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Company registration number: 06574030
| ANNUAL REPORT AND FINANCIAL STATEMENTS
| FOR THE YEAR ENDED 31 MARCH 2025
| AUTOGUARD WARRANTIES LTD
AUTOGUARD WARRANTIES LTD |  |
COMPANY INFORMATION
Directors | R J Dockerill
| A H May-Khalil
Registered number | 06574030
Registered office | Building 5 Archipelago Office Park
| Lyon Way
| Frimley
| Camberley
| Surrey
| GU16 7ER
Independent auditor | Menzies LLP
| Chartered Accountants & Statutory Auditor
| Ashcombe House
| 5 The Crescent
| Leatherhead
| Surrey
| KT22 8DY
AUTOGUARD WARRANTIES LTD |  |
CONTENTS
| Page
Strategic report | 1 - 3
Directors' report | 4 - 5
Independent auditor's report | 6 - 9
Statement of comprehensive income | 10 - 11
Statement of financial position | 11
Statement of changes in equity | 12
Notes to the financial statements | 13 - 31
AUTOGUARD WARRANTIES LTD |  |
STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2025 The directors present the strategic report for the year ended 31 March 2025.
Fair review of the business
Autoguard Warranties Ltd derives its income from the provision of non-regulated service and maintenance plans and regulated motor vehicle warranties to the automobile industry across the UK and Internationally, as well as directly to Individuals in the UK. The service and maintenance plans, and warranties are designed to cover repair costs in the event that the vehicle suffers a breakdown during the period of cover, to ensure our customers remain mobile. The sales are made either directly to customers via our online platform or by a dedicated sales team via a network of motor dealers. The principal activity of Autoguard Warranties Ltd is the provision of administration services, repair request and claims handling, and the management of all products, ensuring all services and support are to the high standard expected by our customers. Our in-house administration and claims teams ensure services are provided to a clear and auditable standard.
Business performance
The Group has separated out the international business from Autoguard Warranties Ltd into a specific wholly owned Group branch named Autoguard Group Ltd Branch. The International branch results now are included in Group. Autoguard Warranties Ltd itself has once again experienced an excellent year of business performance across all areas of its UK operations. Turnover has increased by 22% (almost £3m) with Gross Profit Margin held at 36%. While this performance reflects strong underlying growth, it should be noted that changes to the revenue recognition policy have resulted in the financial year 2023/24 results being restated upwards. Profit before tax for 2024/25 has decreased by £996k. Adjusting for this, the underlying performance remains positive and in line with expectations. Growth in turnover has also seen an increase in the cost base as we continue to invest in people, processes and IT. We have continued to increase the size of our direct sales workforce to provide more coverage and service more customers. We have seen both our B2C team, and our Administration & Claims teams increase to support our growth. These teams are now at a size where they can support growth throughout the financial year 2025/26 and beyond. Despite the used car market in the UK continuing to be challenging, specifically effected by external factors, our online B2C business through our Best4 brand, grew significantly again. We feel this growth reflects our view that consumers are keeping their cars for longer and that points to an increasing demand for warranties and service and maintenance plans. In line with our growth, our employee numbers increased from 56 to 63 during the year enforcing our commitment to grow our workforce to ensure continued success for the future. We continue to invest in the wellbeing and training of all our employees. Financial Position We ended the financial year with a net profit before tax of £0.8m a decrease of £1.0m on last year and a net cash balance of £2.3m an increase on last year’s results of £0.7m. Future Developments For the coming 12 months and beyond, we are expecting to see continued organic growth in all business areas. As the international business is reported via Group this has allowed us to embark upon a full process review across the entire business. We are looking at utilising technology to improve service levels and response times across the business while keeping the overheads under control. We have also invested heavily in marketing partnerships to support initiatives such as a new Leisure care division, in which we have partnered with one of the UK’s leading caravan and motorhome event organisers. This has already delivered a return on investment, and we expect this area to continue to grow over the next 12 months. Page 1
AUTOGUARD WARRANTIES LTD |  |
STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Principal risks and uncertainties
The directors consider the principal risks and uncertainties facing the business to be: Credit Credit risk is the risk that a customer or provider fails to perform its financial obligations. The company's principal financial assets are bank balances, trade and other debtors. The company's exposure to credit risk is mitigated by the large numbers of individual motor dealers in their network. In addition, the financial position of the company is continually reviewed to limit any risk. Our credit control in the UK is excellent and we have very little overdue debt. Liquidity Liquidity risk is the risk that the company is unable to meets its financial obligations as they fall due. The company's exposure to liquidity risk is mitigated by the regular review of cash forecasts, actual cash flows and ensuring adequate cash reserves. There is also regular analysis of loss ratios to ensure adequate funds remain in place for future repair request and claims. Compliance Regulatory changes are always a challenge in this industry, and the company ensures that preparations are made in the background to ensure business continuity should any regulatory changes be imposed. Autoguard Warranties Ltd has been subject to an HMRC VAT review for the years 21/22. This is still ongoing and may result in an assessment in due course. Commercial Commercial risks include economic conditions and competition factors that may impact the company's financial performance. The company regularly reviews and, where appropriate, updates its warranty and service and maintenance plan terms to ensure they meet changing requirements of customers and their vehicles. This includes competitive pricing and reviews of products. The company is fully aware of economic conditions and regularly reviews key financial performance indicators to identify any emerging trends. Objectives, policies and processes for managing risks arising from non-regulated contracts The Company’s objective in managing risks from non-regulated contracts is to ensure the continued fulfilment of obligations under non-regulated administration services and service & maintenance plans, while maintaining financial stability. The Company implements robust pricing, operational, and reserving policies to address its risk exposure for these contracts. Key policies include: •Maintaining the positive customer outcomes are at the centre of decision making •Reviewing and adjusting non-regulated contract pricing based on historical repair/service request data •Maintaining adequate reserves to meet expected future obligations for non-regulated contracts •Monitoring live contract performance across non-regulated products and regions •Conducting due diligence on dealer partners to reduce fraudulent repair/service request exposure Page 2
AUTOGUARD WARRANTIES LTD |  |
STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Methods used to manage those risks The Company mitigates its exposure through a combination of internal controls and operational processes: •Experienced in-house handlers validate and authorise repair/service requests against strict criteria for non-regulated products •Proactive fraud detection and case monitoring for non-regulated business •Regular performance reviews of non-regulated products and customer experience metrics •Segregation of dealer funds and customer contract provisions for non-regulated risk management and solvency Risk management procedures are reviewed by senior management and adjusted as needed in response to evolving market or operational factors. Exposure to risk on non-regulated contracts The primary risk is that the cost or frequency of repair/service requests exceeds expectations. This is managed through detailed modelling, contract structuring, and conservative provisioning based on historic performance. Concentrations of non-regulated risk Risk is well diversified across a wide portfolio of vehicle types, customers and geographic markets. No individual dealer or customer represents a significant concentration of exposure. Actual claims compared with previous estimates Activity during the year was in line with management’s estimates, reflecting growth in volumes and observed inflation in average cost per repair/service request. The provision model is reviewed regularly to ensure appropriate matching of income and liabilities. Market risk The Company is exposed to changes in the cost of repairs, parts, and labour which may affect profitability of non-regulated products. This is managed through frequent reviews of average costs and by adjusting contract pricing where appropriate. Currency exposure is limited due to the majority of transactions being denominated in GBP.
Key performance indicators
2025 2024 Turnover £16,683,688 £13,710,572 Profit before tax £832,173 £1,828,009 The above are deemed the most relevant KPI's by the Directors. These are discussed throughout this report. This report was approved by the board and signed on its behalf.
R J Dockerill Director
Date: 15 October 2025
Page 3
AUTOGUARD WARRANTIES LTD |  |
DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2025 The directors present their report and the financial statements for the year ended 31 March 2025.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
Results and dividends
The profit for the year, after taxation, amounted to £439,481 (2024 - £1,221,150). Ordinary dividends were paid amounting to £Nil (2024 - £889,770). The directors do not recommend payment of a further dividend.
Directors
The directors who served during the year were:
R J Dockerill
A H May-Khalil
D L Robinson (resigned 1 April 2024)
Matters covered in the Strategic Report
The Company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the Company's strategic report information required by the schedule 7 of the Large and Medium-sized companies and Groups (Accounts and Reports) Regulation 2008 it must be stated in the Director's Report that it has done so. This includes information that would have been included in the business review, the principal risks and uncertainties and future developments.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information. Page 4
AUTOGUARD WARRANTIES LTD |  |
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Auditor
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. This report was approved by the board and signed on its behalf.
R J Dockerill Director
Date: 15 October 2025
Building 5 Archipelago Office Park
Lyon Way
Frimley
Camberley
Surrey
GU16 7ER
Page 5
AUTOGUARD WARRANTIES LTD |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AUTOGUARD WARRANTIES LIMITED
Opinion
We have audited the financial statements of Autoguard Warranties Ltd (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, 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 March 2025 and of its profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 6
AUTOGUARD WARRANTIES LTD |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AUTOGUARD WARRANTIES LIMITED (CONTINUED)
Opinion 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 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement 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. Page 7
AUTOGUARD WARRANTIES LTD |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AUTOGUARD WARRANTIES LIMITED (CONTINUED)
Auditor's 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. 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: The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including; −The Companies Act 2006; −Financial Reporting Standard 102; −UK employment legislation; −UK tax legislation; −The Financial Conduct Authority regulations; −UK health and safety legislation; and −General Data Protection Regulations. ∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. ∙We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of relevant documentation. ∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area. ∙We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included; −Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; −Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; −Challenging assumptions and judgements made by management in its significant accounting estimates; and −Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. ∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: −The application of inappropriate judgements or estimation to manipulate the Company's financial position; −Posting of unusual journals and complex transactions; −The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests; −The misrepresentation of revenue to enable staff and consultants to receive commission payments that are not warranted by actual sales. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading Page 8
AUTOGUARD WARRANTIES LTD |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AUTOGUARD WARRANTIES LIMITED (CONTINUED) 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 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 Auditor's Report.
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Anna Johnston ACA (Senior statutory auditor) for and on behalf of Menzies LLP Chartered Accountants Statutory Auditor Ashcombe House 5 The Crescent Leatherhead Surrey KT22 8DY 15 October 2025 Page 9
AUTOGUARD WARRANTIES LTD |  |
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2025
|  | As restated
| 2025 | 2024
Note | £ | £
Turnover | 4 | 16,683,688 | 13,710,572
Cost of sales |  | (10,757,482) | (8,805,553)
Gross profit |  | 5,926,206 | 4,905,019
Administrative expenses |  | (5,183,922) | (3,357,503)
Other operating income | 5 | 30,000 | 60,000
Operating profit | 6 | 772,284 | 1,607,516
Income from fixed assets investments | 10 | 173,333 | 213,333
Amounts written off investments | 16 | (130,100) | -
Interest receivable and similar income | 11 | 19,653 | 30,550
Interest payable and similar expenses | 12 | (2,997) | (23,390)
Profit before tax |  | 832,173 | 1,828,009
Tax on profit | 13 | (392,692) | (606,859)
Profit for the financial year |  | 439,481 | 1,221,150
There was no other comprehensive income for 2025 (2024: £Nil).
The notes on pages 13 to 31 form part of these financial statements.
Page 10
AUTOGUARD WARRANTIES LTD |  |
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2025
|  |  |  | As restated
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 14 |  | 711,028 |  | 513,482
Tangible assets | 15 |  | 165,855 |  | 282,626
Investments | 16 |  | 1,441,891 |  | 1,571,991
|  |  | 2,318,774 |  | 2,368,099
Current assets |  |  |  |  |
Stocks | 17 | 84,970 |  | 68,586 |
Debtors | 18 | 5,074,507 |  | 4,050,109 |
Current asset investments | 19 | - |  | 250,000 |
Cash at bank and in hand | 20 | 2,316,774 |  | 1,634,687 |
|  | 7,476,251 |  | 6,003,382 |
Creditors: amounts falling due within one year | 21 | (4,750,814) |  | (4,596,057) |
Net current assets |  |  | 2,725,437 |  | 1,407,325
Total assets less current liabilities |  |  | 5,044,211 |  | 3,775,424
Creditors: amounts falling due after more than one year | 22 |  | (949,408) |  | (833,982)
Provisions for liabilities |  |  |  |  |
Deferred tax | 24 | (181,198) |  | (144,318) |
Other provisions | 25 | (2,656,622) |  | (1,979,622) |
|  |  | (2,837,820) |  | (2,123,940)
Net assets |  |  | 1,256,983 |  | 817,502
Capital and reserves |  |  |  |  |
Called up share capital | 26 |  | 200 |  | 200
Share premium account | 27 |  | 46,562 |  | 46,562
Capital redemption reserve | 27 |  | 6 |  | 6
Profit and loss account | 27 |  | 1,210,215 |  | 770,734
|  |  | 1,256,983 |  | 817,502
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
R J Dockerill
Director
Date: 15 October 2025
The notes on pages 13 to 31 form part of these financial statements. Page 11
AUTOGUARD WARRANTIES LTD |  |
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2025
| Called up share capital | Share premium account | Capital redemption reserve | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 April 2023 (as previously stated) | 200 | 46,562 | 6 | 553,448 | 600,216
Prior year adjustment - change in accounting policy | - | - | - | (114,094) | (114,094)
At 1 April 2023 (as restated) | 200 | 46,562 | 6 | 439,354 | 486,122
Comprehensive income for the year |  |  |  |  |
Profit for the year | - | - | - | 1,221,150 | 1,221,150
Total comprehensive income for the year | - | - | - | 1,221,150 | 1,221,150
Contributions by and distributions to owners |  |  |  |  |
Dividends: Equity capital | - | - | - | (889,770) | (889,770)
Total transactions with owners | - | - | - | (889,770) | (889,770)
At 1 April 2024 (as previously stated) | 200 | 46,562 | 6 | 493,519 | 540,287
Prior year adjustment - change in accounting policy | - | - | - | 277,215 | 277,215
At 1 April 2024 (as restated) | 200 | 46,562 | 6 | 770,734 | 817,502
Comprehensive income for the year |  |  |  |  |
Profit for the year | - | - | - | 439,481 | 439,481
Total comprehensive income for the year | - | - | - | 439,481 | 439,481
Total transactions with owners | - | - | - | - | -
At 31 March 2025 | 200 | 46,562 | 6 | 1,210,215 | 1,256,983
| The notes on pages 13 to 31 form part of these financial statements.
Page 12
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1. | General information
Autoguard Warranties Ltd is a private company limited by shares incorporated in England and Wales. Details of the Company's registered office, which is also its principal place of business, can be found on the company information page. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Autoguard Group Limited as at 31 March 2025 and these financial statements may be obtained from its registered office, Building 5 Archipelago Office Park, Lyon Way, Surrey, GU16 7ER.
| 2.3 | Exemption from preparing consolidated financial statements
The company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the companies Act 2006.
| 2.4 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP and the accounts are rounded to the nearest pound. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Page 13
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.4 | Foreign currency translation (continued)
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
| 2.5 | Change in accounting policy
The Directors reviewed the revenue recognition policy and determined that a change was required in order to more accurately match revenue arising on unregulated warranty contracts against the costs incurred in delivering the relevant services. Previously, the percentage of income recognised up front at the inception of a contract was calculated based on the expected direct costs incurred in relation to warranty claims paid out, plus directly attributable costs of selling the policy. A review of claim curve data and customer service activities identified that, in addition to these up front costs, a significant proportion of the overall cost to the company of administrating each warranty policy is incurred within the first 90 days of the policy. Accordingly, the proportion of income recognised on inception of each contract has been increased and the proportion deferred over the remaining duration of the policy has been reduced.
| 2.6 | Change in accounting estimate
During the year the Directors have identified new information regarding the average gross profit margin achieved on sales based on historic data and analysis. The company has therefore adjusted the accounting estimate in relation to the proportion of deferred income to release in the year, to accurately reflect the average margin achievable on warranty contracts based on data available over the duration of contracts within Autoguard's portfolio. The effect of this change in estimate in the current year is an increase in revenue and decrease in deferred income of £196,020 to bring the gross profit margin in line with the achievable average margin based on underlying contract data.
| 2.7 | Revenue
Revenue for the Company represents regulated income, non-regulated service contracts, admin services and recovery and breakdown services. Regulated policies Autoguard Warranties Limited acts as agent to all insured transactions. The Company recognises the revenue in line with the cost to the business on inception, the remaining commission is deferred over the term of the policy to reflect the Company's obligation to fulfil claims handling. Non-regulated service contracts Revenue from non regulated service contracts is recognised in line with the cost to the business on inception, the remaining revenue is deferred to reflect the Company's obligation to fulfil claims handling. Additionally, income is released to align the reported margin with the latest achievable margin data across Autoguard's portfolio of comparable contracts. The deferred income is released over the term of the agreement. Page 14
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.7 | Revenue (continued)
Admin services Revenue from non-regulated admin services is recognised as each performance obligation is discharged, apportioned according to the apportionment of costs incurred. Certain performance obligations are discharged immediately on inception of the contract. The remaining turnover is deferred and released over the term of the contract. Revenue is deferred to reflect the Company's obligation to fulfil administration services for our dealer partners. Recovery and breakdown Revenue from recovery and breakdown services is recognised as each performance obligation is discharged, apportioned according to the apportionment of costs incurred. Certain performance obligations are discharged immediately on inception of the contract. The remaining revenue is deferred over the length of the contract in order to meet the Company’s obligations.
| 2.8 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.9 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.10 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.11 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
| 2.12 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. Page 15
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.12 | Current and deferred taxation (continued)
The current income 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 income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
| 2.13 | Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Amortisation is recognised in the Statement of Comprehensive Income. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives range as follows:
|  |  |  | IT development | - |  | 7 years
The IT development is deemed to have a maximum useful life of seven years due to the rapidly changing environment in which technology develops.
| 2.14 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Page 16
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.14 | Tangible fixed assets (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Leasehold improvements | - | 5 years straight line
|  |  |  | Motor vehicles | - | 5 years straight line
|  |  |  | Fixtures and fittings | - | 5 years straight line
|  |  |  | Computer software and hardware | - | 7 years straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.15 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.16 | Stocks
Stocks are stated at the lower of cost and net realisable value. At each reporting date, stocks are assessed for impairment. If stock is 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.
| 2.17 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.18 | Cash at bank and in hand
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. Page 17
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.19 | Insurance risk
The Company is party to service contracts and dealer admin warranty programs which, whilst they do not meet the legal definition of insurance contracts, are subject to an element of insurance risk as defined in FRS 103. Income and expenditure, assets and liabilities and cash flows arising from these contracts are accounted for in accordance with the provisions of FRS 103, which are not substantially different to the revenue recognition principles applied to income arising from service contracts in accordance with FRS 102. Disclosures in relation to accounting estimates and assumptions arising from such contracts can be found in notes 2.5, 2.6 and 3. Details of the risks arising in connection with these contracts and management of these risks can be found in the Strategic Report. A reconciliation of liabilities arising in connection with such contracts can be found in note 25.
| 2.20 | Financial instruments
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
| 2.21 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Investment impairment The investment in subsidiary companies is reviewed on an annual basis by the directors for impairment, and an adjustment made in the financial statements accordingly if required. The impairment is based on the cost generating unit of the future cashflows. Deferred Income The directors understand that they need to recognise turnover over the period of the contract, taking into account contract start dates and length of contract. The initial non regulated revenue from a service contract is recognised as the initial performance obligations are discharged, apportioned according to the apportionment of costs incurred. The remaining revenue is deferred and released over the term of the contract. The estimated costs are calculated based on an average cost of a non regulated service contract, any variance is released on an annual basis to the profit and loss. The commission received from our regulated activity is recognised over the term of the contract. Income is deferred into the correct accounting year which enables the Company to fulfil its obligations, primarily claims handling, to its dealer partners for the life of the contract. Page 18
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 3.Judgements in applying accounting policies (continued) Warranty Provision The Warranty Provision requires the Directors to make a judgement on the extent to which a provision for future service contract claims is required. The provision is derived from a percentage of fund set aside per contract sold and is calculated and monitored using historical data and knowledge from the Directors to enable the company to have sufficient funds to pay all future claims that arise. This provision fund is closely monitored and adjustments to what goes into it can be made according to how a dealer’s fund is performing. The estimates and assumptions are reviewed by the Directors on an ongoing basis to ensure that obligations can be met. Margin on contracts Based on up to date data and analysis, the average gross profit margin achievable across Autoguard's portfolio of contracts is assessed and revenue is adjusted each year to bring the gross profit margin in line with current data. Management review the resulting revenue adjustment in the context of their own knowledge and wider industry trends to ensure that the margin recorded is a fair reflection of the expected future performance of the underlying contract portfolio at each year end.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  |  | As restated
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Regulated | 837,298 | 894,093
| Non-regulated | 14,672,121 | 11,682,098
| Recovery and breakdown | 662,393 | 878,042
| Admin services | 500,511 | 256,339
| Other | 11,365 | -
|  | 16,683,688 | 13,710,572
Analysis of turnover by country of destination:
|  |  |  |  |  | As restated
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 16,683,688 | 13,368,921
| Rest of the world | - | 341,651
|  | 16,683,688 | 13,710,572
Page 19
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
5. | Other operating income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Management charges receivable | 30,000 | 60,000
|  | 30,000 | 60,000
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Exchange differences | 4,739 | (1,440)
| Depreciation of tangible fixed assets | 54,035 | 55,976
| Operating lease charges | 152,690 | 149,492
| Loss on disposal of tangible fixed assets | 35,400 | 481
| Amortisation of intangible assets | 120,723 | 79,060
7. | Auditor's remuneration
| During the year, the Company obtained the following services from the Company's auditor:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditor for the audit of the Company's financial statements | 25,100 | 20,950
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 3,334,744 | 2,100,110
| Social security costs | 356,890 | 206,829
| Cost of defined contribution scheme | 87,446 | 40,287
|  | 3,779,080 | 2,347,226
Page 20
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 8.Employees (continued)
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Directors | 2 | 3
|  | Administration | 8 | 8
|  | Claims | 11 | 10
|  | IT | 4 | 2
|  | Finance | 5 | 2
|  | Risk compliance | 1 | 1
|  | Sales and marketing | 32 | 30
|  |  | 63 | 56
9. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 338,587 | 35,325
| Company contributions to defined contribution pension schemes | 10,921 | 105
|  | 349,508 | 35,430
| During the year retirement benefits were accruing to 2 directors (2024 - 1) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £197,363 (2024 - £12,998).
| The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10,921 (2024 - £Nil).
| Not included within the above is remuneration paid to key management personnel of £72,650 (2024: £Nil), and pension contributions of £1,250 (2024: £Nil).
10. | Income from investments
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Dividends received from subsidiaries | 173,333 | 213,333
|  | 173,333 | 213,333
Page 21
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
11. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest receivable | 19,653 | 30,550
|  | 19,653 | 30,550
12. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Finance leases and hire purchase contracts | 2,997 | 23,390
|  | 2,997 | 23,390
13. | Taxation
|  |  |  |  |  | As restated
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 163,221 | 326,107
| Adjustments in respect of previous periods | 71,604 | 162,013
|  | 234,825 | 488,120
| Total current tax | 234,825 | 488,120
| Deferred tax |  |
| Origination and reversal of timing differences | 36,880 | 79,357
| Adjustments in respect of prior periods | 120,987 | 39,382
| Total deferred tax | 157,867 | 118,739
| Tax on profit | 392,692 | 606,859
Page 22
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2024 -higher than) the standard rate of corporation tax in the UK of 25% (2024 -25%). The differences are explained below:
|  |  |  |  |  | As restated
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 832,173 | 1,828,009
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 -25%) | 208,043 | 457,002
| Effects of: |  |
| Tax effect of expenses not deductible in determining taxable profit | 35,154 | 11,564
| Tax effect of income not taxable in determining taxable profits | (43,333) | (53,333)
| Deferred tax adjustment in respect of prior years | 120,987 | 39,382
| Adjustments in respect of prior periods | 71,604 | 162,013
| Fixed asset differences | 237 | 341
| Group relief | - | (10,110)
| Total tax charge for the year | 392,692 | 606,859
Page 23
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
14. | Intangible assets
|  | IT development
|  | £
| Cost |
| At 1 April 2024 | 731,587
| Additions | 318,269
| At 31 March 2025 | 1,049,856
| Amortisation |
| At 1 April 2024 | 218,105
| Charge for the year | 120,723
| At 31 March 2025 | 338,828
| Net book value |
| At 31 March 2025 | 711,028
| At 31 March 2024 | 513,482
Page 24
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
15. | Tangible fixed assets
|  | Leasehold improvements | Motor vehicles | Fixtures and fittings | Computer hardware and software | Total
|  | £ | £ | £ | £ | £
| Cost |  |  |  |  |
| At 1 April 2024 | 94,710 | 248,759 | 55,487 | 62,473 | 461,429
| Additions | - | - | 19,426 | 5,989 | 25,415
| Disposals | - | (142,728) | (341) | - | (143,069)
| At 31 March 2025 | 94,710 | 106,031 | 74,572 | 68,462 | 343,775
| Depreciation |  |  |  |  |
| At 1 April 2024 | 76,561 | 58,584 | 24,781 | 18,877 | 178,803
| Charge for the year | 4,385 | 27,956 | 11,943 | 9,751 | 54,035
| Disposals | - | (54,731) | (187) | - | (54,918)
| At 31 March 2025 | 80,946 | 31,809 | 36,537 | 28,628 | 177,920
| Net book value |  |  |  |  |
| At 31 March 2025 | 13,764 | 74,222 | 38,035 | 39,834 | 165,855
| At 31 March 2024 | 18,149 | 190,175 | 30,706 | 43,596 | 282,626
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Motor vehicles | 74,222 | 95,428
|  | 74,222 | 95,428
Page 25
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
16. | Fixed asset investments
|  | Investments in subsidiary companies
|  | £
| Cost |
| At 1 April 2024 | 1,571,991
| At 31 March 2025 | 1,571,991
| Impairment |
| Charge for the period | 130,100
| At 31 March 2025 | 130,100
| Net book value |
| At 31 March 2025 | 1,441,891
| The impairment above relates to the investment held in Sentience Automotive Solutions Limited, which has been appropriately impaired due to the company becoming dormant.
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Class of shares | Holding
| Sentience Automotive Solutions Ltd | Building 5 Archipelago Office Park, Lyon Way, Frimley, Camberley, Surrey, England, GU16 7ER | Ordinary | 100%
| Warranty Administration Services Limited | Otago House, Allenby Business Village, Crofton Road, Lincoln, Lincolnshire, LN3 4NL | Ordinary | 80%
17. | Stocks
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Marketing stock | 84,970 | 68,586
|  | 84,970 | 68,586
Page 26
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
18. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 1,728,419 | 1,417,191
| Amounts owed by group undertakings | 1,196,268 | 1,237,612
| Other debtors | 1,718,055 | 798,339
| Prepayments and accrued income | 218,002 | 235,524
| Tax recoverable | 213,763 | 361,443
|  | 5,074,507 | 4,050,109
19. | Current asset investments
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Unlisted investments | - | 250,000
|  | - | 250,000
20. | Cash at bank and in hand
Included in the cash at bank figure at the year end is monies held on behalf of clients totalling £408,437 (2024: £192,054). This is in relation to non-regulated income. The company has facilities in place with Barclays that includes a fixed change and floating charge over the company, and contains a negative pledge over the credit balance dated 5 April 2024.
21. | Creditors: Amounts falling due within one year
|  |  |  |  |  | As restated
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade creditors | 216,662 | 193,252
| Amounts owed to group undertakings | 160 | -
| Corporation tax | 314,001 | 252,984
| Other taxation and social security | 756,214 | 555,028
| Obligations under finance lease and hire purchase contracts | 13,590 | 13,590
| Other creditors | 1,039,404 | 1,244,746
| Accruals and deferred income | 2,410,783 | 2,336,457
|  | 4,750,814 | 4,596,057
Page 27
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
22. | Creditors: Amounts falling due after more than one year
|  |  |  |  |  | As restated
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Net obligations under finance leases and hire purchase contracts | 75,073 | 85,666
| Accruals and deferred income | 874,335 | 748,316
|  | 949,408 | 833,982
23. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Within one year | 13,590 | 13,590
| Between 1-5 years | 75,073 | 85,666
|  | 88,663 | 99,256
24. | Deferred taxation
|  | 2025
|  | £
| At beginning of year (as restated) | (144,318)
| Charged to profit or loss | (36,880)
| At end of year | (181,198)
| The provision for deferred taxation is made up as follows:
|  |  |  |  |  | As restated
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Accelerated capital allowances | (184,783) | (144,318)
| Other timing differences | 3,585 | -
|  | (181,198) | (144,318)
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AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
25. | Provisions
|  | Warranty provision
|  | £
| At 1 April 2024 | 1,979,622
| Claims paid | (4,167,608)
| Provisions | 4,844,608
| At 31 March 2025 | 2,656,622
| This provision is in relation to the estimated cost of future service contract claims. The estimates and assumptions are reviewed by the Directors on an ongoing basis to ensure that obligations can be met.
26. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 180 (2024 -180) Ordinary shares of £1.00 each | 180 | 180
|  | 11 (2024 -11) A Ordinary shares of £1.00 each | 11 | 11
|  | 5 (2024 -5) B Ordinary shares of £1.00 each | 5 | 5
|  | 2 (2024 -2) C Ordinary shares of £1.00 each | 2 | 2
|  | 1 (2024 -1) D Ordinary share of £1.00 | 1 | 1
|  | 1 (2024 -1) E Ordinary share of £1.00 | 1 | 1
|  |  | 200 | 200
| Each ordinary share carries voting rights and there are no restrictions on the distribution of dividends.
27. | Reserves
Share premium account This reserve records the amount above the nominal value received for shares sold, less transaction costs. Capital redemption reserve This reserve records the repurchase of Ordinary shares from shareholders. Profit and loss account This reserve records retained earnings and accumulated losses. Page 29
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
28. | Prior year adjustment
During the process of preparing the financial statements for the year ended 31 March 2025, the Directors reviewed the revenue recognition policy and determined that a change was required in order to more accurately match revenue arising on unregulated warranty contracts against the costs incurred in delivering the relevant services. Previously, the percentage of income recognised up front at the inception of a contract was calculated based on the expected direct costs incurred in relation to warranty claims paid out, plus directly attributable costs of selling the policy. A review of claim curve data and customer service activities identified that, in addition to these up front costs, a significant proportion of the overall cost to the company of administrating each warranty policy is incurred within the first 90 days of the policy. Accordingly, the proportion of income recognised on inception of each contract has been increased and the proportion deferred over the remaining duration of the policy has been reduced. As a result, a prior year restatement was made to increase revenue by £169,501 in the year ended 31 March 2024 and by £456,378 for the year ended 31 March 2023. Deferred income due within one year and deferred income due after more than one year were also reduced by £496,423 and £129,456. The corresponding tax effect of this adjustment was an increase in the corporation tax charge of £42,375 for the year ended 31 March 2024 and an increase of £114,095 for the year ended 31 March 2023. A prior year restatement was made to reduce corporation tax recoverable by £71,208 to reflect the amount that was recovered in the year and increase the deferred tax liability by £120,987 for the year ended 31 March 2024. As a result of this, the overall tax charge was also increased by £192,194, reducing opening reserves by this amount. Retained earnings as at 1 April 2023 have increased by £342,283, and opening reserves as at 1 April 2024 have increased by a total of £277,215.
29. | Contingent liabilities
An investigation is currently ongoing with HMRC in relation to outstanding balances that may be due to the company or due to HMRC. HMRC have issued an assessment for the periods from June 2021 to December 2022. This will be appealed and therefore the outcome is awaited and currently unknown. Therefore it cannot be estimated reliably and provided for in these financial statements as this would be prejudicial to the appeal. No assessment has been made for Insurance Premium Tax, and therefore this also cannot be estimated reliably, and provided for in these financial statements. At the date of signing this report the investigation remains ongoing. No provision has been made in these financial statements for the continued review, as the conclusions relate to industry wide regulation, for which the outcome is awaited from the FCA. The possible financial impact to the company cannot be reliably measured at this time.
30. | Pension commitments
The Company operates a defined contribution plan for its employees. The assets of the plan are held separately from the Company in independently administered funds. At the year end, the amount included in creditors in respect of unpaid pension contributions was £14,337 (2024 - £Nil). Page 30
AUTOGUARD WARRANTIES LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
31. | Commitments under operating leases
| At 31 March 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Not later than 1 year | 146,358 | 153,888
| Later than 1 year and not later than 5 years | 219,811 | 366,169
|  | 366,169 | 520,057
32. | Related party transactions
The Company has taken advantage of the exemption available within FRS 102 Section 33.1A, from disclosing transactions entered into with entities which are a wholly owned part of the group. An amount of £128,500 (2024: £Nil) due from key management personnel is included within other debtors. During the year, the company received £30,000 (2024 - £60,000) of group management charge income from a group company that is 80% owned. At 31 March 2025, the balance due to the company amounted to £Nil (2024 - £Nil). The balance is unsecured, interest free and repayable on demand.
33. | Transactions with directors
| The following balances due from directors were included within Other Debtors.
|  | 2025 | 2024
|  | £ | £
| Opening balance | 265,588 | 302,208
| Repayments | (30,591) | (39,000)
| Drawings | 349,723 | 2,380
| Interest | 5,571 | -
| Balance carried forward | 590,291 | 265,588
| Two companies under the control of the same director charged Autoguard Warranties Limited for services provided. The total amount charged by the two companies in the year is £83,114 (2024 - £186,306). No amounts were owed at the end of the accounting periods.
34. | Controlling party
The Immediate and ultimate parent company is Autoguard Group Limited, a company incorporated in England and Wales. Autoguard Group Limited is the smallest and largest group for which consolidated accounts are prepared. Copies of the group accounts for Autoguard Group Limited may be obtained from Building 5 Archipelago Office Park, Lyon Way, Surrey, GU16 7ER. The ultimate controlling party is R J Dockerill.
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