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Registration number: 01651061

Read Derby Limited
Annual Report and Financial Statements
for the Year Ended 31 December 2024

Read Derby Limited

Contents

Company Information | 1
Strategic Report | 2
Directors' Report | 3
Statement of Directors' Responsibilities | 4
Independent Auditor's Report | 5 to 7
Profit and Loss Account | 8
Balance Sheet | 9
Statement of Changes in Equity | 10
Statement of Cash Flows | 11
Notes to the Financial Statements | 12 to 19

Read Derby Limited

Company Information

Directors | M Read N Read

Company secretary | N Read

Registered office | Altyre Way Hewitts Avenue Business Park Humberston Grimsby N E Lincolnshire DN36 4RJ

Solicitors | Wilkin Chapman LLP Cartergate House 26 Chantry Lane Grimsby North East Lincolnshire DN31 2LJ

Bankers | Handelsbanken Suite 4, First Floor Origin 2 Genesis Office Park Europarc Grimsby DN37 9TZ

Auditors | Forrester Boyd Robson Limited 26 South Saint Mary's Gate Grimsby North East Lincolnshire DN31 1LW

Read Derby Limited

Strategic Report for the Year Ended 31 December 2024

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

Principal activity

The principal activity of the Company is that of a motor dealer and garage proprietor

Fair review of the business

The Company has experienced a very difficult trading year in what has been another challenging period for all involved in the motor trade industry with continued volatility around electric vehicles and increasing competition as new brands seek market share in the UK. Results have been further affected by a decline in demand for certain brands traded by the Company.
All of this has contributed to a significant fall in turnover and gross profit levels and with increased interest costs the final result has been a significant loss of £329k.
The Directors have taken action to rectify matters and whilst measures taken will take some time to achieve full impact results are improving despite the further ongoing challenges.

The Company's key financial and other performance indicators during the year were as follows:

Financial KPIs | Unit | 2024 | 2023
Turnover | £ | 28,964,942 | 36,387,014
Turnover growth | % | (20) | (6)
Gross profit | £ | 1,749,946 | 2,469,723
Gross profit margin | % | 6 | 7

Principal risks and uncertainties

The ongoing war in Ukraine, US tariffs and economic and political uncertainty in the UK continue to be concerns. Coupled with increased competition particularly from new Chinese brands.
However, the Directors are confident that the business is well placed to deal with these risks and uncertainties as it continues its successful focus on high customer satisfaction levels.

Approved and authorised by the Board on 10 October 2025 and signed on its behalf by:

......................................... M Read Director

Read Derby Limited

Directors' Report for the Year Ended 31 December 2024

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

Directors of the Company

The Directors who held office during the year were as follows:

M Read

N Read - Company secretary and director

Financial instruments

Objectives and policies

The company uses basic financial instruments, comprising cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise of bank balances, trade debtors, trade creditors and vehicle funding agreements.
The liquidity risk is managed by maintaining a balance between the need for continuity of funding and flexibility through the use of vehicle funding agreements. All business cash balances are held in such a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to business customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for trade debtors.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Disclosure of information to the auditors

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 10 October 2025 and signed on its behalf by:

......................................... M Read Director

Read Derby Limited

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities 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 apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom 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.

Read Derby Limited

Independent Auditor's Report to the Members of Read Derby Limited

Opinion

We have audited the financial statements of Read Derby Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its 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 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

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

• | the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Read Derby Limited

Independent Auditor's Report to the Members of Read Derby Limited

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• | the financial statements are not in agreement with the accounting records and returns; or
• | certain disclosures of Directors' remuneration specified by law are not made; or
• | we have not received all the information and explanations we require for our audit.

Responsibilities of Directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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.

Auditor 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

• | Discussions with management held, including consideration of known or suspected instances of non-compliance.
• | Enquiries of management and the company's solicitors of actual and potential litigation claims.
• | Challenging assumptions and judgements made within significant accounting estimates and judgements such as vehicle stock valuation.
• | Identification of key laws and regulations central to the Company's operations and review of compliance with such laws including a review of FCA website and correspondence to identify any disciplinary action or ongoing issues.
• | Testing of journal entries and potential override of systems.
| Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Read Derby Limited

Independent Auditor's Report to the Members of Read Derby Limited

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.

......................................
Neal Watford ACA (Senior Statutory Auditor)
For and on behalf of Forrester Boyd Robson Limited, Statutory Auditor
26 South Saint Mary's Gate
Grimsby
North East Lincolnshire
DN31 1LW

10 October 2025

Read Derby Limited

Profit and Loss Account for the Year Ended 31 December 2024

| Note | 2024 £ | 2023 £
Turnover | 3 | 28,964,942 | 36,387,014
Cost of sales |  | (27,214,996) | (33,917,291)
Gross profit |  | 1,749,946 | 2,469,723
Administrative expenses |  | (1,838,007) | (2,127,345)
Operating (loss)/profit |  | (88,061) | 342,378
Other interest receivable and similar income | 4 | 5,140 | -
Interest payable and similar expenses | 5 | (245,970) | (177,492)
(Loss)/profit before tax |  | (328,891) | 164,886
Tax on (loss)/profit | 8 | 88,817 | (47,661)
(Loss)/profit for the financial year |  | (240,074) | 117,225

Read Derby Limited

(Registration number: 01651061)
Balance Sheet as at 31 December 2024

| Note | 2024 £ | 2023 £
Fixed assets |  |  |
Tangible assets | 9 | 183,718 | 238,671
Current assets |  |  |
Stocks | 10 | 6,837,635 | 3,239,661
Debtors | 11 | 4,551,425 | 2,882,217
Cash at bank and in hand | 12 | 85,238 | 170,212
|  | 11,474,298 | 6,292,090
Creditors: Amounts falling due within one year | 13 | (9,492,309) | (4,119,241)
Net current assets |  | 1,981,989 | 2,172,849
Total assets less current liabilities |  | 2,165,707 | 2,411,520
Provisions for liabilities | 14 | (31,417) | (37,156)
Net assets |  | 2,134,290 | 2,374,364
Capital and reserves |  |  |
Called up share capital | 16 | 21 | 21
Capital redemption reserve | 17 | 82 | 82
Retained earnings | 17 | 2,134,187 | 2,374,261
Shareholders' funds |  | 2,134,290 | 2,374,364

Approved and authorised by the Board on 10 October 2025 and signed on its behalf by:

......................................... M Read Director

Read Derby Limited

Statement of Changes in Equity for the Year Ended 31 December 2024

| Share capital £ | Capital redemption reserve £ | Retained earnings £ | Total £
At 1 January 2024 | 21 | 82 | 2,374,261 | 2,374,364
Loss for the year | - | - | (240,074) | (240,074)
At 31 December 2024 | 21 | 82 | 2,134,187 | 2,134,290

| Share capital £ | Capital redemption reserve £ | Retained earnings £ | Total £
At 1 January 2023 | 21 | 82 | 2,281,536 | 2,281,639
Profit for the year | - | - | 117,225 | 117,225
Dividends | - | - | (24,500) | (24,500)
At 31 December 2023 | 21 | 82 | 2,374,261 | 2,374,364

Read Derby Limited

Statement of Cash Flows for the Year Ended 31 December 2024

| Note | 2024 £ | 2023 £
Cash flows from operating activities
(Loss)/profit for the year |  | (240,074) | 117,225
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation |  | 97,300 | 86,696
Finance income | 4 | (5,140) | -
Finance costs | 5 | 245,970 | 177,492
Income tax expense | 8 | (88,817) | 47,661
|  | 9,239 | 429,074
Working capital adjustments |  |  |
(Increase)/decrease in stocks | 10 | (3,597,974) | 277,110
(Increase)/decrease in trade debtors | 11 | (1,615,990) | 343,225
Increase/(decrease) in trade creditors | 13 | 5,373,068 | (615,373)
Cash generated from operations |  | 168,343 | 434,036
Income taxes received/(paid) | 8 | 29,860 | (97,085)
Net cash flow from operating activities |  | 198,203 | 336,951
Cash flows from investing activities |  |  |
Interest received | 4 | 5,140 | -
Acquisitions of tangible assets |  | (42,347) | (49,419)
Net cash flows from investing activities |  | (37,207) | (49,419)
Cash flows from financing activities |  |  |
Interest paid | 5 | (245,970) | (177,492)
Dividends paid |  | - | (24,500)
Net cash flows from financing activities |  | (245,970) | (201,992)
Net (decrease)/increase in cash and cash equivalents |  | (84,974) | 85,540
Cash and cash equivalents at 1 January |  | 170,212 | 84,672
Cash and cash equivalents at 31 December |  | 85,238 | 170,212

Read Derby Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

1 | General information

The Company is a private company limited by share capital, incorporated in the United Kingdom.

The address of its registered office is:
Altyre Way
Hewitts Avenue Business Park
Humberston
Grimsby
N E Lincolnshire
DN36 4RJ

The principal place of business is:
Parker Industrial Estate
Mansfield Road
Derby
DE21 4SZ

These financial statements were authorised for issue by the Board on 10 October 2025.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements have been prepared in sterling which is the functional currency of the Company and are rounded to the nearest pound.
The financial statements cover Read Derby Limited as an individual entity and not the results of any wider Group that the Company is part of.

Judgements

The Directors have made a number of judgements in applying the Company's accounting policies, the most significant of which is in relation to the valuation of vehicle stocks. The Company holds a considerable amount of vehicle stocks which is held at the lower of cost and net realisable value. The net realisable value of vehicle stocks is impacted by a number of factors including the condition of the vehicle and general economic factors outside of the Directors' control. The calculation of the net realisable value of individual vehicles and stock provisions is closely controlled by the Directors' and involves significant judgments made utilising the years of experience and knowledge of the industry held.

Key sources of estimation uncertainty

The key sources of estimation uncertainty surround the net realisable value of year end stocks and in the last few years, the impact of major events such as the Ukraine war and the ongoing cost of living crisis on the future trading. See the Strategic Report for the Directors' assessment of the potential future impact of such events on the future trading of the Company and the year end stock valuation.

Read Derby Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Specifically for the sale of new and used motor vehicles revenue is recognised when a valid sales contract exists and significant risks and rewards of ownership have transferred to the buyer, e.g. the vehicle is registered in the customer’s name. Revenue from service and repair work is recognised upon completion of the work and customer acceptance, where applicable.
Any manufacturer bonuses or incentives are recognised when entitlement is established, typically upon satisfaction of sales volume thresholds or specific conditions.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the Profit and Loss account.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using rates and allowances that apply to the sale of the asset.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Short Term Leasehold Property | Over period of lease
Plant and Machinery | 25% Straight Line
Motor Vehicles | 25% Straight Line
Fixtures and Fittings | 25% Straight Line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Read Derby Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3 | Turnover

The analysis of the Company's Turnover for the year from continuing operations is as follows:

| 2024 £ | 2023 £
Sale of goods | 26,981,137 | 33,902,233
Rendering of services | 1,873,897 | 2,359,590
Commissions received | 109,908 | 125,191
| 28,964,942 | 36,387,014

4 | Other interest receivable and similar income

| 2024 £ | 2023 £
Other finance income | 5,140 | -

5 | Interest payable and similar expenses

| 2024 £ | 2023 £
Interest expense on other finance liabilities | 245,970 | 177,492

Read Derby Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

6 | Staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

| 2024 £ | 2023 £
Wages and salaries | 740,126 | 876,344
Social security costs | 72,351 | 101,577
Pension costs, defined contribution scheme | 16,317 | 24,243
| 828,794 | 1,002,164

The average number of persons employed by the Company (including Directors) during the year, analysed by category was as follows:

| 2024 No. | 2023 No.
Administration and support | 5 | 4
Sales | 11 | 11
Other departments | 12 | 14
| 28 | 29

7 | Auditors' remuneration

| 2024 £ | 2023 £
Audit of the financial statements | 6,500 | 9,500

Information relating to remuneration paid to auditors for other services is disclosed in the consolidated Group accounts of Read Motor Group Limited.

8 | Taxation

Tax charged/(credited) in the profit and loss account

| 2024 £ | 2023 £
Current taxation |  |
UK corporation tax | (65,698) | 51,911
UK corporation tax adjustment to prior periods | (17,380) | 514
| (83,078) | 52,425
Deferred taxation |  |
Arising from origination and reversal of timing differences | (5,739) | (5,364)
Arising from changes in tax rates and laws | - | 600
Total deferred taxation | (5,739) | (4,764)
Tax (receipt)/expense in the income statement | (88,817) | 47,661

Read Derby Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 23.52%).
The differences are reconciled below:

| 2024 £ | 2023 £
(Loss)/profit before tax | (328,891) | 164,886
Corporation tax at standard rate | (82,223) | 38,781
Decrease in UK and foreign current tax from adjustment for prior periods | (17,380) | -
Tax increase from effect of capital allowances and depreciation | - | 8,806
Effect of expense not deductible in determining taxable profit (tax loss) | 11,048 | 74
Tax decrease arising from group relief | (262) | -
Total tax (credit)/charge | (88,817) | 47,661

On 24 May 2021 the UK Government enacted a bill which increased the main rate of corporation tax in the UK from 19% to 25% from 1 April 2023. The standard rate of tax for the 2024 calendar year has therefore increased being the first full year after implementation of the new rate.

Deferred tax

Deferred tax assets and liabilities

2024 | Asset £ | Liability £
Accelerated capital allowances | - | 31,417
| - | 31,417

2023 | Asset £ | Liability £
Accelerated capital allowances | - | 37,156
| - | 37,156

Read Derby Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

9 | Tangible assets

| Short leasehold land and buildings £ | Fixtures and fittings £ | Plant and machinery £ | Motor vehicles £ | Total £
Cost or valuation
At 1 January 2024 | 750,673 | 289,557 | 131,421 | 3,400 | 1,175,051
Additions | 7,258 | 15,373 | 19,716 | - | 42,347
At 31 December 2024 | 757,931 | 304,930 | 151,137 | 3,400 | 1,217,398
Depreciation
At 1 January 2024 | 595,157 | 249,070 | 88,753 | 3,400 | 936,380
Charge for the year | 64,800 | 20,900 | 11,600 | - | 97,300
At 31 December 2024 | 659,957 | 269,970 | 100,353 | 3,400 | 1,033,680
Carrying amount
At 31 December 2024 | 97,974 | 34,960 | 50,784 | - | 183,718
At 31 December 2023 | 155,516 | 40,487 | 42,668 | - | 238,671

Included within the net book value of land and buildings above is £97,974 (2023 - £155,516) in respect of short leasehold land and buildings.

10 | Stocks

| 2024 £ | 2023 £
Vehicle and parts stocks | 6,837,635 | 3,239,661

The carrying amount of stocks pledged as security for liabilities amounted to £4,493,443 (2023 - £2,820,564).

11 | Debtors

| Note | 2024 £ | 2023 £
Trade debtors |  | 1,288,697 | 614,887
Amounts owed by related parties | 20 | 2,859,359 | 2,167,875
Other debtors |  | 240,274 | 22
Prepayments |  | 91,836 | 81,392
Corporation tax asset | 8 | 71,259 | 18,041
|  | 4,551,425 | 2,882,217

12 | Cash and cash equivalents

| 2024 £ | 2023 £
Cash on hand | 270 | 680
Cash at bank | 84,968 | 169,532
| 85,238 | 170,212

Read Derby Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

13 | Creditors

| Note | 2024 £ | 2023 £
Due within one year |  |  |
Trade creditors |  | 8,849,242 | 3,739,002
Amounts due to related parties | 20 | 582,008 | 137,808
Social security and other taxes |  | 21,161 | 173,375
Other payables |  | 109 | 1,972
Accruals and deferred income |  | 39,789 | 67,084
|  | 9,492,309 | 4,119,241

Secured creditors

Included within trade creditors are secured amounts denominated in sterling with a carrying amount of £4,004,787 (2023: £3,208,986). Secured trade creditors are secured against the assets to which they relate.

14 | Provisions for liabilities

| Deferred tax £ | Total £
At 1 January 2024 | 37,156 | 37,156
Increase (decrease) in existing provisions | (5,739) | (5,739)
At 31 December 2024 | 31,417 | 31,417

15 | Pension and other schemes

Defined contribution pension scheme

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £16,317 (2023 - £24,243).

16 | Share capital

Allotted, called up and fully paid shares

| 2024 | 2023
| No. | £ | No. | £
Ordinary shares of £0.10 each | 208 | 21 | 208 | 21

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions: Full voting and participation rights with no restriction on distribution of dividends or repayment of capital.

Read Derby Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

17 | Reserves

Called up share capital

Share capital comprises of the value of issued share capital at par.

Capital redemption reserve

This reserve details amounts transferred from distributable profits following the redemption or purchase of the Company's own shares.

Retained earnings

Retained earnings consists of profits made by the Company attributable to the shareholders of the Company.

18 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2024 £ | 2023 £
Not later than one year | 78,000 | 78,000
Later than one year and not later than five years | 58,500 | 136,500
| 136,500 | 214,500

The amount of non-cancellable operating lease payments recognised as an expense during the year was £78,000 (2023 - £78,000).

19 | Commitments

The company is part of an unlimited cross guarantee arrangement in respect of amounts owed to the bank by Read Hyundai Lincoln Limited, Read Automotive Grimsby Limited, Read Hyundai Kings Lynn Limited, Read Hyundai Worksop Limited, Read Hyundai Doncaster Limited, Read Hyundai Boston Limited, Read Hyundai Limited and Read Motor Group Limited.
At the balance sheet date amounts totalling £3,028,359 (2023: £2,779,835) were owing to the bank by the above companies.

20 | Related party transactions

The company has taken advantage of the exemption in section 33 of FRS 102 'Related Party Disclosures' from disclosing transactions with other members of the group in which any subsidiary which is a party to the transaction is wholly owned by the group.

21 | Parent and ultimate parent undertaking

The Company's immediate parent is Read Motor Group Limited, incorporated in England.
A copy of the consolidated Group accounts can be obtained from the registered office address on page 1, which is also the registered office address of the Parent Company.
The ultimate controlling party is the directors who own 100% of the share capital in Read Motor Group Limited.