The directors present the strategic report of the company for the year ended 31 March 2025.

The comparative figures are for the fifteen month period 1 January 2023 to 31 March 2024.

The reported period represents a strong twelve months of resilient trading, which has materially improved the outlook of the business. Despite ongoing headwinds across the domestic automotive sector, including demand-led pressures driven by increased insurance premiums, the business has continued to perform strongly. In response to the cost-of-living crisis, consumers have increasingly opted for higher policy excesses, resulting in fewer claims being made nationally and a greater tendency for customers to live with minor vehicle damage.

The business has also faced cost pressures arising from Government-led increases to National Insurance and the National Minimum Wage. Due to the contractual nature of pricing within the sector, there has been limited scope to pass these increases on to customers, placing additional pressure on margins.

Despite these external challenges, the business delivered improved performance across its existing operational estate. Site-by-site contributions strengthened through increased output, improved operational discipline, and the consistent application of robust processes focused on efficiency and cost control. These actions resulted in a material improvement in overall gross margin and supported a more resilient operating model.

During the year, the business continued to gain market share within its core regions of South Wales and Hereford through strong staff retention, expansion of the customer base, and further contract wins. Improved operational consistency also contributed to stronger liquidity and working capital management, alongside improved customer satisfaction, all of which remain key performance indicators for the Board.

Despite operating within volume constraints, the company maintained operational momentum and delivered increased contribution, with gross profit rising from 30% to 38%. Improved stability in parts supply and more predictable demand conditions further supported performance during the year.

The Group remained financially disciplined throughout the year, honouring all debt repayment obligations while continuing to strengthen the performance of its existing estate. The year concluded with the business reporting an operating profit and improved underlying EBITDA. With strengthened processes, improved cost control, and normalising demand drivers, the Board remains cautiously optimistic about the outlook for the business.

Principal Activities and Review of the Business

The principal activity of the company is the provision of motor vehicle accident repair services. During the year, the business focused on consolidating and improving performance across its existing estate, with an emphasis on operational efficiency, margin improvement, and financial discipline.

The company benefits from a number of established competitive strengths. It continues to hold a strong position within the UK vehicle repair market and remains the largest operator in Wales. The business maintains a solid market share, supported by long-standing relationships with work providers, a stable and experienced workforce, and a consistent focus on service quality and customer satisfaction.

The Directors were pleased with the financial and operational performance achieved during the year. Despite operating in a challenging trading environment, the company delivered a record year since its inception in 1999 excluding exceptional items, reflecting stronger operational execution and cost control across the estate. These factors contributed to improved gross margins and operating profitability compared to prior periods.

Revenue growth during the year was driven by increased throughput across the existing estate, alongside improved pricing and operational efficiencies. The business reported an operating profit for the year, reflecting the sustained improvement in trading performance. Cash generation remained strong, supported by disciplined management of working capital, including debtor collection and inventory control.

The company’s financial performance and position are closely monitored by the Directors and senior management through regular review of key financial indicators, including revenue trends, gross margin, operating margins, cash flows, and covenant compliance. This ongoing oversight has strengthened the company’s financial resilience and improved its ability to respond to changes in market conditions.

The Directors consider that the business has made significant progress in strengthening its operating model and financial position during the year. This provides a stable platform from which the company can continue to operate effectively and meet its obligations as they fall due.

The management of the business and the execution of the company’s strategy are subject to a number of risks.

The UK economy has rebounded, in many areas consumer behaviours have adapted, with 2 in 5 (41%) of workers in the UK working from home at least some of the week and other work life balance changes. This has ultimately led to fewer vehicles on the road and lower peak time traffic. Employment has been affected with further staff shortages felt through Brexit and high increases of NMW and NI alongside consumer behaviour in lifestyle adaptation of being on the government’s furlough scheme during the pandemic.

The business has mitigated the impact of demand drivers by robustly negotiating work provider contracts to ensure the operational required volumes are available.

Staff retention has become a primary focus for the business. The overall employment package offered by the business is industry leading and staff retention remains very strong.

The company has also secured a home office licence to acquire operative staff from overseas working under a company sponsored workplace visa.

Adaptation to technology continues to be a large investment to the business with its extensive manufacturer approvals and ensuring every repair is carried out to the British Standards Institution (BSI) standards at all of its locations.

Cash flow risk

The company carefully monitors its cashflow with short, medium and long term forecasting to meet liabilities as they fall due and ensuring that short term demands for customer outcomes are not compromised.

Credit Risk

Credit terms are offered to customers within 30 days with largely blue chip well capitalised entities. These are subject to credit verification procedures. Given the focus on liquidity the position is considered well managed with minimum risk for bad debt provisions.

Overall Debt

The group has substantial facilities across senior debt, trade facilities and asset finance facilities. All funders continue to work collaboratively within the group.

The company’s strategic plans assume continued success across its existing locations, supported by increased sales volumes and improved gross margins. This is expected to be achieved through the ongoing renegotiation of contracts with existing and new work providers, with a focus on maximising output and efficiency across the current estate.

The business has reaffirmed its long-term strategy to remain a largely Wales-based independent accident repair group. Growth is expected to be driven primarily through increased utilisation of existing sites, alongside selective expansion where appropriate.

A key area of focus is the continued development of manufacturer approvals. At the date of authorisation of these financial statements, the business had secured approvals from over twelve vehicle manufacturers and is in active discussions with a further four manufacturers. These approvals support increased volumes through the existing estate and strengthen relationships with work providers.

Alongside organic growth within the core business, securing additional locations remains a strategic priority. Expanding the site network will enable the company to enhance geographic coverage and further support its existing portfolio of work providers.

The company continues to invest in its apprenticeship programme, which has delivered positive results. This initiative supports the development of a sustainable pipeline of skilled operatives, ensuring the business continues to train and retain employees to the highest possible technical standards.

The business’s key performance indicators (KPI’s) are summarised below;

The business has a strong focus on KPIs that are geared around financial and operational performance, Customer, and staff satisfaction.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company continued to be that of the repair of accident damaged motor vehicles.

The results for the year are set out on page 9.

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

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

In accordance with the company's articles, a resolution proposing that Pierce C A Limited be reappointed as auditor of the company will be put at a General Meeting.

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

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

• 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.

We have audited the financial statements of T.S.T Cardiff Limited (the 'company') for the year ended 31 March 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 31 March 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.

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

In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:

• The nature of the industry and the company’s control environment.

• Results of our enquiries of management.

• The company’s procedures and controls on compliance with laws and regulations and the risks of fraud.

• Discussions among the audit engagement team concerning potential indicators of fraud.

We are also required to perform specific procedures to respond to the risk of management override.

As a result of our audit procedures we did not identify a material risk of fraud or other non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, 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.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

T.S.T Cardiff Limited is a private company limited by shares incorporated in England and Wales. The registered office is iRG Taffs Mead Road, Treforest Industrial Estate, Pontypridd, Wales, CF37 5TF.

These financial statements have been prepared for the year ended 31 March 2025. The comparative period financial statements are for the fifteen month period ended 31 March 2024.

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.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of AVRC Ltd. These consolidated financial statements are available from its registered office, iRG, Taffs Mead Road, Treforest Industrial Estate, Pontypridd, CF37 5TF.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

The company has delivered sustained improvements in trading performance, reporting an operating profit of £1.4m for the financial year. Trading has remained positive subsequent to the year end, with the company continuing to generate operating cash flows.

The company participates in shared banking arrangements with fellow group companies. The company’s ultimate parent undertaking, AVRC Ltd, has external borrowings of £5.0m, in respect of which T.S.T Cardiff Limited has provided security by way of a cross-guarantee. The directors have reviewed the group’s funding position and note that the external funder has confirmed its ongoing support.

The directors have prepared cash flow forecasts for the company and the group covering a period of at least twelve months from the date of approval of these financial statements. These forecasts reflect current trading conditions and expected future performance and demonstrate that the company and the group are expected to continue to generate sufficient cash to meet their liabilities as they fall due and remain compliant with borrowing covenants throughout the forecast period.

The directors have considered all relevant information that could reasonably be expected to be available at the date of approval, including trading performance, cash flow forecasts, funding arrangements, and covenant compliance. On this basis, they consider it appropriate to prepare the financial statements on a going concern basis.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue relates to the repairs of motor vehicles involved in road collision accidents and smart repairs.

Revenue is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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.

From 1 July 2023, the directors amended the depreciation policy for the fixed assets held by the company as indicated below:

• Plant and equipment was changed from 25% reducing balance to 10%/20% reducing balance

• Motor vehicles was changed from 25% reducing balance to 15% reducing balance

• Computer equipment was changed from 25% reducing balance to 20% reducing balance

• Fixtures and fittings was changed from 25% reducing balance to 15% reducing balance

From 1 July 2023, the directors also reclassified a number of tangible fixed assets from computer equipment and fixtures and fittings to leasehold property improvements. The net book value transferred at this date was £113,684 from fixtures and fittings, and £10,807 from computer equipment.

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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Work in progress is calculated to include an element of profit that is based on its stage of completion.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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 if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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 historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates. See the notes for the carrying amount of intangible assets.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See the notes to the financial statements for the carrying amounts of the tangible assets.

The exceptional item represents the gain on the disposal of six sites by the company in March 2024.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024: 4).

The actual charge/(credit) 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:

In addition to the amount charged/(credited) to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

In June 2023, the company's fixed assets were independently valued by GTC Appraisals Limited, who are unconnected to the company, following instruction from the company directors.

The historic cost of the fixed assets held at valuation is £1,972,661. The accumulated depreciation charged on the historic cost of the assets is £1,318,881.

Finance lease and hire purchase contracts are secured on the assets to which they relate.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

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 provided a cross guarantee in respect of loans amounting to £4,964,758 (2024: £5,463,463) made to its parent company, AVRC Ltd. The cross guarantee is secured by fixed and floating charges over the assets of the company.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

As a wholly owned subsidiary of iRG Group Limited, the company has taken advantage of the exemption contained in FRS 102.33.1A and has therefore not disclosed details of transactions or balances with other wholly owned subsidiaries which form part of the Group.

The intermediate parent undertaking is iRG Group Limited

The ultimate parent undertaking and controlling party is AVRC Ltd.

The consolidated financial statements of AVRC Ltd are available from iRG, Whittle Road, Cardiff, Wales, CF11 8AT.