Castle Cars (Highland) Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Castle Cars (Highland) Limited is a private company, limited by shares, incorporated in Scotland, registered number SC345391 . The registered office is Unit 16 Tomich Industrial Estate, Muir Of Ord, Ross-Shire, IV6 7WA.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regieme. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 £.

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

2.2. Turnover

Turnover comprises the invoiced value of goods and services supplied by the company, net of Value Added Tax and trade discounts.

2.3. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over its estimated economic life of 20 years.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are stated at cost less depreciation. 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	Is not depreciated
Plant & Machinery	25% reducing balance
Motor Vehicles	25% reducing balance
Fixtures & Fittings	25% reducing balance

2.5. Stocks and Work in Progress

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.6. 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.

Basic financial assets

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

Impairment of financial assets

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

Derecognition of financial assets

...CONTINUED

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Castle Cars (Highland) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2025

2.6. Financial Instruments - continued

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial assets and substantially all the risks and rewards of ownership to another entity.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measure at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

2.7. Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affect neither the tax profit nor the accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

2.8. Equity instruments

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

2.9. Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash at bank. Bank overdrafts are shown within borrowings in current liabilities.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 6 (2024: 6)

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 August 2024	30,000

As at 31 July 2025	30,000

Amortisation
As at 1 August 2024	24,000
Provided during the period	1,500

As at 31 July 2025	25,500

...CONTINUED

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Castle Cars (Highland) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2025

Net Book Value
As at 31 July 2025	4,500

As at 1 August 2024	6,000

5. Tangible Assets

	Land & Buildings	Plant & Machinery etc.	Total
	£	£	£
Cost
As at 1 August 2024	87,256	34,552	121,808
Additions	8,738	2,622	11,360
Disposals	-	(15,115 )	(15,115 )

As at 31 July 2025	95,994	22,059	118,053

Depreciation
As at 1 August 2024	-	14,265	14,265
Provided during the period	-	3,079	3,079
Disposals	-	(4,522 )	(4,522 )

As at 31 July 2025	-	12,822	12,822

Net Book Value
As at 31 July 2025	95,994	9,237	105,231

As at 1 August 2024	87,256	20,287	107,543

Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

6. Stocks

	2025	2024
	£	£
Stocks	302,799	298,533

7. Debtors

	2025	2024
	£	£
Due within one year
Other debtors	892	3,230

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Castle Cars (Highland) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2025

8. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Trade creditors	92,814	79,846
Bank loans and overdrafts	6,569	10,648
Other creditors	6,959	32,944
Taxation and social security	81,220	78,030

	187,562	201,468

The obligations under hire purchase contracts are secured over the assets which the agreements relate to.

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

	2025	2024
	£	£
Bank loans	-	6,245

The obligations under hire purchase contracts are secured over the assets which the agreements relate to.

10. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	3	3

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		4,500		6,000
Tangible Assets	5		105,231		107,543

			109,731		113,543
CURRENT ASSETS
Stocks	6	302,799		298,533
Debtors	7	892		3,230
Cash at bank and in hand		30,890		13,785

		334,581		315,548
Creditors: Amounts Falling Due Within One Year	8	(187,562 )		(201,468 )

NET CURRENT ASSETS (LIABILITIES)			147,019		114,080

TOTAL ASSETS LESS CURRENT LIABILITIES			256,750		227,623

Creditors: Amounts Falling Due After More Than One Year	9		-		(6,245 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(2,309 )		(5,071 )

NET ASSETS			254,441		216,307

CAPITAL AND RESERVES
Called up share capital	10		3		3
Profit and Loss Account			254,438		216,304

SHAREHOLDERS' FUNDS			254,441		216,307