REGISTERED NUMBER: 03930862 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 28 February 2025

for

Farnworth 2000 Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

N Harrison

C Harrison

REGISTERED OFFICE:

555 Prescot Road

St Helens

Merseyside

WA10 3BZ

REGISTERED NUMBER:

03930862 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

116 Duke Street

Liverpool

England

L1 5JW

The directors present the strategic report for the year ended 28 February 2025.

REVIEW OF BUSINESS

The company's primary key performance indicator is turnover.

During the year, turnover increased by £4.0m an increase of 28.6% on the prior year. This comprised an increase in vehicle hire revenue of £1.7m or 19.6% and an increase of vehicle sales vehicle of £2.0m or 63.5%.

Turnover is a direct function of fleet utilisation, hence utilisation of vehicles is the key challenge in terms of maintaining the optimal fleet size during the year and also utilising the fleet more effectively particularly in off-peak periods.

The directors continue to monitor performance and review management accounts produced by the in-house finance team and are confident that turnover will continue on an upward trajectory as the fleet also continues to grow.

The company achieved a gross profit margin of 36.2% which was a reduction compared to the gross margin in the prior year of 40.1% however due to the increase in turnover noted above, overall gross profit increased by £904k or 15.7% year on year. The company attribute the decrease in gross margins to increases to vehicle purchase prices post COVID-19 which has impacted margins now that those vehicles are being sold from the fleet.

The management team and directors continue to regularly assess the market using industry knowledge and available data, and actively seek the best available vehicle deals.

PRINCIPAL RISKS AND UNCERTAINTIES

Risk of loss of company vehicles

The company has a fleet motor insurance policy with an established insurance group to ensure there is adequate cover of its fleet vehicles on hire and vehicles stored on site. There have been instances during the year were vehicles have been written off whilst out on hire, but the company has recovered the value of those vehicles from its insurance policy.

Interest rate risk

Interest is a significant cost to the business as a large proportion of its vehicle assets are funded via Hire Purchase agreements. Despite this the business has continued to go from strength to strength and interest costs have not impacted trading during the year.

The business maintains good relations with a range of finance providers and looks to get the best deals when purchasing vehicles. Interest rates have fallen during 2025 and the belief is that this will have a positive impact on trading during the next financial year.

Liquidity risk

At the the reporting date, the financial statements show that the business is in a net current liabilities position.

The reason for this is that most of the company's assets are vehicles for hire which are considered to be non-current assets and those assets are funded by by a mix of current and non-current liabilities in the form of hire purchase agreements.

To mitigate liquidity risk the company maintains healthy cash reserves and is able to realise cash by trading it's vehicle assets.

The directors consider the business to have sufficient cash and trading assets to meet it's obligations at the reporting date and for the foreseeable future.

ON BEHALF OF THE BOARD:

C Harrison - Director

4 December 2025

The directors present their report with the financial statements of the company for the year ended 28 February 2025.

DIVIDENDS

Interim dividends per share were paid as follows:

Ordinary A £1 shares

£1,000

- 28 February 2025

Ordinary B £1 shares

£1,000

- 28 February 2025

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 28 February 2025 will be £ 300,000 .

DIRECTORS

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

N Harrison

C Harrison

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C Harrison - Director

4 December 2025

Opinion

We have audited the financial statements of Farnworth 2000 Limited (the 'company') for the year ended 28 February 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 28 February 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Identifying and Assessing Potential Risks Related to Irregularities

Enquiring of management, including obtaining and reviewing supporting documentation concerning the company's 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 related to fraud or non-compliance with laws and regulations

discussing among the engagement team including relevant internal specialists, including tax, valuations, pensions and IT regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006, Pension legislation, Tax legislation, and Health and Safety requirements.

Audit Response to Risks Identified

In addition to the above, our procedures to respond to risks identified included the following:

reviewing the Financial Statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;

enquiring of management 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; 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 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 and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Philip Harrison BSc ACA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

116 Duke Street

Liverpool

England

L1 5JW

4 December 2025

TURNOVER

17,892,223

13,910,362

Cost of sales

11,408,454

8,330,199

GROSS PROFIT

6,483,769

5,580,163

Administrative expenses

3,030,067

2,764,794

OPERATING PROFIT

4

3,453,702

2,815,369

Interest receivable and similar income

100,627

23,873

3,554,329

2,839,242

Interest payable and similar expenses

5

1,127,450

914,424

PROFIT BEFORE TAXATION

2,426,879

1,924,818

Tax on profit

6

585,769

678,824

PROFIT FOR THE FINANCIAL YEAR

1,841,110

1,245,994

PROFIT FOR THE YEAR

1,841,110

1,245,994

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,841,110

1,245,994

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

23,481,680

18,161,209

23,481,680

18,161,209

CURRENT ASSETS

Stocks

10

136,392

271,453

Debtors

11

1,894,071

1,506,084

Cash at bank and in hand

4,458,603

3,037,545

6,489,066

4,815,082

CREDITORS

Amounts falling due within one year

12

8,234,013

6,776,372

NET CURRENT LIABILITIES

(1,744,947

)

(1,961,290

)

TOTAL ASSETS LESS CURRENT LIABILITIES

21,736,733

16,199,919

CREDITORS

Amounts falling due after more than one year

13

(15,030,637

)

(11,362,143

)

PROVISIONS FOR LIABILITIES

16

(1,281,509

)

(954,299

)

NET ASSETS

5,424,587

3,883,477

CAPITAL AND RESERVES

Called up share capital

17

300

300

Retained earnings

18

5,424,287

3,883,177

SHAREHOLDERS' FUNDS

5,424,587

3,883,477

The financial statements were approved by the Board of Directors and authorised for issue on 4 December 2025 and were signed on its behalf by:

C Harrison - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2023

300

3,092,183

3,092,483

Changes in equity

Dividends

-

(455,000

)

(455,000

)

Total comprehensive income

-

1,245,994

1,245,994

Balance at 29 February 2024

300

3,883,177

3,883,477

Changes in equity

Dividends

-

(300,000

)

(300,000

)

Total comprehensive income

-

1,841,110

1,841,110

Balance at 28 February 2025

300

5,424,287

5,424,587

Cash flows from operating activities

Cash generated from operations

1

6,596,409

5,823,503

Interest element of hire purchase payments paid

(1,127,450

)

(914,424

)

Tax paid

(308,399

)

(52,407

)

Net cash from operating activities

5,160,560

4,856,672

Cash flows from investing activities

Purchase of tangible fixed assets

(13,199,284

)

(8,892,022

)

Sale of tangible fixed assets

4,745,655

2,606,076

Interest received

100,627

23,873

Net cash from investing activities

(8,353,002

)

(6,262,073

)

Cash flows from financing activities

Proceeds from new HP agreements

4,913,500

2,678,847

Equity dividends paid

(300,000

)

(455,000

)

Net cash from financing activities

4,613,500

2,223,847

Increase in cash and cash equivalents

1,421,058

818,446

Cash and cash equivalents at beginning of year

2

3,037,545

2,219,099

Cash and cash equivalents at end of year

2

4,458,603

3,037,545

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

28.2.25

29.2.24

£

£

Profit before taxation

2,426,879

1,924,818

Depreciation charges

28,036

31,264

Profit on disposal of fixed assets

(2,078,023

)

(1,345,587

)

Depreciation of Motor Vehicles

5,183,146

4,183,831

Finance costs

1,127,450

914,424

Finance income

(100,627

)

(23,873

)

6,586,861

5,684,877

Decrease/(increase) in stocks

135,061

(28,752

)

(Increase)/decrease in trade and other debtors

(387,987

)

23,787

Increase in trade and other creditors

262,474

143,591

Cash generated from operations

6,596,409

5,823,503

2.	CASH AND CASH EQUIVALENTS

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

Year ended 28 February 2025

28.2.25

1.3.24

£

£

Cash and cash equivalents

4,458,603

3,037,545

Year ended 29 February 2024

29.2.24

1.3.23

£

£

Cash and cash equivalents

3,037,545

2,219,099

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.3.24

Cash flow

At 28.2.25

£

£

£

Net cash

Cash at bank and in hand

3,037,545

1,421,058

4,458,603

3,037,545

1,421,058

4,458,603

Debt

Finance leases

(16,727,075

)

(4,913,500

)

(21,640,575

)

(16,727,075

)

(4,913,500

)

(21,640,575

)

Total

(13,689,530

)

(3,492,442

)

(17,181,972

)

1.	STATUTORY INFORMATION

Farnworth 2000 Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

At the the reporting date, the company balance sheet shows that the business is in a net current liabilities position. However, the company maintains healthy cash reserves and is able to realise cash by trading it's vehicle assets.

The directors consider the business to have sufficient cash and trading assets to meet it's obligations at the reporting date and for the foreseeable future.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying assumptions are based on experience and other factors considered to be relevant. Actual results may differ from these estimates.

The key judgement and source of estimation uncertainty that has the most significant effect on the amounts recognised in the financial statements is described below:

Tangible fixed asset depreciation

Determining the rates of depreciation to be applied to tangible fixed assets involves judgement of the useful economic life and residual values of the assets, mainly vehicles. The actual lives of the assets and residual values may vary depending on a number of factors. In assessing asset lives, factors such as technological innovation, vehicle life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, remaining lives of the assets and projected disposal values.

Depreciation rates are reviewed regularly by the management and directors of the company and compared to industry data including the CAP guide.

Turnover

Turnover represents the fair value of income from the hire of vehicles, vehicle sales and vehicle repair work excluding value added tax. Turnover is recognised in the hire period, when the vehicle is legally transferred or when the repair work has been completed.

Intangible fixed assets

Goodwill represents the difference between the fair value of the consideration paid on acquisition of a business and the fair value of its separable net assets at the date of acquisition. Goodwill is amortised over its estimated useful life of 10% per annum of cost.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Freehold property

-

No deprecation charged

Plant and machinery

-

33% on cost and 15% on cost

Fixtures and fittings

-

33% on cost and 10% on cost

Motor vehicles

-

20% on cost

Stocks

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

Financial instruments

Bank loans are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method.

Directors loans and intercompany loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at 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 and loss.

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 balance sheet date.

Deferred tax

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

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

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

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

Finance lease payments are analysed between capital and interest components so that the interest element of the payment is charged to profit or loss over the term of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor.

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.

3.	EMPLOYEES AND DIRECTORS

28.2.25

29.2.24

£

£

Wages and salaries

2,019,083

1,766,233

Other pension costs

-

70,000

2,019,083

1,836,233

The average number of employees during the year was as follows:

28.2.25

29.2.24

Staff

52

46

Directors

1

1

53

47

28.2.25

29.2.24

£

£

Directors' remuneration

95,000

95,000

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

28.2.25

29.2.24

£

£

Depreciation - owned assets

288,842

204,324

Depreciation - assets on hire purchase contracts

4,922,339

4,010,772

Profit on disposal of fixed assets

(2,078,023

)

(1,345,587

)

Auditors' remuneration

15,000

8,000

Taxation advisory services

-

2,500

Other non- audit services

7,320

7,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

28.2.25

29.2.24

£

£

Hire purchase

1,127,450

914,424

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

28.2.25

29.2.24

£

£

Current tax:

UK corporation tax

258,559

308,399

Deferred tax

327,210

370,425

Tax on profit

585,769

678,824

7.

DIVIDENDS

28.2.25

29.2.24

£

£

Ordinary A shares of £1 each

Interim

100,000

200,000

Ordinary B shares of £1 each

Interim

200,000

255,000

300,000

455,000

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 March 2024

and 28 February 2025

160,000

AMORTISATION

At 1 March 2024

and 28 February 2025

160,000

NET BOOK VALUE

At 28 February 2025

-

At 29 February 2024

-

9.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST

At 1 March 2024

-

49,560

259,922

Additions

262,088

-

8,845

Disposals

-

-

-

At 28 February 2025

262,088

49,560

268,767

DEPRECIATION

At 1 March 2024

-

41,282

240,262

Charge for year

-

1,377

12,158

Eliminated on disposal

-

-

-

At 28 February 2025

-

42,659

252,420

NET BOOK VALUE

At 28 February 2025

262,088

6,901

16,347

At 29 February 2024

-

8,278

19,660