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Registered number: 02082134
Commercial Associates Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 May 2025
Sturgess Hutchinson
Commercial Associates Limited
Contents
Contents

| Page
--- | ---
Strategic Report | 1—2
Directors' Report | 3—4
Independent Auditor's Report | 5—7
Profit and Loss Account | 8
Statement of Comprehensive Income | 9
Balance Sheet | 10—11
Statement of Changes in Equity | 12
Statement of Cash Flows | 13
Notes to the Statement of Cash Flows | 14
Notes to the Financial Statements | 15—25

Page 1
Commercial Associates Limited
Strategic Report
For The Year Ended 31 May 2025
Strategic Report
The directors present their strategic report for the year ended 31 May 2025.
Review of the Business
We aim to present a balanced summary of the performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties that we face.
The financial results for 2025 were shaped by continued global economic uncertainty, geopolitical tensions, and ongoing cost pressures across the automotive sector. Although the broader market has shown signs of stabilisation, inflationary pressures and supply chain adjustments continued to influence trading conditions throughout the year.
Market conditions remained competitive, however consumer affordability continued to be impacted by higher interest rates and living costs. In response, we maintained a disciplined approach to fleet management, optimising asset utilisation by re-contracting quality used vehicles while continuing to offer longer-term agreements on new vehicles where commercially viable.
The used vehicle market began to normalise during 2025 as new vehicle supply gradually improved. While disposal values remained relatively robust, margins tightened compared with the elevated levels experienced in previous years.
Despite these ongoing challenges, performance in the latter part of the year was encouraging. Both income streams and the asset base demonstrated steady growth, supported by operational efficiencies and targeted commercial initiatives.
We remain optimistic about the year ahead as we continue to modernise and streamline our operations. Customer engagement and enquiry levels have remained strong, supported by the continued refinement of our marketing strategy and enhanced digital presence.
The directors have reviewed forecasts and cash flow projections for the forthcoming period and are satisfied that the company is well positioned to continue operating as a going concern. Our balance sheet remains resilient, supported by prudent financial management and maintained liquidity. Improving stability within the leasing and automotive markets, together with strengthening consumer confidence, provides a positive platform from which to pursue our strategic objectives.
KEY PERFORMANCE INDICATORS
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company, namely Turnover, pre-tax profit and shareholders funds.

| 2025 (£m) | 2024 (£m) | 2023 (£m) | 2022 (£m)
Turnover | 14.69 | 13.98 | 13.33 | 10.61
Profit before tax | 2.68 | 1.54 | 2.16 | 1.84
Shareholders funds | 9.63 | 9.12 | 8.96 | 7.33

Page 1
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Commercial Associates Limited
Strategic Report (continued)
For The Year Ended 31 May 2025
Principal Risks and Uncertainties
The principal risk facing the business continues to be the rising cost base, particularly vehicle acquisition costs and associated financing expenses.
In addition, increases in the National Living Wage and broader operating costs remain a key consideration, both in terms of internal expenditure and the affordability challenges faced by our customers. We remain committed to maintaining competitive pricing within the marketplace while carefully managing margin sustainability.
Regulatory compliance remains a core priority. Senior management actively monitors adherence to all relevant legislation and industry requirements and continues to enhance internal systems and controls to ensure ongoing compliance.
As with any business operating in a dynamic economic environment, future growth and development may be affected by unforeseen external events. The Board undertakes regular risk assessments and will continue to adapt strategy and operational planning in response to changing market conditions and emerging risks.
On behalf of the board

Miss K C Laundon Director
13/02/2026

Page 2
Page 3
Commercial Associates Limited
Company No. 02082134
Directors' Report For The Year Ended 31 May 2025
Directors' Report
The directors present their report and the financial statements for the year ended 31 May 2025.
Principal Activity
The principal activity of the company in the year under review was that of leasing and the sale of motor vehicles to driving instructors.
Dividends
A dividend of £1,500,000 was paid on 28th February 2025.
Directors
The directors who held office during the year were as follows:

Mrs K M Laundon
Mrs D Billings Wakerley
Miss K C Laundon | Appointed | 28/02/2025

Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
- 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:

- so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
- they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Page 3
Page 4
Commercial Associates Limited
Directors' Report (continued)
For The Year Ended 31 May 2025
Independent Auditors
The auditors, Sturgess Hutchinson (Leicester) Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board

Miss K C Laundon Director
13/02/2026

Page 4
Page 5
Independent Auditor's Report
to the Members of
Commercial Associates Limited
Independent Auditor's Report
Opinion
We have audited the financial statements of Commercial Associates Limited for the year ended 31 May 2025 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 May 2025 and of its profit/(loss) 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 entity's ability to continue as a going concern for a period of at least 12 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. 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.
Page 5
Page 6
Independent Auditor's Report (continued)
to the Members of
Commercial Associates Limited
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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and Directors' Report 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 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 or 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 Directors' Responsibilities Statement set out on page 3—4, 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.
Page 6
Page 7
Independent Auditor's Report (continued)
to the Members of
Commercial Associates Limited
Auditor's 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 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:
Based on our understanding of the business and the industry, we have identified the principal risks of non-compliance with laws and regulations related to UK tax legislation and General Data Protection Regulation, and we have considered the extent to which non-compliance might have a material effect on the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed included:
- Enquires with management for consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
- Challenging assumptions made by management in their accounting estimates; and
- Identifying and testing material journal entries, in particular those journal entries posted with unusual account combinations, journal
entries crediting revenue, journal entries crediting cash and journal entries with specific defined descriptions.
There are inherent limitations in the audit procedures described above. The more 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 resulting from error, as fraud may involve deliberate concealment by forgery or intentional misrepresentation, for example, 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 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 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 that we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jagdish Petha (Senior Statutory Auditor) for and on behalf of Sturgess Hutchinson (Leicester) Limited , Statutory Auditor
13/02/2026
Sturgess Hutchinson (Leicester) Limited 21 New Walk Leicester LE1 6TE

Page 7
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Commercial Associates Limited
Profit and Loss Account
For The Year Ended 31 May 2025
Profit and Loss Account

| 2025 |  | 2024
--- | --- | --- | ---
| Notes | £ |  | £
TURNOVER | 3 | 14,685,793 |  | 13,981,894
Cost of sales |  | (11,516,394 ) |  | (11,642,046 )
GROSS PROFIT |  | 3,169,399 |  | 2,339,848
Administrative expenses |  | (1,401,440 ) |  | (1,414,972 )
Other operating income |  | 76,653 |  | 56,489
OPERATING PROFIT | 5 | 1,844,612 |  | 981,365
Profit on disposal of fixed assets |  | 1,547,033 |  | 1,138,625
Other interest receivable and similar income | 10 | 44,848 |  | 52,558
Interest payable and similar charges | 11 | (758,126 ) |  | (631,918 )
PROFIT BEFORE TAXATION |  | 2,678,367 |  | 1,540,630
Tax on Profit | 12 | (669,591 ) |  | (386,764 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR |  | 2,008,776 |  | 1,153,866

The notes on pages 14 to 24 form part of these financial statements.
Page 8
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Commercial Associates Limited
Statement of Comprehensive Income
For The Year Ended 31 May 2025
Statement of Comprehensive Income

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
PROFIT FOR THE FINANCIAL YEAR |  | 2,008,776 |  | 1,153,866
OTHER COMPREHENSIVE INCOME FOR THE YEAR |  | - |  | -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |  | 2,008,776 |  | 1,153,866

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Commercial Associates Limited
Balance Sheet
As At 31 May 2025
Balance Sheet
Registered number: 02082134

| 2025 | 2024
--- | --- | ---
| Notes | £ | £ | £ | £
FIXED ASSETS
Tangible Assets | 13 |  | 18,310,298 |  | 18,553,873
|  |  | 18,310,298 |  | 18,553,873
CURRENT ASSETS
Stocks | 14 | 76,959 |  | 486,555 |
Debtors | 15 | 781,142 |  | 584,411 |
Cash at bank and in hand |  | 3,655,259 |  | 3,171,420 |
|  | 4,513,360 |  | 4,242,386 |
Creditors: Amounts Falling Due Within One Year | 16 | (10,347,424 ) |  | (10,420,380 ) |
NET CURRENT ASSETS (LIABILITIES) |  |  | (5,834,064 ) |  | (6,177,994 )
TOTAL ASSETS LESS CURRENT LIABILITIES |  |  | 12,476,234 |  | 12,375,879
Creditors: Amounts Falling Due After More Than One Year | 17 |  | (2,001,322 ) |  | (2,437,498 )
PROVISIONS FOR LIABILITIES
Deferred Taxation | 19 |  | (849,610 ) |  | (821,855 )
NET ASSETS |  |  | 9,625,302 |  | 9,116,526
CAPITAL AND RESERVES
Called up share capital | 20 |  | 40 |  | 40
Capital redemption reserve |  |  | 40 |  | 40
Profit and Loss Account |  |  | 9,625,222 |  | 9,116,446
SHAREHOLDERS' FUNDS |  |  | 9,625,302 |  | 9,116,526

Page 10
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Commercial Associates Limited
Balance Sheet (continued)
As At 31 May 2025
On behalf of the board

Miss K C Laundon Director
13/02/2026

The notes on pages 14 to 24 form part of these financial statements.
Page 11
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Commercial Associates Limited
Statement of Changes in Equity
For The Year Ended 31 May 2025
Statement of Changes in Equity

| Share Capital | Capital Redemption | Profit and Loss Account | Total
--- | --- | --- | --- | ---
| £ | £ | £ | £
As at 1 June 2023 | 48 | 32 | 8,959,580 | 8,959,660
Profit for the year and total comprehensive income | - | - | 1,153,866 | 1,153,866
Purchase of own shares | (8 ) | 8 | (997,000 ) | (997,000)
As at 31 May 2024 and 1 June 2024 | 40 | 40 | 9,116,446 | 9,116,526
Profit for the year and total comprehensive income | - | - | 2,008,776 | 2,008,776
Dividends paid | - | - | (1,500,000) | (1,500,000)
As at 31 May 2025 | 40 | 40 | 9,625,222 | 9,625,302

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Commercial Associates Limited
Statement of Cash Flows
For The Year Ended 31 May 2025
Statement of Cash Flows

| 2025 |  | 2024
| Notes | £ |  | £
Cash flows from operating activities
Net cash generated from operations | 1 | 7,383,850 |  | 6,128,358
Interest paid |  | (758,126 ) |  | (631,918 )
Tax paid |  | (409,909 ) |  | (298,056 )
Net cash generated from operating activities |  | 6,215,815 |  | 5,198,384
Cash flows from investing activities
Purchase of tangible assets |  | (710,009 ) |  | (1,380,575 )
Proceeds from disposal of tangible assets |  | 5,865,498 |  | 3,420,575
Interest received |  | 44,848 |  | 52,558
Net cash generated from investing activities |  | 5,200,337 |  | 2,092,558
Cash flows from financing activities
Purchase/redemption of own shares |  | - |  | (997,000 )
Equity dividends paid |  | (1,500,000 ) |  | -
Repayment of finance leases |  | (9,422,083 ) |  | (9,056,886 )
Amount introduced by directors |  | 58,274 |  | 72,869
Amount withdrawn by directors |  | (68,504) |  | (95,351)
Net cash used in financing activities |  | (10,932,313 ) |  | (10,076,368 )
Increase/(decrease) in cash and cash equivalents |  | 483,839 |  | (2,785,426 )
Cash and cash equivalents at beginning of year | 2 | 3,171,420 |  | 5,956,846
Cash and cash equivalents at end of year | 2 | 3,655,259 |  | 3,171,420

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Commercial Associates Limited
Notes to the Statement of Cash Flows
For The Year Ended 31 May 2025
Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Profit for the financial year | 2,008,776 |  | 1,153,866
Adjustments for:
Tax on profit | 669,591 |  | 386,764
Interest expense | 758,126 |  | 631,918
Interest income | (44,848 ) |  | (52,558 )
Depreciation of tangible assets | 5,334,831 |  | 5,030,697
Profit on disposal of tangible assets | (1,547,033) |  | (1,138,625)
Movements in working capital:
Decrease/(increase) in stocks | 409,596 |  | (218,365 )
Increase in trade and other debtors | (197,227 ) |  | (71,768 )
(Decrease)/increase in trade and other creditors | (7,962 ) |  | 406,429
Net cash generated from operations | 7,383,850 |  | 6,128,358

2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Cash at bank and in hand | 3,655,259 |  | 3,171,420

3. Analysis of changes in net debt

| As at 1 June 2024 | Cash flows | New finance leases | As at 31 May 2025
--- | --- | --- | --- | ---
| £ | £ | £ | £
Cash at bank and in hand | 3,171,420 | 483,839 | - | 3,655,259
Finance leases | (9,848,121) | 9,422,083 | (8,699,712) | (9,125,750)
| (6,676,701) | 9,905,922 | (8,699,712) | (5,470,491)

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Commercial Associates Limited
Notes to the Financial Statements
For The Year Ended 31 May 2025
Notes to the Financial Statements
1. General Information
Commercial Associates Limited is a private company, limited by shares, incorporated in England & Wales, registered number 02082134 . The registered office is Welford Road, Kilby Bridge, Leicester, Leicestershire, LE18 3TE.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and 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 are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
2.2. Going Concern Disclosure
At the balance sheet date, the company had net current liabilities of £5.83m and net assets of £9.63m. The company generates income from it's fixed assets, and has future minimum rentals recoverable under non-cancellable operating leases of £6.94m due in under 1 year, therefore the directors are confident that the company can settle its liabilities when they fall due.
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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3. Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of VAT and trade discounts and is recognised in the period to which it relates.
- Motor vehicle sales revenue is recognised when the cars are delivered to the customer.
- Vehicle hire is recognised in the period to which it relates.
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold | No depreciation
Leasehold | 20% straight line
Plant & Machinery | 10% to 20% straight line
Motor Vehicles | 26% reducing balance
Fixtures & Fittings | 20% straight line
Computer Equipment | 33% straight line

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Commercial Associates Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
2.5. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.6. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.7. Financial Instruments
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.
(i) Financial assets
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 assests classified as receivable within one year are not amortised.
(ii) Financial liabilities
Basic financial liabilities, including creditors and bank loans 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 receipts 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.
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Commercial Associates Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
2.8. Taxation
Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.9. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
2.10. Operating leases
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 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 paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
Dilapidation provisions are made when the company is aware of any repairs that are needed under the terms of the lease.
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Commercial Associates Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
3. Turnover
The turnover and profit before taxation are attributable to the one principlal activity of the company.
Analysis of turnover by class of business is as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Hire of motor vehicles | 9,430,534 |  | 8,475,476
Sale of motor vehilces | 5,255,259 |  | 5,506,418
| 14,685,793 |  | 13,981,894

Analysis of turnover by geographical market is as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
United Kingdom | 14,685,793 |  | 13,981,894
| 14,685,793 |  | 13,981,894

4. Other Operating Income

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Rental income | 42,884 |  | 14,451
Other operating income | 33,769 |  | 42,038
| 76,653 |  | 56,489

5. Operating Profit
The operating profit is stated after charging:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Bad debts | 52,044 |  | 6,997
Operating lease rentals | 58,473 |  | 50,957
Depreciation of tangible fixed assets - owned | 670,648 |  | 539,602
Depreciation of tangible fixed assets - finance leases and hire purchase contracts | 4,664,183 |  | 4,491,095

6. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Audit Services
Audit of the company's financial statements | 12,000 |  | 12,000

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Commercial Associates Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
7. Staff Costs
Staff costs, including directors' remuneration, were as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Wages and salaries | 733,067 |  | 698,396
Social security costs | 72,276 |  | 67,059
Other pension costs | 35,571 |  | 113,715
| 840,914 |  | 879,170

8. Average Number of Employees
Average number of employees, including directors, during the year was as follows:

| 2025 |  | 2024
--- | --- | --- | ---
Office and administration | 9 |  | 8
Sales, marketing and distribution | 3 |  | 4
Directors | 2 |  | 2
Workshop | 9 |  | 9
IT | 2 |  | 2
| 25 |  | 25

9. Directors' remuneration

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Emoluments | 135,424 |  | 143,362
Company contributions to money purchase pension schemes | 22,509 |  | 101,525
| 157,933 |  | 244,887

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

| 2025 |  | 2024
--- | --- | --- | ---
Money purchase pension schemes | 3 |  | 2

Information regarding the highest paid director was as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Emoluments | 67,605 |  | 70,178
Company contributions to money purchase pension schemes | 17,710 |  | 81,480
| 85,315 |  | 151,658

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Commercial Associates Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
10. Interest Receivable and Similar Income

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Bank interest received | 44,848 |  | 52,558

11. Interest Payable and Similar Charges

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Finance charges payable under finance leases and hire purchase contracts | 736,887 |  | 630,288
Other finance charges | 21,239 |  | 1,630
| 758,126 |  | 631,918

12. Tax on Profit

The tax charge on the profit for the year was as follows:
| Tax Rate | 2025 |  | 2024
--- | --- | --- | --- | ---
| 2025 | 2024 | £ |  | £
Current tax
UK Corporation Tax | 25.0% | 25.0% | 641,836 |  | 409,909
Deferred Tax
Deferred taxation | 27,755 |  | (23,145 )
Total tax charge for the period | 669,591 |  | 386,764
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
| 2025 |  | 2024
| £ |  | £
Profit before tax | 2,678,367 |  | 1,540,630
Tax on profit at 25% (UK standard rate) | 669,592 |  | 385,158
Goodwill/depreciation not allowed for tax | 1,333,708 |  | 1,257,674
Expenses not deductible for tax purposes | (376,291 ) |  | (267,532 )
Capital allowances | (985,173 ) |  | (965,391 )
Short term timing differences | 27,755 |  | (23,145 )
Total tax charge for the period | 669,591 |  | 386,764

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Commercial Associates Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
13. Tangible Assets

| Land & Property
--- | ---
| Freehold | Leasehold | Plant & Machinery | Motor Vehicles
| £ | £ | £ | £
Cost
As at 1 June 2024 | 1,120,657 | 95,577 | 65,438 | 25,977,174
Additions | - | - | 135,514 | 9,269,459
Disposals | - | - | - | (9,331,333 )
As at 31 May 2025 | 1,120,657 | 95,577 | 200,952 | 25,915,300
Depreciation
As at 1 June 2024 | - | 21,974 | 24,100 | 8,669,794
Provided during the period | - | 19,116 | 35,438 | 5,271,783
Disposals | - | - | - | (5,012,868 )
As at 31 May 2025 | - | 41,090 | 59,538 | 8,928,709
Net Book Value
As at 31 May 2025 | 1,120,657 | 54,487 | 141,414 | 16,986,591
As at 1 June 2024 | 1,120,657 | 73,603 | 41,338 | 17,307,380

| Computer Equipment | Total
--- | --- | ---
| £ | £
Cost
As at 1 June 2024 | 28,199 | 27,287,045
Additions | 4,748 | 9,409,721
Disposals | - | (9,331,333 )
As at 31 May 2025 | 32,947 | 27,365,433
Depreciation
As at 1 June 2024 | 17,304 | 8,733,172
Provided during the period | 8,494 | 5,334,831
Disposals | - | (5,012,868 )
As at 31 May 2025 | 25,798 | 9,055,135
Net Book Value
As at 31 May 2025 | 7,149 | 18,310,298
As at 1 June 2024 | 10,895 | 18,553,873

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Commercial Associates Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Plant & Machinery | 100,857 |  | 14,210
Motor Vehicles | 15,111,284 |  | 15,785,403
| 15,212,141 |  | 15,799,613

14. Stocks

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Motor vehicles for resale | - |  | 385,040
Consumables | 76,959 |  | 101,515
| 76,959 |  | 486,555

15. Debtors

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Due within one year
Trade debtors | 434,439 |  | 275,360
Other debtors | 346,703 |  | 309,051
| 781,142 |  | 584,411

16. Creditors: Amounts Falling Due Within One Year

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Net obligations under finance lease and hire purchase contracts | 7,124,428 |  | 7,410,623
Trade creditors | 772,118 |  | 879,354
Other creditors | 506,366 |  | 541,928
Corporation tax | 641,836 |  | 409,909
Taxation and social security | 490,661 |  | 112,596
Accruals and deferred income | 812,015 |  | 1,065,970
| 10,347,424 |  | 10,420,380

17. Creditors: Amounts Falling Due After More Than One Year

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Net obligations under finance lease and hire purchase contracts | 2,001,322 |  | 2,437,498

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Commercial Associates Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
The company has a number of financing arrangements which are secured against the assets of the business. The following charges are registered at Companies House in respect of these arrangements:
Lombard North Central PLC
A fixed and floating charge dated 30 March 2015 covering all freehold and leasehold property, fixtures and fittings, plant and machinery, goodwill, uncalled capital, shares and securities, intellectual property and insurance proceeds. The floating charge extends over all other assets not subject to a fixed charge.
Santander UK PLC (as Security Trustee)
An all‑assets debenture dated 9 July 2015, including fixed charges over property, plant and machinery, receivables, intellectual property and contracts, and a floating charge over the undertaking of the company.
PSA Finance UK Ltd
A fixed and floating charge dated 27 July 2015 over sub‑contracts, related receivables, guarantees, indemnities, negotiable instruments, insurance proceeds and supplemental agreements. Includes a floating charge over the undertaking of the company.
Toyota Financial Services (UK) PLC
A fixed charge dated 12 January 2023 over all sub‑letting agreements, including rental income rights, rights of repossession, guarantees, collateral securities and insurance policies relating to the company’s fleet leasing arrangements.
Hire purchase and finance lease obligations disclosed in Notes 16 to 18 are secured on the motor vehicles and plant and machinery to which they relate. The net book value of assets held under hire purchase and finance leases at 31 May 2025 was £15,212,141.
18. Obligations Under Finance Leases and Hire Purchase

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
The future minimum finance lease payments are as follows:
Not later than one year | 7,124,428 |  | 7,410,623
Later than one year and not later than five years | 2,001,322 |  | 2,437,498
| 9,125,750 |  | 9,848,121
| 9,125,750 |  | 9,848,121

19. Deferred Taxation
The provision for deferred tax is made up as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Accelerated capital allowances | 849,610 |  | 821,855

20. Share Capital

| 2025 |  | 2024
--- | --- | --- | ---
Allotted, called up and fully paid | £ |  | £
40 Ordinary Shares of £ 1.00 each | 40 |  | 40

Each share has full rights in the company with respect to voting, dividends and distributions.
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Commercial Associates Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
21. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Not later than one year | 59,756 |  | 56,798
Later than one year and not later than five years | 7,072 |  | 3,656
| 66,828 |  | 60,454

Operating lease payments represent rentals payable by the company on equipment and land and buildings. Leases are negotiated for an average term of 3-5 years and rentals are fixed during this period.
22. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £35,571 (2024: £113,715).
23. Directors Advances, Credits and Guarantees
Included within Debtors and Creditors are the following loans to/(from) directors:

| As at 1 June 2024 | Amounts advanced | Amounts repaid | Amounts written off | As at 31 May 2025
--- | --- | --- | --- | --- | ---
| £ | £ | £ | £ | £
Mrs Karen Laundon | (26,015 ) | 66,831 | (56,105 ) | - | (15,289 )
Mrs Deborah Billings Wakerley | 796 | 1,673 | (2,169 ) | - | 300

The overdrawn director's loan account has been repaid post year end.
24. Dividends

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
On equity shares:
Interim dividend paid | 1,500,000 |  | -

25. Controlling Parties
The company's immediate parent undertaking is Commercial Associates (Holdings) Limited.
Copies of the group accounts may be obtained from the company's registered office.
The company's ultimate controlling party is Katie Laundon by virtue of their interest in the share capital of the company.
26. Commitments under Operating Leases
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Commercial Associates Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
At 31 May 2025 the company had minimum rentals recoverable under non-cancellable operating leases as follows:

| 2025 |  | 2024
| £ |  | £
Not later than 1 year | 5,711,520 |  | 6,945,214
Later than 1 year and not later than 5 years | 5,878,096 |  | 6,327,520
| 11,589,616 |  | 13,272,734

Operating lease receipts represent rentals receivable by the company for motor vehicles leased out to customers. Leases are negotiated for an average of 2-3 years and rentals are fixed during this period.
Page 25