REGISTERED NUMBER: 10399563 (England and Wales)

STRATEGIC REPORT, DIRECTOR'S REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST OCTOBER 2024

FOR

REGULUX TRANSPORT LTD

Page

Company Information

1

Strategic Report

2

Director's Report

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

17

DIRECTOR:

Mr A Ahmed

SECRETARY:

Mr A Ahmed

REGISTERED OFFICE:

Fulshawhead Farm

Pasture Lane

Nelson

BB9 6RA

REGISTERED NUMBER:

10399563 (England and Wales)

INDEPENDENT AUDITORS:

Watergates Ltd (Statutory Auditor)

109 Coleman Road

Leicester

Leicestershire

LE5 4LE

The director presents his strategic report for the year ended 31st October 2024.

REVIEW OF BUSINESS

The director is pleased with the progress made this year. The Company turnover during the year remained stable, with a slight decrease to £15.1m (2023: £15.9m), with gross profit decreasing to £4.4m (2023: £4.6m) and profit before tax decreasing to £0.8m (2023: £1.2m). The gross profit margin was 29.2% (2023: 29.2%).

The business continues to invest heavily in its vehicle fleet and is building a good reputation in the marketplace.

The director is committed to continual investment in future years to increase the Company's capacity to continue to deliver a high level of service to customers. The director is focusing on working in partnership with both its suppliers and customers, to develop relationships in order to achieve the highest customer satisfaction. The director believes that the continued commitment to invest in improving its service and to further understand customer's requirements will enable the Company to exceed customers' expectations and further grow and develop the business over the coming years.

PRINCIPAL RISKS AND UNCERTAINTIES

The director considers the key risks to the business through a framework of policies, procedures and internal controls. All policies are subject to board approval and ongoing review by management. Compliance with regulations, legal and ethical standards is a high priority for the Company and the finance department takes on an important oversight role in this regard, to ensure that a proper internal control framework exists to manage financial risks and that the controls operate effectively.

The key risk to the business centres around the deliverance of the contract with Amazon which accounts for majority of the turnover and profitability of the business. This risk is managed where possible through services provided in a professional and efficient manner and meet customer satisfaction standards.

The Company also manages the risks by providing added value services to its customers through fast response times, high quality service and products and maintaining strong customer relationships.

Interest rate risk

The Company finances its operations through retained profit and external financing. Management periodically reviews its funding structures to ensure an optimal structure is in place, bearing in mind the commercial needs of the wider company and relevant legislation.

Liquidity risk

The Company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Health and Safety

The Company endeavours to deliver its services with the highest regard to principles of health and safety, with the overall aim of promoting a safety culture that is based on communication throughout all levels of the organisation.

The Environment

The Company recognised the importance of minimising the impact on the environment and is committed to the identification of environmental aspects of its activities and services and minimising the environmental impact to its customers.

Human Resources

The Company's employees and sub-contractors are its most important resource. It is essential to the future success of the business that a skilled and motivated workforce and service providers are retained.

FINANCIAL KEY PERFORMANCE INDICATORS

Given the nature of the business, the director had determined certain key performance indicators to help them to both understand and manage the growing customer base. These are monitored closely on at least a monthly basis and the Company will continue to monitor those measures that are key to ensuring that the Company remains profitable. The KPI's are regularly circulated to the key management team to ensure full visibility by those helping to drive the business forward.

Turnover and gross profit are seen as key performance indicators, as margins for these businesses need to be healthy due to significant costs and overheads. These have been disclosed above.

FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES

The director ensures wherever possible that the business objectives are aligned with risk management. The director is responsible for maintaining sound systems of internal control that provide reasonable assurance that the Company will not be hindered in achieving its business objectives by circumstances that are not foreseen.

No major risks have been identified other than those relating to the uncertainties and challenges set out above. In this respect, the director has built up a strong team of staff with whom they work closely on a regular basis to ensure these risks are mitigated effectively.

FUTURE DEVELOPMENTS

Management will continue to seek opportunities to maximise turnover and profitability.

ON BEHALF OF THE BOARD:

Mr A Ahmed - Director

31st October 2025

The director presents his report with the financial statements of the Company for the year ended 31st October 2024.

PRINCIPAL ACTIVITY

The principal activity of the Company in the year under review was that of transportation activities.

DIVIDENDS

No interim dividend was paid during the year. The director recommends a final dividend of £5,000 per share.

The total distribution of dividends for the year ended 31st October 2024 will be £ 5,000 .

FUTURE DEVELOPMENTS

The Company will continue to seek opportunities to maximise turnover and profitability.

DIRECTOR

Mr A Ahmed held office during the whole of the period from 1st November 2023 to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

Donations during the year related to charitable donations only.

GOING CONCERN

The director continues to adopt the going concern basis in preparing the financial statements. His assessment of going concern is presented in note 2.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

The auditors, Watergates Ltd (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr A Ahmed - Director

31st October 2025

Qualified opinion

We have audited the financial statements of Regulux Transport Ltd (the 'Company') for the year ended 31st October 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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, except for the effects of the matter described in the Basis for qualified opinion section, the financial statements:

- give a true and fair view of the state of the Company's affairs as at 31st October 2024 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 qualified opinion

As this is the first year the entity requires an audit and therefore no audit was performed in prior year, we have not been able to satisfy ourselves by alternative means on the opening or comparative balances. As a result of these matters, we were unable to determine whether any adjustments might have been found necessary in respect of recorded or unrecorded inventories and opening balances, and the elements making up the statement of comprehensive income, statement of changes in equity and statement of cash flows and strategic report.

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 qualified opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Director's Report, 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

Except for the matters described in the Basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

- the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Except for the matters described in the Basis for qualified opinion section of our report, 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 Director's Report.

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of director's remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or has 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:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from external tax advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to employment regulations. We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these laws and regulations and inspected correspondence with regulatory authorities as appropriate.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

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.

Nazir Malida FCCA (Senior Statutory Auditor)

for and on behalf of Watergates Ltd (Statutory Auditor)

109 Coleman Road

Leicester

Leicestershire

LE5 4LE

31st October 2025

TURNOVER

4

15,056,878

15,930,100

Cost of sales

(10,689,914

)

(11,280,755

)

GROSS PROFIT

4,366,964

4,649,345

Distribution costs

(1,798,262

)

(1,774,740

)

Administrative expenses

(1,594,671

)

(1,673,632

)

974,031

1,200,973

Other operating income

182,675

188,737

OPERATING PROFIT

6

1,156,706

1,389,710

Interest payable and similar expenses

7

(319,330

)

(202,231

)

PROFIT BEFORE TAXATION

837,376

1,187,479

Tax on profit

8

175,216

(332,805

)

PROFIT FOR THE FINANCIAL YEAR

1,012,592

854,674

PROFIT FOR THE YEAR

1,012,592

854,674

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,012,592

854,674

FIXED ASSETS

Tangible assets

10

3,719,646

3,510,366

CURRENT ASSETS

Stocks

11

976,500

799,167

Debtors

12

2,529,053

463,531

Cash at bank and in hand

1,255,329

3,093,816

4,760,882

4,356,514

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

13

(2,581,590

)

(1,993,715

)

NET CURRENT ASSETS

2,179,292

2,362,799

TOTAL ASSETS LESS CURRENT LIABILITIES

5,898,938

5,873,165

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

14

(1,649,775

)

(2,450,230

)

PROVISIONS FOR LIABILITIES

17

(640,648

)

(822,012

)

NET ASSETS

3,608,515

2,600,923

CAPITAL AND RESERVES

Called up share capital

18

1

1

Retained earnings

19

3,608,514

2,600,922

SHAREHOLDERS' FUNDS

3,608,515

2,600,923

The financial statements were approved by the director and authorised for issue on 31st October 2025 and were signed by:

Mr A Ahmed - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st November 2022

1

1,751,248

1,751,249

Changes in equity

Dividends

-

(5,000

)

(5,000

)

Total comprehensive income

-

854,674

854,674

Balance at 31st October 2023

1

2,600,922

2,600,923

Changes in equity

Dividends

-

(5,000

)

(5,000

)

Total comprehensive income

-

1,012,592

1,012,592

Balance at 31st October 2024

1

3,608,514

3,608,515

Cash flows from operating activities

Cash generated from operations

1

431,222

1,527,303

Interest element of hire purchase payments paid

(319,330

)

(202,231

)

Tax paid

(12

)

-

Net cash from operating activities

111,880

1,325,072

Cash flows from investing activities

Purchase of tangible fixed assets

(2,309,098

)

(2,187,384

)

Sale of tangible fixed assets

1,055,997

662,509

Net cash from investing activities

(1,253,101

)

(1,524,875

)

Cash flows from financing activities

Capital repayments in year

(693,592

)

1,678,712

Amount introduced by directors

-

17,563

Equity dividends paid

(5,000

)

(5,000

)

Net cash from financing activities

(698,592

)

1,691,275

(Decrease)/increase in cash and cash equivalents

(1,839,813

)

1,491,472

Cash and cash equivalents at beginning of year

2

3,085,080

1,593,608

Cash and cash equivalents at end of year

2

1,245,267

3,085,080

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

31/10/24

31/10/23

£

£

Profit before taxation

837,376

1,187,479

Depreciation charges

1,259,794

1,129,140

Profit on disposal of fixed assets

(215,973

)

(135,915

)

Finance costs

319,330

202,231

2,200,527

2,382,935

Increase in stocks

(177,333

)

(594,668

)

(Increase)/decrease in trade and other debtors

(2,065,522

)

410,284

Increase/(decrease) in trade and other creditors

473,550

(671,248

)

Cash generated from operations

431,222

1,527,303

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31st October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

1,255,329

3,093,816

Bank overdrafts

(10,062

)

(8,736

)

1,245,267

3,085,080

Year ended 31st October 2023

31.10.23

1.11.22

£

£

Cash and cash equivalents

3,093,816

1,593,608

Bank overdrafts

(8,736

)

-

3,085,080

1,593,608

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.11.23

Cash flow

At 31.10.24

£

£

£

Net cash

Cash at bank and in hand

3,093,816

(1,838,487

)

1,255,329

Bank overdrafts

(8,736

)

(1,326

)

(10,062

)

3,085,080

(1,839,813

)

1,245,267

Debt

Finance leases

(3,593,897

)

693,592

(2,900,305

)

(3,593,897

)

693,592

(2,900,305

)

Total

(508,817

)

(1,146,221

)

(1,655,038

)

1.	STATUTORY INFORMATION

Regulux Transport Ltd 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.

GOING CONCERN

The Company uses liquid resources and working capital balances that arise directly from its operations. The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Liquidity is monitored regularly by reference to forecasts and available facilities. The business has continued to fulfil significant order delivery commitments, confirm and progress negotiations on new orders for delivery in the next 12 months and secure payments, for prior and future deliveries.

The business is financed through cash generated from operating activities as well as loans. Cash at bank at the year end was £1.3m (2023: £3.1m) at 31 October 2024. Furthermore, turnover and profitability levels have been maintained during the year as highlighted in the strategic report.

The directors have reviewed future projections, including preparing cash flow forecasts, which they feel adequately reflect the current uncertain economic environment. After considering all relevant uncertainties, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

TURNOVER

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents transportation, delivery and logistics activities, and is recognised at the point of delivery of service.

Contracted delivery services: Revenue is recognised when the delivery service has been completed in accordance with the contract, the customer has accepted the delivery, and the significant risks and rewards of the transaction have been transferred to the customer.

Advance payments or deferred contracts: Any amounts invoiced or received in advance of performance are recorded as deferred income and recognised as revenue when the service obligation has been fulfilled.

Other miscellaneous income: Income from ancillary services (for example loading/unloading, locker fees, or storage associated with delivery) is recognised when the service is provided.

Turnover from the ad-hoc sale of prestige cars for trade purposes is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer (usually on dispatch of the goods);

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

TANGIBLE FIXED ASSETS

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment

losses. Such cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual

value of each asset over its estimated useful life:

Fixtures and fittings - 10% straight line

Motor vehicles - 20% straight line

Computer equipment - 25% straight line

Short leasehold consists of land only and therefore no depreciation has been applied.

The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.

IMPAIRMENT OF ASSETS

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

STOCKS

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

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

and slow moving items.

Cost comprises the purchase cost and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each balance sheet 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.

DEBTORS

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

CREDITORS

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instruments 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 non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured:

- at fair value with changes recognised in the Income Statement if the shares are publicly traded or their fair value can otherwise be measured reliably;

- at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the Balance Sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

FOREIGN CURRENCIES

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.

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 the Income Statement 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 Income Statement within 'finance income or costs'.

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.

HIRE PURCHASE AND LEASING COMMITMENTS

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the Company recognises annual rent expense equal to amounts owed to the lessor.

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 lease are depreciated over their estimate 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.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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.

Critical judgements in applying the Company's accounting policies

The directors conclude that there are no critical judgements in applying the Company's accounting policies.

Key source of estimation uncertainty

Depreciation rates are based on estimates of the useful lives and residual values of the assets involved.

Determining whether stock values are recoverable requires estimations based on up to date trading information. The directors use their knowledge of the business, the trading environment and future projections to assess whether provision is necessary in these areas. When calculating the stock provision, management considers the anticipated saleability of the stock including current trends and popularity of the prestige cars.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the Company.

An analysis of turnover by geographical market is given below:

31/10/24

31/10/23

£

£

United Kingdom

15,056,878

15,930,100

15,056,878

15,930,100

5.	EMPLOYEES AND DIRECTORS

31/10/24

31/10/23

£

£

Wages and salaries

41,641

31,000

Social security costs

-

2,814

Other pension costs

861

683

42,502

34,497