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REGISTERED NUMBER: 05751934 (England and Wales)

| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |

| FINANCIAL STATEMENTS |

| FOR THE YEAR ENDED 31 JULY 2025 |

| FOR |

| MELLING COMMERCIAL LIMITED |

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

CONTENTS OF THE FINANCIAL STATEMENTS

for the Year Ended 31 July 2025

Page |

| Company Information | 1 |

| Strategic Report | 2 |

| Report of the Directors | 4 |

| Report of the Independent Auditors | 5 |

| Income Statement | 9 |

| Other Comprehensive Income | 10 |

| Statement of Financial Position | 11 |

| Statement of Changes in Equity | 12 |

| Notes to the Financial Statements | 13 |

| MELLING COMMERCIAL LIMITED |

COMPANY INFORMATION

for the Year Ended 31 July 2025

| DIRECTORS: | C Melling

| L Edwards

| SECRETARY: | L Edwards

| REGISTERED OFFICE: | Westwood Motor Group

| 272 Manchester Road

| Ince

| Wigan

| Lancashire

| WN2 2ED

| REGISTERED NUMBER: | 05751934 (England and Wales)

| AUDITORS: | Fairhurst Audit Services Ltd

| Statutory Auditor

| Chartered Accountants

| Douglas Bank House

| Wigan Lane

| Wigan

| Lancashire

| WN1 2TB

| BANKERS: | Lloyds TSB Bank PLC

| 53 King Street

| Manchester

| M60 2LE

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

STRATEGIC REPORT

for the Year Ended 31 July 2025

The directors present their strategic report for the year ended 31 July 2025.

Review of Business

Melling Commercial, trading as Westwood Motor Group, experienced a particularly challenging first half of the financial year, largely as a continuation of the pressures encountered in the previous year. During that period a significant proportion of our vehicle stock suffered substantial market value declines, requiring material depreciation and stock write-downs to align with revised market prices.

While the majority of this impact was absorbed in last year’s accounts, the residual effects continued into the first half of the current financial year. Although there were no further major losses on disposal, many vehicles were sold at relatively slim margins, which reduced our average profit per unit. This has directly contributed to the year-on-year modest reduction in gross profit.

The second half of the financial year showed a marked improvement. We have now effectively "washed through" the bulk of the previously over-valued stock, leaving the business in a significantly stronger position going forward. Vehicles currently being de-fleeted are generating much healthier profit margins, a trend that became particularly evident in the final quarter of the financial year.

Depreciation was considerably lower this year, reducing by approximately £280,000. This reduction reflects both the substantial depreciation adjustments made in the prior year and the return of our rental fleet to more normalised depreciation levels. As a result, we now have far greater control over margins and improved visibility over future profitability.

Westwood Motor Group continues to expand its presence in the electric vehicle (EV) market. While fully electric vehicles have yet to achieve widespread customer adoption, we are seeing strong performance with hybrid models.

Importantly, we have adapted the way these vehicles are managed within our fleet to limit exposure to residual value risk at the end of hire periods. This approach allows us to offer EV and hybrid options to meet evolving market demand while maintaining control over profitability and minimizing financial risk.

Rental margins have also strengthened notably. This improvement is attributable to several factors, including the successful negotiation of more competitive and lucrative manufacturer agreements. These arrangements have enabled Westwood to price more competitively in the market while securing additional contracts.

Residual values have remained robust, particularly over 12-month periods, which has further supported pricing strategies and enhanced profitability across shorter-term hires.

Looking ahead to the next 12 months, we anticipate a more profitable year overall. We believe the business has now largely overcome the lingering impacts of Covid-related disruption, including supply chain challenges and manufacturer price increases. Market stability has returned, allowing for greater confidence in pricing strategies across both sales and rental operations.

As a result, Westwood Motor Group enters the next financial year in a stronger, more stable position, with improved margins, healthier stock levels, and a clearer path to sustainable profitability.

Key performance indicators

KPI's include sales, margins, wages and overheads and cash flow which are regularly monitored by senior management.

| 2025 |  |  | 2024 |  |

| £'000 |  |  | £'000 |  |

Turnover |  |  | 25,123 |  |  | 25,967 |  |

Gross profit |  |  | 9,146 |  |  | 9,599 |  |

Gross margin (%) |  |  | 36.4% |  |  | 36.9% |  |

EBITDA |  |  | 7,403 |  |  | 7,636 |  |

Net assets |  |  | 8,675 |  |  | 8,632 |  |

Non financial KPI's include customer satisfaction, maintaining customer, manufacturers and supplier relationships and ensuring employee satisfaction through training and career development.

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

STRATEGIC REPORT

for the Year Ended 31 July 2025

PRINCIPAL RISKS AND UNCERTAINTIES

The UK automotive industry and Rental sector is highly competitive and management are mindful of the need for regular review of market pricing, contract profitability and competitor activity within the sector.

The Company uses various financial instruments, which include cash and asset financing arrangements together with constant monitoring of trade debtors and trade creditors that arise directly from its operations.

The existence of these financial instruments exposes the Company to a number of financial risks. These include supply and stock holding issues, and liquidity and credit risks. The Directors review and agree policies for managing each of these risks and they are summarised below

Supply and Stock Holdings

Whilst the constraints on lead times and delivery schedules have eased somewhat, there are now strains and constraints which have arisen in stock holding times, both from funding settlement costs and pressure on residual values. This is being monitored with regular management meetings and dialogue with asset funding partners.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Directors manage liquidity risk by maximising cash generation from its operations and short term flexibility is achieved through the Company's asset finance arrangements.

Credit Risk

The Company's main assets are its hire fleet, stocks and debtors. The Company's trade debtors relate to amounts owed by individuals, SME's and large national corporates. Given the current economic uncertainty, the Directors and management carefully monitor any default credit risk on an ongoing basis.

We would like to thank, once again, our dedicated team members, suppliers, manufacturers and funding partners for their ongoing support.

ON BEHALF OF THE BOARD:

L Edwards - Director

20 January 2026

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

REPORT OF THE DIRECTORS

for the Year Ended 31 July 2025

The directors present their report with the financial statements of the company for the year ended 31 July 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale and lease of motor vehicles, including contract hire and rentals.

DIVIDENDS

The total distribution of dividends for the year ended 31 July 2025 will be £Nil (2024 - £228,793).

DIRECTORS

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

C Melling

L Edwards

Other changes in directors holding office are as follows:

K J L Close - resigned 25 November 2024

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

L Edwards - Director

20 January 2026

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

MELLING COMMERCIAL LIMITED

Opinion

We have audited the financial statements of Melling Commercial Limited (the 'company') for the year ended 31 July 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 July 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

MELLING COMMERCIAL LIMITED

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 four, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

MELLING COMMERCIAL LIMITED

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:

- we identified the laws and regulations applicable to the company through discussions with directors and other

management, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on it's operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation,

employment legislation and Health and Safety regulations.

- we enquired of the directors and reviewed correspondence with HMRC for evidence of non-compliance with laws and regulations. We also reviewed controls the directors have in place to ensure compliance.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of

potential bias.

- we reviewed financial statements disclosures and tested to supporting documentation to assess compliance with

relevant laws and regulations discussed above;

- we enquired of the directors about actual and potential litigation and claims.

Due to inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material

misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

MELLING COMMERCIAL LIMITED

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.

John B S Fairhurst BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Fairhurst Audit Services Ltd

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

20 January 2026

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

INCOME STATEMENT

for the Year Ended 31 July 2025

| 2025 |  | 2024

| Notes | £ | £ |

TURNOVER | 25,122,643 |  | 25,966,851 |  |

Cost of sales | 15,976,990 |  | 16,367,397 |  |

GROSS PROFIT | 9,145,653 |  | 9,599,454 |  |

Administrative expenses | 7,067,461 |  | 7,575,948 |  |

2,078,192 |  | 2,023,506 |  |

Other operating income | 12,023 |  | 23,940 |  |

OPERATING PROFIT | 4 | 2,090,215 |  | 2,047,446 |  |

Interest receivable and similar income | 62,130 |  | 27,716 |  |

2,152,345 |  | 2,075,162 |  |

Interest payable and similar expenses | 5 | 1,726,680 |  | 1,732,557 |  |

PROFIT BEFORE TAXATION | 425,665 |  | 342,605 |  |

Tax on profit | 6 | 382,848 |  | (175,529 | ) |

PROFIT FOR THE FINANCIAL YEAR | 42,817 |  | 518,134 |  |

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

OTHER COMPREHENSIVE INCOME

for the Year Ended 31 July 2025

| 2025 |  | 2024

| Notes | £ | £ |

PROFIT FOR THE YEAR | 42,817 |  | 518,134 |  |

OTHER COMPREHENSIVE INCOME | - |  | - |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 42,817 |  | 518,134 |  |

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

STATEMENT OF FINANCIAL POSITION

31 July 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Tangible assets | 8 | 23,343,004 |  | 22,375,260 |  |

CURRENT ASSETS

Stocks | 9 | 36,089 |  | 109,469 |  |

Debtors | 10 | 5,389,195 |  | 4,242,814 |  |

Cash at bank and in hand | 1,635,494 |  | 2,929,465 |  |

7,060,778 |  | 7,281,748 |  |

CREDITORS

Amounts falling due within one year | 11 | 15,246,436 |  | 12,398,561 |  |

NET CURRENT LIABILITIES | (8,185,658 | ) | (5,116,813 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | 15,157,346 |  | 17,258,447 |  |

CREDITORS

Amounts falling due after more than one year | 12 | (4,175,271 | ) | (6,436,664 | ) |

PROVISIONS FOR LIABILITIES | 16 | (2,307,056 | ) | (2,189,581 | ) |

NET ASSETS | 8,675,019 |  | 8,632,202 |  |

CAPITAL AND RESERVES

Called up share capital | 17 | 100 |  | 100 |  |

Retained earnings | 18 | 8,674,919 |  | 8,632,102 |  |

SHAREHOLDERS' FUNDS | 8,675,019 |  | 8,632,202 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 20 January 2026 and were signed on its behalf by:

L Edwards - Director

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

STATEMENT OF CHANGES IN EQUITY

for the Year Ended 31 July 2025

| Called up |

| share |  | Retained |  | Total

| capital |  | earnings |  | equity

£ | £ | £ |

Balance at 1 August 2023 | 100 |  | 8,342,761 |  | 8,342,861 |  |

Changes in equity

Dividends | - |  | (228,793 | ) | (228,793 | ) |

Total comprehensive income | - |  | 518,134 |  | 518,134 |  |

Balance at 31 July 2024 | 100 |  | 8,632,102 |  | 8,632,202 |  |

Changes in equity

Total comprehensive income | - |  | 42,817 |  | 42,817 |  |

Balance at 31 July 2025 | 100 |  | 8,674,919 |  | 8,675,019 |  |

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

NOTES TO THE FINANCIAL STATEMENTS

for the Year Ended 31 July 2025

1. | STATUTORY INFORMATION

| Melling Commercial 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.

| Financial Reporting Standard 102 - reduced disclosure exemptions

| The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

| • | the requirements of Section 7 Statement of Cash Flows;

| • | the requirement of paragraph 33.7.

| Significant judgements and estimates

| Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements are estimates have been made include:

| a) Depreciation

| The useful economic lives of Vehicles on Rental are assessed as being in line with the underlying lease agreement with depreciation being calculated straight line over that period. The residual values of certain Vehicles on Rental are assessed on an annual basis based on the latest available information.

| Turnover

| Turnover represents the fair value of income received from the sale and rental of motor vehicles, excluding discounts and value added tax.

| The company recognises revenue from the sales of stock items when the vehicles have been delivered and the title has passed.

| The company recognises revenue from vehicle rentals on a straight line basis over the hire term.

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 July 2025

2. | ACCOUNTING POLICIES - continued

| Tangible fixed assets

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

| Improvements to property | - | 10% on cost

| Plant and machinery | - | 20% on reducing balance

| Fixtures and fittings | - | 15% on reducing balance

| Vehicles on rental | - | 33% on cost and over the remaining term of the lease

| Computer equipment | - | 20% on reducing balance

| Tangible fixed assets are stated at cost or valuation, less depreciation and impairment.

| Impairment of assets

| At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the profit and loss.

| Where an impairment loss subsequently reverses, the carrying amount of each asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

| Stocks

| Stocks of motor vehicles for sale are valued at the lower of cost and selling price, after making due allowance for obsolete and slow moving items.

| Financial instruments

| Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

| Short term trade creditors are measured at transaction price. Financial liabilities that have no stated interest rate and are payable within one year shall be measured at the undiscounted amount due.

| Related party loans have no stated interest rate, are payable on demand and are measured at the undiscounted amount due.

| Taxation

| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

| Current or deferred taxation assets and liabilities are not discounted.

| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 July 2025

2. | ACCOUNTING POLICIES - continued

| Deferred tax

| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

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

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

| Leasing commitments

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

| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

| Rentals payable under operating leases are charged to the profit or loss on a straight line basis over the term of the lease.

| Short term employee benefits

| Short-term employee benefits are recognised as an expense in the period in which they are incurred.

3. | EMPLOYEES AND DIRECTORS

| 2025 |  | 2024

£ | £ |

| Wages and salaries | 735,662 |  | 745,048 |  |

| Social security costs | 101,616 |  | 89,244 |  |

| Other pension costs | 42,679 |  | 36,983 |  |

879,957 |  | 871,275 |  |

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

| 2025 |  | 2024

| Administration | 30 |  | 30 |  |

| 2025 |  | 2024

£ | £ |

| Directors' remuneration | 108,793 |  | 123,133 |  |

| The number of directors to whom retirement benefits were accruing was as follows:

| Money purchase schemes | 2 |  | 2 |  |

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 July 2025

4. | OPERATING PROFIT

| The operating profit is stated after charging:

| 2025 |  | 2024

£ | £ |

| Depreciation - owned assets | 356,025 |  | 539,980 |  |

| Depreciation - assets on hire purchase contracts | 4,956,654 |  | 5,048,152 |  |

| Auditors' remuneration | 22,000 |  | 21,000 |  |

5. | INTEREST PAYABLE AND SIMILAR EXPENSES |

| 2025 |  | 2024

£ | £ |

| Hire purchase interest | 1,350,323 |  | 1,199,713 |  |

| Other loan interest | 376,357 |  | 532,844 |  |

1,726,680 |  | 1,732,557 |  |

6. | TAXATION

| Analysis of the tax charge/(credit)

| The tax charge/(credit) on the profit for the year was as follows:

| 2025 |  | 2024

£ | £ |

| Current tax:

| UK corporation tax | 271,874 |  | 98,348 |  |

| Under/(Over) provision in

| prior year | (6,501 | ) | 37,129 |  |

| Total current tax | 265,373 |  | 135,477 |  |

| Deferred tax:

| Deferred tax | (152,042 | ) | (311,006 | ) |

| Underprovision in prior year | 269,517 |  | - |  |

| Total deferred tax | 117,475 |  | (311,006 | ) |

| Tax on profit | 382,848 |  | (175,529 | ) |

| UK corporation tax has been charged at 25% (2024 - 25%).

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 July 2025

6. | TAXATION - continued

| Reconciliation of total tax charge/(credit) included in profit and loss

| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

| 2025 |  | 2024

£ | £ |

| Profit before tax | 425,665 |  | 342,605 |  |

| Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%) | 106,416 |  | 85,651 |  |

| Effects of:

| Expenses not deductible for tax purposes | 28,235 |  | 42,748 |  |

| Income not taxable for tax purposes | (6,556 | ) | (7,661 | ) |

| Adjustments to tax charge in respect of previous periods | (6,501 | ) | 37,129 |  |

| Deferred tax - Under/(over) provision in prior year | 269,517 |  | (324,474 | ) |

| Other tax adjustments, reliefs and transfers | (29,051 | ) | (117,307 | ) |

| Chargeable gains/(losses) | 20,788 |  | 108,385 |  |

| Total tax charge/(credit) | 382,848 |  | (175,529 | ) |

7. | DIVIDENDS

| 2025 |  | 2024

£ | £ |

| Interim | - |  | 228,793 |  |

8. | TANGIBLE FIXED ASSETS

| Improvements |  | Fixtures

| to |  | Plant and |  | and

| property |  | machinery |  | fittings

£ | £ | £ |

| COST

| At 1 August 2024 | 67,617 |  | 44,696 |  | 294,902 |  |

| Additions | - |  | - |  | 43,304 |  |

| Disposals | - |  | - |  | - |  |

| At 31 July 2025 | 67,617 |  | 44,696 |  | 338,206 |  |

| DEPRECIATION

| At 1 August 2024 | 2,023 |  | 30,430 |  | 147,466 |  |

| Charge for year | 6,762 |  | 2,853 |  | 26,521 |  |

| Eliminated on disposal | - |  | - |  | - |  |

| At 31 July 2025 | 8,785 |  | 33,283 |  | 173,987 |  |

| NET BOOK VALUE

| At 31 July 2025 | 58,832 |  | 11,413 |  | 164,219 |  |

| At 31 July 2024 | 65,594 |  | 14,266 |  | 147,436 |  |

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 July 2025

8. | TANGIBLE FIXED ASSETS - continued

| Vehicles |  | Computer |

| on rental |  | equipment |  | Totals

£ | £ | £ |

| COST

| At 1 August 2024 | 27,183,706 |  | 71,514 |  | 27,662,435 |  |

| Additions | 19,433,216 |  | 3,324 |  | 19,479,844 |  |

| Disposals | (18,197,650 | ) | - |  | (18,197,650 | ) |

| At 31 July 2025 | 28,419,272 |  | 74,838 |  | 28,944,629 |  |

| DEPRECIATION

| At 1 August 2024 | 5,058,526 |  | 48,730 |  | 5,287,175 |  |

| Charge for year | 5,271,752 |  | 4,791 |  | 5,312,679 |  |

| Eliminated on disposal | (4,998,229 | ) | - |  | (4,998,229 | ) |

| At 31 July 2025 | 5,332,049 |  | 53,521 |  | 5,601,625 |  |

| NET BOOK VALUE

| At 31 July 2025 | 23,087,223 |  | 21,317 |  | 23,343,004 |  |

| At 31 July 2024 | 22,125,180 |  | 22,784 |  | 22,375,260 |  |

| The net book value of tangible fixed assets includes £21,276,144 (2024 - £19,724,591) in respect of assets held under finance contracts.

9. | STOCKS

2025 | 2024 |

£ | £ |

| Stocks | 36,089 |  | 109,469 |  |

10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Trade debtors | 1,594,691 |  | 1,118,599 |  |

| Amounts owed by group undertakings | 3,371,810 |  | 2,841,977 |  |

| Other debtors | 289,986 |  | 243,909 |  |

| Director's current account | - |  | 25,032 |  |

| Tax | 30,123 |  | - |  |

| Prepayments | 102,585 |  | 13,297 |  |

5,389,195 |  | 4,242,814 |  |

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 July 2025

11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Other loans (see note 13) | 3,880,727 |  | 4,371,661 |  |

| Hire purchase contracts (see note 14) | 9,446,356 |  | 5,904,121 |  |

| Trade creditors | 593,656 |  | 339,489 |  |

| Tax | 271,874 |  | 98,348 |  |

| Social security and other taxes | 169,040 |  | 633,824 |  |

| Other creditors | 583,942 |  | 521,098 |  |

| Deferred income | 250,261 |  | 198,980 |  |

| Accrued expenses | 50,580 |  | 331,040 |  |

15,246,436 |  | 12,398,561 |  |

12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |

2025 | 2024 |

£ | £ |

| Other loans (see note 13) | 1,751,220 |  | 3,797,096 |  |

| Hire purchase contracts (see note 14) | 2,424,051 |  | 2,639,568 |  |

4,175,271 |  | 6,436,664 |  |

13. | LOANS

| An analysis of the maturity of loans is given below:

2025 | 2024 |

£ | £ |

| Amounts falling due within one year or on demand:

| Other loans | 3,880,727 |  | 4,371,661 |  |

| Amounts falling due between one and two years:

| Other loans | 1,751,220 |  | 3,797,096 |  |

14. | LEASING AGREEMENTS

| Minimum lease payments fall due as follows:

| Hire purchase |

| contracts |

2025 | 2024 |

£ | £ |

| Net obligations repayable:

| Within one year | 9,446,356 |  | 5,904,121 |  |

| Between one and five years | 2,424,051 |  | 2,639,568 |  |

11,870,407 |  | 8,543,689 |  |

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 July 2025

14. | LEASING AGREEMENTS - continued

| Non-cancellable |

| operating leases |

2025 | 2024 |

£ | £ |

| Within one year | 297,531 |  | 357,010 |  |

| Between one and five years | 227,204 |  | 465,924 |  |

524,735 |  | 822,934 |  |

| The company has a lease fleet rental facility of up to £27m (2024 - £23.75m).

15. | SECURED DEBTS

| The following secured debts are included within creditors:

2025 | 2024 |

£ | £ |

| Other loans | 5,631,947 |  | 8,168,757 |  |

| Hire purchase contracts | 11,870,407 |  | 8,543,689 |  |

17,502,354 |  | 16,712,446 |  |

| Hire Purchase and other loan liabilities are secured by fixed charges over the asset concerned together with a debenture over the assets of the company.

16. | PROVISIONS FOR LIABILITIES

2025 | 2024 |

£ | £ |

| Deferred tax | 2,307,056 |  | 2,189,581 |  |

| Deferred |

| tax |

£ |

| Balance at 1 August 2024 | 2,189,581 |  |

| Charge to Income Statement during year | 117,475 |  |

| Balance at 31 July 2025 | 2,307,056 |  |

17. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 2025 | 2024 |

| value: | £ | £ |

| 100 | Ordinary | £1 | 100 |  | 100 |  |

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934) |

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 July 2025

18. | RESERVES

| Retained

| earnings

£ |

| At 1 August 2024 | 8,632,102 |  |

| Profit for the year | 42,817 |  |

| At 31 July 2025 | 8,674,919 |  |

19. | ULTIMATE PARENT COMPANY

| The ultimate parent company is Melling Property Holdings (Wigan) Limited, a company registered in England and Wales, which prepare group financial statements. Copies can be obtained from Westwood Motor Group, Manchester Road, Ince, Wigan, WN2 2LE.

20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

| The following advances and credits to a director subsisted during the years ended 31 July 2025 and 31 July 2024:

2025 | 2024 |

£ | £ |

| C Melling

| Balance outstanding at start of year | 25,032 |  | - |  |

| Amounts advanced | 181,204 |  | 161,712 |  |

| Amounts repaid | (206,236 | ) | (136,680 | ) |

| Amounts written off | - |  | - |  |

| Amounts waived | - |  | - |  |

| Balance outstanding at end of year | - |  | 25,032 |  |

| Interest is charged at 2.25% on any overdrawn amounts.

21. | RELATED PARTY DISCLOSURES

| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

22. | ULTIMATE CONTROLLING PARTY

| The ultimate controlling party is C Melling, by virtue of his shareholding in the ultimate parent company, Melling Property Holdings (Wigan) Limited.