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

The principal activity of the company continues to be the operation of a contract hire and rental fleet of commercial vehicles. Additionally, the company provides management and other support services to its main subsidiary companies, A M Phillip Trucktech Limited, Gammies Groundcare Ltd and following the recent acquisitio,n Forfar Motor Company Limited also.

The principal activities of the main subsidiary companies are the sale of, provision of support services and parts supply for commercial vehicles, groundcare equipment and retail vehicles respectively.

During the year, there was an increase in the company's contract hire and vehicle rental operation turnover from £3.86M to £4.44M, a 13.2% increase. There was a 3.7% increase in vehicle numbers to a current active fleet size of 424 units (2023 - 409 units).

With this impact of losses incurred in A M Phillip Trucktech Limited there was a project to package two tranches of the contract hire fleet and refinance through a new lender. This released some equity back into the business but also had an adverse impact of increasing interest costs.

Disposal gains from the fleet were lower than in previous years indicating the challenging market conditions faced by the industry. These gains were down 39.0% year-over-year.

Gammies Groundcare Ltd continues to exceed expectations with operating profitability improved on 2023, 19.1%. Gammies Groundcare Ltd does not incur the same interest costs as stock is not encumbered with interest charges and paid in full when due. This has helped keep costs lower within the business. Turnover for the business increased overall by 24.4% which helped drive the results. This is largely through whole good sales and maintained margins. Having Gammies Groundcare Ltd within the group has certain synergies but also provides a diversification of industries.

A M Phillip Trucktech Limited has been faced with an exceptionally challenging year, one in which losses incurred have been substantial. This can be attributed to increasing salary costs and continued interest cost pressure. The year did see improvements with the Glenrothes site now fully operational and up to speed in the new facility.

The Forfar Motor Company Limited takeover was completed later than planned in August 2024. Initially no significant changes were made to the structure or trading processes aside from the appointment of a branch manager to fill the void left by the previous manager who left during the takeover process. This business is expected to continue trading both new and used cars which will provide further diversification for the group.

Liquidity Risk

The group aims to mitigate liquidity risk by managing cash generated by its operations and having access to adequate working capital borrowing facilities. Cash resources are formally monitored weekly to ensure funds are always available to meet group requirements.

Credit Risk

The group undertakes periodic assessments of its external debtors in order to ensure that credit is not extended if there is any likelihood of default. The amount of exposure to individual customers is subject to a limit. Limits are reviewed regularly by the credit control department and accounts team reporting to the directors in order to minimise bad debts.

Interest Rate Risk

The group may make use of bank borrowings to finance its operations during peak trading periods. Due to current cash resources, the directors do not deem it necessary at this time to hedge against interest rate fluctuations.

The group measures its ongoing performance at every activity level against annual budgets, manufacturer composite information and certain key performance indicators, including working capital controls. These are reviewed at monthly management meetings at each depot.

RESULTS FOR THE YEAR

The group losses for the year, after taxation, amounted to £1,401,770 (2023 - group profit of £135,207).

DEVELOPMENT AND PERFORMANCE OF GROUP'S BUSINESS OVER THE YEAR

The group has continued with its principal activities based around the sale and hire of Commercial Vehicles and Groundcare equipment, and after-sales services.

POSITION AT THE YEAR END

The losses within the group were not desired by the Directors or Senior Management team however there is a positive outlook on 2025 with measures put in place to turn the business round.

The group intends to continue its focus on its principal activities for A. M. Phillip Limited, A M Phillip Trucktech Limited, Gammies Groundcare Ltd and the newest business to the group, Forfar Motor Company Limited.

Following a difficult 2024, the group has put in place structural changes in sales for 2025; there has also been a bigger focus on margins to be retained for new stock coming through. This is the opposite of 2024 where sales of stock were at minimal margins to reduce the interest burden. Reporting structure continues to be improved, and certain costs have been identified as not necessary in 2025. These mainly relate to marketing and there’s been a targeted cost reduction in this area along with more focus towards internet & social media.

Government announcements for changes to the tax treatment of DCIV Ford Rangers has seen an influx of orders of these vehicles. Whilst short term this will be beneficial for the business in 2025, there will be longer term implications of this policy that will affect the sales volume. The business is already seeing a change in trend towards PHEV and to an extent EV versions. EV policy is proving a challenge for the business but there is a bigger focus on the sales team to deliver the targets required by the manufacturers.

The group moving into 2025 will include Forfar Motor Company Limited which is actively looking to continue new car sales through a new franchise going into the site. There will also be a gradual increase in the commercial vehicle sales through the site starting with used vehicles.

Renovations of the previous Forfar mart premises have begun with planning approval and now awaiting building warrants to be signed off. Once this is completed work will begin on the site almost immediately with costs already being gathered. Finance for the project is ongoing and the group is working with various partners to secure the required cash to complete the project. The Forfar Motor Company Limited business will also require a small renovation to satisfy any new franchises along with the Ford Transit Centre set up.

Whilst the Directors are not satisfied with the results in 2024, they are understanding of the challenges and are looking forward to improved results in 2025 and the beginning of new development projects.

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 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

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

BK Plus Audit Limited are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

The company commissioned a report from a consultant and that report uses the GHG Protocol Corporate Standard, which is internationally accepted as best practice, and applies the 2021 UK Governments Conversion Factors for Company Reporting to calculate the data provided here.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

Throughout 2024 A M Phillip has continued to look at methods to improve energy efficiency through various process changes and technological advances. These have included implementation of LED lighting where possible, energy monitoring sensors that will provide data to target savings along with changes to process that create efficiency, for example reviewing the parts delivery routes & loads.

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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 the principal risks and uncertainties facing the group and a fair review of the group's business.

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 auditor of the company 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 auditor of the company is aware of that information.

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 group and company, 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

We have audited the financial statements of A.M. Phillip Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 group's and the parent company's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 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 group and the parent company and their 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 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.

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 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 parent 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.

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:

In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have carried out the following:

• Ensured that the engagement team have the appropriate competence, capabilities and skills to identify or recognise non-compliance with laws and regulations;

• Identified the specific laws and regulations applicable to the entity through discussions with directors and management and through our own knowledge of the sector;

• Focused on the laws and regulations we consider may have a direct effect on the financial statements, including FRS 102, the Companies Act 2006 and tax compliance legislation;

• Reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations;

• Made enquiries of management; and

• Ensured the engagement team remained alert to instances of non-compliance throughout the audit.

In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, the potential for management bias and the override of controls we have:

• Obtained an understanding of the entity's operations, including the nature of its sources of revenue and of to understand the types of transactions, account balances, financial disclosures and business risks that may result in risk of material misstatement;

• Vouched balances and reconciling items in key control account reconciliations to supporting documentation;

• Carried out detailed testing, on a sample basis, to verify the completeness, existence and accuracy of transactions and balances;

• Made enquiries of management as to where they consider there was a susceptibility to fraud, and their knowledge of any actual, suspected or alleged fraud;

• Performed analytical procedures to identify any significant or unusual transactions; and

• Investigated the business rationale behind any significant or unusual transactions

We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.

Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any 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.

As part of an audit in accordance with the ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

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.

The notes on pages 17 to 34 form part of these financial statements.

The notes on pages 17 to 34 form part of these financial statements.

The notes on pages 17 to 34 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £522,116 (2023 - £73,133 loss).

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

The notes on pages 17 to 34 form part of these financial statements.

The notes on pages 17 to 34 form part of these financial statements.

A.M. Phillip Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Muiryfaulds Garage, Forfar, DD8 1XP.

The group consists of A.M. Phillip Limited and all of its subsidiaries.

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 and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

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

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated group financial statements consist of the financial statements of the parent company A.M. Phillip Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Minority interests in the net assets of consolidated subsidiaries are identified separately from the group's equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination.

The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

The group forecasts and projections, taking account of reasonable changes in trading performance, indicate that the group plans to operate within cash generated from operations and funding streams in place. The directors confirm that, after making appropriate enquiries, they have reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing these Financial Statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Goodwill represents the excess of the cost of acquisition of a business 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 considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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 assets in the course of construction are not depreciated.

Investment property

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Subsequently, investment property is shown at its fair value, with changes in fair value recognised in profit or loss.

This is in accordance with FRS 102 which, unlike the Companies Act 2006, does not require depreciation of investment properties. Investment properties are held for their investment potential and not for use by the company and so their current value is of prime importance. The departure from the provisions of the Act is required in order to give a true and fair view.

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments are classified and accounted for, according to substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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 income statement 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 group’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 income statement, 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 if, and only if, there is 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 recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

In the application of the group’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.

As part of the year end process the directors have made an assessment as to the fair value of investment properties. Although there is some degree of estimation involved in arriving at the fair values, the management are content that any potential differences are wholly immaterial.

Management estimate requirements for accruals using post year end information and information available from detailed budgets. This identifies costs and income that are expected to be incurred or received for goods and services provided by and to other parties relating to the period reported on.

During the year and at the year end, management are required to determine whether any debts should be regarded as bad debts. This process is based on their knowledge of the business' customers as well as post year end information identifying prior period debts not recovered relating to previous financial period.

In arriving at valuation of the used stock it may be necessary for management to make an assessment of the carrying value of stock items and where applicable apply a provision to amend this carrying value to a more accurate level. These provisions are arrived at using management's knowledge and understanding of the business and the industry in which it operates, and mainly relate to potentially obsolete or old items where the cost may no longer be recoverable.

The whole of the turnover is attributable to the principal activities of the group wholly undertaken in the United Kingdom.

The average monthly number of persons (including directors) employed by the group and 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 8 (2023 - 7).

Disclosure above reflects the remuneration of group directors who are also the key management personnel within the group.

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:

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

Included in Plant & Machinery above, are assets held for the purpose of letting under operating leases. At 31 December 2023, the net book value of these assets was £10,871,759 (2023 - £8,271,992) and the depreciation charge for the year was £2,956,072 (2023 - £2,544,078).

Freehold property

Following the year end, the freehold property has been disposed of for the value held in the accounts.

In October 2015, the group's properties were revalued following a valuation carried out by J&E Shepherd, Chartered Surveyors. The valuations were prepared on an open market basis. The directors believe this valuation to still be appropriate. The surplus arising on this revaluation has been credited to the statement of comprehensive income.

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:

Vehicles and equipment exclude items on consignment from manufacturers, where title passes at the earlier of the date of sale or 90 to 120 days from date of consignment. After an initial interest free period, finance stocking charges are charged on all vehicle consignment stock.

The Royal Bank of Scotland plc holds standard securities over certain of the company's investment property as well as a bond and floating charge over the whole property and undertaking of all group companies. These are held as security for all sums due by the group to it and the guarantees the bank provide in favour of suppliers.

Unlimited cross guarantees in favour of the bank are in place between A.M Phillip Limited, A M Phillip Trucktech Limited, Gammies Groundcare Ltd and Forfar Motor Company Limited in relation to bank borrowings.

Included in Trade creditors are amounts due to FCE Bank plc and Iveco Limited in respect of stock purchases which are secured by bonds and floating charges over the whole property and undertaking, as well as a security over certain new vehicles stocks. The amounts due to FCE Bank plc and Iveco Limited respectively, at the year-end date were £7,038,151(2023 - £4,100,700) and £11,104,726 (2023 -£14,236,165).

Included in other creditors are amounts secured by a specific charge over the John Street, Forfar property, the amount due to the security holder at year end is £1,000,000 (2023 - £nil).

All of the securities granted are the subject of a specific ranking agreement.

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

Other movement is the deferred tax balance brought in as part of the business combination in the year.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The preference shares entitle the holder to a preferential dividend and are redeemable at the option of the company or the holder at 3 months' notice.

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.

Profit and loss account

This reserve records retained earnings and accumulated losses.

On 14 August 2024 the group acquired 100 percent of the issued capital of Forfar Motor Company Limited.

The goodwill arising on the acquisition of the business is attributable to the excess paid with respect to the property held and other costs attributable to the investment purchase.

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

At the reporting end date the group had contracted with lessees for the following minimum lease payments:

Group

During the year, the group rented premises at commercial rates from a company owned by certain of the directors' family members to a value of £252,000 (2023 - £123,466). All amounts were paid at the year end.

The group and company were under the control of the directors throughout the current and previous year.