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

The Company operates as a motor vehicle dealer enhanced by the provision of finance and accessory sales. The Company also operated a property rental business and undertook property trading and development activities. During the year the company implemented corporate restructuring where it separated its business activities into distinct entities, by transferring its property rental business and property trading and development activities to Every Space Limited and transferred its business premises to a new holding company NW London Commercial Limited.

The results of the Company are shown on page 13 of the financial statements and show an operating profit of £22.9m (2023: £31.3m). The pre-tax profit of £121.2m (2023: pre-tax loss of £22.4m) is after a revaluation surplus of £98.8m (2023: revaluation deficit of £50.6m). Total turnover was £352.5m (2023: £491.2m). The Company has net assets of £16.1m (2023: £425m) at the reporting date following the restructuring.

The directors do not propose the payment of a final dividend.

The Company continues to focus on customer service and product quality. The Company partners leading high street brands to provide our customers with a range of finance products to the highest of professional standards.

Our staff are key to delivering the customer service we expect and during the year we employed an average of 483 staff (2023: 511) many of whom are from the local community. The professional development of our staff is paramount to the service we offer and we continue to develop and train our existing staff where appropriate. Many of our staff are trained in numerous areas of the business, which provides excellent flexibility for business resourcing but also increases staff satisfaction.

The land owned by Car Giant but not in operation by the business was tenanted out to small local business and some national chains. The demand for space continued to be strong and as a result occupancy was 97% (2023: 97%).

Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole.

In doing this, section 172 requires a director to have 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 environment;

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

- need to act fairly as between members of the company.

The directors confirm that in discharging their duties under section 172, they have had regard to the factors set out above. The Company delegates authority for day-to-day management to key management who are responsible for setting, approving and overseeing the execution of the business strategy and related policies.

The Company delegates to key management to review the Company’s financial and operational performance, risk and compliance, and health and safety matters.

Customer service is a key area of focus for the Company and the Company is committed to maintaining or improving its online customer satisfaction survey rating. Customer satisfaction is maintained through training and development of the Company’s employees, offering a comprehensive range of stock, and a hassle free purchase experience.

Managing good relationships with suppliers is key to facilitating the offering of a wide range of stock at high quality. To this end, the Company engages with its suppliers to ensure that they are consulted and informed.

The Company also has regard to the local community in all of its activities and acknowledges its role as a major employer in the local area.

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 13.

The directors do not recommend payment of a dividend.

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

Borrowings

The Company has a stocking facility with Lombard North Central Plc. The maximum amount available to be drawn down by the Company is £30m and it is secured by a charge over the stock of the company. The facility is repayable on demand. At the reporting date, £nil (2023: £15m) was due to Lombard North Central Plc.

The Company also has an unsecured loan from its ultimate controlling party. At the reporting date this was £9.3m (2023: £24.8m).

Liquidity management

The Company finances its operation through a mix of equity and borrowings. The Company's objective is to provide funding for future growth and achieve a balance between continuity and flexibility of funding. At the reporting date the Company had bank balances of £9.7m (2023: £10.5m).

Treasury management

The Company's treasury function is controlled centrally to ensure the availability and flexibility of funding in order to meet the Company's ongoing requirements.

Price risk

The Company is exposed to price risk as a result of its operations in a competitive market. The Company monitors this using Key Performance Indicators (KPIs) and acts accordingly.

Credit risk

The Company is exposed to the risk of claw back on finance commissions, if the customer fails the standards set out in the terms and conditions of the finance companies. The risk is limited to the value of the commission received.

Interest rate risk

The Company's borrowings are denominated in Sterling. The Company's objective is to manage the degree of interest hedging such that exposure to interest fluctuations are balanced against cost and flexibility. Borrowings are not hedged against and are subject to base rate movements.

It is the policy of the Company to give full and fair consideration to applications for employment from disabled persons, to continue wherever possible the employment of members of staff who may become disabled and to ensure that suitable training, career development and promotion are offered to such persons.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the Company's performance.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Details of engagement with suppliers, customers and others can be found under the Section 172(1) statement in the Strategic Report. These details form part of this report.

Car Giant is located within the very large catchment area of North West London and we enjoy a competitive advantage by having our entire processing and retail operations within one giant location. Our centralised operations enable us to maximise efficiencies to deliver excellent quality cars at market leading prices.

Digital development continues to be of significant importance as we invest in our online platforms, both to enhance and streamline the customer experience and to drive efficiency internally. We continue to invest in staff training and employing of apprentices.

In accordance with the company's articles, a resolution proposing that Xeinadin Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

The Company's greenhouse gas emissions and energy consumption are as follows:

The Company quantifies and reports its organisational greenhouse gas emissions using UK Government conversion factors.

Intensity ratio (energy efficiency) 17.91(2023: 26.93)

The intensity ratio used is number of cars sold per tonne of CO2, this is a simple measure of energy efficiency which will allow for fair comparison over time.

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). 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;

• 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.

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.

We have audited the financial statements of Car Giant 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, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the 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's 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 other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept, 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, 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.

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 we have considered the following:

• The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for key management personnel, bonus levels and performance targets;

• Results of the enquiries of management about their own identification and assessment of the risks of irregularities;

• Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

• Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

• Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

• The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

• The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income and valuation of car stock. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, 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 key laws and regulations we considered in this context included UK Companies Act, environmental laws, employment law, health and safety, pensions legislation and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

• Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• Enquiring of management concerning actual and potential litigation and claims;

• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• Reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

• In addressing the risk of fraud through management override of controls, 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.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 Company operates as a motor vehicle dealer enhanced by the provision of finance and accessory sales. The Company also operated a property rental business and undertakes property trading and development activities.

Car Giant Limited is a private company limited by shares incorporated in England and Wales. The registered office is 44 Hythe Road, London, United Kingdom, NW10 6RS.

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, unless specified within these accounting policies. The principal accounting policies adopted are set out below.

The Company is exempt from the requirement to prepare consolidated financial statements on the basis that its subsidiaries are not material for the purposes of giving a true and fair view, and hence have been excluded from consolidation.

The Company meets its day to day working capital requirements through banking, stocking and loan facilities and a loan from its ultimate controlling party.true

The directors' projections confirm that these facilities will be sufficient to meet its operating requirements and that the Company will continue to be able to meet required covenants.

On this basis the directors consider that the Company has adequate financial resources in place and continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of discounts and rebates allowed by the Company and value added taxes.

The Company recognises revenue when: (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the Company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; and (d) it is probable that future economic benefits will flow to the entity.

The Company operates a retail used car supermarket selling a broad range of makes and models to the general public. Sales of cars are recognised at point of delivery to the customer. Retail sales are funded through payment from either a finance company or direct payment from the customer via cash, cheque, or debit card. Financing agreements are between the customer and the finance company.

The Company also held properties that were leased to tenants under operating leases. The rental income receivable under these leases was recognised through profit or loss on a straight-line basis over the term of the lease. Since the risks and rewards of ownership had not been transferred to the lessee, the assets held under the leases were recognised in the Company's financial statements until the date of restructuring.

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

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

Freehold land and buildings are not depreciated.

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.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of invoiced cost and net realisable value on an individual asset basis. Cost includes all direct expenditure in bringing the stock to its present condition and location. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Where necessary, provisions are made for impairments arising from obsolete, slow moving and defective stocks.

Stock relating to property trading and development activities is recognised on completion and as costs are incurred. Cost consists of direct costs excluding interest.

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, other short-term liquid investments with original maturities of three months or less, 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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, 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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

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.

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

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

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

The 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.

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting dates as well as the amounts reported for revenues and expenses during the year. The resulting accounting estimates will, by definition, seldom equal the related actual results.

The following are the Company's key accounting estimates and assumptions:

- Investment properties are valued at fair value, with changes in fair value being recognised in the Profit and Loss Account. The valuation method is based on a discounted cash flow model based on comparable market data. The determined fair value is sensitive to the estimated yield as well as to vacancy rates;

- Tangible assets are depreciated over their useful lives taking into account residual values where appropriate. The actual useful lives of the assets and residual values may vary depending upon a number of factors, including technological innovation and maintenance programmes;

- Vehicles for resale are valued at the lower of cost and net realisable value. Net realisable values are assessed using market data which is based upon recent industry activity. At the end of each reporting period vehicles are assessed for impairment against post year end activity and fair values. Where impairment is identified the value is reduced and the impairment charge is recognised through profit or loss; and

- Finance commissions are subject to claw back dependent upon the agreements made with finance providers. When calculating the provision management utilises the historical claw back profile to determine the provisions required.

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

Their aggregate remuneration comprised:

Key management personnel

Key management comprises the directors and members of senior management. The compensation paid or payable to key management for employee services was £2,878,000 (2023: £2,751,000).

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

During the year the company implemented corporate restructuring where it separated its business activities into distinct entities, by transferring its property rental business and property trading and development activities and assets to Every Space Limited. The revaluation surplus/ (deficit ) arose following the revaluation of assets to fair value.

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 Company discontinued its property rental business and property trading and development activities in November 2024 as part of corporate restructuring where it separated its business activities into distinct entities, by transferring its property rental business and property trading and development activities to Every Space Limited. It also transferred its business premises to a new holding company NW London Commercial Limited.

The discontinued operations contributed £113.8m being a trading profit of £14.9m and a surplus on revaluation of properties of £98.8m during the year.

Investment properties were stated at fair value as at 31 December 2023. The valuation was carried out by CBRE Limited in accordance with guidance issued by the Royal Institution of Chartered Surveyors. The fair value represents the estimated amount that should be received for selling an investment property in an orderly transaction between market participants at the valuation date.

As a result of the level of judgement and estimates used in arriving at the market valuations, the amounts which may ultimately be realised in respect of any given property may differ from valuations reported at the balance sheet date.

The investment properties were distributed as distributions in specie during the year . These distribution occurred at market value, which was supported by property valuations.

Details of the company's subsidiaries at 31 December 2024 are as follows:

The carrying value of vehicles for resale is stated net of impairment losses totalling £581,000 (2023: £1,721,000). Impairment losses in respect of vehicle stock totalling £1,140,000 (2023: £1,038,000) were recognised in profit and loss.

The carrying value of property trading and development stock is stated net of impairment losses totalling £Nil (2023: £8,522,000). An impairment loss in respect of property trading and development stock totalling £Nil (2023: £Nil) was recognised in profit or loss.

Secured loans

The stocking loan is secured by a fixed and floating charge over the vehicle stock of the Company.

Included in accruals and deferred income are advanced commissions of £432,000 (2023: £59,000) which are secured by a fixed and floating charge over the assets of the Company.

Other loans comprise of unsecured loans from the ultimate controlling party and a stocking loan.

The Company earns commission from a number of finance companies. Under the terms of business, the commission, or an element of it, is repayable if certain conditions are met. The provision reflects the expected claw back liability at the reporting date.

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.

During the financial year, the company undertook a reorganisation of its share capital. The existing 539 ordinary shares of £1 each, were redesignated into:

174 Ordinary A shares of £1 each, and

365 Ordinary B shares of £1 each.

Following the restructuring, the entire shareholding was transferred to the parent undertaking, which now holds all 539 shares split between the Ordinary A and Ordinary B share classes.

There was no change in the aggregate nominal value of the issued share capital as a result of this transaction.

Analysis of future minimum lease payments under non-cancellable operating leases where the company was acting as lessor is given below:

The Company has taken advantage of the exemption allowed by FRS 102 paragraph 33.1A not to disclose any transactions with wholly owned subsidiary undertakings.

During the year, Mr G M Warren has provided unsecured loans to the company on which the company pays interest. At the reporting date £9,300,000 (2023: £24,800,000) was due to Mr G M Warren by way of loan and £600,000 (2023: £2,717,000) by way of accrued interest. The interest payable in respect of these loans was £1,224,000 (2023: £2,717,000).

During the year, the company has made temporary loans to and received temporary loans from Mr G M Warren. The company charged interest on amounts owed by Mr G M Warren during the year at 2% - 2.25%. No interest is charged by Mr G M Warren on temporary loans made to the company.

During the year the company received £300,000 (2023: advanced a loan of £9,950,000) to Bullgate Limited, a company under common control. At the reporting date, £13,350,000 (2023: £13,650,000) was due from Bullgate Limited by way of long term loan and £154,000 (2023: £11,000) by way of current account. The Company charged £524,646 (2023: £381,213) in respect of management and payroll fees in the year, together with interest of £848,815 (2023: £763,849).

At the reporting date £7,703,160 (2023: £Nil) was due to Every Space Ltd, a company under common control, by way of an unsecured loan in which the company earns interest. The interest payable in respect of the loan was £3,176 (2023: £Nil). During the period the company charged management fees of £92,220 (2023: £Nil) to Every Space Ltd.