REGISTERED NUMBER: 10474193 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

LESLIES MOTORS LIMITED

Page

Company Information

1

Group Strategic Report

2

to

4

Report of the Directors

5

to

6

Report of the Independent Auditors

7

to

10

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

to

18

Notes to the Consolidated Financial Statements

19

to

35

DIRECTORS:

L Vanassche

Ms J Vanassche

G L Vanassche

SECRETARY:

L Vanassche

REGISTERED OFFICE:

341-351 Newport Road

Cowes

Isle of Wight

PO31 8PG

REGISTERED NUMBER:

10474193 (England and Wales)

AUDITORS:

Bright Brown Limited

Chartered Accountants

Statutory Auditor

Exchange House

St. Cross Lane

Newport

Isle of Wight

PO30 5BZ

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

Market Condition

The market in 2024 has remained challenging, with trading conditions still tough but showing some signs of stabilisation compared to 2023. New vehicle supply has continued to improve, supporting consistent sales activity, although consumer demand remains constrained by high interest rates and ongoing cost-of-living pressures. Used vehicle values, while still requiring careful management, have been more stable throughout the year than in 2023, reducing the sharp volatility previously experienced-particularly in the fully electric vehicle (EV) segment.

Company Position

Leslies Motors Limited operates a number of franchised dealerships across the Isle of Wight and continues to represent leading manufacturers, Kia, Toyota, Suzuki, Mazda and Hyundai. The company maintains strong franchise relationships, with manufacturer partners continuing to support the group's growth and investment plans, particularly in the transition to electric vehicles.

Internal

Ownership and management remain stable, with no changes planned. Franchise partners continue to work closely with the company, providing a solid foundation for future development.

Financial

Despite strong performances in many areas of the business, the company recorded a loss for the year in 2024, which is disappointing after a number of profitable years. This loss was primarily driven by the underperformance of specific franchises and does not reflect the trading results of the group as a whole. Other parts of the business remained profitable and continue to provide a solid base for recovery in future years.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the nature of the group's strategy are subject to a number of risks. The directors have set out below the principal risks facing the business.

Manufacturers Supply of New and Improved Products

The company remains reliant on the supply of new vehicle products from its manufacturer partners. Risks include:

- Availability of new vehicle products

- Quality of new vehicle products

- Pricing of new vehicle products

The directors remain confident that manufacturers will continue to provide competitively priced, high-quality products. This risk is further mitigated by the group's diversified activities, including used vehicle sales, parts sales, and aftersales service.

Used Vehicle Prices

While used vehicle price volatility remains a core risk, 2024 has seen greater stability compared to the sharp declines experienced in 2023. The company continues to mitigate this risk through close monitoring of market trends, rapid stock turn, and regular re-pricing to maintain competitive positioning.

People and Reputation

The company's success relies heavily on its skilled team and strong reputation. Continuous investment in training, particularly in EV technologies, and regular remuneration reviews help ensure that the company attracts and retains the best talent, even against the backdrop of persistent cost-of-living challenges.

The Competitive Environment

The motor retail sector remains highly competitive. The relaxation of Block Exemption legislation continues to allow independent repairers greater market access. The directors mitigate this risk by maintaining superior customer service standards and leveraging the advantages of holding key manufacturer franchises. The ongoing shift toward EVs reinforces the value of these franchises and supports the company's continued investment in EV infrastructure and staff training.

Other Market Issues

High interest rates and subdued consumer confidence remain headwinds for the wider automotive sector. The introduction of the UK's Zero Emission Vehicle (ZEV) mandate continues to create uncertainty around new and used EV demand, and the pace of the EV market's growth remains difficult to predict.

FINANCIAL KEY PERFORMANCE INDICATORS

Year ended31 December 2024

Year ended31 December 2023

Sales per sales executive

158

151

Average used vehicle days in stock

67

66

Workshop sold/attended hours %

82%

78%

Parts gross profit %

20%

22%

ON BEHALF OF THE BOARD:

G L Vanassche - Director

29 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of motor dealer and related services. The principal activity of the company is that of a holding company.

DIVIDENDS

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

DIRECTORS

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

L Vanassche

Ms J Vanassche

G L Vanassche

FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES

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

The main risks arising from the group's financial instruments are interest rate risk, liquidity risk and credit risk. The directors review and agree policies for managing each of these risks, which are summarized below. These policies have remained unchanged from previous years.

Interest Rate Risk

The group finances its operations through a mixture of bank and other external borrowings. The group's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. The balance sheet includes trade debtors and creditors, which do not attract interest.

The group policy through the year has been to achieve its objective of managing interest rate risk through day to day involvement of management in business decisions rather than through setting maximum or minimum levels for the level of fixed interest rate borrowings.

Credit Risk

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

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

Liquidity Risk

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

The group'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.

DISCLOSURE IN THE STRATEGIC REPORT

The directors' review of the business, and their consideration of the risks and uncertainties surrounding the business may be found in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Bright Brown Limited, will be proposed for re-appointment in accordance with Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

G L Vanassche - Director

29 September 2025

Opinion

We have audited the financial statements of Leslies Motors Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

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.

As part of our planning we determined materiality and assessed the risks of material misstatement in the financial statements. Based on our understanding of the company we identified the principal risk as management override of controls.

Audit procedures performed by the engagement team included:

-

A review of journals made in preparing the final results, and a review of accounting estimates made by management.

-

A review of transactions and records to ensure there are no transactions that have no apparent commercial purpose, or that are processed outside of the usual accounting systems.

-

A review of an appropriate sample of vehicles to ensure sufficient evidence has been obtained over valuations in what is a more subjective area of the accounts.

-

Discussions with management, including consideration of any known or suspected instances of fraud or non-compliance with laws or regulations.

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 are to become aware of it. 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 or intentional misrepresentations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Gavin Kelly ACA ACCA (Senior Statutory Auditor)

for and on behalf of Bright Brown Limited

Chartered Accountants

Statutory Auditor

Exchange House

St. Cross Lane

Newport

Isle of Wight

PO30 5BZ

29 September 2025

TURNOVER

3

40,788,637

41,239,275

Cost of sales

36,194,060

36,413,497

GROSS PROFIT

4,594,577

4,825,778

Administrative expenses

4,227,251

4,286,263

367,326

539,515

Other operating income

-

1,499

OPERATING PROFIT

5

367,326

541,014

Interest receivable and similar income

-

3

367,326

541,017

Interest payable and similar expenses

6

519,954

469,875

(LOSS)/PROFIT BEFORE TAXATION

(152,628

)

71,142

Tax on (loss)/profit

7

(20,666

)

37,231

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(131,962

)

33,911

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(131,962

)

33,911

(Loss)/profit attributable to:

Owners of the parent

(131,962

)

33,911

Total comprehensive income attributable to:

Owners of the parent

(131,962

)

33,911

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

3,769,962

3,580,180

Investments

12

-

-

3,769,962

3,580,180

CURRENT ASSETS

Stocks

13

6,426,363

6,115,827

Debtors

14

973,777

862,101

Cash in hand

648

628

7,400,788

6,978,556

CREDITORS

Amounts falling due within one year

15

7,858,979

7,120,108

NET CURRENT LIABILITIES

(458,191

)

(141,552

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,311,771

3,438,628

CREDITORS

Amounts falling due after more than one year

16

(1,881,255

)

(1,855,484

)

PROVISIONS FOR LIABILITIES

20

(78,650

)

(99,316

)

NET ASSETS

1,351,866

1,483,828

CAPITAL AND RESERVES

Called up share capital

21

100

100

Share premium

22

1,359,090

1,359,090

Retained earnings

22

(7,324

)

124,638

SHAREHOLDERS' FUNDS

1,351,866

1,483,828

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

G L Vanassche - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

388,500

388,500

Investments

12

1,884,515

1,893,285

2,273,015

2,281,785

CREDITORS

Amounts falling due within one year

15

7

7

NET CURRENT LIABILITIES

(7

)

(7

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,273,008

2,281,778

CREDITORS

Amounts falling due after more than one year

16

1,044,986

1,034,830

NET ASSETS

1,228,022

1,246,948

CAPITAL AND RESERVES

Called up share capital

21

100

100

Share premium

1,359,090

1,359,090

Retained earnings

(131,168

)

(112,242

)

SHAREHOLDERS' FUNDS

1,228,022

1,246,948

Company's loss for the financial year

(18,926

)

(24,347

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

G L Vanassche - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

100

90,727

1,359,090

1,449,917

Changes in equity

Total comprehensive income

-

33,911

-

33,911

Balance at 31 December 2023

100

124,638

1,359,090

1,483,828

Changes in equity

Total comprehensive income

-

(131,962

)

-

(131,962

)

Balance at 31 December 2024

100

(7,324

)

1,359,090

1,351,866

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

100

(87,895

)

1,359,090

1,271,295

Changes in equity

Total comprehensive income

-

181,561

-

181,561

Balance at 31 December 2023

100

93,666

1,359,090

1,452,856

Prior year adjustment

-

(205,908

)

-

(205,908

)

As restated

100

(112,242

)

1,359,090

1,246,948

Changes in equity

Total comprehensive income

-

(18,926

)

-

(18,926

)

Balance at 31 December 2024

100

(131,168

)

1,359,090

1,228,022

Cash flows from operating activities

Cash generated from operations

1

790,426

913,641

Interest paid

(518,299

)

(468,220

)

Interest element of hire purchase payments paid

(1,655

)

(1,655

)

Tax paid

(48,705

)

(87,678

)

Net cash from operating activities

221,767

356,088

Cash flows from investing activities

Purchase of tangible fixed assets

(363,138

)

(40,479

)

Interest received

-

3

Net cash from investing activities

(363,138

)

(40,476

)

Cash flows from financing activities

New loans in year

270,000

-

Loan repayments in year

(237,802

)

(333,060

)

Capital repayments in year

(32,156

)

(29,807

)

Amount introduced by directors

-

200,000

Amount withdrawn by directors

(9,372

)

(169,862

)

Net cash from financing activities

(9,330

)

(332,729

)

Decrease in cash and cash equivalents

(150,701

)

(17,117

)

Cash and cash equivalents at beginning of year

2

(451,708

)

(434,591

)

Cash and cash equivalents at end of year

2

(602,409

)

(451,708

)

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

as restated

£

£

(Loss)/profit before taxation

(152,628

)

71,142

Depreciation charges

173,268

174,724

Loss on disposal of fixed assets

88

-

Finance costs

519,954

469,875

Finance income

-

(3

)

540,682

715,738

Increase in stocks

(310,536

)

(805,317

)

Increase in trade and other debtors

(102,304

)

(16,893

)

Increase in trade and other creditors

662,584

1,020,113

Cash generated from operations

790,426

913,641

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

648

628

Bank overdrafts

(603,057

)

(452,336

)

(602,409

)

(451,708

)

Year ended 31 December 2023

31.12.23

1.1.23

as restated

£

£

Cash and cash equivalents

628

549

Bank overdrafts

(452,336

)

(435,140

)

(451,708

)

(434,591

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

628

20

648

Bank overdrafts

(452,336

)

(150,721

)

(603,057

)

(451,708

)

(150,701

)

(602,409

)

Debt

Finance leases

(34,324

)

32,156

(2,168

)

Debts falling due within 1 year

(233,373

)

(4,259

)

(237,632

)

Debts falling due after 1 year

(1,853,316

)

(27,939

)

(1,881,255

)

(2,121,013

)

(42

)

(2,121,055

)

Total

(2,572,721

)

(150,743

)

(2,723,464

)

1.	STATUTORY INFORMATION

Leslies Motors Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The presentational and functional currency of the consolidated and company accounts is Pound Sterling (£).

Basis of consolidation

The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill.

Goodwill is recognised on the Consolidated Balance Sheet and released to the Consolidated Income Statement, up to the fair value of non-monetary assets acquired, over the period in which the non-monetary assets are recovered and any excess over the fair value of non-monetary assets in the Consolidated Income Statement over the period expected to benefit.

The consolidated financial statements present the results of the group and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at acquisition date. The results of acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are de-consolidated from the date control ceases.