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Registered number: 02531072









G & S TYRE SERVICES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

 
G & S TYRE SERVICES LIMITED
 
 
COMPANY INFORMATION


Directors
G R Short 
H R Short 
G O Bourne 
C P Quatromini 
Mrs T Short 
J R Short 
B J Short 




Company secretary
G R Short



Registered number
02531072



Registered office
Leytonstone House
3 Hanbury Drive

Leytonstone

London

E11 1GA




Independent auditor
Barnes Roffe Audit Limited
Chartered Accountants  
Statutory Auditor

Leytonstone House

3 Hanbury Drive

London

E11 1GA





 
G & S TYRE SERVICES LIMITED
 

CONTENTS



Page
Strategic report
 
 
1
Directors' report
 
 
2 - 3
Independent auditor's report
 
 
4 - 7
Statement of income and retained earnings
 
 
8
Balance sheet
 
 
9 - 10
Notes to the financial statements
 
 
11 - 26


 
G & S TYRE SERVICES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025

Introduction
 
The principal activity of the company was that of tyre distributors.

Business review
 
The directors are satisfied with the performance of the company, given the tough trading conditions the tyre industry faces. 

Principal risks and uncertainties
 
The principal risks to the company continue to be the uncertain economic conditions within the UK and the potential effect this could have on the company’s customer base. The directors consider the nature of the company’s customer base, as well as the type of service provided by the company, to be relatively stable and are hopeful that the company’s current performance will continue. The directors feel the company will continue as a going concern for the foreseeable future.

Financial key performance indicators
 
The directors consider the key performance indicators to be turnover and gross margin percentage. Turnover has decreased by 7.2% to £10,976,820 (2024 - £11,834,643)


This report was approved by the board on 29 May 2026 and signed on its behalf.



G R Short 
Director

Page 1

 
G & S TYRE SERVICES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025

The directors present their report and the financial statements for the year ended 31 August 2025.

Directors' responsibilities statement

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £517,056 (2024 - £771,393).

During the year, the directors declared dividends of £Nil (2024 - £Nil).

Directors

The directors who served during the year were:

G R Short 
H R Short 
G O Bourne 
C P Quatromini 
Mrs T Short 
J R Short 
B J Short 

Future developments

The company aims to continue to build upon its strengths, maintain consistently high standards of service delivery, and invest in the company’s resources in order to provide long term benefits to its clients, shareholders and employees.

Page 2

 
G & S TYRE SERVICES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, Barnes Roffe Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 May 2026 and signed on its behalf.
 





G R Short
Secretary

Page 3

 
G & S TYRE SERVICES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF G & S TYRE SERVICES LIMITED
 

Opinion


We have audited the financial statements of G & S Tyre Services Limited (the 'Company') for the year ended 31 August 2025, which comprise the statement of income and retained earnings, the balance sheet and the related notes, including a summary of significant accounting policiesThe 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 August 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 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
G & S TYRE SERVICES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF G & S TYRE SERVICES LIMITED (CONTINUED)


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 ReportOur 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. 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 course of 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.


Opinion 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the 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 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 directors' responsibilities statement set out on page 2, 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 5

 
G & S TYRE SERVICES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF G & S TYRE SERVICES LIMITED (CONTINUED)


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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 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:

Ensuring that the engagement team collectively had the appropriate competence, capabilities and skills to identify non-compliance with applicable laws and regulations.
We identified the laws and regulations applicable to the company through discussions with directors, and from our commercial knowledge and experience of the relevant sector.
The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows - Companies Act 2006, FRS 102, Employment legislation and Tax legislation.
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.
Laws and regulations were communicated with the audit team at the planning meeting, and the audit team remained alert to instances of non-compliance throughout the audit.

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.
Reviewing the financial statements and testing the disclosures against supporting documentation;
Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
Inspecting and testing journal entries to identify unusual or unexpected transactions;
Assessing whether judgement and assumptions made in determining significant accounting estimates were indicative of management bias.
 


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 auditor's report.


Page 6

 
G & S TYRE SERVICES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF G & S TYRE SERVICES LIMITED (CONTINUED)


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 2006Our 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 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.





Simon Liggins (senior statutory auditor)
for and on behalf of
Barnes Roffe Audit Limited
Chartered Accountants
Statutory Auditor
Leytonstone House
3 Hanbury Drive
London
E11 1GA

29 May 2026
Page 7

 
G & S TYRE SERVICES LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2025

2025
2024
£
£

  

Turnover
 4 
10,976,820
11,834,643

Cost of sales
  
(6,650,086)
(7,223,850)

Gross profit
  
4,326,734
4,610,793

Administrative expenses
  
(3,614,749)
(3,553,135)

Operating profit
 5 
711,985
1,057,658

Interest receivable and similar income
 9 
1,542
-

Interest payable and similar expenses
 10 
(19,488)
(21,720)

Profit before tax
  
694,039
1,035,938

Tax on profit
 11 
(176,983)
(264,545)

Profit after tax
  
517,056
771,393

  

  

Retained earnings at the beginning of the year
  
5,710,270
4,938,877

  
5,710,270
4,938,877

Profit for the year
  
517,056
771,393

Retained earnings at the end of the year
  
6,227,326
5,710,270
There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of income and retained earnings.

The notes on pages 11 to 26 form part of these financial statements.

Page 8

 
G & S TYRE SERVICES LIMITED
REGISTERED NUMBER: 02531072

BALANCE SHEET
AS AT 31 AUGUST 2025

2025
2024
Note
£
£

Fixed assets
  

Tangible assets
 12 
1,569,056
1,446,390

Current assets
  

Stocks
 13 
1,452,913
1,607,532

Debtors: amounts falling due within one year
 14 
4,797,319
4,624,523

Cash at bank and in hand
 15 
807,943
597,650

  
7,058,175
6,829,705

Creditors: amounts falling due within one year
 16 
(2,098,023)
(2,238,437)

Net current assets
  
 
 
4,960,152
 
 
4,591,268

Total assets less current liabilities
  
6,529,208
6,037,658

Creditors: amounts falling due after more than one year
 17 
(64,867)
(124,344)

Provisions for liabilities
  

Deferred tax
 19 
(235,915)
(201,944)

Net assets
  
6,228,426
5,711,370


Capital and reserves
  

Called up share capital 
 20 
1,000
1,000

Capital redemption reserve
 21 
100
100

Profit and loss account
 21 
6,227,326
5,710,270

  
6,228,426
5,711,370


Page 9

 
G & S TYRE SERVICES LIMITED
REGISTERED NUMBER: 02531072
    
BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 May 2026.


G R Short
Director

The notes on pages 11 to 26 form part of these financial statements.

Page 10

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

1.


General information

G & S Tyre Services Limited ("the Company") is a company limited by shares, incorporated in England and Wales. Its registered office is Leytonstone House, 3 Hanbury Drive, Leytonstone, London, E11 1GA. 

The principal activity of the Company continued to be that of tyre distributors.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the requirements and the Companies Act 2006. 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 following principal accounting policies have been applied:

  
2.2
Consolidated financial statements

The Company is a wholly owned subsidiary company of G H S Tyre Group Limited (incorporated in England and Wales). The Company is included in the consolidated financial statements of G H S Tyre Group Limited.

 
2.3

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of G H S Tyre Group Limited  as at 31 August 2025 and these financial statements may be obtained from its registered office.

  
2.4
Going concern

The Company has considerable financial resources and is expected to continue to generate positive cash flows on its own account for the foreseeable future. As a consequence, the directors believe that the Company is well placed to manage its business risks successfully. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 11

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

  
2.5
Revenue

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the Company and valued added taxes.

The Company recognises revenue when: (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the Company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and when the specific criteria in relation to each of the Company’s sales channels have been met, as described below:

(i) The Company sells tyres to distributors and consumers. Sales invoices are raised upon delivery. Delivery occurs when goods have been shipped from the Company’s warehouse, at which point the risks of obsolescence or loss have been transferred to the customer. It is at this point that revenue is recognised.

(ii) The Company also provides a variety of services relating to assistance, repair and fitting of tyres to industrial and commercial vehicles. Revenue is recognised in the accounting period in which the services are rendered.

All sales are normally made with credit terms, unless settled immediately in cash. The element of financing is deemed immaterial and disregarded in the measurement of revenue.

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. 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.

Page 12

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)


2.6
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following annual basis:

Property improvements
-
Not depreciated
Plant and machinery
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
25% reducing balance

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 in profit or loss.

The leasehold improvemenrs are maintained to a high standard and as such no depreciation is charged on the property. This treatment is contrary to the Companies Act 2006 which states that fixed assets should be depreciated but is, in the opinion of the directors, necessary in order to give a true and fair view of the financial position of the Company. It would not be practical to quantify the depreciation which might otherwise have been charged.

  
2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of income and retained earnings.

 
2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.10

Financial instruments

The Company only enters into financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
Page 13

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)


2.10
Financial instruments (continued)

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of income and retained earnings.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 14

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

 
2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of income and retained earnings except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in the statement of income and retained earnings within 'administrative expenses'.

 
2.13

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. 

 
2.15

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of income and retained earnings on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 15

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

 
2.16

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of income and retained earnings so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.17

Pensions

Defined contribution pension plan

The Company operates a defined contribution 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 in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

  
2.18

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.19

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 16

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

 
2.20

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


  
2.21
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.

  
2.22
Related party transactions

The Company discloses the transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned.

 
2.23

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of income and retained earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
 
When payments are eventually made, they are charged to the provision carried in the balance sheet.

Page 17

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

3.


Judgments in applying accounting policies 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.

Critical judgments in applying the entity’s accounting policies

No significant judgments have had to be made by management in preparing these financial statements.

Critical accounting estimates and assumptions

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on the technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property plant and equipment, and note 2.6 for useful economic lives for each class of assets.

Taxation

The Company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. Management estimation is required to determine the amount of deferred tax assets and liabilities that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 2.20 and note 11.


4.


Turnover

Analysis of turnover by country of destination:

2025
2024
£
£

United Kingdom
10,976,820
11,834,643



5.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Exchange differences
258
1,345

Other operating lease rentals
374,453
349,831

Page 18

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

6.


Auditor's remuneration

2025
2024
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
12,000
12,000
The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

Staff costs were as follows:


2025
2024
£
£

Cost of defined contribution scheme
9,800
13,200


The average monthly number of employees, including directors, during the year was 7 (2024 - 7).


8.


Directors' remuneration

2025
2024
£
£

Company contributions to defined contribution pension schemes
9,800
13,200

9,800
13,200


During the year retirement benefits were accruing to 5 directors (2024 - 5) in respect of defined contribution pension schemes.


9.


Interest receivable and similar income

2025
2024
£
£


Other interest receivable
1,542
-

Page 19

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

10.


Interest payable and similar charges

2025
2024
£
£


Finance leases and hire purchase contracts
19,488
14,100

Other interest payable
-
7,620

19,488
21,720


11.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
141,175
220,225

Adjustments in respect of previous periods
1,837
925


143,012
221,150


Total current tax
143,012
221,150

Deferred tax


Origination and reversal of timing differences
33,971
43,395

Total deferred tax
33,971
43,395


Tax on profit
176,983
264,545
Page 20

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit on ordinary activities before tax
694,039
1,035,938


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
173,510
258,985

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,638
5,560

Taxation relating to prior years
1,835
-

Total tax charge for the year
176,983
264,545


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 21

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

12.


Tangible fixed assets


Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 September 2024
609,711
1,330,840
1,172,096
178,662
3,291,309


Additions
-
208,304
176,140
-
384,444



At 31 August 2025

609,711
1,539,144
1,348,236
178,662
3,675,753



Depreciation


At 1 September 2024
47,554
970,277
674,132
152,956
1,844,919


Charge for the year on owned assets
-
114,919
9,422
6,428
130,769


Charge for the year on financed assets
-
1,259
129,750
-
131,009



At 31 August 2025

47,554
1,086,455
813,304
159,384
2,106,697



Net book value



At 31 August 2025
562,157
452,689
534,932
19,278
1,569,056



At 31 August 2024
562,157
360,563
497,964
25,706
1,446,390

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2025
2024
£
£



Plant and machinery
3,776
5,035

Motor vehicles
506,672
460,280

510,448
465,315

Page 22

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

13.


Stocks

2025
2024
£
£

Finished goods and goods for resale
1,452,913
1,607,532


Stock recognised in cost of sales during the year as an expense was £6,644,820 (2024 - £7,228,563).


14.


Debtors

2025
2024
£
£


Trade debtors
1,966,154
2,103,508

Amounts owed by group undertakings
2,570,202
2,276,042

Other debtors
32,655
25,999

Prepayments and accrued income
228,308
218,974

4,797,319
4,624,523


Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.


15.


Cash and cash equivalents

2025
2024
£
£

Cash at bank and in hand
807,943
597,650


Page 23

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

16.


Creditors: Amounts falling due within one year

2025
2024
£
£

Trade creditors
1,536,966
1,649,659

Amounts owed to group undertakings
33,751
43,413

Corporation tax
92,988
126,975

Other taxation and social security
161,152
168,786

Obligations under finance lease and hire purchase contracts
221,868
181,591

Other creditors
16,086
7,019

Accruals and deferred income
35,212
60,994

2,098,023
2,238,437





17.


Creditors: Amounts falling due after more than one year

2025
2024
£
£

Net obligations under finance leases and hire purchase contracts
64,867
124,344


Obligations under hire purchase contracts of £286,735 (2024 - £305,935) are secured on the assets to which they relate.


18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2025
2024
£
£


Within one year
221,868
181,591

Between 1-5 years
64,867
124,344

286,735
305,935

Page 24

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

19.


Deferred taxation




2025


£






At beginning of year
(201,944)


Charged to the Statement of income and retained earnings
(33,971)



At end of year
(235,915)

The provision for deferred taxation is made up as follows:

2025
2024
£
£


Accelerated capital allowances
(235,915)
(201,944)

(235,915)
(201,944)


20.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



900 (2024 - 900) Ordinary Class A shares of £1.00 each
900
900
100 (2024 - 100) Ordinary Class B shares of £1.00 each
100
100

1,000

1,000


There are no restrictions on the distribution of dividends and the repayment of capital. All shares rank pari-passu, except in respect of dividends.



21.


Reserves

Capital redemption reserve

The capital redemption reserve relates to a share buy back of non-voting preference shares in the year ended 31 August 2011.

Profit and loss account

The profit and loss account represents cumulative distributable profits and losses net of dividends and other adjustments.

Page 25

 
G & S TYRE SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

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. The pension cost charge represents contributions payable by the Company to the fund and amounted to £9,800 (2024 - 13,200). There were no contributions payable to the fund at the balance sheet date.


23.


Commitments under operating leases

At 31 August 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£


Not later than 1 year
300,000
300,000


24.


Ultimate parent undertaking and controlling party

The Company is a subsidiary of G H S Tyre Group Limited, its ultimate parent undertaking. The Company regards G R Short and H R Short to be the controlling parties.

25.

Related party transactions

The Company has taken advantage of the exemption, under FRS 102 paragraph 1.12 and paragraph 33.1A from disclosing transactions with key management and from disclosing other related party transactions as they are with other companies that are wholly owned within the Group.

 
Page 26