REGISTERED NUMBER: 00553972 (England and Wales)

R.T. RATE LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Chairman's Report

2

Strategic Report

3

Report of the Directors

6

Report of the Independent Auditors

8

Statement of Income and Retained Earnings

12

Statement of Financial Position

14

Statement of Cash Flows

16

Notes to the Statement of Cash Flows

17

Notes to the Financial Statements

19

DIRECTORS:

C.J. Rate

Mrs C.A.M. Rate

S.J. Rate

L. Padbury-Clark

REGISTERED OFFICE:

Rates Ford

Hogg Lane

Grays

Essex

RM17 5QL

REGISTERED NUMBER:

00553972 (England and Wales)

AUDITORS:

CR Bland Baker Ltd

Chartered Certified Accountants and

Statutory Auditors

21 Lodge Lane

Grays

Essex

RM17 5RY

Firstly, I would like to thank all at Rates Ford for all their hard work and dedication in what can only be described as an incredibly tough year across all areas of the business.

The company entered 2024 knowing that the industry faced substantial headwinds, to include vehicle availability, part exchange prices, interest rate changes and parts availability. It was an incredibly challenging period for the business and the sector as a whole.

The industry is transitioning from conventional combustion engine vehicles to BEV (Battery Electric Vehicles). This transition will take time, considerable patience and require a consumer market that trusts the new product and the supporting national infrastructure. This, combined with vehicle depreciation on a scale never seen before and interest rates constantly moving, made business in this sector incredibly tough in 2024.

However, where there are lows there are also highs. The aftermarket sales side of the business is thriving; rather than our valued customers changing their vehicles, many are opting instead to maintain them, and parts availability and process improvements have led to a marked improvement in the aftermarket departments.

Although 2024 was a year full of strain and uncertainty, we ended it on one of the highest notes. Our Chairman, Colin Rate, received the first-ever Lifetime Achievement Award presented by Ford Motor Company at the annual UK Dealer meeting. This award celebrates the fact that Rates Ford has been proudly serving the local and wider communities for over 70 years. For this, we thank you, Colin, not only for your leadership but also for your determination and guidance in ensuring that the foundations of the business remain robust.

Looking to 2025 and market trends, we are investing in commercial sales and workshop expansions. An expanded, more efficient workspace will enhance our customers' experience, while our dedicated aftersales teams operate in a state-of-the-art environment.

Having the right team leaders across the business allows us to identify and seize upon opportunities that arise but also to react quickly and effectively to any challenges we may face. To this end, the company has taken significant steps in 2025 to address the problems encountered in the sector in 2024 and such steps are seeing a marked turnaround in the performance of the business. This is a credit to all staff at Rates Ford.

Although 2024 was a very tough year we have learned tremendous amounts about how strong the business is, the opportunities available, the people that work there, and our partners that support us.

............................................

S.J.Rate - Chairman

Date: 28 August 2025

REVIEW OF BUSINESS

A review of the business is contained within the Chairman's Report which forms part of this Strategic Report. It should also be noted that during the year the company closed one of its branch locations and relocated its operations to its expanding head office site. - see discontinued operations on page 12 to the financial statements.

The UK automotive retail sector has experienced significant disruption, shaped by a combination of economic volatility, regulatory developments, the transition to electric vehicles (EVs), and evolving consumer behaviours. Despite these challenges, the sector continues to present areas of opportunity for well-positioned businesses, such as our own and 2025 will see a marked improvement in financial performance.

The directors consider that whilst the company has identified certain specific business risks below, they are of the opinion that suitable measures are in place to address them to ensure that ongoing operations do not affect the company's day to day obligations.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties affecting the sector, and their implications for the company, are set out below:

Liquidity Risk

The sector has faced increased liquidity pressure driven by:

Inflation and elevated interest rates impacting the cost of inventory financing and general working capital. The company occasionally utilises stocking loans for certain purchases of used vehicles and also has an existing bank loan that was undertaken to fund the acquisition of land from which the company operates. Any unforeseen increases in interest rates could put pressure on working capital but the company is well positioned to deal with this.

Margin compression, particularly in new vehicle sales and regulated finance commission income, following changes in industry practices. The UK's Vehicle Emissions Target Scheme (VETS) has added complexity, as mandated goals towards the number of units sold to meet VETS targets has led to pressures on the pricing point of the sale of new electric vehicles.

The capital-intensive nature of investment in EV infrastructure, staff training, and digital platforms, with a view to future advances and developments in the EV market.

Mitigation and Outlook:

The company maintains a prudent approach to cash management and financing. Liquidity is actively monitored to ensure flexibility in navigating short-term pressures. The Directors undertake regular reviews of the Company's performance and cash positions to ensure that risks are identified at the earliest point and mitigated appropriately.

Economic Risk

Market conditions have remained uncertain, reflecting:

Weakened consumer sentiment due to inflationary pressures and cost-of-living concerns.

Disruption to global vehicle supply chains, resulting in inconsistent stock availability and pricing volatility, although this has started to ease when comparing to previous years.

A normalisation of market demand following elevated trading activity during and immediately after the COVID-19 pandemic. This has also been magnified even further by volatility in interest rates, leading to consumer hesitation in undertaking new financing agreements on new and used vehicles.

Mitigation and Outlook:

The company has implemented enhanced forecasting and inventory controls to adapt to changing demand patterns. The used vehicle segment, which remains relatively resilient, continues to offer stable revenue and margin opportunities. Strategic stock sourcing and pricing strategies support the company's ability to navigate any economic headwinds.

Environmental Risk

The sector is undergoing structural transformation aligned to the UK Government's environmental objectives, including the transition to EVs. Key risks include:

Compliance with the Zero Emission Vehicle (ZEV) mandate and associated regulatory requirements.

The need for significant investment in charging infrastructure and technician upskilling.

Uncertainty regarding future government incentives and consumer adoption rates.

Mitigation and Outlook:

The company remains committed to the EV transition and has already made progress in infrastructure readiness, staff training, and EV product integration. The company recognises EVs as a component of future growth and is well-positioned to meet regulatory obligations while capturing growing consumer demand in both new and used EV markets.

Competition Risk

The competitive landscape continues to evolve, influenced by:

The entrance of new market participants, including digital-first and direct-to-consumer brands. In addition to this, new manufacturer brands from emerging motor-manufacturing countries such as China, giving greater competition to the vehicles that Ford offers to the consumer market.

Shifting customer expectations towards online and hybrid retail models.

Increased price transparency and pressure on traditional sales margins.

Mitigation and Outlook:

The company continues to invest in digital capability, customer experience innovation, and multi-channel sales infrastructure. The company believes that its strong customer position and operational agility provide a competitive advantage in a dynamic market environment.

Summary

Despite the current operating environment presenting a number of challenges, the Board remains confident in the medium- to long-term outlook for the company. The automotive retail sector continues to evolve rapidly, and the company is committed to responding proactively through investment, innovation, and disciplined risk management. Opportunities exist in the growth of the used EV segment and increased consumer engagement through digital platforms.

The company has reacted swiftly to the problems encountered in the sector in 2024 and financial performance in 2025 has improved significantly.

GOING CONCERN

Since the balance sheet date, the company has continued to manage cashflows and has been able to meet its financial obligations as they become due.

The directors have reasonable grounds to assume that this will not change in the future and as such the directors continue to adopt the going concern basis of preparation of the financial statements.

ON BEHALF OF THE BOARD:

S.J. Rate - Director

28 August 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a Ford main dealership, including new and used car sales, parts sales and servicing.

DIVIDENDS

Dividends voted in the year ended 31 December 2024 were £85,949 (2023 - £298,640).

DIRECTORS

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

C.J. Rate

Mrs C.A.M. Rate

S.J. Rate

L. Padbury-Clark

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Annual 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), 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 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, CR Bland Baker Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S.J. Rate - Director

28 August 2025

Opinion

We have audited the financial statements of R.T. Rate Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 Annual Report, 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 six, 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:

- We have reviewed whether there were areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by auditing standards).

- We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

- With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the officers.

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

- We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement 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 deliberate concealment by, for example, forgery, misrepresentations or through collusion. 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.

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.

Steven James Garrod (Senior Statutory Auditor)

for and on behalf of CR Bland Baker Ltd

Chartered Certified Accountants and

Statutory Auditors

21 Lodge Lane

Grays

Essex

RM17 5RY

29 August 2025

TURNOVER

3

70,745,559

3,282,295

74,027,854

Cost of sales

(69,786,858

)

(3,173,923

)

(72,960,781

)

GROSS PROFIT

958,701

108,372

1,067,073

Administrative expenses

(1,974,409

)

(406,225

)

(2,380,634

)

(1,015,708

)

(297,853

)

(1,313,561

)

Other operating income

4

41,811

-

41,811

OPERATING LOSS

6

(973,897

)

(297,853

)

(1,271,750

)

Income from fixed asset investments

1,542

-

1,542

Interest receivable and similar income

5,915

-

5,915

Gain/loss on revaluation of assets

4,942

-

4,942

Interest payable and similar expenses

7

(97,730

)

-

(97,730

)

LOSS BEFORE TAXATION

(1,059,228

)

(297,853

)

(1,357,081

)

Tax on loss

8

101,981

-

101,981

LOSS FOR THE FINANCIAL YEAR

(957,247

)

(297,853

)

(1,255,100

)

Retained earnings at beginning of year

7,064,152

Dividends on equity shares

9

(85,950

)

RETAINED EARNINGS AT END OF YEAR

5,723,102

TURNOVER

3

81,845,839

7,091,349

88,937,188

Cost of sales

(80,246,201

)

(6,992,919

)

(87,239,120

)

GROSS PROFIT

1,599,638

98,430

1,698,068

Administrative expenses

(2,057,680

)

(197,508

)

(2,255,188

)

(458,042

)

(99,078

)

(557,120

)

Other operating income

4

36,697

-

36,697

OPERATING LOSS

6

(421,345

)

(99,078

)

(520,423

)

Income from fixed asset investments

1,433

-

1,433

Interest receivable and similar income

10,347

-

10,347

Gain/loss on revaluation of assets

6,959

-

6,959

Interest payable and similar expenses

7

(106,749

)

-

(106,749

)

LOSS BEFORE TAXATION

(509,355

)

(99,078

)

(608,433

)

Tax on loss

8

81,530

-

81,530

LOSS FOR THE FINANCIAL YEAR

(427,825

)

(99,078

)

(526,903

)

Retained earnings at beginning of year

7,889,695

Dividends on equity shares

9

(298,640

)

RETAINED EARNINGS AT END OF YEAR

7,064,152

FIXED ASSETS

Tangible assets

10

3,770,214

4,028,737

Investments

11

1,348

1,348

3,771,562

4,030,085

CURRENT ASSETS

Stocks

12

9,474,480

9,016,133

Debtors

13

1,270,368

1,866,032

Investments

14

45,057

40,116

Cash at bank and in hand

45,507

46,431

10,835,412

10,968,712

CREDITORS

Amounts falling due within one year

15

7,377,401

6,201,207

NET CURRENT ASSETS

3,458,011

4,767,505

TOTAL ASSETS LESS CURRENT LIABILITIES

7,229,573

8,797,590

CREDITORS

Amounts falling due after more than one year

16

(1,280,671

)

(1,409,638

)

PROVISIONS FOR LIABILITIES

20

-

(98,000

)

NET ASSETS

5,948,902

7,289,952

CAPITAL AND RESERVES

Called up share capital

21

6,666

6,666

Share premium

22

290

290

Revaluation reserve - fixed

assets

22

215,511

215,511

Capital redemption reserve

22

3,333

3,333

Retained earnings

22

5,723,102

7,064,152

SHAREHOLDERS' FUNDS

5,948,902

7,289,952

The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2025 and were signed on its behalf by:

S.J. Rate - Director

Cash flows from operating activities

Cash generated from operations

1

834,916

260,654

Interest paid

(97,730

)

(106,749

)

Tax paid

104,381

(276,370

)

Net cash from operating activities

841,567

(122,465

)

Cash flows from investing activities

Purchase of tangible fixed assets

(108,540

)

(270,540

)

Purchase of current asset investments

(8,662

)

-

Sale of tangible fixed assets

20,530

74,527

Sale of current asset investments

8,180

-

Interest received

5,915

10,347

Dividends received

1,542

1,433

Net cash from investing activities

(81,035

)

(184,233

)

Cash flows from financing activities

New loans in year

-

305,923

Loan repaid in year

(488,620

)

(114,642

)

Amount introduced by directors

-

36,503

Amount withdrawn by directors

(66,653

)

-

Equity dividends paid

(85,950

)

(298,640

)

Net cash from financing activities

(641,223

)

(70,856

)

Increase/(decrease) in cash and cash equivalents

119,309

(377,554

)

Cash and cash equivalents at beginning of year

2

(193,381

)

184,173

Cash and cash equivalents at end of year

2

(74,072

)

(193,381

)

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

2024

2023

£

£

Loss before taxation

(1,357,081

)

(608,433

)

Depreciation charges

176,732

199,937

Loss on disposal of fixed assets

169,801

8,226

Gain on revaluation of fixed assets

(4,942

)

(6,959

)

Finance costs

97,730

106,749

Finance income

(7,457

)

(11,780

)

(925,217

)

(312,260

)

Increase in stocks

(458,347

)

(868,703

)

Decrease/(increase) in trade and other debtors

491,539

(102,833

)

Increase in trade and other creditors

1,726,941

1,544,450

Cash generated from operations

834,916

260,654

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

45,507

46,431

Bank overdrafts

(119,579

)

(239,812

)

(74,072

)

(193,381

)

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

46,431

184,173

Bank overdrafts

(239,812

)

-

(193,381

)

184,173

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

46,431

(924

)

45,507

Bank overdrafts

(239,812

)

120,233

(119,579

)

(193,381

)

119,309

(74,072

)

Liquid resources

Current asset investments

40,116

4,941

45,057

40,116

4,941

45,057

Debt

Debts falling due within 1 year

(1,442,560

)

360,136

(1,082,424

)

Debts falling due after 1 year

(1,409,638

)

128,967

(1,280,671

)

(2,852,198

)

489,103

(2,363,095

)

Total

(3,005,463

)

613,353

(2,392,110

)

1.	STATUTORY INFORMATION

R.T. Rate Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

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 the current and future periods.

Key sources of estimation uncertainty

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:

Stock provisions

New vehicle consignment inventory is held at consignment value, where financial risks are borne by the company. Due to the nature of consignment stock, items of this class can be removed by the dealer at any time and therefore no longer become an asset of the company.

Used vehicle inventory is a depreciating stock item and devalues monthly, making the estimated stock vale uncertain.

Consideration of the above factors have been given by the directors for any level of provisions against vehicle stock values. In determining the provisions required, the directors have used guidance from independent valuation tools and their knowledge of the industry.