The directors present the strategic report for the year ended 30 June 2025.

The company has achieved its fifth consecutive year of turnover growth and continues to trade profitably despite the challenging economic climate in the UK.

During the year ended 30 June 2025, the company opened its new Kia showroom at Indian Queens, followed shortly by the launch of an expanded and enhanced aftersales facility. The company also introduced Hawkins Select, a premium non-franchise used-vehicle offering located adjacent to the Kia showroom, which has been well received by customers. The directors consider continued investment in dealership facilities and customer experience to be a key element of the company’s long-term strategy.

At present the company trades from seven different locations throughout Cornwall and holds six different franchises as well as a centralised parts hub. The directors believe that this diversification provides the best model for continued success.

The directors consider that the company’s key performance indicators are those that communicate the financial performance and strengths of the company as a whole, these being turnover, gross profit margin and operating profit.

In the year to 30th June 2025, both the gross profit margin and operating profit margin remained consistent with the prior year. The gross profit margin increased slightly to 11.06% (2024: 10.75%), while the operating profit margin was 3.27% (2024: 3.30%). These results have been achieved despite inflationary pressures on operating costs and reflect the ongoing hard work and commitment of the company’s staff.

The principal business risk facing the company continues to be the general economic climate, with inflationary pressures and interest rates having a potential impact on demand for vehicles and finance products. The directors do not consider that this will significantly curtail the operations of the business; however, they continue to monitor external economic indicators alongside the company’s internal monthly management accounts.

Pricing of used vehicles and competitive market within this area is also challenging. Demand for used vehicles has proven to be increasing (with used vehicle unit sales in 2025 rising by 14% compared with 2024, which reflected a 10% increase on 2023). However, values of those vehicles have not followed the same upward trend. Factors contributing to this include increased competition when sourcing vehicles, greater price sensitivity among consumers, and an initially slower uptake in used electric vehicles. Senior management continue to monitor the valuation and pricing of used vehicles closely.

The company is also dependent on supply arrangements with its franchise partners. Adverse changes to allocation levels, margin structures or franchise standards pose ongoing risk. The company mitigates this through maintaining strong relationships and operating a diversified franchise portfolio.

The directors remain confident that the business is a going concern and are in a strong financial position having no external borrowing and a well-diversified selection of dealer franchises alongside a loyal customer base.

The directors consider that they have complied with the requirements of Section 172(1)(a)-(f) of the Companies Act 2006 in their decision making and the performance of their duties. Key decisions are discussed at director level where cumulatively there are almost 100 years of automotive industry experience. Further support is available via the senior management team.

All key stakeholders including employees, customers, manufacturer partners and suppliers, are engaged with on a regular basis, this is key to the directors in understanding their needs and expectations. The directors seek to maintain collaborative relationships with each group and adopt an open communication style. The nature of the engagement with the key stakeholder groups are as follows:

Employees

Employees are fundamental to delivering high levels of customer service and maintaining manufacturer standards. Regular communication is maintained through team briefings and day-to-day management engagement. The company continues to invest in staff training and development to ensure employees have the skills required to meet operational and manufacturer expectations. Employee well-being remained a priority during the year, with enhanced support and resources provided to promote a positive and safe working environment.

Customers

Customer satisfaction is critical to the company’s reputation and commercial success. Engagement occurs through customer feedback tools, online reviews, manufacturer CSI surveys and on-site interactions.

Suppliers and Manufacturers

Strong, transparent relationships with vehicle manufacturers and parts suppliers are essential to maintaining franchise standards and ensuring continuity of supply. Directors and senior management hold regular meetings with franchise partners to discuss performance, stock availability, brand standards and future product planning. The company continued to meet manufacturer requirements.

Communities & Environment

The company seeks to play a positive role in the communities in which it operates. During the year, the Company supported local charities. Environmental considerations included ongoing investment in electric-vehicle infrastructure, waste-reduction measures, and improved energy efficiency within dealership buildings.

The directors consider that ongoing, meaningful engagement with stakeholders contributes materially to the company’s resilience, reputation and long-term performance.

The strategic report was prepared on behalf of the board by:

The directors present their annual report and financial statements for the year ended 30 June 2025.

The principal activity of the company continued to be that of a motor dealership.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

This section includes the company's mandatory reporting of energy and greenhouse gas emissions for the year end 30th June 2023, pursuant to the Companies (Directors Report) and Limited Liability Partnership (Energy and Carbon Report) Regulations 2018, implementing the governments Streamlined Energy and Carbon Reporting (SECR) policy.

The table below includes energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with the intensity ratio:

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £ of turnover, the recommended ratio for the sector.

During the reporting period, the following energy efficiency actions have been taken:

- Investment in electric charging points across the group

- A PV system is installed at some of our sites

- Investment has been made in LED lighting, particularly at our new Blackwater and Indian Queens showrooms

- The use of electric vehicles for business related travel by staff and as company vehicles where possible.

- Having a fleet of electric delivery vans for use in the parts department

The company does not carry out any research and development activities.

The company's policy is to consult and discuss with employees, through meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information e-mails which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

The directors intend to continue the company’s current activities and to pursue opportunities that support sustainable growth. The focus for the coming year will be on strengthening operational efficiency and maintaining strong customer relationships. No significant changes are anticipated to the nature of the business.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is included in the Strategic Report on page 1 in accordance with Section 414C (11) of the Companies Act 2006.

We have audited the financial statements of Hawkins Motors Limited (the 'company') for the year ended 30 June 2025 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 30 June 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 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 contained within the annual report. 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. 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 course of 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 our 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.

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.

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.

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.

- Enquiry of management and those charged with governance around actual and potential litigation and claims plus consideration of compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing legal fee invoices to identify any instances of non-compliance with laws and regulations.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through review of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Hawkins Motors Limited is a company limited by shares incorporated in England and Wales. The registered office is 57 Gwindra Road, St Stephen, St Austell, Cornwall PL26 7LB.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out in the directors report.

The accounts have been prepared on the assumption that the company is able to carry on business as a going concerntrue, which the directors consider appropriate.

Trade since the year end has remained consistent. The company has no financial borrowing, healthy reserves and a strong balance sheet position that will enable it to withstand any adverse economic effects arising in the foreseeable future.

Turnover represents the net amount invoiced to customers less discounts, excluding VAT and sales of fixed assets. In the opinion of the directors the markets supplied do not differ substantially from each other nor has the company carried on business of substantially different classes. The turnover and profit before taxation are attributable to the principal activities of the company and all arises in the United Kingdom.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on handover of the vehicle) and the amount of revenue can be measured reliably.

Revenue from the provision of workshop services is recognised on completion when the invoice is raised.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Capitalisation Threshold

Expenditure on individual items of property, plant and equipment with a cost below £2,500 is charged the profit and loss account in the period incurred.

Expenditure above this threshold is capitalised as applicable and depreciated over its expected useful life.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Stock and work in progress are stated at the lower of cost and estimated selling price.

Estimated selling price less costs to complete and sell is based on the estimated selling price of the goods less any estimated completion or selling costs likely to be incurred on the sale.

The company has applied the accounting treatment required by FRS 102 Section 13 to its vehicle consignment stock.

Where the interest free consignment period has expired, vehicles are included in the statement of financial position as stock with a matching liability for the purchase price included in trade creditors.

A review for obsolete stock is carried out on a timely basis and any losses of stocks are recognised as an expense in the period in which the write-down or loss occurs.

Cash at bank and in hand are basic financial assets and includes only cash in hand.

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

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

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price. Financial assets are all receivable within one year are therefore not amortised.

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities are all potentially payable within one year are therefore not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities as payment is due within one year or less.

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on experience and industry knowledge. Actual results may differ from these estimates.

The primary judgements and estimates made in the financial statements are depreciation rates of fixed assets and adjustments to the carrying value of stock and provisions.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

These judgements and estimates are not material to the company.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The historical cost of the apartment rights was £23,000 in 1990.

The cost of the assets is £136,344 (2024: £136,344).

Included within finished goods and goods for resale is vehicle consignment stock of £849,113 (2024: £569,328) which are considered to be, in substance, assets of the company as at the statement of financial position date.

A provision of £159,100 (2024: £159,100) is recognised at the year end for potential claims in respect of GAP insurance policies and PCP contracts sold in earlier years. The costs to settle these claims are expected to be incurred in the coming financial years. The provision is a calculated estimate based on claims to date, the total income received in the prior years and the number of policies and/ or contracts sold.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company has one class of ordinary shares which carry no right to fixed income.

Throughout the year the immediate parent company was Hawkins Holdings Limited (a company incorporated in the UK) which was controlled by members of the Hawkins family who are directors of Hawkins Motors Limited. Its registered office is 57 Gwindra Road, St Stephen, St Austell, Cornwall PL26 7LB. The ultimate controlling parties were the members of the Hawkins family who are the shareholders in Hawkins Holdings Limited.

The remuneration of key management personnel is as follows.