REGISTERED NUMBER: 00903691 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

POLESWORTH GARAGE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Profit and Loss Account

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

M R Newbold

A J Marven

SECRETARY:

A J Marven

REGISTERED OFFICE:

Grendon Road

Polesworth

Tamworth

Staffordshire

B78 1HA

REGISTERED NUMBER:

00903691 (England and Wales)

AUDITORS:

Philip Barnes & Co Limited

Chartered Accountants

Statutory Auditors

The Old Council Chambers

Halford Street

Tamworth

Staffordshire

B79 7RB

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

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

The company has been trading for over 50 years and has been a successful Nissan main dealer for over 25 years, as well as offering a substantial display of used cars, including many premium marques.

During the year the company became a main dealer for Suzuki cars to be able to provide additional choices for customers and provide further business growth.

Since the year end the company has become a main dealer for MG, with this replacing Nissan.

The company continues to deal in used vehicles as well as providing servicing and repairs and spare parts for all makes.

The company continues to invest in and develop its own book of finance and contract hire clients and we believe that this forms an integral part of the business providing stability by keeping its clients close to the business,

Whilst the principle activity is that of a motor trader the company also has other income from property and farmland.

We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, operating profit, net profitability and net asset value.

2024

2023

£

£

Turnover

17,368,955

20,266,367

Operating profit

529,060

892,975

Net profit before tax

583,241

163,116

Net assets

10,030,033

9,597,891

The business turnover has decreased in a difficult period of trading on the back of a year with both higher inflation and interest rates. However, with increases in property values the company has increased its net profit and its net asset value to over £10 million.

PRINCIPAL RISKS AND UNCERTAINTIES

The business and market environment in which we operate continues to be challenging, in particular competitiveness and price sensitivity.

We operate on a prudent, economic and risk adverse basis as regards our trading relationships with our customers, suppliers and funders. There are external events that occur within the industry, which are outside of our control, however we closely monitor the market and economic conditions to mitigate risks to the business.

The company continues to have a sound asset base and the directors are confident about the future growth and development of the business.

ON BEHALF OF THE BOARD:

A J Marven - Secretary

11 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 garage proprietors.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

M R Newbold

A J Marven

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, Philip Barnes & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A J Marven - Secretary

11 August 2025

Opinion

We have audited the financial statements of Polesworth Garage Limited (the 'company') for the year ended 31 December 2024 which comprise the Profit and Loss Account, Statement of 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 three, 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- considering the nature of the industry and sector, control environment and business performance;

- enquiring of management concerning the company's procedures relating to:

- identifying and complying with laws and regulations and whether they were aware of any instances of

non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or

alleged fraud; and

- the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

- obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on

those laws and regulations that had a direct effect on the financial statements. The key laws and regulations

considered included the relevant provisions of the UK Companies Act, Financial Reporting Standards and

accounting policies.

Based upon this understanding we designed our audit procedures to identify non-compliance with such laws and regulations including:

- review of the financial statement disclosures to assess compliance with relevant laws and regulations having a

direct impact on the financial statements;

- enquiries of management concerning actual and potential litigation and claims; and

- testing journals and other adjustments; assessing judgements made in making accounting estimates and

evaluating the business rationale of any significant unusual or unexpected transactions.

We also communicated identified laws and regulations to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

Because of the inherent limitations of an audit, there is a risk that we will not detect any irregularities, including those leading to material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion and misrepresentation.

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.

Christopher Humphreys FCA (Senior Statutory Auditor)

for and on behalf of Philip Barnes & Co Limited

Chartered Accountants

Statutory Auditors

The Old Council Chambers

Halford Street

Tamworth

Staffordshire

B79 7RB

11 August 2025

TURNOVER

3

17,368,955

20,266,367

Cost of sales

16,499,636

19,051,378

GROSS PROFIT

869,319

1,214,989

Administrative expenses

1,654,949

1,662,060

(785,630

)

(447,071

)

Other operating income

4

1,314,688

1,340,046

OPERATING PROFIT

6

529,058

892,975

Interest receivable and similar income

6,090

6,902

535,148

899,877

Gain/loss on revaluation of investment property

700,000

-

1,235,148

899,877

Interest payable and similar expenses

7

651,907

636,761

PROFIT BEFORE TAXATION

583,241

263,116

Tax on profit

8

151,100

69,429

PROFIT FOR THE FINANCIAL YEAR

432,141

193,687

PROFIT FOR THE YEAR

432,141

193,687

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

432,141

193,687

FIXED ASSETS

Tangible assets

9

2,093,697

1,968,479

Investments

10

1

1

Investment property

11

5,249,899

4,645,000

7,343,597

6,613,480

CURRENT ASSETS

Stocks

12

3,307,566

3,518,074

Debtors: amounts falling due within one year

13

2,730,657

2,824,321

Debtors: amounts falling due after more than one year

13

4,370,284

4,576,753

Cash at bank and in hand

347,011

130,282

10,755,518

11,049,430

CREDITORS

Amounts falling due within one year

14

3,862,600

3,581,809

NET CURRENT ASSETS

6,892,918

7,467,621

TOTAL ASSETS LESS CURRENT LIABILITIES

14,236,515

14,081,101

CREDITORS

Amounts falling due after more than one year

15

(3,720,383

)

(4,167,710

)

PROVISIONS FOR LIABILITIES

19

(486,100

)

(315,500

)

NET ASSETS

10,030,032

9,597,891

CAPITAL AND RESERVES

Called up share capital

20

200,000

200,000

Revaluation reserve

21

372,437

372,437

Other reserves

21

312

312

Retained earnings

21

9,457,283

9,025,142

SHAREHOLDERS' FUNDS

10,030,032

9,597,891

The financial statements were approved by the Board of Directors and authorised for issue on 11 August 2025 and were signed on its behalf by:

M R Newbold - Director

Called up

share

Retained

Revaluation

Other

Total

capital

earnings

reserve

reserves

equity

£

£

£

£

£

Balance at 1 January 2023

200,000

8,831,455

372,437

312

9,404,204

Changes in equity

Total comprehensive income

-

193,687

-

-

193,687

Balance at 31 December 2023

200,000

9,025,142

372,437

312

9,597,891

Changes in equity

Total comprehensive income

-

432,141

-

-

432,141

Balance at 31 December 2024

200,000

9,457,283

372,437

312

10,030,032

Cash flows from operating activities

Cash generated from operations

1

1,054,124

1,690,181

Interest paid

(534,404

)

(512,752

)

Interest element of hire purchase payments paid

(117,503

)

(128,809

)

Tax paid

(118,055

)

(211,360

)

Net cash from operating activities

284,162

837,260

Cash flows from investing activities

Purchase of tangible fixed assets

(396,903

)

(107,833

)

Purchase of investment property

(339,899

)

-

Sale of tangible fixed assets

169,822

99,946

Sale of investment property

460,000

-

Interest received

6,090

6,902

Net cash from investing activities

(100,890

)

(985

)

Cash flows from financing activities

New bank loans in year

-

4,040,000

Bank loan repayments in year

(388,145

)

(1,713,299

)

Stocking loans

137,558

(760,906

)

Increase /(decrease) in hire purchase

49,733

(659,188

)

Directors' loans

234,311

(210,337

)

Other loans

-

(3,617

)

Net cash from financing activities

33,457

692,653

Increase in cash and cash equivalents

216,729

1,528,928

Cash and cash equivalents at beginning of year

2

130,282

(1,398,646

)

Cash and cash equivalents at end of year

2

347,011

130,282

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

2024

2023

£

£

Profit before taxation

583,241

263,116

Depreciation charges

123,294

118,284

Profit on disposal of fixed assets

(46,431

)

(10,876

)

Gain on revaluation of fixed assets

(700,000

)

-

Finance costs

651,907

636,761

Finance income

(6,090

)

(6,902

)

605,921

1,000,383

Decrease in stocks

210,508

1,568,465

Decrease/(increase) in trade and other debtors

85,772

(517,548

)

Increase/(decrease) in trade and other creditors

151,923

(361,119

)

Cash generated from operations

1,054,124

1,690,181

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

347,011

130,282

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

130,282

370

Bank overdrafts

-

(1,399,016

)

130,282

(1,398,646

)

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

130,282

216,729

347,011

130,282

216,729

347,011

Debt

Finance leases

(1,251,640

)

(49,733

)

(1,301,373

)

Debts falling due within 1 year

(1,846,455

)

(172,531

)

(2,018,986

)

Debts falling due after 1 year

(3,576,093

)

423,119

(3,152,974

)

(6,674,188

)

200,855

(6,473,333

)

Total

(6,543,906

)

417,584

(6,126,322

)

1.	STATUTORY INFORMATION

Polesworth Garage 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 as modified by the revaluation of certain assets.

The significant accounting policies applied in the preparation of the financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

Preparation of consolidated financial statements

The financial statements contain information about Polesworth Garage Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken the option under section 405 of the Companies Act 20016 not to prepare consolidated financial statements as its subsidiary, Polesworth Assist Limited, is immaterial both individually and collectively.

Significant judgements and estimates

The preparation of the financial statements requires judgements, estimations and assumptions to be made that affect the reported values of assets, liabilities, revenues and expenses. The nature of estimation and judgement means that actual outcomes could differ from those estimates. Significant areas of estimation and judgement for the company includes the measurement of the fair value of the company's investment properties (Note 11). The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant.

Turnover and other income

Turnover and other income is measured at the fair value of the consideration received or receivable, excluding value added tax. The policies adopted for the recognition of turnover and other income are:

Sale of goods

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer. This is usually the point at which the customer has signed for or taken delivery of the goods.

Rendering of services

When the outcome of a transaction can be estimated reliably, turnover from the rendering of services is recognised by reference to the stage of completion at the balance sheet date. The stage of completion is measured by comparing the costs incurred for work performed to date to the total estimated costs. Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

Finance income

Where goods are sold using hire purchase contracts or finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease.

Tangible fixed assets

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

Freehold property

-

4% on cost and 2% on cost

Plant and machinery

-

20% reducing balance

Fixtures and fittings

-

25% reducing balance and 20% reducing balance

Motor vehicles

-

25% on reducing balance

Operating lease vehicles

-

15% reducing balance

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment property for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in profit or loss.

Stocks

Vehicle stocks are valued at the lower of cost and estimated sales price less cost to sell.

Other stocks are valued at cost, using a combination of the first in first out and average cost methods, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

Pension costs and other post-retirement benefits

The company operates money purchase pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions payable for the year are charged to the profit and loss account.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method.

The company also finances the acquisition of courtesy cars under short-term hire purchase agreements. These vehicles are included in the company's vehicle stock. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The related obligations, net of future finance charges, are included in creditors.

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis.

3.

TURNOVER

The turnover and profit 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

£

£

Vehicle

13,440,349

16,195,250

Parts, service and bodyshop

1,328,771

1,313,769

Fuel and forecourt

2,295,431

2,417,920

Other

304,404

339,428

17,368,955

20,266,367

4.	OTHER OPERATING INCOME

2024

2023

£

£

Rents received

246,558

293,473

Commission

90,708

83,094

Finance income

968,965

953,440

Other income

8,457

10,039

1,314,688

1,340,046

5.

EMPLOYEES

2024

2023

£

£

Wages and salaries

1,561,154

1,575,064

Social security costs

129,037

139,564

Other pension costs

47,006

43,908

1,737,197

1,758,536