REGISTERED NUMBER: 01403530 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 January 2025

for

RON PERRY & SON LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

Directors:

R C Perry

L A Perry

R D Perry

A M R Cowan

Secretary:

L A Perry

Registered office:

A19 Test and Tune

Elwick

Hartlepool

Cleveland

TS27 3HH

Registered number:

01403530 (England and Wales)

Senior statutory auditor:

Simon Davies MMath FCA

Auditors:

Mitchell Gordon LLP

Accountants and Statutory Auditor

43 Coniscliffe Road

Darlington

Co. Durham

DL3 7EH

The directors present their strategic report for the year ended 31 January 2025.

Review of business

31/1/25

31/1/24

Movement%

Turnover £'000

12,411

12,442

-0.3%

Gross profit £'000

2,064

1,962

5.2%

Gross profit margin %

16.6

15.8

5.1%

The year 2024-2025 has been a pivotal period for our company, marked by significant advancements in security, infrastructure, and retail trends as well as significant steps undertaken to apply for planning permission for the future development of the sites. This report outlines the strategic measures implemented and their impact on our operations.

Fuel sales remained steady in this financial year, with fluctuations in margin at times, but an overall stability over this period. Despite these occasional fluctuations in margins due to varying factors, such as global oil prices and local economic conditions, the demand for fuel has remained constant. This consistency is largely attributed to the steady growth in vehicular usage and the volume demand from the transport and logistics industries. Our strategic initiatives to maintain and enhance our fuel sales have further contributed to this stability, ensuring that we can meet the needs of our customers effectively and efficiently.

In March 2024 we were awarded a grant by the Department For Transport for our prospective HGV Parking development, of 70 secure overnight spaces on South and 30 secure overnight spaces on North. Planning permission has been a long drawn out process. This government initiative aims to enhance the quality and availability of parking facilities for heavy goods vehicles, addressing the critical need for safe and secure parking spaces. By securing this grant, we hope to provide better amenities for drivers, including rest areas and essential services, thereby improving their welfare and supporting the overall transport and logistics network of the UK.

The hot food to go sales maintained steady progress, with further range diversification throughout the year into jalapeno poppers, chicken nuggets and a new style of chicken burger to go alongside our customer favourites of bacon sandwiches, pizzas, Rollover hot dogs and Rollover burgers.

In May 2024, we re-signed a new Retail Motor Fuel agreement with Shell and in the process renegotiated fuel credit terms from 14 days to 21 days which has had a positive effect on cash flow enabling greater flexibility in managing our financial resources.

In July 2024, we launched an Automatic Number Plate Recognition (ANPR) system by VARS systems to tackle the persistent and long standing issue of drive-offs. This technology allows us to monitor and record vehicle number plates, enhancing our ability to prevent and respond to incidents effectively. This has been particularly effective in terms of drive offs and recovering debt from no means of payment.

The summer of 2024 saw an alarming increase in shoplifting incidents. Shoplifting has become an increasingly pressing issue in the UK, affecting both large retailers and small businesses alike. In recent years, the trend has shown a significant rise, with various factors contributing to this surge. Economic pressures, social dynamics, and the evolution of retail environments have all played a role in the growing prevalence of shoplifting incidents across the country.

In response, we undertook a comprehensive overhaul of our security measures:

- CCTV Revamp: After lengthy deliberations and evaluating prospective CCTV systems, in November 2024, we upgraded our CCTV systems with modern surveillance capabilities. We chose AD systems, a partner Company to the VARS ANPR system to implement this and the upgrade in CCTV has significantly improved our ability to monitor and deter shoplifters, drive offs, no means of payment and other such incidents. Customer facing screens with a live feed are on display at both sites with the aim of deterring criminality.

- Facial Recognition Technology: After being impressed with an initial trial period, implemented in December 2024, this technology targets repeat offenders. By identifying known shoplifters, we can take pre-emptive actions to prevent theft.

Recognizing the dynamic nature of retail trends, we updated our T media platforms to align with current market demands. This update ensures that our marketing and promotional strategies remain relevant and effective, driving customer engagement and sales. In terms of media, the large format 4k screens installed in the previous year are still eye catching and are utilised to showcase products and offers.

In this financial year, to Southbound we added further digital signage to the chilled drinks, an ongoing project throughout the year to have a dedicated media screen above all 11 dual-opening fridges and the media screen above each fridge advertising and promoting the products within along with limited time promotional offers on display. The visual impact of the chilled drinks screens is extremely impressive and also helps to promote and encourage retail sales.

Alongside the media screen revamp, to further modernise and improve the efficiency of the sites, we installed modern LED frame panel lighting to Northbound and Southbound to not only further the visual aesthetics but also increase the energy efficiency of the lights. To complement the new frame lighting we also changed the white ceiling panels to a more modern looking black matte effect ceiling panels on Northbound and Southbound which makes the frame lighting stand out in an impressive visual effect. We also now have stickers on the fridges North and South illustrating our energy efficiency.

On the back of these updates to the sites, we were extremely proud to have been nominated for 5 awards at the Forecourt Trader Awards in October 2024, including:

- Northbound for Best Car Care and Lubricants outlet.

- Northbound for Best Drinks and Coffee outlet.

- Southbound for Best Drinks and Coffee outlet.

- Southbound for Best Forecourt Innovation.

- Southbound for Best Food to Go outlet.

This financial year saw the introduction of vape stands on our shop floor as opposed to being behind the counter and has subsequently resulted in an impressive increase in customer led vape sales. The vape stands are eye catching and we added LED lighting to further increase visibility. However, this surge in sales has also been accompanied by an increase in shrinkage due to the position of the vapes stands on the customer facing shop floor. We are currently exploring strategies to mitigate this issue and ensure that our retail operations remain profitable and secure along with the transition to re-usable sustainable vape products that will be mandated in UK law.

In terms of staffing, the April 2024 minimum wage increase and its knock on effects required evaluation and required us to reassess our wage structure and retail pricing policy to ensure financial stability and maintain profit margins. Staff development and training has been an ongoing operational measure that has added to the overall company output and in December 2024 we created a new position for a new staff member in the cash office to aid with the administration of the sites. In December 2024 as a thank you to our staff we implemented a one off loyalty bonus with a bonus being paid dependent on length of service to demonstrate our appreciation, particularly for our long-term staff members.

The strategic measures undertaken in 2024-2025 have positioned our company for enhanced security, operational efficiency, and sustainable growth. By leveraging advanced technologies, updating our media strategies, and investing in staff development, we are well-equipped to navigate the challenges and opportunities of the future.

To build on the successes of this period, we recommend the following steps:

- Continued investment in advanced security technologies to further reduce incidents of theft and drive-offs.

- Regular updates to our retail media platforms to stay aligned with evolving market trends.

- Ongoing staff training programs to enhance skills and ensure a safe and productive work environment.

- Strengthening our partnerships with sustainable energy providers to promote eco-friendly infrastructure development.

- Implementing robust inventory management systems to address shrinkage and maintain profitability.

By adhering to these recommendations, we can continue to drive growth, innovation, and excellence in our operations.

Principal risks and uncertainties

After a period of research and given the decline of Red Diesel sales, the Company made the decision to convert the Red Diesel underground tanks on North and one of South's above ground Red Diesel tanks into the renewable diesel offering of HVO, an environmentally friendly "future-fuel" that is 96% less emissions than traditional diesel. The Company undertook a total clean out and complete rebrand of the old Red Diesel pumps to the new HVO offering and also featured memorable leaf-branding on the pumps and above ground tank to give pride of place at this exciting new fuel option. After a lengthy clean out and various software issues to programme the tills for HVO fuel, the Company was delighted to launch a renewable diesel offering in October 2024. Sales were relatively slow into Q4 of this financial year but the Company is optimistic for the future about HVO.

On behalf of the board:

R C Perry - Director

27 October 2025

The directors present their report with the financial statements of the company for the year ended 31 January 2025.

Principal activities

The principal activities of the company in the year under review were those of the operation of petrol stations and the provision of associated services; such as; convenience store, off licence and HGV facilities.

Dividends

An interim dividend of 1411.7647 per share was paid on 6 April 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 January 2025 will be £ 141,176 .

Future developments

In line with our future plans, we agreed a partnership deal in principle with an EV supplier in this financial year to further our ambition to deliver EV charging at our sites alongside our development plans of secure overnight HGV parking. We have also begun preliminary investigations into E-HGV viability and its place in the long term transport network relevant to our operations.

Directors

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

R C Perry

L A Perry

R D Perry

A M R Cowan

Statement of directors' responsibilities

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 then apply them consistently;

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

-	state whether applicable 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 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.

Statement as to disclosure of information to auditors

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

On behalf of the board:

R C Perry - Director

27 October 2025

Opinion

We have audited the financial statements of Ron Perry & Son Limited (the 'company') for the year ended 31 January 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 January 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 Auditors' 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 financial statements are authorised for issue.

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept, 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sectors in which the company operates;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection compliance, anti-bribery, employment, environmental and health and safety legislation;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

These procedures did not identify any potentially material actual or suspected non-compliance.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

reviewed material journal entries to identify unusual transactions or posting by unusual users;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims;

-

reviewing correspondence with HMRC and the company's legal advisors.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remains a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance of fraud and cannot be expected to detect non-compliance with all laws & regulations.

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

Use of our report

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

Simon Davies MMath FCA (Senior Statutory Auditor)

for and on behalf of Mitchell Gordon LLP

Accountants and Statutory Auditor

43 Coniscliffe Road

Darlington

Co. Durham

DL3 7EH

29 October 2025

Turnover

3

12,411,245

12,441,796

Cost of sales

10,347,343

10,480,038

Gross profit

2,063,902

1,961,758

Administrative expenses

1,500,669

1,492,414

563,233

469,344

Other operating income

222,681

262,090

Operating profit

5

785,914

731,434

Interest receivable and similar income

3,606

110

789,520

731,544

Interest payable and similar expenses

6

151,631

157,931

Profit before taxation

637,889

573,613

Tax on profit

7

165,022

132,970

Profit for the financial year

472,867

440,643

Other comprehensive income

Revaluation reserve

17,298

190,525

Equity distribution

(200,991

)

-

Income tax relating to components of other comprehensive income

-

-

Other comprehensive income for the year, net of income tax

(183,693

)

190,525

Total comprehensive income for the year

289,174

631,168

Fixed assets

Tangible assets

9

10,130,701

10,136,869

Investments

10

30,000

30,000

10,160,701

10,166,869

Current assets

Stocks

11

241,390

335,360

Debtors

12

1,211,775

1,212,308

Cash at bank and in hand

368,279

167,836

1,821,444

1,715,504

Creditors

Amounts falling due within one year

13

1,457,136

1,223,760

Net current assets

364,308

491,744

Total assets less current liabilities

10,525,009

10,658,613

Creditors

Amounts falling due after more than one year

14

(1,842,343

)

(2,092,764

)

Provisions for liabilities

18

(1,683,631

)

(1,714,812

)

Net assets

6,999,035

6,851,037

Capital and reserves

Called up share capital

19

100

100

Revaluation reserve

20

5,282,871

5,265,573

Retained earnings

20

1,716,064

1,585,364

Shareholders' funds

6,999,035

6,851,037

The financial statements were approved by the Board of Directors and authorised for issue on 27 October 2025 and were signed on its behalf by:

R C Perry - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 February 2023

100

1,294,721

5,075,048

6,369,869

Changes in equity

Dividends

-

(150,000

)

-

(150,000

)

Total comprehensive income

-

440,643

190,525

631,168

Balance at 31 January 2024

100

1,585,364

5,265,573

6,851,037

Changes in equity

Dividends

-

(141,176

)

-

(141,176

)

Total comprehensive income

-

271,876

17,298

289,174

Balance at 31 January 2025

100

1,716,064

5,282,871

6,999,035

Cash flows from operating activities

Cash generated from operations

1

1,088,958

668,266

Interest paid

(122,407

)

(123,658

)

Interest element of hire purchase payments paid

(29,150

)

(34,273

)

Tax paid

(120,838

)

-

Net cash from operating activities

816,563

510,335

Cash flows from investing activities

Purchase of tangible fixed assets

(99,565

)

(214,901

)

Sale of tangible fixed assets

-

19,000

Interest received

3,606

110

Net cash from investing activities

(95,959

)

(195,791

)

Cash flows from financing activities

Loan repayments in year

(124,303

)

(118,780

)

Movement on associated company balance

22,441

66,956

Capital repayments in year

(98,642

)

(119,197

)

Amount withdrawn by directors

(178,481

)

(454

)

Equity dividends paid

(141,176

)

(150,000

)

Net cash from financing activities

(520,161

)

(321,475

)

Increase/(decrease) in cash and cash equivalents

200,443

(6,931

)

Cash and cash equivalents at beginning of year

2

167,836

174,767

Cash and cash equivalents at end of year

2

368,279

167,836

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31/1/25

31/1/24

£

£

Profit before taxation

637,889

573,613

Depreciation charges

145,438

161,762

Loss on disposal of fixed assets

-

87,535

Finance costs

151,631

157,931

Finance income

(3,606

)

(110

)

931,352

980,731

Decrease/(increase) in stocks

93,970

(87,646

)

Increase in trade and other debtors

(45,261

)

(41,748

)

Increase/(decrease) in trade and other creditors

108,897

(183,071

)

Cash generated from operations

1,088,958

668,266

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 January 2025

31/1/25

1/2/24

£

£

Cash and cash equivalents

368,279

167,836

Year ended 31 January 2024

31/1/24

1/2/23

£

£

Cash and cash equivalents

167,836

174,767

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1/2/24

Cash flow

changes

At 31/1/25

£

£

£

£

Net cash

Cash at bank

and in hand

167,836

200,443

368,279

167,836

200,443

368,279

Debt

Finance leases

(321,370

)

98,642

(39,705

)

(262,433

)

Debts falling due

within 1 year

(124,312

)

(66,884

)

-

(191,196

)

Debts falling due

after 1 year

(1,870,840

)

191,187

-

(1,679,653

)

(2,316,522

)

222,945

(39,705

)

(2,133,282

)

Total

(2,148,686

)

423,388

(39,705

)

(1,765,003

)

1.	STATUTORY INFORMATION

Ron Perry & Son Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements have been prepared on a going concern basis and in accordance with applicable Accounting Standards, as the directors have a reasonable expectation that the company will remain in business for the foreseeable future.

Critical accounting judgements 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.

Land and buildings are stated at fair value based on the valuation performed by an independent professional valuer Colliers with recent experience in the location and category of property valued. The valuer used observable market prices adjusted as necessary for any difference in the future, location or condition of the specific asset. However, the rise in interest rates and inflation has caused significant disruption and uncertainty in the UK property market which has inevitably increased the degree of judgement involved in the property valuation.

Turnover

Turnover represents the value of goods sold during the year, excluding value added tax.

Turnover from the sale of fuel and dry goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on the dispensing of the fuel for wet stock and the point of payment for dry goods.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

33% on cost, 20% on cost, 20% on reducing balance, 10% on cost and Straight line over 20 years

Motor vehicles

-

25% on reducing balance

Freehold property is held under the revaluation model. The revalued amounts equate to the fair value at the date of the valuation. Revaluations are carried out regularly so that the carrying amounts do not materially differ from using the fair value at the date of the balance sheet. Any fair value adjustments are credited/debited to the revaluation reserve. No depreciation is therefore charged on freehold property,

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measure at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit and loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.