REGISTERED NUMBER: 03963558 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

FOR

SIDELINE DESIGN LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTOR:

Mr K K Chopra

SECRETARY:

Mrs H G Mikkelsen-Chopra

REGISTERED OFFICE:

51 Tallon Road

Hutton

Brentwood

Essex

CM13 1TG

REGISTERED NUMBER:

03963558 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Mehul Thaker ACA

AUDITORS:

Xeinadin Audit Limited

Statutory Auditor

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

The director presents his strategic report for the year ended 31 May 2025.

REVIEW OF BUSINESS

Turnover increased this year from £24.0m to £26.4m and the gross margin increased to 33% (2024: 32%). The company's profit before tax for the year was £3.4m (2024: £2.5m).

The state of affairs at the balance sheet date is considered to be satisfactory with the company's net assets of £8.53m (2024: £10.46m).

A review of the company's activities is given below:

Sideline Design Limited, based in Brentwood, Essex and Netherlands, supplies motor vehicle parts and accessories to both trade customers and private customers, specialising in the Porsche motor vehicle industry. In addition, Sideline Design specialise in purchasing and selling Porsche classic cars to both UK and overseas customers.

The key financial performance indicators for the company are as follows:

2025

2024

Measure

Gross Profit Margin

33%

32%

Gross Profit/Turnover

Debtors days

11 days

13 days

Trade Debtors/Turnover

Creditor days

38 days

55 days

Trade Creditors/Cost of Sales

PRINCIPAL RISKS AND UNCERTAINTIES

The company faces the usual business risks of competition within its sector and pressure on prices. These risks are mitigated by the director continuously driving the business forward into new product areas and niche markets where prices can be maintained at profitable levels.

The principal risks and uncertainties affecting the company include:

- Retention of customers - the company maintains strong relationships with each of its key customers and has established procedures for monitoring performance and service levels. The company has a focus on repeat orders from private customers by providing a consistently high level of customer services.

- Competition risk - the company's expertise and efficiency in its marketplace and its diversity of operations helps to mitigate the possible effect of action by any one single competitor.

- Price risk - the company is exposed to price risk due to normal inflationary increases in the purchase price of goods and services purchased in the UK, EU and Rest of the World. The company has no exposure to equity securities price risk as it holds no listed or other equity investments.

- Liquidity risk - the company actively maintains short-term debt finance that is designed to ensure that the company has sufficient available funds for operations and planned expansions.

- Interest rate risk - the company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include only cash balances which earn interest at a fixed rate. The company has a policy of maintaining debt at a fixed rate to ensure certainty of future interest cash flows. The director will revisit the appropriateness of this policy if the operations of the company change in size or nature.

The director believes that the company has adequate resources in place to meet its forecast trading requirements and all risks and uncertainties are managed appropriately.

FUTURE DEVELOPMENTS

The company continues to seek to develop and expand its product range within its own research and development capabilities as and when appropriate opportunities arise both in the UK and worldwide. As the company expands, further market opportunities develop and the director is confident of sustainable future growth in their motor vehicle sector.

EMPLOYEES

The company operates an equal opportunities policy. The aim of this policy is to ensure that there should be equal opportunity for all and this applies to external recruitment, internal appointments, terms of employment, conditions of service and opportunity for training and promotion regardless of gender, ethnic origin or disability.

Disabled persons are given full and fair consideration for all types of vacancy in as much as the opportunities available are constrained by the practical limitations of the disability. Should, for whatever reason, an employee of the company become disabled whilst in our employment, every step, where appropriate, will be taken to assist with rehabilitation and suitable re-training.

The company maintains its own health, safety and environmental policies covering all aspect of its operations. Regular meetings and inspections take place to ensure all legal requirements are adhered to and that the company is responsive to the needs of the employees and the environment.

FINANCIAL INSTRUMENTS

The company has banking facilities in place with Barclays Bank and operates within its facility limits as well as from its own cash reserves. The company has not entered into any hedging arrangements as the director perceives the exchange rate risk to the business to be low.

EOT

During the year, on 9 October 2024, control of Sideline Design Limited transferred to Sideline Design Trustee Limited following the establishment of an Employee Ownership Trust (EOT).

The board considers this to be a significant development during the year, supporting the long-term continuity and stability of the business. The company's principle activities and day-to-day operations continued unchanged following the transaction.

ON BEHALF OF THE BOARD:

Mr K K Chopra - Director

27 May 2026

The director presents his report with the financial statements of the company for the year ended 31 May 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale of motor vehicles, motor vehicle parts and accessories.

DIVIDENDS

No dividends will be distributed for the year ended 31 May 2025 (2024: £22,000).

RESEARCH AND DEVELOPMENT

The company utilises its technical and industrial expertise to continue to develop products and services for their customers. The company maintains its links to customers and suppliers to develop its own knowledge and product range.

DIRECTOR

Mr K K Chopra held office during the whole of the period from 1 June 2024 to the date of this report.

DONATIONS AND EXPENDITURE

Charitable donations of £2,523 (2024: £1,481) were made during the year.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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:

Mr K K Chopra - Director

27 May 2026

Opinion

We have audited the financial statements of Sideline Design Limited (the 'company') for the year ended 31 May 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 May 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the motor vehicle sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, health and safety legislation.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary.

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.

To address the risk of fraud through management bias and override of controls, we:

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

- tested the appropriateness of journal entries;

- tested authorisation of expenditure;

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

- investigated the rationale behind significant or unusual transactions.

To address the risk that revenue could be misstated due to fraud, we:

- obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard;

- performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions;

- tested a sample of revenue transactions to supporting evidence; and

- tested, on a sample basis, revenue related balances in the balance sheet.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

Mr Mehul Thaker ACA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Statutory Auditor

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

27 May 2026

TURNOVER

4

26,388,861

23,970,354

Cost of sales

(17,596,929

)

(16,301,341

)

GROSS PROFIT

8,791,932

7,669,013

Administrative expenses

(5,466,640

)

(5,091,818

)

3,325,292

2,577,195

Other operating income

17,074

20,240

OPERATING PROFIT

6

3,342,366

2,597,435

Interest receivable and similar income

8

168,585

7,987

3,510,951

2,605,422

Interest payable and similar expenses

9

(102,005

)

(73,337

)

PROFIT BEFORE TAXATION

3,408,946

2,532,085

Tax on profit

10

(387,044

)

(97,388

)

PROFIT FOR THE FINANCIAL YEAR

3,021,902

2,434,697

PROFIT FOR THE YEAR

3,021,902

2,434,697

OTHER COMPREHENSIVE INCOME

Capital contribution to EOT

(4,816,908

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(4,816,908

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,795,006

)

2,434,697

FIXED ASSETS

Intangible assets

12

2,795

5,590

Tangible assets

13

1,404,660

1,274,554

1,407,455

1,280,144

CURRENT ASSETS

Stocks

14

7,549,683

9,374,855

Debtors

15

4,694,053

4,479,353

Cash at bank

1,424,316

1,707,424

13,668,052

15,561,632

CREDITORS

Amounts falling due within one year

16

5,455,850

5,338,738

NET CURRENT ASSETS

8,212,202

10,222,894

TOTAL ASSETS LESS CURRENT LIABILITIES

9,619,657

11,503,038

CREDITORS

Amounts falling due after more than one year

17

(683,044

)

(778,323

)

PROVISIONS FOR LIABILITIES

21

(273,412

)

(266,508

)

NET ASSETS

8,663,201

10,458,207

CAPITAL AND RESERVES

Called up share capital

22

30

30

Retained earnings

23

8,663,171

10,458,177

SHAREHOLDERS' FUNDS

8,663,201

10,458,207

The financial statements were approved by the director and authorised for issue on 27 May 2026 and were signed by:

Mr K K Chopra - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2023

30

8,045,480

8,045,510

Changes in equity

Dividends

-

(22,000

)

(22,000

)

Total comprehensive income

-

2,434,697

2,434,697

Balance at 31 May 2024

30

10,458,177

10,458,207

Changes in equity

Total comprehensive income

-

(1,795,006

)

(1,795,006

)

Balance at 31 May 2025

30

8,663,171

8,663,201

Cash flows from operating activities

Cash generated from operations

1

(367,252

)

967,745

Interest paid

(62,792

)

(33,365

)

Interest element of hire purchase payments paid

(39,213

)

(39,972

)

Tax paid

(316,742

)

(301,616

)

Net cash from operating activities

(785,999

)

592,792

Cash flows from investing activities

Purchase of tangible fixed assets

(437,692

)

(272,244

)

Sale of tangible fixed assets

39,567

13,000

Interest received

168,585

7,987

Net cash from investing activities

(229,540

)

(251,257

)

Cash flows from financing activities

New loans in year

-

1,010,000

Loan repayments in year

(240,501

)

(570,453

)

Capital repayments in year

(564,822

)

(252,088

)

Amount introduced by directors

697,092

-

Amount withdrawn by directors

-

(721,264

)

New HP agreements in year

832,343

351,355

Equity dividends paid

-

(22,000

)

Net cash from financing activities

724,112

(204,450

)

(Decrease)/increase in cash and cash equivalents

(291,427

)

137,085

Cash and cash equivalents at beginning of year

2

1,707,424

1,570,339

Cash and cash equivalents at end of year

2

1,415,997

1,707,424

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

2025

2024

£

£

Profit before taxation

3,408,946

2,532,085

Depreciation charges

277,606

255,067

Profit on disposal of fixed assets

(6,792

)

(631

)

Capital contribution to EOT

(4,816,908

)

-

Finance costs

102,005

73,337

Finance income

(168,585

)

(7,987

)

(1,203,728

)

2,851,871

Decrease/(increase) in stocks

1,825,172

(2,630,204

)

Increase in trade and other debtors

(803,745

)

(104,460

)

(Decrease)/increase in trade and other creditors

(184,951

)

850,538

Cash generated from operations

(367,252

)

967,745

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2025

31.5.25

1.6.24

£

£

Cash and cash equivalents

1,424,316

1,707,424

Bank overdrafts

(8,319

)

-

1,415,997

1,707,424

Year ended 31 May 2024

31.5.24

1.6.23

£

£

Cash and cash equivalents

1,707,424

1,570,339

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.6.24

Cash flow

At 31.5.25

£

£

£

Net cash

Cash at bank

1,707,424

(283,108

)

1,424,316

Bank overdrafts

-

(8,319

)

(8,319

)

1,707,424

(291,427

)

1,415,997

Debt

Finance leases

(326,694

)

(267,523

)

(594,217

)

Debts falling due within 1 year

(202,000

)

24,291

(177,709

)

Debts falling due after 1 year

(765,663

)

153,418

(612,245

)

(1,294,357

)

(89,814

)

(1,384,171

)

Total

413,067

(381,241

)

31,826

1.	STATUTORY INFORMATION

Sideline Design 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

Revenue

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

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer;

- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

The company specifically recognises revenue on delivery of the goods to the customer.

Goodwill

Goodwill arising on business combinations represents the excess of the cost of acquisition over the fair value of the identifiable net assets acquired at the acquisition date.

Prior to the adoption of FRS 102, goodwill was amortised on a straight-line basis over 20 years commencing in 2004 and 2011. On transition to FRS 102 in 2017, the existing carrying value of goodwill was retained in accordance with the transitional provisions of FRS 102.

Goodwill is therefore amortised over its remaining estimated useful economic life and assessed for impairment when there are indicators that the carrying value may not be recoverable.

Amortisation and any impairment losses are recognised in the profit and loss account.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

25% on reducing balance

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

No depreciation has been provided against the cost of the freehold property on the basis that the residual value will be higher than the cost stated in the financial statements.

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

Financial instruments

Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade and other payables, bank loans, and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.

Hire purchase and 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 the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The items in the financial statements where these judgements and estimates have been made include:

• assessing the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge, and

• the provision required for any bad or doubtful debts,

• the provision required for closing stock, and

• the provision of car values.

4.

TURNOVER

An analysis of turnover by class of business is given below:

2025

2024

£

£

Parts

26,353,967

23,720,580

Classic cars

34,894

249,774

26,388,861

23,970,354

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

14,458,750

13,915,296

Rest of European Union

6,920,267

4,974,194

Rest of the World

5,009,844

5,080,864

26,388,861

23,970,354

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,305,779

1,969,874

Social security costs

208,962

161,821

Other pension costs

44,073

31,480

2,558,814

2,163,175

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

2025

2024

Administrations and management staff

27

25

Operations

21

16

Sales

14

13

Bodyshop

1

1

63

55

2025

2024

£

£

Director's remuneration

50,270

51,847

Director's pension contributions to money purchase schemes

1,321

-

6.	OPERATING PROFIT

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

2025

2024

£

£

Depreciation - owned assets

274,811

252,271

Profit on disposal of fixed assets

(6,792

)

(631

)

Goodwill amortisation

2,795

2,795

Auditors' remuneration

77,173

35,000