Lawrence Vehicles Limited - Limited company accounts 25.1

REGISTERED NUMBER: 04292964 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

for

Lawrence Vehicles Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

P J Entwistle

I E Marshall

REGISTERED OFFICE:

12 Chequers Road

West Meadows Industrial Estate

Derby

DE21 6EN

REGISTERED NUMBER:

04292964 (England and Wales)

AUDITORS:

Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

BANKERS:

Bank of Scotland

33 Old Broad Street

London

BX2 1LB

SOLICITORS:

Browne Jacobson LLP

Castle Meadow Road

Nottingham

NG2 1BJ

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

REVIEW OF BUSINESS

Lawrence Vehicles Limited retails heavy trucks and provides aftersales services through its DAF franchise, operating from branches in Lancashire and Lothian supported by a parts depot. Turnover decreased by 7.7% due to reduced market demand, while the gross profit margin remained stable at 4.6% (2024: 4.9%). Performance is considered satisfactory in challenging trading conditions.

KEY PERFORMANCE INDICATORS

The directors monitor a range of financial and operational KPIs, including:

Turnover growth: (7.7)%.

Gross profit margin: 4.6%.

Operating margin: monitored internally.

Stock days: monitored to manage working capital.

Customer satisfaction and service utilisation: used to track operational performance.

Health & safety compliance: monitored regularly.

PRINCIPAL RISKS AND UNCERTAINTIES

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

The directors feel that the principal risk is that of not achieving turnover and the company closely monitors this. There is also the risk of gross profit reduction and cost increases against anticipated performance. The company operates within an industry where margins are low and therefore to be profitable, high volume sales need to occur. This again is closely monitored by the directors with any necessary action undertaken.

SECTION 172(1) STATEMENT

The directors consider, both individually and together, that they have acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Companies Act 2006) in the decisions taken during the year ended 31 December 2025.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The directors have had regard to the need to foster the company's business relationships with suppliers, customers and others.

FUTURE DEVELOPMENTS

Priorities for 2026 include improving sales volumes, investing in workshop capability, enhancing digital systems, and strengthening sustainability practices. These actions are expected to support long-term performance.

ON BEHALF OF THE BOARD:

I E Marshall - Director

30 April 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a motor dealer.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

P J Entwistle

I E Marshall

Other changes in directors holding office are as follows:

G R Robson ceased to be a director after 31 December 2025 but prior to the date of this report.

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The company’s financial assets and liabilities consist of trade debtors and creditors, cash balances, bank loans and overdrafts and stocking loans.

The directors manage the company’s exposure to financial risk by researching the credit worthiness of customers and by seeking advice from the company’s providers of finance and its other external financial advisers.

The company does not trade in foreign currencies.

The company does not trade speculatively in derivatives or similar instruments.

DISCLOSURE IN THE STRATEGIC REPORT

The matters required to be disclosed under SI (2008) 410 Sch 7 relating to employees are contained within the Group Strategic Report as applicable in accordance with s414C(11) of the Companies Act 2006.

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;

-	state whether applicable accounting standards 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

I E Marshall - Director

30 April 2026

Opinion

We have audited the financial statements of Lawrence Vehicles Limited (the 'company') for the year ended 31 December 2025 which comprise the Profit and Loss Account, Balance Sheet, 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 December 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.

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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Based on our understanding of the company and industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the motor trade industry and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included:

-

Enquiry of management around actual and potential litigation and claims;

-

Reviewing financial statement disclosures and testing to supporting documentation to assess

compliance with applicable laws and regulations;

-

Reviewing minutes of meetings of those charged with governance;

-

Performing audit work over the risk of management override of controls, including testing of

journal entries and other adjustments for appropriateness, evaluating the business rationale of
significant transactions outside the normal course of business and reviewing accounting estimates for
bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Wayne Thomas FCA (Senior Statutory Auditor)

for and on behalf of Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

30 April 2026

TURNOVER

215,330

233,236

Cost of sales

205,397

221,897

GROSS PROFIT

9,933

11,339

Administrative expenses

4,389

4,309

OPERATING PROFIT

4

5,544

7,030

Interest payable and similar expenses

5

600

2,481

PROFIT BEFORE TAXATION

4,944

4,549

Tax on profit

6

1,383

1,077

PROFIT FOR THE FINANCIAL YEAR

3,561

3,472

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

3,561

3,472

FIXED ASSETS

Tangible assets

7

2,693

1,474

CURRENT ASSETS

Stocks

8

69,082

61,128

Debtors

9

18,230

15,657

Cash at bank and in hand

3,706

17,863

91,018

94,648

CREDITORS

Amounts falling due within one year

10

64,590

70,918

NET CURRENT ASSETS

26,428

23,730

TOTAL ASSETS LESS CURRENT
LIABILITIES

29,121

25,204

PROVISIONS FOR LIABILITIES

12

356

-

NET ASSETS

28,765

25,204

CAPITAL AND RESERVES

Called up share capital

13

350

Retained earnings

14

28,415

24,854

SHAREHOLDERS' FUNDS

28,765

25,204

The financial statements were approved by the Board of Directors and authorised for issue on 30 April 2026 and were signed on its behalf by:

I E Marshall - Director

Called up

share

Retained

Total

capital

earnings

equity

£'000

Balance at 1 January 2024

350

21,382

21,732

Changes in equity

Total comprehensive income

-

3,472

Balance at 31 December 2024

350

24,854

25,204

Changes in equity

Total comprehensive income

-

3,561

Balance at 31 December 2025

350

28,415

28,765

1.	STATUTORY INFORMATION

Lawrence Vehicles 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 exemption 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.

Turnover

Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to third party and group customers during the year. Turnover is recognised when the company has transferred the significant risks and rewards of ownership to the buyer and it is probable that the company will receive the agreed upon payment.

Tangible fixed assets

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

Depreciation is provided on all fixed assets, with the exception of loose tools, to write off the cost less the estimated residual value in annual instalments over their estimated useful lives as follows :-

Fixtures, fittings and equipment

- 10% to 20% on cost

Vehicles are written off systematically on a straight line basis by reference to their estimated residual value at proposed date of disposal over a range of 2 to 5 years. Loose tools are accounted for on a renewals basis.

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'cost of sales' and 'administrative expenses' in the profit and loss account.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for slow moving and obsolete items. In the case of work in progress, cost includes direct labour. Cost represents the invoiced cost of materials, parts and vehicles on an average cost basis.

At each reporting date, stock is assessed for impairment. If impaired, the carrying amount is reduced and the impairment loss is recognised immediately in the profit and loss account.

Deferred tax

Deferred tax arises from timing differences that are differences between taxable total profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

A deferred tax asset is recognised only when it is more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences and losses can be deducted.

Provision is made at current rates for taxation deferred in respect of all material timing differences.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

Leasing commitments

Rentals paid under operating leases are charged to the profit and loss account as incurred.

Related parties

The company is a wholly owned subsidiary undertaking of Pentagon Investments Limited. The company has taken advantage of the exemption contained within Financial Reporting Standard 102 and has therefore not disclosed transactions with entities which form part of the group, other than as normally disclosed in the notes to the financial statements.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Judgements in applying accounting policies and key sources of estimation

In the application of the company's accounting policies the directors are required to make judgement estimates and assumptions about the carrying amounts of the company's assets and liabilities. These are based on historical experience and other factors that are considered relevant and are reviewed on a regular basis and recognised in the period in which the estimate is revised. Actual results may differ from these estimates.

The following are the critical judgements and where relevant the key sources of estimation uncertainty:

Tangible fixed assets are depreciated over their useful economic lives taking into account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.

The recoverability of debtors is assessed on the likelihood and circumstances of the particular cost.

The value of stock is assessed for impairment. In re-assessing the stock value, factors such as slow movement and obsolescence are taken into account.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£'000

Wages and salaries

9,025

8,432

Social security costs

1,106

898

Other pension costs

446

425

10,577

9,755

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

2025

2024

Staff and office

62

Production and sales

116

178

2025

2024

£

Directors' remuneration

375,352

352,108

Directors' pension contributions to money purchase schemes

9,891

10,114

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

Money purchase schemes

1

Information regarding the highest paid director is as follows:

2025

2024

£

Emoluments etc

375,352

352,108

Pension contributions to money purchase schemes

9,891

10,114

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£'000

Depreciation - owned assets

601

444

Profit on disposal of fixed assets

(8

)

(43

)

Auditors' remuneration

14

26

Auditors' remuneration - non audit services

3

Operating lease payments

372

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£'000

Interest on taxation

-

26

Stocking loan interest

600

2,455

600

2,481

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£'000

Current tax:

UK corporation tax

912

1,078

Adjustment re prior year

-

(1

)

Total current tax

912

1,077

Deferred tax

471

-

Tax on profit

1,383

1,077

Reconciliation of total tax charge 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

£'000

Profit before tax

4,944

4,549

Profit multiplied by the standard rate of corporation tax in the UK of
25% (2024 - 25%)

1,236

1,137

Effects of:

Expenses not deductible for tax purposes

(3

)

14

Adjustments to tax charge in respect of previous periods

-

(1

)

Other timing differences

150

(73

)

Total tax charge

1,383

1,077

7.	TANGIBLE FIXED ASSETS

Fixtures,

fittings

and

Motor

equipment

vehicles

Totals

£'000

COST

At 1 January 2025

2,297

1,572

3,869

Additions

1,372

450

1,822

Disposals

(88

)

(49

)

(137

)

At 31 December 2025

3,581

1,973

5,554

DEPRECIATION

At 1 January 2025

1,816

579

2,395

Charge for year

177

424

601

Eliminated on disposal

(88

)

(47

)

(135

)

At 31 December 2025

1,905

956

2,861

NET BOOK VALUE

At 31 December 2025

1,676

1,017

2,693

At 31 December 2024

481

993

1,474

8.

STOCKS

2025

2024

£'000

Vehicles and parts for resale

69,082

61,128

9.

DEBTORS

2025

2024

£'000

Amounts falling due within one year:

Trade debtors

8,466

8,731

Amounts owed by group undertakings

6,750

5,750

Other debtors

2,008

58

Taxation

384

-

Prepayments and accrued income

622

1,003

18,230

15,542

Amounts falling due after more than one year:

Deferred tax asset

-

115

Aggregate amounts

18,230

15,657

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£'000

Trade creditors

52,564

53,649

Amounts owed to group undertakings

77

103

Tax

-

397

Social security and other taxes

424

2,539

Accruals and deferred income

11,525

14,230

64,590

70,918

11.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

£'000

Within one year

97

Between one and five years

89

186

283

12.	PROVISIONS FOR LIABILITIES

2025

2024

£'000

Deferred tax

356

-

Deferred

tax

£'000

Provided during year

356

Balance at 31 December 2025

356

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£'000

350,000

Ordinary

£1

350

14.

RESERVES

Retained

earnings

£'000

At 1 January 2025

24,854

Profit for the year

3,561

At 31 December 2025

28,415

15.	ULTIMATE PARENT COMPANY

The company's immediate and ultimate parent undertaking is Pentagon Investments Limited, which prepares group financial statements. The registered office of Pentagon Investments Limited is 12 Chequers Road, West Meadows Industrial Estate, Derby, DE21 6EN. Copies of the consolidated financial statements of Pentagon Investments Limited are available from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.

16.	OTHER FINANCIAL COMMITMENTS

The company has an undertaking to its bankers for full group security incorporating debentures and corporate guarantees for the group's borrowings. The net amount outstanding to the bank in respect of this undertaking at 31 December 2025 was £Nil (2024: £Nil).

17.	RELATED PARTY DISCLOSURES

The company occupies premises leased from a Retirement Benefit Scheme of which one of the directors is a member. The rent paid during the year was £97,250 (2024: £97,250).

18.	ULTIMATE CONTROLLING PARTY

Mrs H Marshall is the ultimate controlling party.

19.	EMPLOYEE BENEFITS

Included in the notes to the financial statements are payments to the defined contribution pension scheme.