a reputation for high standards of business conduct; and

• need to act fairly between members of the wider Group.

The following are some examples as to how we have had regard to the matters set out within sections 172(1)(a)-(f) when discharging our section 172 duties:

Our key strategic objective remains to build a sustainable business, for the benefit of current and future generations, whether that is in the form of employees, customers, suppliers, the community and environment. For this to be achieved, our management of the company involves us taking both decisions for the present and future benefit of the business. We work within the business on a daily basis, so key internal and external relationships are maintained directly, and employees, suppliers and customers have appropriate access to us. We also ensure there is a wider understanding of the company’s key strategic objectives, through distilling the key messages through our management teams within the business.

The company’s employees are critical to the continued success of the business and it is key we effectively engage with them. Examples of how we do this include:

• Offering employees the opportunity for further professional and career development through relevant training courses and qualifications;

• Having appropriate private channels of communication in place that employees are comfortable using.

Our core aspiration is to develop our continuous improvement plans across the company promoting a strong and sustainable business. We cannot achieve this without having strong relationships with both our suppliers and customers. We foster these business relationships through utilising some of the following practices:

• Maintaining strong relationships through regular contact with our key suppliers;

• Encouraging our customers and suppliers to raise any issues or concerns they have over their relationship with the company; and

• Offering dedicated points of contact within our team to promote the building of long-term business relationships with our customers.

We are committed to supporting the communities that we work in and being environmentally responsible. To this end, the company has formal policies regarding Corporate Social Responsibility and the Environment.

We are also committed to conducting our business in an ethical manner, in accordance with the formal policy laid out by the company. This policy encapsulates our commitment to ensure the highest standard of ethical conduct in the way we conduct business.

These principles are integrated into the company’s business culture and the way we operate.

On behalf of the board

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

The results for the year are set out on page 12.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

The directors have identified customers, employees, suppliers, investors and government as being key

stakeholders.

Customers

Importance: Understanding our customers' needs allows us to deliver relevant procedures and services, retain

customers, and attract new ones.

Ways to Engage: Account management relationships, regular communications and technical

updates, social media and website.

Stakeholders' Interests: Reliability and competitiveness of cars and parts, availability of replacement parts, availability of rebuild and on-event support services

Outcomes in 2024: M-Sport Customers secured more regional championships in the UK, Ireland, Turkey, Slovakia, Canada and Iceland.

Employees

Importance: Our staff are fundamental to our product and service delivery.

Ways to Engage: Recognition and reward, training, involvement in competition at national, regional and international levels.

Stakeholders' Interests: Career opportunities, pay and conditions, training and development.

Outcomes in 2024: Continuation of a dedicated work culture team with regular meetings to organise a variety of social events, competitions, and activities.

Suppliers

Importance: Suppliers provide the necessary products and services to ensure the business runs efficiently.

Ways to Engage: Regular meetings and other communication.

Stakeholders' Interests: Sales of product and services, Improved product profile by association, prompt payment .

Outcomes in 2024: Increased purchases from suppliers to support key motorsport programs.

Investors

Importance: Investors expect capital growth on their investment

Ways to Engage: Monthly reporting management accounts.

Stakeholders' Interests: Capital growth

Outcomes in 2024: Shareholders' funds increased by £4.6m.

Government

Importance: Policies and regulatory changes may provide opportunities or pose risks to our operations.

Ways to Engage: Submission of returns.

Stakeholders' Interests: Compliance with laws and regulations.

Outcomes in 2024: Tax returns submitted on time.

The rally raid team will debut the Ford Raptor T1+ at the 2025 Dakar Rally in January before contesting the full FIA World Rally Raid Championship. Work will commence on the development of the Ford Raptor T1+ Evo ahead of the 2026 Dakar Rally.

The rally team will continue their lengthy presence in the FIA World Rally Championship, running campaigns at the top level as well as contesting WRC2 with last year’s FIA Junior WRC Champion, Romet Jürgenson. The rally team will also contest the British and European Rally Championships.

Johnston Carmichael LLP were appointed as auditor to the company during the year and are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Streamlined energy and carbon reporting requirements have been disclosed on a group basis within the financial statements of the company's ultimate parent, M-Sport Limited, which includes the relevant energy and carbon reporting information for the company. As such, the company is not obliged and has not reported their energy and carbon reporting information here. The financial statements of M-Sport Limited are accessible from UK Companies House.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

We have audited the financial statements of M-Sport UK Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Annual Report and Financial Statements other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the Annual Report and Financial Statements. 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 our 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 and the directors' report.

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

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

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

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

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

As explained more fully in the directors' responsibilities statement page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

• Companies Act 2006;

• UK Tax Legislation;

• Health and Safety Legislation;

• Employment Law (including the Working Time Directive);

• FIA regulations; and

• UK Generally Accepted Accounting Practice

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns and board meeting minutes.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

• Management override of controls

• Revenue recognition

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

• Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud;

• Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;

• Performing audit procedures over the risk of management override, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and assessing judgements made by management in their calculation of accounting estimates for potential management bias;

• Performing audit work procedures over the occurrence and cut-off of non-contract revenue including reconciling sales to cash remittances, evidence of cash received and the sales ledger as well as performing appropriate sales cut-off procedures;

• Performing audit work procedures over the accuracy and cut-off of contract based revenue, agreeing revenue recognised within the year to cash receipt and signed contracts to ensure accuracy of income recognised and that the income was cut-off correctly;

• Completion of appropriate checklists and use of our experience to assess the company's compliance with the Companies Act 2006; and

• Agreement of the financial statement disclosures to supporting documentation.

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed 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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

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

M-Sport UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Dovenby Hall, Dovenby, Cockermouth, Cumbria, CA12 0PN.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income; and

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

Turnover is split into three categories: Rally income, Services income and Royalty income. Rally income is recognised in line with the world rally race schedule events. Service income is recognised once the service has been provided to the customer and Royalty income is recognised on a receivable basis.

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, 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.

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

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

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.

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.

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.

Stocks are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method. Net realisable value is calculated as estimated selling price less costs to complete and sell.

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 are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts.

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, 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.

Financial assets 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.

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.

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, including creditors, creditors, and loans from fellow group companies 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.

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

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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are 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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The group has made an assumption of writing down the value of stock on items in which they expect the cost to exceed the net realisable value before it is fully sold/utilised. This assumption has involved looking at the historic sales patterns and expected sales in future years. The carrying amount is £17,680,070 (2023 - £15,167,150).

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 5).

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

The balance above is net of provisions of £17,680,070 (2023 - £15,167,150).

The amounts owed to group undertakings are repayable on demand. The interest rate is 5% per annum.

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

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

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.

Contributions totalling £54,469 (2023 - £49,310) were payable to the scheme at the end of the year and are included in creditors.

The share capital account records the nominal value of shares issued. Both share classes carry equal voting rights and no right to fixed income.

This represents the nominal value of shares that have been issued.

This reserve includes all current and prior period retained profits and losses.

During the year, the company made sales of £1,285,534 (2023 - £1,830,116) to, purchases of £1,217,978 (2023 - £2,410,810) from and was charged interest of £1,035,102 (2023 - £965,758) by M-Sport Limited, the company's parent company. At the balance sheet date £23,058,540 (2023 - £20,582,225) is owed to M-Sport Limited and is included in creditors.

During the year, the company made sales of £230,072 (2023 - £321,744) and purchases of £255,762 (2023 - £385,783) from M-Sport Poland Sp. z o.o, a subsidiary of the company's parent company M-Sport Limited. At the balance sheet date £21,596 (2023 - £40,880) is owed to Poland Sp. z o.o and is included in creditors.

During the year, the company made purchases of £690,333 (2023 - £953,196) relating to travel costs from Chapman Carter Travel Limited, an associate of the company's parent. At the balance sheet date £21,543 (2023 - £18,754) is owed to Chapman Carter Limited and is included in trade creditors.

During the year, the company recharged costs of £22,330 (2023 - £32,563), were recharged costs of £33,608 (2023 - £9,321) and charged rent of £nil (2023 - £22,800) by M I Wilson, a director of the company. At the balance sheet date £857 (2023 - £2,073) is owed by M I Wilson and is included in debtors.

During the year, the company recharged costs of £1,847 (2023 - £1,569) and were recharged costs of £20,393 (2023 - £6,889) by M J Wilson, a director of the company. At the balance sheet date £3,322 (2023 - £1,171) is owed by M J Wilson and is included in debtors.

During the year, the company recharged costs of £10,267 (2023 - £4,311) and were recharged costs of £1,537 (2023 - £2,614) by E Wilson, the spouse of M I Wilson, a director of the company. At the balance sheet date £1,666 (2023 - £746) is owed by E Wilson and is included in trade debtors.

During the year, the company were recharged costs of £2,700 (2023 - £1,033) by R J Millener, a director of the company.

During the year, the company were recharged costs of £2,130 (2023 - £570) by C Fleming-Williams, a director of the company.

At the balance sheet date £nil (2023 - £1,168) is owed to MJW Adapt Limited, a company with common directors, and is included in trade creditors.

The company's immediate parent is M-Sport Limited, a company incorporated in England & Wales.

The most senior parent entity producing publicly available financial statements is M-Sport Limited. These financial statements are publicly available from UK Companies House.

The ultimate controlling party is M Sport Limited Share Release Trust.