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

• Turnover increased to £120.6m (2023: £104.8m), reflecting both organic growth and continued benefits from acquisitions.

• Gross profit rose to £7.18m (2023: £6.71m), although operating profit reduced to £1.37m (2023: £1.86m).

• After higher interest costs, the business reported a loss before tax of £40,024 (2023: profit of £936,480).

• Loss after tax was £144k, compared with a profit of £698k in 2023.

• EBITDA remained stable at around £1.95m, demonstrating resilience despite poor economic headwinds.

• The workforce grew to 207 employees (2023: 192), with further investment in HR and training infrastructure.

• Dividends paid during the year amounted to £823k.

Review of Business

In 2024, John Banks Limited continued to operate as a motor vehicle franchised dealer across 10 locations in Suffolk, Cambridgeshire and Essex, representing leading brands: Honda, Renault, Dacia, Alpine, Hyundai, Suzuki, Mazda, and Honda Motorcycles.

The year was marked by:

• Stabilisation of 2023 acquisitions – Renault & Dacia Ipswich and the Colchester multi-franchise site (Mazda, Honda Cars, and Honda Motorcycles) are now fully integrated, contributing positively to revenue and customer reach.

• Turnover growth of 15% year-on-year, underpinned by increased new vehicle availability and strong aftersales performance.

• Rising finance and general overhead costs due to higher social security, pension, interest rates and stocking charges, which offset the majority of the operational gains.

• A robust aftersales performance, with service turnover and hours billed increasing. However, recruitment and retention of skilled technicians remained challenging, impacting wage costs and margins.

• The parts division benefitted from higher service throughput and trade sales, continuing its strong contribution.

• Investment in people and systems – after a year of appointing a dedicated HR Manager and Training Manager – we have seen improved supported culture, engagement, and long-term retention, with additional recognition of long service and career progression opportunities.

The directors are mindful that while profitability was pressured by interest and cost-of-living impacts, the underlying operations remain strong, with the business maintaining market share and positioning itself for long-term growth.

Future Developments

The directors have approved a multi-year restructuring and growth plan (2025–2028) designed to strengthen financial resilience, modernise operations, and position the Group for the rapid changes in the automotive sector. Key initiatives include:

• Banking Transition: Moving from HSBC to a more automotive-aligned funding partner, supported by Conatus Financing Solutions, to secure improved stocking and working capital facilities.

• Network Restructure: Implementing a Renault–Dacia–Alpine hub-and-spoke model, centered in Colchester, with Cambridge serving as a Recovery Excellence Hub.

• Site Reallocation: Consolidating Honda Motorcycles into Colchester, while exploring new EV and niche brand opportunities for the Bury St Edmunds location.

• Agency Model Implementation: Transitioning Honda operations into the manufacturer’s agency model, requiring new digital processes and sales structures.

• Digital Transformation: Launching the new “Autonomy” website platform in late 2025, integrating Marketing Delivery AI, Codeweavers finance tools, and enhanced customer data capture across all brands.

• Compliance Framework: Transitioning from full FCA status to Appointed Representative under ITC Compliance, creating a consistent, centralised approach to insurance-related sales, auditing, and training.

• Aftersales Growth: Leveraging new digital tools such as Pay-by-Bank, Bumper instalments, and Pinewood integrations to increase efficiency, customer retention, and service plan penetration.

• The directors believe this plan will safeguard the Group’s long-term sustainability, improve consistency across locations, and ensure John Banks continues to thrive as a family-owned dealer group with over 50 years of heritage.

The directors believe this plan will safeguard the Group’s long-term sustainability, improve consistency across locations, and ensure John Banks continues to thrive as a family-owned dealer group with over 50 years of heritage.

The management of the business and the nature of the company’s strategy are subject to a number of risks. The directors have set out below the principal risks facing the business in 2024 and moving in to 2025.

Competition

The company continues to compete with other franchised vehicle dealerships, independent used vehicle sellers, private buyers and sellers, internet-based dealers, independent service and repair providers, and vehicle manufacturers entering the retail market directly. The company competes in the sale of new and used vehicles, warranty and non-warranty repairs, routine maintenance, and the provision of spare parts. The key competitive factors in service and parts sales remain price, familiarity with manufacturers’ brands, and the quality of customer service.

Used vehicle price variation

Used vehicle price fluctuation as seen in Q4 of 2023, remain subject to significant variation. As a substantial part of our business relies on used vehicle sales, any declines in these prices can materially impact our results. Such fluctuations may result in reduced profits on sales and necessitate write-downs in the value of used vehicle stock.

Supply of new vehicles

The company is reliant on new vehicle products from its manufacturers. This exposes the company to risks in a number of areas as the company is dependent on manufacturers/suppliers in respect of:

• availability of new vehicle product;

• quality of new vehicle product;

• pricing of new vehicle product.

In 2024, these risks are compounded by the government’s transition to electric vehicles, leading to disruptions in supply chains as manufacturers adjust their production & availability strategies to navigate potential penalties for non-compliance with emission targets. The directors are confident that future vehicle products will remain competitively priced and of high quality. This risk is mitigated by other core areas of the business and our continued focus on both traditional vehicles, electric models and the retention of customers through the service and parts departments.

Economic downturn

The company’s success does remain linked to consumer spending power, and current economic conditions present significant challenges. Rising interest rates, the cost-of-living squeeze, and inflationary pressures are constraining disposable income. Additionally, political uncertainty surrounding the general election and budget creates further unpredictability in consumer confidence. Senior management continue to monitor economic conditions.

The directors present their Section 172(1) statement in accordance with the Companies Act 2006, as amended by the Companies (Miscellaneous Reporting) Regulations 2018, in relation to stakeholder engagement for the year ended 31 December 2024.

The board recognises that the long-term success of the company depends on effective engagement with employees, customers, suppliers, and the communities in which we operate. Throughout 2024, stakeholder interests were central to decision-making, supporting both our restructuring programme and our 50th year of trading.

This report outlines key stakeholder groups and explains how the directors engage with them to promote the company's success.

Employees

In 2024, we continued to invest in our people, with HR and training programmes further embedded to support skills, compliance, and career development. ITC Compliance was planned to be introduced across all sites, ensuring consistency in financial training and a change coming in 2025 to become Appointed Representatives rather than fully FCA Registered. Leadership changes in role and areas of expertise were planned to strengthen site performance, while employee recognition and open communication remained a priority during a year of significant change.

Customers

Customer satisfaction and transparency remained central to our strategy. Preparations for Honda’s agency model and investment in more digital offerings were put in place. CRM improvements and AI-driven prospecting enhanced customer response and lead management.

Suppliers and Partners

The company maintained strong manufacturer and supplier relationships, aligning with Renault UK, Honda UK, Suzuki, Mazda, Dacia, Hyundai, and Alpine to deliver operational excellence. Payment practices remained fair and transparent, and finance partnerships were strengthened as we planned the transition to Appointed Representative status with ITC Compliance but remaining competitive in the finance market.

The directors remained committed to reducing environmental impact and supporting local communities. Solar panel installations across sites were completed, alongside energy efficiency upgrades and digitalisation initiatives. Community sponsorships and charitable contributions continued across Suffolk, Essex, and Cambridgeshire.

Conclusion

In 2024, the board’s decisions reflected careful consideration of stakeholder interests, supporting the company’s restructuring plans, digital transformation, and sustainability agenda. The directors remain committed to ensuring long-term success through transparency, trust, and responsibility.

On behalf of the board

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

The principal activity of the company continued to be that of a motor franchised dealer operating sales, service, parts and supply of ancillary products.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £823,408. The directors do not recommend payment of a final dividend.

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

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

The main risks arising from the company’s financial instruments are liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks which are summarised below.

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

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

The company finances its operations through a mixture of bank and other external borrowings. The company’s exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities.

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

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

The audit business of UHY Hacker Young Manchester LLP was acquired by Cooper Parry Group Limited on 30 September 2024. UHY Hacker Young Manchester LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.

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

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 January 2024 to 31 December 2024, pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government’s Streamlined Energy and Carbon Reporting (SECR) policy.

SECR methodology as specified in 'Environmental Reporting Guidelines: including Streamlined Energy and Carbon Reporting and carbon reporting guidance' used in conjunction with the latest UK Government GHG Conversion Factors for Company Reporting.

The calculations have been approved by a PAS51215 compliant body.

The chosen intensity measurement ratio is calculated using square footage, Kg CO2e per square foot of total site area.

We are committed to responsible carbon management and will practise energy efficiency throughout our organisation, wherever it’s cost effective. We recognise that climate change is one of the most serious environmental challenges currently threatening the global community and we understand we have a role to play in reducing greenhouse gas emissions. We are enrolled in the Allstar EcoPoint programme, which is a carbon credits scheme for Allstar cardholders. EcoPoint is a way to make our fleet more environmentally friendly. Using our Allstar cards enables the EcoPoint programme to help mitigate our fleet’s emissions. EcoPoint is not specific to each cardholder - but is a membership programme where all cardholders make equal contributions. Total cardholder volumes are used each month to calculate the investment in the rolling programme of EcoPoint projects.

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.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of reporting on future developments, engagement with employees and business relationships with suppliers, customers and others as noted in the S172 statement within the strategic report.

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

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 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.

Extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect if irregularities, including fraud, we considered the following:

• the nature of the industry and sector, control environment and business performance.

• any matters we 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 non-compliance.

  • 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; and

• the matters discussed amount the audit engagement team and involving the relevant internal specialists, including tax and industry specialists 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: valuation of used vehicle inventories; and recognition of supplier incentives. In common with all audits under ISA’s (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 regularity frameworks the company operates in, focussing on provisions of those laws and regulations that had a direct effect in 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 and tax legislation.

In addition, we considered the 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 material penalty. These included the company’s FCA regulatory requirements.

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 and those charged with governance concerning actual and potential litigation claims.

• in addressing the risk of fraud through inappropriate valuation of used vehicle inventory, assessing net realisable value of stock items sold after the year end was above cost or assessing their value with reference to third party data sources if unsold.

• in addressing the risk of fraud through inappropriate recording of supplier incentives, ensuring amounts recorded as due were then subsequently acknowledged as such by the supplier.

• in assessing the risk of fraud through management override of controls, testing the appropriateness of journal entries, and assessing whether judgements made in making accounting estimates are indicative of potential bias.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 or intentional misrepresentations, or through collusion.

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

John Banks Limited is a private company limited by shares incorporated in England and Wales. The registered office is Honda House, Kempson Way, Moreton Hall, Bury St Edmonds, Suffolk, IP32 7AR.

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, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

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

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

• Section 11 'Basic Financial Instruments': carrying amounts, interest, income/expense and net gains/losses; for each category of financial instrument; basis of determining fair values;

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

The financial statements of the company are consolidated in the financial statements of John Banks Group Holdings Limited and there financial statements may be obtained from Companies House.

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

Turnover is recognised at the fair value of the consideration received or receivable for vehicles and parts and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Sales of motor vehicles, parts and accessories are recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In general this occurs when vehicles or parts are delivered to the customer and title has passed.

Turnover from commission's receivable is recognised when the amount can be reliably measured and it is probable that the company will receive the consideration.

Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Profit and Loss Account over its useful economic life, which is 5 years.

Tangible fixed assets are initially measured at cost as modified by deemed cost where appropriate and subsequently measured at cost or deemed cost, net of depreciation and any impairment losses.

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Although the Companies Act 2006 requires all assets to be depreciated, in the directors opinion, this would result in an inappropriate carrying value of freehold property being stated in the financial statements. The directors consider that the market value of the properties is at least equal to the residual value, hence no depreciation has been provided in the financial statements.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow moving stock.

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.

Consignment stock

Consignment vehicles which bear considerably more of the risks and responsibilities of ownership are regarded effectively as being under the control of the company and, in accordance with FRS 102 are included in stocks on the Statement of Financial Position, although legal title has not passed to the company. The corresponding liability is included within trade creditors and is secured directly on these vehicles.

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. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments of FRS 102 to all of its financial instruments. The company does not have any non-basic financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, 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.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

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

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

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

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

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

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

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

Assets held under hire purchase are capitalised in the Statement of Financial Position. Those held under hire purchase contracts are depreciated over their estimated useful lives. The interest element of these obligations is charged to the Statement of Comprehensive Income over the relevant period. The capital element of the future payments is treated as a liability in the Statement of Financial Position.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Vehicles held on consignment have been included in stocks on the basis that the company has determined that it holds the significant risks and rewards attached to those vehicles.

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

The annual depreciation/amortisation charge for tangible and intangible assets is sensitive to changes in the estimated useful economic lives of the assets so these are re-assessed annually and amended when necessary to reflect current estimates. See the accounting policies note for the useful economic lives for each class of assets.

All turnover arose within the United Kingdom.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2023 - 7)

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

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Land and buildings with a carrying amount of £4,093,663 were revalued at 15 October 2024 by Colliers, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

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

During the period an impairment reversal of £379,081 (2023: loss of £261,500) was recognised against stock.

All vehicle stock is pledged as security for the company's vehicle funding and bank facilities.

Included within vehicle stock are consignment vehicles amounting to £3,547,653 (2023: £1,946,271).

Vehicle funding of £14,992,450 (2023: £16,294,379) included within trade creditors is secured directly over the vehicles to which it relates.

Included within trade creditors is consignment vehicle funding amounting to £3,547,653 (2023: £1,946,271).

The bank loans are secured by a fixed charge over the property of the company together with a fixed and floating charge over all the assets of the company.

The first bank loan, amounting to £1,893,446 (2023: £1,969,073) bears interest at a rate of 2.5% above the bank base rate and is due to be repaid by May 2027.

The second bank loan, amounting to £1,754,308 (2023: £1,895,698) bears interest at a rate of 2.5% above the bank base rate and is due to be repaid by July 2027.

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

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the year end there was a total of £69,380 (2023 : £73,828) in contributions due to be paid to the fund.

Ordinary A to F shares hold full voting and participating rights, and are non-redeemable.

Ordinary G to I shares hold non voting rights and participating rights on a return of capital for any reason only entitled to 1% in excess of £7,000,000, and are non-redeemable.

This reserve includes any premiums received on the issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

This reserve is used to record increases in the fair value of freehold and long-term leasehold properties and decreases to the extent that such decreases relates to an increase on the same asset.

This reserve included all current and prior period retained profit and losses less dividends paid.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

Companies in which there are common directors made sales during the year to John Banks Limited totalling £588 (2023: £616,940). At the year end £187 (2023: £8,535) was owed to these related parties.

At year end a balance for £36,239 (2023: £493,376) was owed to the director's close family.

The closing interest free directors loan balance below is included within other creditors at year end.

The ultimate parent company is considered to be John Banks Group Holdings Limited, which owns 100% of the issued share capital within John Banks Limited.

There is not considered to be an ultimate controlling party of John Banks Group Holdings Limited.