REGISTERED NUMBER: 09317976 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

HITECH GRAND PRIX LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Statement of Cash Flows

16

Notes to the Financial Statements

17

DIRECTORS:

O Oakes

M W C Sanwell-Lewis

REGISTERED OFFICE:

Unit 1504 Silverstone Park

Silverstone

NN12 8FU

REGISTERED NUMBER:

09317976 (England and Wales)

AUDITORS:

Accura Audit Limited (Statutory Auditor)

Langley House,

53 Theobald Street,

Borehamwood

WD6 4RT

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

Hitech Grand Prix concluded 2024 on a strong footing, achieving 70 podium finishes across five major international and national championships.

During the year, the Company successfully completed its first full year of operations at its new purpose-built Silverstone facility. Bringing all teams and departments together under one roof has enhanced collaboration, improved efficiency, and delivered continued operational benefits across the business.

In early 2024, Hitech Grand Prix completed the setup of its in-house Paint and Composite Facility at its Brackley unit, a dedicated off-site extension of the Company's operations. This strategic investment has enhanced Hitech Grand Prix's capabilities by bringing critical processes under direct control, allowing for improved quality management, greater operational flexibility, and faster turnaround times within the increasingly demanding motorsport calendar.

Throughout 2024, Hitech Grand Prix competed in a range of Championships covering FIA Formula 2, FIA Formula 3, GB3 Championship, the F4 British Championship certified by FIA, and the Formula Winter Series. As part of a considered strategic review, the Company elected to take a sabbatical from the Middle East Formula Regional and Formula 4 Championships to concentrate resources on core programmes and maximise competitive performance.

A new car was introduced in the FIA Formula 2 Championship for the 2024 season, requiring significant investment not only in assets and equipment but also in technical development. In parallel, Hitech Grand Prix expanded into the F1 Academy series, running three cars - two on behalf of the Championship's commercial partners and one as the official "wild card" entry. This particular expansion represents a further step in Hitech Grand Prix's commitment to supporting the development of female talent within motorsport and strengthening its presence across multiple international platforms.

During 2024, Hitech Grand Prix secured the FIA British F4 Championship title - a landmark achievement that stemmed from the vision of the ROKiT Racing Stars Esports Competition and its founder, Bob Fernley. The programme successfully transitioned a driver from esports into real-world racing, demonstrating the strength and potential of this innovative pathway. For Hitech Grand Prix, having been integral to the initiative from inception to championship success represents a proud and historic milestone in the Company's journey and a notable piece of motorsport history.

Hitech Grand Prix continues to provide a complete and structured pathway for aspiring young drivers, offering progression through every step of the motorsport ladder up to the threshold of Formula One. The Company remains firmly committed to driver development, ensuring that talent identification and nurturing remain central to its long-term strategy.

For the 2024 financial year, Hitech Grand Prix reported turnover of £26,194,382 (2023: £30,429,464) and a profit before tax of £669,545 (2023: profit before tax £1,109,972). Profit after tax for the year was £941,477 (2023: profit after tax £1,140,593).

Key Performance Indicators

KPI

2024

2023

Sales Growth

13.9%

26.5%

Podium Positions**

70

48

Employee Headcount

70

58

** Hitech Grand Prix Limited competed in over 5 championships during the 2024 racing season (compared to six championships in 2023)

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the Company's strategy are subject to a range of risks. The key risks affecting the company are outlined below.

All risks are recorded in a register, which is formally reviewed by the Board and Executive Team. Appropriate mitigation processes are in place to monitor and manage these risks on an ongoing basis.

Competition

The motorsport industry remains highly competitive - not only in terms of on-track performance but also in securing the necessary budgets and resources to compete at the highest level. Hitech Grand Prix is dedicated to attracting and developing exceptional driver talent. The ability to offer participation across an expanding range of championships combined with a proven track record of talent development, reinforces Hitech's reputation as a leading motorsport organisation. Nevertheless, the business continues to balance talent investment against budgetary constraints, particularly as costs rise and competition from teams with significant financial backing intensifies.

Cost Management

Rising costs driven by global economic factors continue to present challenges for Hitech Grand Prix. The Company actively monitors expenditure and identifies opportunities to enhance efficiency, ensuring that inflation-linked cost increases are kept to a minimum. Annual price increases of 4-5% from motorsport suppliers and stakeholders have been observed, with limited flexibility due to long-term supply agreements governed by championship organisers. As many of these are sole suppliers, Hitech has no alternative but to continue working with them.

Employees

Employees remain the greatest asset of Hitech Grand Prix. We continue to invest in our people by providing opportunities for career development and growth across a diverse range of roles within the business. This commitment has contributed to strong retention rates and stability within our Race Teams, which remains a critical factor in our ongoing success.

With our recent expansion into the F1 Academy series, we are further enhancing our employee programme to promote diversity and inclusion, encouraging female drivers, engineers, and mechanics to pursue careers in motorsport.

Additionally, the Company has initiated a new multi-year training partnership from 2025. This collaboration will focus on the development of young drivers, engineers, and mechanics across our racing teams, reinforcing our commitment to nurturing talent in all areas of the business.

Financial Risk Management

Hitech Grand Prix generates revenue in multiple currencies, which helps mitigate the risks associated with foreign exchange fluctuations.

Price Risk

Cost inflation remains an ongoing risk. Hitech Grand Prix implements a number of measures to mitigate this risk, including contract price fixation where possible and sourcing goods and services from multiple suppliers to avoid dependency on a single provider.

Future Developments

The Directors remain committed to sustaining Hitech Grand Prix's success and reinforcing its reputation as a trusted and competitive team within its Championships. Continued investment both on and off track remains a priority, balancing the pursuit of strong racing results with the need to maintain a viable and sustainable business model.

Several key projects have been signed for 2025, which will enable Hitech to expand beyond its core racing operations, further strengthening its service offering and supporting future revenue growth.

This report was approved by the Board of Directors and is signed on its behalf.

ON BEHALF OF THE BOARD:

O Oakes - Director

22 December 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of an international motorsport racing team competing in FIA Formula 2, FIA Formula 3 and Formula 4 championships. The Company also operates an applied technologies division.

DIVIDENDS

The profit for the year, after taxation, amounted to £941,477 (2023 - £1,140,594).

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

RESEARCH AND DEVELOPMENT

Hitech operates a Technologies Division committed to further developing the technological capabilities of the business whilst at the same time ensuring that all projects are commercially competitive.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

O Oakes has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

M W C Sanwell-Lewis was appointed as a director after 31 December 2024 but prior to the date of this report.

W B Oakes ceased to be a director after 31 December 2024 but prior to the date of this report.

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, Accura Audit Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

O Oakes - Director

22 December 2025

Opinion

We have audited the financial statements of Hitech Grand Prix Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

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

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

Basis for 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 five, 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:

Fraud risk assessment

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure by management to commit, or provide an opportunity to commit, fraud. Our risk assessment procedures included:

- Enquiries of management and internal accounting staff, concerning the company's policies and procedures relating to:

- detecting and responding to the risks of fraud; and

- internal controls established to mitigate risks related to fraud;

- enquiries of management and internal accounting staff as to whether they had knowledge of any actual, suspected or alleged fraud;

- discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. The engagement team includes the audit partner, managers and staff who have extensive experience of working with companies in this sector, and this experience was relevant to the discussion about where fraud risks may arise.

Risk communications

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

Fraud risks

As required by auditing standards we addressed the risk of management override of controls and the risk of fraudulent revenue recognition. In particular we considered the risk that revenue is recorded in the wrong period and the risk that the company's management may be in a position to make inappropriate accounting entries, and the risk of bias in accounting estimates and judgments.

Procedures to address fraud risks

Our audit procedures included evaluating the design and implementation, and operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures including:

- review journal entries to supporting documentation and review for any unusual journal descriptions;

- assessing significant accounting estimates for bias;

- obtaining third party confirmations for all bank balances and material debtors and creditors balances; and

- assessing when revenue was recognised, particularly focusing on revenue recognised in the days before and after the year end date, and whether it was recognised in the correct year.

Laws and regulations - Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

Risk assessment

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. For this risk assessment, matters considered included the following:

- our general commercial and trading industry experience;

- discussion with the management of the company (as required by auditing standards);

- inspection of the company's regulatory and legal correspondence; and

- discussions with the directors and other management about the policies and procedures regarding compliance with laws and regulations.

Risk communications

Our communication of laws and regulations risks was made throughout our team and we remained alert to any indications of non-compliance throughout the audit.

Direct laws context and link to audit

The potential effect of laws and regulations on the financial statements varies considerably. The company is subject to United Kingdom laws and regulations, such as the Companies Act 2006. Other relevant rules and regulations include the following:

- financial reporting legislation (including related UK companies' legislation)

- taxation legislation (direct and indirect) in the company's countries of operation.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Most significant indirect law/ regulation areas

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or harm to the company's ability to operate.

We identified the following area as those most likely to have such an effect:

- Health, safety, welfare and fire safety

- Anti-bribery, fraud and corruption

- Anti-money laundering regulations

- European Union and United Kingdom employment law

- Motorsport UK and Fédération Internationale de l'Automobile (FIA)

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of law or regulations is not disclosed to us or evident from relevant correspondence, our audit will not detect that breach.

We considered the extent to which the audit was considered capable of detecting irregularities: There are inherent

limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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.

Brian M Leighton (Senior Statutory Auditor)

for and on behalf of Accura Audit Limited (Statutory Auditor)

Langley House,

53 Theobald Street,

Borehamwood

WD6 4RT

22 December 2025

TURNOVER

3

26,194,382

30,429,464

Cost of sales

(16,326,821

)

(14,244,277

)

GROSS PROFIT

9,867,561

16,185,187

Administrative expenses

(9,081,360

)

(14,935,229

)

786,201

1,249,958

Other operating income

4

-

74,000

OPERATING PROFIT

786,201

1,323,958

Interest receivable and similar income

7

-

1,504

786,201

1,325,462

Amounts written off investments

8

-

(100,000

)

786,201

1,225,462

Interest payable and similar expenses

9

(116,656

)

(115,491

)

PROFIT BEFORE TAXATION

10

669,545

1,109,971

Tax on profit

12

271,932

30,622

PROFIT FOR THE FINANCIAL YEAR

941,477

1,140,593

PROFIT FOR THE YEAR

941,477

1,140,593

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

941,477

Prior year adjustment

(36,150

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

1,104,443

FIXED ASSETS

Tangible assets

14

10,734,000

11,652,753

CURRENT ASSETS

Stocks

15

477,204

417,832

Debtors

16

5,054,117

4,184,894

Cash at bank and in hand

17

639,325

1,076,751

6,170,646

5,679,477

CREDITORS

Amounts falling due within one year

18

6,364,283

7,321,726

NET CURRENT LIABILITIES

(193,637

)

(1,642,249

)

TOTAL ASSETS LESS CURRENT LIABILITIES

10,540,363

10,010,504

CREDITORS

Amounts falling due after more than one year

19

(1,685,724

)

(1,879,410

)

PROVISIONS FOR LIABILITIES

22

(1,856,185

)

(2,074,117

)

NET ASSETS

6,998,454

6,056,977

CAPITAL AND RESERVES

Called up share capital

23

100

100

Retained earnings

24

6,998,354

6,056,877

SHAREHOLDERS' FUNDS

6,998,454

6,056,977

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

O Oakes - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

-

4,952,434

4,952,434

Prior year adjustment

-

(36,150

)

(36,150

)

As restated

-

4,916,284

4,916,284

Changes in equity

Issue of share capital

100

-

100

Total comprehensive income

-

1,140,593

1,140,593

Balance at 31 December 2023

100

6,056,877

6,056,977

Changes in equity

Total comprehensive income

-

941,477

941,477

Balance at 31 December 2024

100

6,998,354

6,998,454

Cash flows from operating activities

Cash generated from operations

1

1,508,048

544,875

Interest paid

(56,387

)

(49,107

)

Interest element of hire purchase payments paid

(60,269

)

(66,384

)

Operating lease rental

-

299,783

Taxation refund

-

30,622

Net cash from operating activities

1,391,392

759,789

Cash flows from investing activities

Purchase of tangible fixed assets

(1,943,506

)

(2,246,122

)

Sale of tangible fixed assets

346,083

633,405

Cash at beginning of year

-

847,431

Interest received

-

3,008

Net cash from investing activities

(1,597,423

)

(762,278

)

Cash flows from financing activities

Capital repayments in year

(231,395

)

1,074,066

Net cash from financing activities

(231,395

)

1,074,066

(Decrease)/increase in cash and cash equivalents

(437,426

)

1,071,577

Cash and cash equivalents at beginning of year

2

1,076,751

-

Effect of foreign exchange rate changes

-

5,174

Cash and cash equivalents at end of year

2

639,325

1,076,751

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

31.12.24

31.12.23

as restated

£

£

Profit before taxation

669,545

1,109,971

Depreciation charges

2,637,061

2,300,726

Profit on disposal of fixed assets

(137,175

)

(259,481

)

Other non cash items

16,290

-

Dilapidation write off

54,000

-

Finance costs

116,656

115,491

Finance income

-

(1,504

)

3,356,377

3,265,203

Increase in stocks

(59,372

)

(417,832

)

Increase in trade and other debtors

(869,223

)

(3,167,458

)

(Decrease)/increase in trade and other creditors

(919,734

)

864,962

Cash generated from operations

1,508,048

544,875

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

639,325

1,076,751

Year ended 31 December 2023

31.12.23

1.1.23

as restated

£

£

Cash and cash equivalents

1,076,751

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,076,751

(437,426

)

639,325

1,076,751

(437,426

)

639,325

Debt

Finance leases

(1,074,066

)

231,395

(842,671

)

Debts falling due after 1 year

(1,151,624

)

-

(1,151,624

)

(2,225,690

)

231,395

(1,994,295

)

Total

(1,148,939

)

(206,031

)

(1,354,970

)

1.	STATUTORY INFORMATION

Hitech Grand Prix 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.

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.

Functional and presentation currency

The company's functional and presentation currency is £ sterling. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The financial statements have been prepared on a going concern basis. At 31 December 2024, the Company had net current liabilities of (£193,637) (2023: (£1,642,249). The Directors have prepared detailed cash flow forecasts for at least twelve months from the date of approval of these financial statements. These forecasts take into account committed income for the forthcoming racing season, ongoing cost management initiatives, and the availability of financial support from related parties where required.

The forecasts indicate that the Company is expected to have sufficient liquidity, with headroom to manage reasonably possible adverse changes in income or expenditure. On this basis, and having considered the availability of financial resources, the Directors have a reasonable expectation that the Company will be able to meet its liabilities as they fall due for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis and no material uncertainty has been identified that would require disclosure.

Significant judgements and estimates

In applying the company’s accounting policies, the directors are required to make judgements and estimates that affect the amounts recognised in the financial statements.

Judgements involve decisions made when applying accounting policies in situations where the outcome is uncertain. The uncertainty is about how the accounting policy should be applied, rather than the numerical amount to report.

Estimates involve assumptions about future events or conditions that are inherently uncertain. The uncertainty is about quantifying an amount in the financial statements.

The directors base their judgements and estimates on historical experience and other factors they consider reasonable under the circumstances. Actual outcomes may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period of revision if they affect only that period, or in the period of revision and future periods if both are affected.

a) Critical judgments in applying accounting policies

There are no judgements (apart from those involving estimates) that have had a significant effect on the amounts recognised in the financial statements.

b) Key accounting estimates and assumptions

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have the most significant potential impact on the carrying values of assets and liabilities within the next financial year are as follows:

Useful economic lives of tangible fixed assets

The useful economic lives used by the Company in respect of tangible fixed assets are set out in the accounting policies. These estimates are based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate. The net book value of tangible fixed assets as at 31 December 2024 was £10,734,000 (2023: £11,652,753) after a depreciation charge for the year of £2,637,061 (2023: £2,300,726).

Doubtful Debt Provisions

Provisions for doubtful debts are determined based on the directors’ assessment of the recoverability of individual receivables. This assessment considers the ageing of balances, specific knowledge of customers’ financial circumstances, and historical patterns of default. The directors apply a prudent approach in estimating the likelihood of non-recovery.

Revenue

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

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

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

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.

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using a combination of the straight-line and reducing balance methods.

Depreciation is provided on the following basis:

Freehold land

- not depreciated

Freehold building

- 2% straight line

Assets under construction

- not depreciated

Leasehold improvements

- 11.11% straight line

Motor vehicles

- 20.00% reducing balance

Fixtures and fittings

- 20.00% straight line

Computer equipment

- 33.33% straight line

Race cars

- 33.33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.