SERE LIMITED Company accounts

COMPANY REGISTRATION NUMBER: NI032529

SERE LIMITED

Financial Statements

30 December 2024

SERE LIMITED

Financial Statements

Year ended 30 December 2024

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	6

Independent auditor's report to the members	9

Statement of income and retained earnings	14

Statement of financial position	15

Notes to the financial statements	16

SERE LIMITED

Officers and Professional Advisers

The board of directors	Ms D McClinton
	Mr P Kearney
	Mr S Edgar
	Mr W McNally

Registered office	7-13 Boucher Road
	Belfast
	Co. Antrim
	BT12 6HR

Auditor	Maneely Mc Cann Chartered Accountants
	Chartered accountants & statutory auditor
	Aisling House
	50 Stranmillis Embankment
	Belfast
	BT9 5FL

Bankers	HSBC (Belfast Adelaide)
	Harvester House 2nd Floor
	4-8 Adelaide Street
	Belfast
	BT2 8GA

Solicitors	Millar McCall Wylie
	396 Upper Newtownards Road
	Belfast
	BT4 3EY

SERE LIMITED

Strategic Report

Year ended 30 December 2024

Principal activities The principal activity of the company during the year continues to be the retail of new and used motor vehicles, servicing and bodyshop services. Business review and future developments The directors consider the results for the financial year and the position of the Company at the financial year end to be satisfactory. The directors are committed to the long term creation of shareholder value by increasing the Company's market share through organic growth. While the incoming year is likely to be very challenging both because of the increase competition and the general economic climate, early results are satisfactory and the directors will closely monitor current performance. Performance and position The profit for the financial year amounted to £563,877 (2023: £303,277) and its net assets are £7,624,514 (2023: £7,060,637). Key performance indicators ("KPIs") The Company's key performance indicators are as follows:

Future developments

Environment The Company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible. Health and safety The Company is committed to achieving the highest practicable standards in health and safety management and strives to make all sites and offices safe environments for employees and customers alike. Human resources The Company's most important resource is its people; their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical and the Company has invested increasingly in employment training and development and has introduced appropriate incentive and career progression arrangements.

Principal risks and uncertainties The management of the business and the execution of the Company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the Company are considered to relate to the current economic environment, competition from other car dealerships, supplier stability, employee retention and franchise support. These risks are addressed through not being overly reliant on any one car manufacturer, strong customer service and after sales support as well as investment in its people and facilities. Financial risk management The Company's operations expose it to a variety of financial risks that include price risk, credit risk, liquidity risk and interest rate risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company by monitoring levels of debt finance and the related finance costs. Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a subcommittee of the board. The policies set by the board of directors are implemented by the Company's finance department. Price risk The Company is exposed to price risk as a result of its operations, primarily relating to fuel prices. However, given the size of the Company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the Company's operations change in size or nature. The Company has no exposure to equity securities price risks as it holds no listed or other equity investments. Credit risk The Company has implemented policies that require appropriate credit checks on potential customers before sales are made and services are provided. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. Liquidity risk The Company actively maintains a mixture of short to medium term debt finance that is designed to ensure the Company has sufficient available funds for the operation and planned expansions. Interest rate risk The Company has interest bearing liabilities at variable rates. The Company constantly reviews the current and expected future interest rates to ensure certainty of future interest cash flows.

Statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006 Corporate governance within the Company provides a framework to not only demonstrate how the Board makes decisions for the long term success of the Company and its stakeholders but also has regard to how the Board ensures the Company complies with the requirements of Section 172 of the Companies Act 2006. The directors has carefully considered their duties under Section 172 reporting. Long term consequences of business decisions The Company operates in accordance with the strategic plan and direction set out by the Board which is designed to have a long-term beneficial impact on the Company and to contribute to its success in delivering a high quality of service. The Board remains mindful that its strategic decisions can have long term implications for the business and its stakeholders, and these implications are carefully assessed. Interests' of the Company's employees The Company recognises that a constant workforce is critical to the future of the business and strives to create an environment where its employees can thrive personally and professionally. Long term success depends upon the recruitment, development, well-being and retention of high quality people that share the right core values and culture. Integral to this approach is communication. The Company adopts various methods of engagement with its employees. Staff surveys and feedback are undertaken and encouraged, and comprehensive training is given where appropriate to all employees relevant to functional and compliance matters. Fostering the Company's business relationship with customers, suppliers and others It is of key importance to the Company to maintain a reputation of supplying high quality vehicles and services to our customers. To ensure the continuation of high quality services in 2024 there has been a significant investment in training in all departments, and in addition, the Company continues to believe that having an established apprentice programme is essential for long term success. The Company also recognises the other main stakeholder companies, the suppliers and external lenders. The Board believe it is essential that good relations are maintained with both and so regular meetings and social gatherings throughout the year take place, along with constant communication. Impact of the Company's operations on the community and environment The Company has goals and initiatives with regard to reducing adverse impacts on the environment and supporting the local communities. The Board intends to give further consideration to the Company's approach to climate change and further measures we can take to contribute to the reduction of our impact on the environment. The Company believes it is essential to maintain good relations with local communities and an example of this is the continued sponsorship of local sporting groups and activities. Desirability of the Company maintaining a reputation for high standards of business conduct The Board are committed to maintaining high standards of behaviour, integrity, and conduct whether dealing with employees, customers, suppliers or other stakeholders. It is the intention of the Board to ensure all employees behave in a responsible manner and uphold high standards of business conduct and good governance. The need to act fairly between members of the Company The Board are committed to ensuring that the interests of all members of the Company are respected. The Company has just one class of share in issue and so all shareholders benefit from the same rights, as set out in the Company's Articles of Association and the Companies Act 2006. All shareholders hold regular meetings throughout the year.

This report was approved by the board of directors on 30 September 2025 and signed on behalf of the board by:

Mr S Edgar

Director

Registered office:

7-13 Boucher Road

Belfast

Co. Antrim

BT12 6HR

SERE LIMITED

Directors' Report

Year ended 30 December 2024

The directors present their report and the financial statements of the company for the year ended 30 December 2024 .

Directors

The directors who served the company during the year were as follows:

Mr P Kearney
Mr S Edgar
Mr W McNally

Dividends

The profit for the financial year amounted to £563,877 (2023: £303,277). There was no interim dividend paid during the year (2023: £nil). The directors do not propose a payment of a final dividend for the financial year (2023: £nil).

Future developments

The Directors are pleased to report a solid financial performance for the financial year ending December 2024. Turnover for the period increased by 13% to £63,025,685 (2023: £55,686,885). The demand for vehicles, parts and services sales drove the increase in turnover alongside price inflation.

The Company's operational performance was strong during the period. The Company maintained a high level of sales of used cars, while strengthening its sales of new vehicles. The company also made significant progress in improving its operational efficiency, improving vehicle and parts stock turn.

The Directors are confident that the Company is well-positioned for future growth. The Company has a strong track record, a committed workforce and a loyal customer base. The Company is also well-capitalised to support its growth plans.

The Directors believe that the Company is well-positioned to continue to grow and deliver value to its shareholders in the years to come.

Financial risk management

The section on financial risk management which is detailed in the Strategic Report is included in this report by cross reference.

Going Concern

The Company meets its day to day working capital requirements through its banking facilities. The existing facilities were renewed in January 2024. Included within the Company's facilities is an overdraft facility with a limit of £1,000,000. As at 31 December 2024 £102,826 (2023: £934,511) of the overdraft facility had been utilised. The Directors are confident based on their current trading performance, management budgets and on-going discussions with the facility provider, that this facility will be be renewed on an ongoing basis.

In assessing the going concern ability of the Company, management have prepared cash flow forecasts which extend for a period of time not less than 12 months from the date that these financial statements have been approved. In preparing these forecasts, management has given due consideration to the future trading outlook of the Company and wider sector and included severe but plausible downside scenarios to stress test the cash flow forecasts.

As a result the Directors are confident that the Company has adequate resources to continue in operation existence for a period of at least 12 months from the date of signing these financial statements and accordingly, the Directors continue to adopt the going concern basis in preparing the Annual report and financial statements.

Directors' Indemnities

As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The Company also purchased and maintained throughout the financial year directors' and officers' liability insurance in respect of itself and its directors.

Greenhouse gas emissions and energy consumption

Information not included

The Statement of Greenhouse Gas (GHG) Emissions for UK offices are included in the Directors' Report in the consolidated financial statements of S.E.R.E. Holdings Ltd, the ultimate parent, which does not form part of this report.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 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 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 30 September 2025 and signed on behalf of the board by:

Mr S Edgar

Director

Registered office:

7-13 Boucher Road

Belfast

Co. Antrim

BT12 6HR

SERE LIMITED

Independent Auditor's Report to the Members of SERE LIMITED

Year ended 30 December 2024

Opinion

We have audited the financial statements of SERE LIMITED (the 'company') for the year ended 30 December 2024 which comprise the statement of income and retained earnings, statement of financial position 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 FRS 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 30 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; - results of our enquiries of management about their own identification and assessment of the risks of irregularities; - any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; - the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and Taxation Legislation. Audit response to risks identified Our procedures to respond to risks identified included the following: - reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - enquiring of management and external legal counsel concerning actual and potential litigation and claims; - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; - reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and - in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making new accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

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

Cathal Maneely

(Senior Statutory Auditor)

For and on behalf of

Maneely Mc Cann Chartered Accountants

Chartered accountants & statutory auditor

Aisling House

50 Stranmillis Embankment

Belfast

BT9 5FL

30 September 2025

SERE LIMITED

Statement of Income and Retained Earnings

Year ended 30 December 2024

		2024	2023
Note		£	£
Turnover	4	63,025,685	55,686,885

Cost of sales	55,868,196	49,749,089
	-------------	-------------
Gross profit	7,157,489	5,937,796

Administrative expenses		6,003,736	4,932,536
Other operating income	5	822,956	487,800
		------------	------------
Operating profit	6	1,976,709	1,493,060

Interest payable and similar expenses	10	1,017,102	962,099
		------------	------------
Profit before taxation		959,607	530,961

Tax on profit	11	395,730	227,684
		---------	---------
Profit for the financial year and total comprehensive income		563,877	303,277
		---------	---------

Retained earnings at the start of the year	4,054,987	3,751,710
	------------	------------
Retained earnings at the end of the year	4,618,864	4,054,987
	------------	------------

All the activities of the company are from continuing operations.

SERE LIMITED

Statement of Financial Position

30 December 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	12	17,005,853	16,629,145

Current assets

Stocks	13	9,246,024	9,497,708
Debtors	14	3,643,717	3,168,768
Cash at bank and in hand		2,776	6,074
		-------------	-------------
		12,892,517	12,672,550

Creditors: amounts falling due within one year	15	14,386,153	15,355,614
		-------------	-------------
Net current liabilities		1,493,636	2,683,064
		-------------	-------------
Total assets less current liabilities		15,512,217	13,946,081

Creditors: amounts falling due after more than one year	16	6,544,962	5,938,433

Provisions	18	1,342,741	947,011
		-------------	-------------
Net assets		7,624,514	7,060,637
		-------------	-------------

Capital and reserves

Called up share capital	21	750,001	750,001
Revaluation reserve	22	2,255,649	2,255,649
Profit and loss account	22	4,618,864	4,054,987
		------------	------------
Shareholders funds		7,624,514	7,060,637
		------------	------------

These financial statements were approved by the board of directors and authorised for issue on 30 September 2025 , and are signed on behalf of the board by:

Mr S Edgar

Director

Company registration number: NI032529

SERE LIMITED

Notes to the Financial Statements

Year ended 30 December 2024

1. General information

The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is 7-13 Boucher Road, Belfast, BT12 6HR, Co. Antrim.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of S.E.R.E Holdings Ltd which can be obtained from the Company's registered address 7-13 Boucher Road, Belfast, Co. Antrim, Bt12 6HR. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Short leasehold property	-	10% straight line
Plant and machinery	-	25% straight line
Fixtures and fittings	-	20% - 33.33% straight line
Motor vehicles	-	25% straight line
Aircraft	-	4% - 10% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Sale of goods	57,856,265	51,629,514
Rendering of services	3,871,971	3,395,421
Aircraft and other vehicle rental	1,297,449	661,950
	-------------	-------------
	63,025,685	55,686,885
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

	2024	2023
	£	£
Management charges receivable	562,000	487,800
Other operating income	260,956	–
	---------	---------
	822,956	487,800
	---------	---------

6. Operating profit

Operating profit or loss is stated after charging/crediting:

	2024	2023
	£	£
Depreciation of tangible assets	665,987	492,419
Gains on disposal of tangible assets	( 13,302)	( 100,148)
Impairment of trade debtors	1,162	–
	---------	---------

In addition to the above, £209,509 (2023: £211,088) of depreciation is included within Motor Vehicle expenses.

7. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	26,000	39,000
	--------	--------

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	85	75
Administrative staff	19	17
	----	----
	104	92
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	3,367,291	2,758,159
Social security costs	334,685	268,264
Other pension costs	104,723	88,051
	------------	------------
	3,806,699	3,114,474
	------------	------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	98,250	96,300
Company contributions to defined contribution pension plans	3,085	3,015
	---------	--------
	101,335	99,315
	---------	--------

10. Interest payable and similar expenses

	2024	2023
	£	£
Interest on banks loans and overdrafts	64,027	87,953
Interest on obligations under finance leases and hire purchase contracts	414,783	190,117
Stocking charges	519,449	576,919
Other interest and similar charges	18,843	107,110
	------------	---------
	1,017,102	962,099
	------------	---------

11. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Deferred tax:

Origination and reversal of timing differences	395,730	227,684
	---------	---------
Tax on profit	395,730	227,684
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 23.50 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	959,607	530,961
	---------	---------
Profit on ordinary activities by rate of tax	239,902	124,776
Effect of expenses not deductible for tax purposes	( 42)	123
Effect of capital allowances and depreciation	( 290,688)	( 423,774)
Unused tax losses	50,828	298,875
Origination and reversal of timing differences	395,730	227,684
	---------	---------
Tax on profit	395,730	227,684
	---------	---------

12. Tangible assets

	At 1 January 2024	Additions	Disposals	At 30 December 2024
	£	£	£	£
Cost
Freehold property	6,236,131	–	( 860,174)	5,375,957
Short leasehold property	189,375	–	–	189,375
Plant and machinery	1,338,189	107,220	–	1,445,409
Fixtures and fittings	828,606	13,973	–	842,579
Motor vehicles	1,579,168	1,198,647	( 677,891)	2,099,924
Aircraft	9,294,448	1,332,293	–	10,626,741
	-------------	------------	------------	-------------
	19,465,917	2,652,133	( 1,538,065)	20,579,985
	-------------	------------	------------	-------------

	At 1 January 2024	Charge for the year	Disposals	At 30 December 2024
	£	£	£	£
Depreciation
Freehold property	–	–	–	–
Short leasehold property	189,375	–	–	189,375
Plant and machinery	990,795	108,041	–	1,098,836
Fixtures and fittings	672,347	50,139	–	722,486
Motor vehicles	543,189	274,786	( 138,136)	679,839
Aircraft	441,066	442,530	–	883,596
	-------------	------------	------------	------------
	2,836,772	875,496	( 138,136)	3,574,132
	-------------	------------	------------	------------

	At 30 December 2024	At 31 December 2023
	£	£
Carrying amount
Freehold property	5,375,957	6,236,131
Short leasehold property	–	–
Plant and machinery	346,573	347,394
Fixtures and fittings	120,093	156,259
Motor vehicles	1,420,085	1,035,979
Aircraft	9,743,145	8,853,382
	-------------	-------------
	17,005,853	16,629,145
	-------------	-------------

The net carrying amount of assets held under finance leases included in tangible assets is £10,509,786 (2023: £9,704,179). On 31 December 2020, the 4 plots of land and buildings were revalued by BRG Gibsons Auctions Limited to a value of £5,610,000. These valuations were undertaken in accordance with the Appraisal and Valuation Manual of the Royal Institute of Chartered Surveyors in the United Kingdom. The Directors have given due consideration to the fair value of the land and buildings at the Balance Sheet date. In performing these considerations, they are not aware of any factors, either company specific or wider external factors, which would suggest that the valuation needs to be revised. Therefore the Directors are satisfied that the valuation performed at 31 December 2020 continues to be reflective of the fair value as at 31 December 2024. If the leasehold land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

13. Stocks

	2024	2023
	£	£
Work in progress	4,724	5,118
Finished goods and goods for resale	9,241,300	9,492,590
	------------	------------
	9,246,024	9,497,708
	------------	------------

Excluded from stock at the year end is an amount for Consignment stock £610,126 (2023: £607,961). The stock has been allocated to the Company by SEAT however title does not pass to the Company until a sales agreement has been made. SEAT reserve the right to allocate consignment inventory to other dealers. Stocks are stated after provision for impairment of £Nil (2023: £Nil). The difference between the purchase price of stocks and their replacement cost is not material.

14. Debtors

	2024	2023
	£	£
Trade debtors	608,559	825,132
Amounts owed by group undertakings	2,079,593	1,488,419
Prepayments and accrued income	408,339	225,206
Corporation tax repayable	7,521	–
Other debtors	539,705	630,011
	------------	------------
	3,643,717	3,168,768
	------------	------------

15. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	164,274	1,258,335
Trade creditors	783,514	1,483,905
Amounts owed to group undertakings	614,124	–
Accruals and deferred income	12,498	58,660
Corporation tax	–	8,455
Social security and other taxes	674,606	460,448
Obligations under finance leases and hire purchase contracts	11,148,427	10,039,513
Director loan accounts	346,126	184,339
Other creditors	642,584	1,861,959
	-------------	-------------
	14,386,153	15,355,614
	-------------	-------------

Secured loans The bank loan and overdrafts are secured by a debenture comprising fixed and floating charges over all the assets of SERE Limited including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future. Other loans are secured by a floating charge over the stock held by the Company.

16. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	30,023	75,341
Obligations under finance leases and hire purchase contracts	6,514,939	5,863,092
	------------	------------
	6,544,962	5,938,433
	------------	------------

17. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2024	2023
	£	£
Not later than 1 year	11,148,427	10,039,513
Later than 1 year and not later than 5 years	6,514,939	5,343,092
Later than 5 years	–	520,000
	-------------	-------------
	17,663,366	15,902,605
	-------------	-------------

18. Provisions

	Deferred tax (note 19)
	£
At 1 January 2024	947,011
Additions	395,730
	------------
At 30 December 2024	1,342,741
	------------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 18)	1,342,741	947,011
	------------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	1,342,741	947,011
	------------	---------

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 104,723 (2023: £ 88,051 ).

21. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 1 each	750,001	750,001	750,001	750,001
	---------	---------	---------	---------

22. Reserves

Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.

23. Directors' advances, credits and guarantees

At the balance sheet date there were interest free directors' current account balances of £346,126 (2023: £184,339) owed to the directors of the Company that are repayable on demand.

24. Related party transactions

The Company has taken advantage of the exemption under FRS102 not to disclose transactions with related parties. This exemption permits non-disclosure of related party transactions of a wholly owned subsidiary company, provided that the consolidated financial statements in which the subsidiary is included are publicly available. Jump Developments Limited is regarded as a related party as Stanley Edgar, director of SERE Limited, is also a director of that company. Included in Other Debtors (note 14) is £72,485 (2023: £94,283) owed to the Company by Jump Developments Limited. Total transactions during the year amounted to £21,798 and relates mainly to the provision of funds by way of an interest free loan repayable on demand. JAA Receivables Limited is regarded as a related party as Stanley Edgar, director of SERE Limited is also a director of that company. Included in Other Creditors at 31 December 2024 is £113,863 (2023: £1,254,167) owed to JAA Receivables Limited. Total transactions during the year amount to £1,140,304 (2023: £510,139) and relates to mainly the repayment of an interest free loan.

25. Controlling party

The Company's ultimate parent undertaking, and the undertaking of the only group of undertakings for which group financial statements are drawn up and of which the Company is a member, is S.E.R.E. Holdings Ltd , a company incorporated in Northern Ireland. Copies of the Group financial statements are available to the public from the Company's registered office at 7-13 Boucher Road, Belfast, Co. Antrim, BT12 6HR. The Directors consider that the ultimate controlling parties are Stanley Edgar and Rosemary Edgar.