Rallysport Automotive Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Rallysport Automotive Limited is a private company, limited by shares, incorporated in England & Wales, registered number 09874280 . The registered office is Commerce Way, Colchester, Essex, CO2 8HR.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.3. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	15% reducing balance basis
Motor Vehicles	15% reducing balance basis
Fixtures & Fittings	15% reducing balance basis
Computer Equipment	15% reducing balance basis

2.4. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.5. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.6. 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.

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 profit or loss.

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.

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Rallysport Automotive Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.7. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 7 (2024: 6)

4. Tangible Assets

	Plant & Machinery etc.
	£
Cost
As at 1 April 2024	115,328
Additions	30,179
Disposals	(697 )

As at 31 March 2025	144,810

Depreciation
As at 1 April 2024	62,299
Provided during the period	13,106
Disposals	(309 )

As at 31 March 2025	75,096

Net Book Value
As at 31 March 2025	69,714

As at 1 April 2024	53,029

5. Stocks

	2025	2024
	£	£
Materials	900,000	664,275

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Rallysport Automotive Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

6. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	6,375	14,210

7. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	-	2,020
Trade creditors	74,877	-
Bank loans and overdrafts	57,922	29,612
Other creditors	313,474	412,424
Taxation and social security	81,548	56,488

	527,821	500,544

8. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	-	505
Bank loans	162,251	41,778

	162,251	42,283

9. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	-	2,020
Later than one year and not later than five years	-	505

	-	2,525

	-	2,525

10. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	10	10

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Rallysport Automotive Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

11. Related Party Transactions

NGL Properties Limited

Connected company

As at the balance sheet date, £7,000 was owed to the connected company (2024 £7,000 was owed to the connected company)

NGL1 Limited

Connected company

As at the balance sheet date, £18,000 was owed to the connected company (2024 £18,000 was owed to the connected company)

Rallysport Engineering Academy CIC

Connected company

As at the balance sheet date, £100,257 was owed to the connected company (2024 £140,650 was owed to the connected company)

Rallysport Automotive SC Limited

Connected company

As at the balance sheet date, £31,939 was owed to the connected company (2024 £114,204 was owed to the connected company)

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		69,714		53,029

			69,714		53,029
CURRENT ASSETS
Stocks	5	900,000		664,275
Debtors	6	6,375		14,210
Cash at bank and in hand		86,932		74,812

		993,307		753,297
Creditors: Amounts Falling Due Within One Year	7	(527,821 )		(500,544 )

NET CURRENT ASSETS (LIABILITIES)			465,486		252,753

TOTAL ASSETS LESS CURRENT LIABILITIES			535,200		305,782

Creditors: Amounts Falling Due After More Than One Year	8		(162,251 )		(42,283 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(17,429 )		(11,481 )

NET ASSETS			355,520		252,018

CAPITAL AND RESERVES
Called up share capital	10		10		10
Profit and Loss Account			355,510		252,008

SHAREHOLDERS' FUNDS			355,520		252,018