Company registration number: 00764299
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
New and Used Car Sales
The UK car market in 2024 was shaped by the introduction of the Zero Emission Vehicle (ZEV) mandate, requiring manufacturers to meet minimum targets for zero-emission sales. Whilst this accelerated the availability of electric vehicles (EVs), many customers proved reluctant to pay the significant premium associated with EVs, resulting in heavy discounting by both manufacturers and dealers.
Manufacturer volume pressure in Quarter 1, combined with the ZEV mandate effect, led to a highly competitive market. This reduced bonuses earned and new car gross profit. New car volumes ended very similar to 2023; however new car gross profit remained 25% down.
Used car volumes fell 7.4%, partly caused by the focus on New Car Sales, although gross profit per unit was maintained.
Overall, our sales department return on sales declined to 0.9% (2023: 2.0%).
Service and Parts
Hours sold reduced by 4.6%, owing to the retirement of both a full-time and a part-time technician. Demand remained strong, increasing Overall Efficiency to 112.5% (2023: 107.1%). Return on sales increased slightly to 36.2% (2023: 35.6%).
The reduction in technicians reduced Parts Workshop turnover and profit. Return on sales declined to 13.1% (2023: 15.3%).
Shell Forecourt
Our Shell Forecourt continues to follow the market reduction in fuel volumes, with litreage down 2.4% on 2023. The market also experienced a period of declining pump prices, further reducing fuel turnover.
Shop turnover rose, following the Nisa Express rebrand, with shop sales per thousand litres increasing to £130 (2023: £116).
Return on sales increased to 6.7% (2023: 5.6%).
Overheads
Overheads increased significantly, with salaries and wages (+4,0%), insurance costs (+11.7%) andcomputer costs (+21.8%). There was also a significant bad debt, after the collapse of the XBUS agency opportunity, and the writing-off of the franchise fee and stock deposits during the year.
There was also an increase in non-apportioned overheads (+27.3%), largely attributable to catch-up of pension contributions.
The UK car market in 2024 was shaped by the introduction of the Zero Emission Vehicle (ZEV) mandate, requiring manufacturers to meet minimum targets for zero-emission sales. Whilst this accelerated the availability of electric vehicles (EVs), many customers proved reluctant to pay the significant premium associated with EVs, resulting in heavy discounting by both manufacturers and dealers.
Manufacturer volume pressure in Quarter 1, combined with the ZEV mandate effect, led to a highly competitive market. This reduced bonuses earned and new car gross profit. New car volumes ended very similar to 2023; however new car gross profit remained 25% down.
Used car volumes fell 7.4%, partly caused by the focus on New Car Sales, although gross profit per unit was maintained.
Overall, our sales department return on sales declined to 0.9% (2023: 2.0%).
Service and Parts
Hours sold reduced by 4.6%, owing to the retirement of both a full-time and a part-time technician. Demand remained strong, increasing Overall Efficiency to 112.5% (2023: 107.1%). Return on sales increased slightly to 36.2% (2023: 35.6%).
The reduction in technicians reduced Parts Workshop turnover and profit. Return on sales declined to 13.1% (2023: 15.3%).
Shell Forecourt
Our Shell Forecourt continues to follow the market reduction in fuel volumes, with litreage down 2.4% on 2023. The market also experienced a period of declining pump prices, further reducing fuel turnover.
Shop turnover rose, following the Nisa Express rebrand, with shop sales per thousand litres increasing to £130 (2023: £116).
Return on sales increased to 6.7% (2023: 5.6%).
Overheads
Overheads increased significantly, with salaries and wages (+4,0%), insurance costs (+11.7%) andcomputer costs (+21.8%). There was also a significant bad debt, after the collapse of the XBUS agency opportunity, and the writing-off of the franchise fee and stock deposits during the year.
There was also an increase in non-apportioned overheads (+27.3%), largely attributable to catch-up of pension contributions.
ZEV Mandate
The directors are pleased to report that the UK Government has now extended the sale of plug-in hybrid and full-hybrid models to 2035, and has also changed some of the rules within the ZEV mandate, which with the introduction of new BEV models from Honda in 2026, should place us in a much better position.
New Car Agency Model
The Honda Agency model and its Future Sales Process (FSP) software, continued to present some challenges, with the two trading models effectively competing against each other for business focus. This is expected to be resolved in the final quarter of 2025.
The directors are pleased to report that the UK Government has now extended the sale of plug-in hybrid and full-hybrid models to 2035, and has also changed some of the rules within the ZEV mandate, which with the introduction of new BEV models from Honda in 2026, should place us in a much better position.
New Car Agency Model
The Honda Agency model and its Future Sales Process (FSP) software, continued to present some challenges, with the two trading models effectively competing against each other for business focus. This is expected to be resolved in the final quarter of 2025.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Staff Costs
Inflationary pressures on staff costs appear to have dissipated for the time being; however, the National Minimum Wage has seen significant increases, from £10.42 in 2023 to £12.21 in 2025. This represents a 17% increase over the two years.
Furthermore, the increase in employer’s national insurance from April 2025, will cost a further £48k. The directors will be seeking to recover these costs, as market conditions permit.
Cyber Security
Cyber security remains under active management. Systems are monitored and multi-layered protections are in place. All data are automatically backed up on a daily basis, monitored, and stored offsite. The Company holds ample cyber insurance cover and in 2025 this has been further increased.
Inflationary pressures on staff costs appear to have dissipated for the time being; however, the National Minimum Wage has seen significant increases, from £10.42 in 2023 to £12.21 in 2025. This represents a 17% increase over the two years.
Furthermore, the increase in employer’s national insurance from April 2025, will cost a further £48k. The directors will be seeking to recover these costs, as market conditions permit.
Cyber Security
Cyber security remains under active management. Systems are monitored and multi-layered protections are in place. All data are automatically backed up on a daily basis, monitored, and stored offsite. The Company holds ample cyber insurance cover and in 2025 this has been further increased.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Future Developments
New Car Agency Model
From October 2025, it is expected that the new Honda Agency agreement will be in place and encompass all models. Having a single trading model will simplify marketing and ensure a single business focus.
Honda Solid State Batteries
Honda has built a new demonstration solid state battery manufacturing facility, and is scheduled to begin limited production in 2025, with a view to mass-producing solid-state battery-equipped vehicles. Solid state batteries are expected to increase range, as well as reducing weight and charging times.
New Honda Models
The new Honda Prelude is expected to reach showrooms early in 2026 and has already generated much interest for the brand.
The Honda 0 Series is now expected in early 2027, an ambitious new EV series, which includes a dramatically styled flagship saloon, as well as a futuristic ‘Space Hub’ SUV. Please visit 0.honda for more information.
Honda showed a ‘Super EV Concept’ Urban Hatch Prototype at the Goodwood Festival of Speed in July 2025. A successor to the widely acclaimed Honda e, this small city-EV is expected to be priced very competitively. No production date has yet been announced.
New Car Agency Model
From October 2025, it is expected that the new Honda Agency agreement will be in place and encompass all models. Having a single trading model will simplify marketing and ensure a single business focus.
Honda Solid State Batteries
Honda has built a new demonstration solid state battery manufacturing facility, and is scheduled to begin limited production in 2025, with a view to mass-producing solid-state battery-equipped vehicles. Solid state batteries are expected to increase range, as well as reducing weight and charging times.
New Honda Models
The new Honda Prelude is expected to reach showrooms early in 2026 and has already generated much interest for the brand.
The Honda 0 Series is now expected in early 2027, an ambitious new EV series, which includes a dramatically styled flagship saloon, as well as a futuristic ‘Space Hub’ SUV. Please visit 0.honda for more information.
Honda showed a ‘Super EV Concept’ Urban Hatch Prototype at the Goodwood Festival of Speed in July 2025. A successor to the widely acclaimed Honda e, this small city-EV is expected to be priced very competitively. No production date has yet been announced.
This report was approved by the board and signed on its behalf.
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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.
The directors who served during the year were:
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.
The profit for the year, after taxation, amounted to £121,275 (2023 - £404,840).
Dividends paid during the year amounted to £202,176 (2023 - £101,088).
The Group has chosen, in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out within the Group's Strategic Report, the Group's Strategic Report Information as required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included within future developments.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
Under section 485 (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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRIDENT GARAGES LIMITED
We have audited the financial statements of Trident Garages Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, 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).
The Company has not accounted for the pension, assets, and liabilities of the defined benefit pension scheme in accordance with FRS 102 Section 28 Employee Benefits. The pension costs have instead been accounted for as a defined contribution scheme, with no pension asset or liability recognised. The financial statements also do not include the relevant disclosures required by FRS 102 for a defined benefit pension scheme. As explained in Note 19, the last draft actuarial valuation for the pension scheme was carried out on 5 April 2023 by a qualified independent actuary, who identified that the scheme had a net surplus of £122,000. This valuation was carried out for funding purposes rather than on the basis required by FRS 102. In the absence of an actuarial valuation at the year-end, we were unable to quantify the financial effect of the Company not accounting for the defined benefit pension scheme in accordance with FRS 102.
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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRIDENT GARAGES LIMITED (CONTINUED)
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.
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.
Except for the matter described in the basis for qualified opinion section of our report, in 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.
Arising solely from the limitation on the scope of our work relating to the defined benefit pension scheme, referred to above:
∙we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
∙we are unable to determine whether adequate accounting records have been kept.
We have nothing to report in respect of the following matter in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRIDENT GARAGES LIMITED (CONTINUED)
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 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 are 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 board minutes.
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's 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 that 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:
∙Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount;
∙Timing of revenue recognition; and
∙The use of management override of controls to manipulate results.
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 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRIDENT GARAGES LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
2nd Floor, Midas House
62 Goldsworth Road
Surrey
GU21 6LQ
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 28 form part of these financial statements.
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