Company registration number 00587618 (England and Wales)
LEEDS COMMERCIAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
LEEDS COMMERCIAL LIMITED
COMPANY INFORMATION
Directors
Mr C J Miller
Mr P R Bumford
Mr J G Wilson
Mr L D Margel
Company number
00587618
Registered office
The Old Test Station
Patrick Green
Leeds
West Yorkshire
England
LS26 8HE
Auditor
Sumer Auditco Limited
1st Floor
Mayesbrook House
Lawnswood Business Park
Leeds
LS16 6QY
Solicitors
Bury & Walkers LLP
Britannic House
Regent Street
Barnsley
South Yorkshire
S70 2EQ
LEEDS COMMERCIAL LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 29
LEEDS COMMERCIAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 1 -

The directors present the strategic report for the year ended 30 September 2025.

Review of the business

At the year-end the company had six operating depots: Leeds (Patrick Green), Leeds (Unit 2), Barnsley, Sherburn, Manchester and Bristol. On 4 November 2024 new freehold premises, known as Leeds (Unit 2) were acquired adjacent to the existing premises at Leeds (Patrick Green). The depot in Bradford closed in January 2025 and staff and operations transferred to the new Leeds (Unit 2).

All depots have contributed positively to the result for the year.

Turnover increased by 1.8% in the year to £42.17M (2024- £41.44M). This growth was driven by organic growth particularly within our top ten customers.

The company remains confident about future business prospects and invested £25.5M in new vehicles. However, a larger number of surplus off-hired vehicles were sold and at the year-end the fleet had reduced by 3.8% to 2,025 vehicles (2024 – 2,106). Due to higher average unit prices of the new vehicles the original cost of the fleet increased 1.9% to £142.3M (2024 - £139.7M)

The number of second-hand fleet vehicles sold increased 1.5% year-on-year and represented 19% of the opening fleet. The high cost of new vehicles in the marketplace sustained high selling values of second-hand equipment. Margins on fleet disposals were better than the Board had forecast, but, in line with the recent trend, were significantly lower than last year. The lower margins compared with last year more than offset the higher volume and reduced profits on disposal by £2.1M year on year.

Gross profit declined £1.5M year on year to £14.9M (2024 – 16.4M) due mainly to lower profits on fleet disposals, down 2.1M, which more than offset the 0.7M increase in turnover. Gross profit % fell by 4.3% to 35.4%.

The fall in gross profit is reflected in the profit before tax which decreased year on year by 1.5M to 7.3M. After-tax profits decreased by 1.1M to 5.4M. Dividends of £2.5M were declared and net assets increased by £2.9M to £55.0M.

Overall, the result beat the Board’s expectations at the start of the year mainly due to better than expected margins on second-hand vehicle sales.

The closing hire purchase obligation decreased 11.6% year on year and at the year-end represented 49.4% (2024 – 54.6%) of the fleet net book value.

LEEDS COMMERCIAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 2 -
Principal risks and uncertainties

The commercial vehicle hire market continues to be highly competitive with rental rates remaining under pressure. This could result in a loss of key customers to competitors. The company manages this risk by developing and maintaining strong relationships with key customers and ensuring it offers a market leading level of service.

The company recognises the risks arising from of a failure to deliver key support and engineering services to the highest standards. The business has an unwavering dedication to maintenance compliance and health and safety which means customers can be reassured about the quality and condition of the vehicles. The company has invested in the latest IT systems to manage, schedule and control maintenance. In addition, it works with vehicle manufacturers and bodybuilders to improve and develop the fleet with better and safer methods of working for drivers and operators.

The business needs to secure hire purchase funding from lenders to fund the purchase of new vehicles. It currently has a ready source of funding from a carefully selected pool of lenders at very competitive rates. The facilities available from these lenders are significantly in excess of foreseeable requirements.

As is typical in this sector, the balance sheet shows net current liabilities due to the inclusion of future hire purchase payments. These are covered by future rental incomes which provide matching cashflows but are not recognised in current assets until billed. Any vehicle which is not adequately utilised would be sold to settle any outstanding hire purchase liability. Hire purchase terms are such that residual values on sale exceed the outstanding hire purchase liability. The business also maintains a substantial pool of new vehicles available for re-financing which provide additional liquidity in addition to normal banking facilities. Budgets and cashflow forecasts are used by the directors, with substantial safety margins, to ensure that liabilities are met as they fall due.

The company’s borrowings are a mix of fixed and variable interest rates. Any increases in the variable rate would increase future borrowing costs. The directors monitor interest rate fluctuations and would consider available financial instruments to limit exposure should the need arise. No such financial instruments are currently considered necessary.

The construction sector has always been a key sector for the business due to its need for large volumes of specialist vehicles but the business continues to seek opportunities to diversify its client base into other areas to reduce its exposure to any one sector.

The realisable value of the fleet at the point of disposal depends on the state of the used vehicle market at the time. This can be volatile due to fluctuations in demand, exchange rates and the cost of new vehicles. Consequently, depreciation rates are set to ensure vehicle carrying values are not overstated.

Factors in the general economy which can potentially impact the business include inflation, interest rates and wider supply chain issues. At the present time the directors’ have no specific areas of significant concern but will continue to monitor the impact of these issues. We remain vigilant for signs of change in the wider economy.

The directors are conscious of the increasing impact of environmentally friendly regulations. The risk is mitigated by our fleet replacement policy which ensures that vehicles meet the latest technical specifications and standards. At the year-end the average age of fleet vehicles was 2.8 years.

LEEDS COMMERCIAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 3 -
Key performance indicators

|  | Year on year variance*
|  | %
Turnover | Up | 1.8%
Gross profit | Down | (9.2%)
Gross profit % | Down | (4.3%)
Administrative expenses | Up | (1.5%)
Hire purchase interest payable | Down | 9.3%
Profit before tax | Down | (16.7%)
Original cost of fleet | Up | 1.9%
NBV of fleet | Down | (2.2%)
Fleet size | Down | (3.8%)
Utilisation rates | Up | 0.8%
Hire purchase obligations | Down | 11.6%
Ratio of hire purchase obligations to NBV | Down | 5.24%
Employees | Down | (2.5%)
*Note – a positive variance indicates an increase in incomes and assets or decrease in costs and liabilities

Non-financial KPIs include MOT pass rates which we expect to be exceptionally high due to our rigorous maintenance procedures. Any failures are fully investigated and reported.

Health & Safety statistics are monitored recording actual accidents and near misses with the aim reducing accidents to an absolute minimum. There was 1 major/RIDDOR reportable incident, 2 minor accidents and no reported near misses in the financial year.

Staff turnover is monitored. During the year the number of leavers represented 25% (2024 – 13%) of the average workforce. Having regard to the specific circumstances of each individual case and the nature of some work within the business the directors consider this to be normal for the sector. The turnover of staff in key management roles was very low.

Future Developments

The directors anticipate that the company will remain profitable in the year to 30 September 2026. Although the market is competitive, demand for the rental fleet has remained very strong. Fleet numbers are increasing in line with customer demand. The results in the first quarter have been encouraging.

The company will continue to seek new opportunities to grow organically and through acquisition but only when growth can be achieved profitably.

LEEDS COMMERCIAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 4 -

On behalf of the board

Mr C J Miller
Director
20 March 2026
LEEDS COMMERCIAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 5 -

The directors present their annual report and financial statements for the year ended 30 September 2025.

Principal activities

The principal activity of the company continued to be that of commercial vehicle hire.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £2,500,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C J Miller
Mr P R Bumford
Mr J G Wilson
Mr L D Margel
Auditor

Sumer Auditco Limited were appointed as auditor to the company following BHP LLP becoming part of the Sumer Group on 31 December 2025, which required a change in audit firm to comply with applicable regulatory requirements.

In accordance with section 487(2) of the Companies Act 2006, Sumer Auditco Limited are deemed to be reappointed annually.

LEEDS COMMERCIAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 6 -
Energy and carbon report

This Streamlined Energy and Carbon Report ("SECR") relates to the activities of Leeds Commercial Limited for the financial year 1st October 2024 - 30th September 2025.

Financial Year | 202 5 | 202 4 | % Change
Energy (kWh) |  |  |
Total Energy Consumption | 2,713,091 | 2,827,111 | -4%
Fuels Used in Company Premises | 958,600 | 1,02 3,333 | -6%
Fuels Used in Company Vehicles | 1,157,242 | 1,203,528 | -4%
Purchased Electricity | 597,249 | 60 0,250 | -0%
Business Travel (Grey Fleet) | 0 | 0 | -
Emissions (tCO 2 e) |  |  |
Total Emissions | 612 | 638 | -4%
Fuels Used in Company Premises | 194 | 207 | -6%
Fuels Used in Company Vehicles | 294 | 306 | -4%
Purchased Electricity | 124 | 124 | -0%
Business Travel (Grey Fleet) | 0 | 0 | -
Intensity Ratio |  |  |
Turnover | £4 2,171,621 | £41,444,509 | +2%
tCO 2 e per £1,000,000 of turnover | 14.513 | 15.37 | -6%

Methodology

The GHG assessment was conducted with the support of Nero Carbon LTD. The methodology of Nero’s GHG Calculator conforms to The GHG Protocol Standard and ISO14064-1. Activity data entered into the calculator were multiplied by conversion factors published by the Department for Environment, Food & Rural Affairs and the Department for Energy Security and Net Zero.

Completed Carbon Reduction Initiatives

- Electric vehicles owned by the company: staff vehicles increased to 19 & Commercial light goods vehicles on the hire fleet averaged 19 in 2025

- First electric hotbox went on the road in January 2025

- First electric grab loader crane went into build in summer 25. This is due to go on the road in April 2026.

- First fully electric HGVs arrived on the fleet in 2025 and the company now has two Yutong tippers as demonstrators which are fully electric.

- UKAS ISO 14001 Environmental accreditation and ISO 14064-1 Carbon Certification maintained

Future Initiatives:

- Revisiting the solar panel project for at least one of the Leeds sites in 2026.

- All facilities have now transitioned to a renewable electricity supply contract with British Gas. In the 2025 reporting year, over 70% of our electricity consumption was covered by renewable electricity documentation, and we expect this to be 100% in 2026.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

LEEDS COMMERCIAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 7 -

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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- 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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Quality, Environmental and Health & Safety matters

The company is committed to maintaining its Quality, Environmental Management and Health & Safety Systems and is accredited under ISO 9001, ISO 14001 and ISO 45001 respectively.

On behalf of the board
Mr C J Miller
Director
20 March 2026
LEEDS COMMERCIAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEEDS COMMERCIAL LIMITED
- 8 -
Opinion

We have audited the financial statements of Leeds Commercial Limited (the 'company') for the year ended 30 September 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 30 September 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' r eport 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.

LEEDS COMMERCIAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEEDS COMMERCIAL LIMITED (CONTINUED)
- 9 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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' r esponsibilities s tatement, 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.

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.

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 directors and other management, and from our commercial knowledge and experience of the trade;

- 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;

- we assessed the extent of compliance with the laws and regulations considered above through making enquiries of management; and

- identified laws and regulations were communicated within the audit team regularly and the 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.

LEEDS COMMERCIAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEEDS COMMERCIAL LIMITED (CONTINUED)
- 10 -

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

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

- tested journal entries to identify unusual transactions;

- 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.

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;

- reading the minutes of meetings of those charged with governance;

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

- discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees.

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 director’s and other management and the inspection of regulatory and legal correspondence.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters 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.

Chris Neale (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
Chartered Accountants
1st Floor
Mayesbrook House
Lawnswood Business Park
Leeds
LS16 6QY
20 March 2026
LEEDS COMMERCIAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 11 -
2025
2024
Notes
£
£
Turnover
3
42,171,621
41,444,509
Cost of sales
(27,245,181)
(25,003,057)
Gross profit
14,926,440
16,441,452
Administrative expenses
(5,865,785)
(5,780,949)
Other operating income
163,045
157,980
Operating profit
4
9,223,700
10,818,483
Interest receivable and similar income
8
205,121
245,917
Interest payable and similar expenses
9
(2,152,335)
(2,326,835)
Profit before taxation
7,276,486
8,737,565
Tax on profit
10
(1,883,692)
(2,245,823)
Profit for the financial year
5,392,794
6,491,742

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

LEEDS COMMERCIAL LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2025
30 September 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
91,974,413
88,674,496
Current assets
Stocks
558,140
279,843
Debtors falling due after more than one year
13
1,572,589
1,566,820
Debtors falling due within one year
13
6,015,721
5,190,074
Cash at bank and in hand
4,154,497
11,982,326
12,300,947
19,019,063
Creditors: amounts falling due within one year
14
(22,140,966)
(26,324,772)
Net current liabilities
(9,840,019)
(7,305,709)
Total assets less current liabilities
82,134,394
81,368,787
Creditors: amounts falling due after more than one year
15
(21,881,270)
(24,144,736)
Provisions for liabilities
Deferred tax liability
18
5,204,989
5,068,710
(5,204,989)
(5,068,710)
Net assets
55,048,135
52,155,341
Capital and reserves
Called up share capital
20
195,300
195,300
Capital redemption reserve
62,825
62,825
Profit and loss reserves
54,790,010
51,897,216
Total equity
55,048,135
52,155,341
The financial statements were approved by the board of directors and authorised for issue on 20 March 2026 and are signed on its behalf by:
Mr C J Miller
Director
Company registration number 00587618 (England and Wales)
LEEDS COMMERCIAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2023
195,300
62,825
48,405,474
48,663,599
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
6,491,742
6,491,742
Dividends
11
-
-
(3,000,000)
(3,000,000)
Balance at 30 September 2024
195,300
62,825
51,897,216
52,155,341
Year ended 30 September 2025:
Profit and total comprehensive income
-
-
5,392,794
5,392,794
Dividends
11
-
-
(2,500,000)
(2,500,000)
Balance at 30 September 2025
195,300
62,825
54,790,010
55,048,135
LEEDS COMMERCIAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 14 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
21,468,036
22,896,008
Interest paid
(2,152,335)
(2,326,835)
Income taxes paid
(1,809,019)
(1,497,785)
Net cash inflow from operating activities
17,506,682
19,071,388
Investing activities
Purchase of tangible fixed assets
(30,991,914)
(30,303,343)
Proceeds from disposal of tangible fixed assets
14,111,674
15,702,713
Interest received
205,121
245,917
Net cash used in investing activities
(16,675,119)
(14,354,713)
Financing activities
Increase/(repayment) of borrowings
(1,233,557)
2,253,221
Proceeds of hire purchase agreements
15,762,296
23,270,275
Repayment of hire purchase agreements
(20,688,131)
(20,621,284)
Dividends paid
(2,500,000)
(3,000,000)
Net cash (used in)/generated from financing activities
(8,659,392)
1,902,212
Net (decrease)/increase in cash and cash equivalents
(7,827,829)
6,618,887
Cash and cash equivalents at beginning of year
11,982,326
5,363,439
Cash and cash equivalents at end of year
4,154,497
11,982,326
LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 15 -
1
Accounting policies
Company information

Leeds Commercial Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old Test Station, Patrick Green, Leeds, West Yorkshire, England, LS26 8HE.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. true

As covered in the Strategic Report and is typical in this sector, the balance sheet shows net current liabilities due to the inclusion of future hire purchase payments. The directors are confident that future rental incomes from hired-out vehicles, or the sales receipts receivable from vehicles no longer required, will exceed the hire purchase obligations falling due at any time. In addition, the directors have access to numerous unutilised and agreed lending facilities and substantial unencumbered assets due to the level of equity in the balance sheet.

The Directors have also considered the impact of the current economic environment and are confident in the ability of the business to generate sufficient cash to mitigate the risk of rising interest rates and inflationary pressure in the supply chain on cash flow.

Consequently the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Turnover on contract and hire sales is recognised in the period in which the services are provided. Turnover is measured at the fair value of the consideration received or receivable, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover from the supply of related services such as vehicle repairs is recognised at the point the service is provided.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 16 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2% to 10% straight line
Leasehold buildings
Over the life of the lease
Fixtures and fittings
25% reducing balance
Motor vehicles
20% reducing balance
Motor vehicles for hire
20% reducing balance

Freehold land and assets in the course of construction are not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to cost of sales.

Included within Motor vehicles for hire are vehicles under construction. There is no depreciation charged on these until the asset is available for use.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 17 -
1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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 asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies 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 paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

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

1.9
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 reporting end date.

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 affects neither the tax profit nor the accounting profit.

LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 19 -

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax 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.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2
Judgements and key sources of estimation uncertainty
(Continued)
- 20 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The depreciation policy has been set according to management's experience of the useful lives of a typical asset in each category. It is not considered practical to use a per unit basis to allocate depreciation. The depreciation charged during the year was £18,628,776 (202 4: £19,134,028) which the directors feel is a fair reflection of the benefits derived from consumption of the tangible fixed assets in use during the period.

In respect of motor vehicles a full year of depreciation is charged in the year of addition and none in the year of disposal because the directors believe this better reflects the consumption of the economic benefit of the assets.

Dilapidations provision

The Directors have determined that a provision is not required in relation to the Manchester site because no significant changes to the property have been made and the property is being kept in good working condition.

3
Turnover

An analysis of the company's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Hire sales
30,567,827
30,920,656
Contract sales
8,212,221
7,470,879
Fuel sales
342,890
358,466
Repair sales
2,499,507
2,242,880
Miscellaneous sales
549,176
451,628
42,171,621
41,444,509
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of tangible fixed assets
8,297,334
7,450,704
Depreciation of tangible fixed assets held under finance leases
10,331,442
11,683,324
Profit on disposal of tangible fixed assets
(5,027,005)
(6,985,073)
Loss/ (Profit) on second hand vehicle trading
(21,448)
(154,565)
Operating lease charges
72,996
129,667
LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 21 -
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
22,115
21,060
For other services
Taxation compliance services
2,360
2,250
All other non-audit services
2,680
2,550
5,040
4,800
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Administration & support
42
43
Sales
12
14
Operations
100
101
Total
154
158

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
7,466,171
7,310,552
Social security costs
916,820
807,332
Pension costs
365,329
354,683
8,748,320
8,472,567
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
507,726
511,358
Company pension contributions to defined contribution schemes
129,141
146,456
636,867
657,814
LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
7
Directors' remuneration
(Continued)
- 22 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
164,777
159,699
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
99,353
132,091
Other interest income
105,768
113,826
Total income
205,121
245,917
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
99,353
132,091
9
Interest payable and similar expenses
2025
2024
£
£
Other finance costs
Interest on finance leases and hire purchase contracts
2,040,249
2,250,099
Other interest
112,086
76,736
2,152,335
2,326,835
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
1,749,849
1,695,203
Adjustments in respect of prior periods
(2,436)
6,071
Total current tax
1,747,413
1,701,274
Deferred tax
Origination and reversal of timing differences
136,279
544,549
Total tax charge
1,883,692
2,245,823
LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
10
Taxation
(Continued)
- 23 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
7,276,486
8,737,565
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
1,819,122
2,184,391
Tax effect of expenses that are not deductible in determining taxable profit
12,356
9,828
Adjustments in respect of prior years
(4,873)
6,071
Fixed asset differences
57,087
45,533
Taxation charge for the year
1,883,692
2,245,823
11
Dividends
2025
2024
£
£
Interim paid
2,500,000
3,000,000
LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 24 -
12
Tangible fixed assets
Freehold buildings
Leasehold buildings
Fixtures and fittings
Motor vehicles
Motor vehicles for hire
Total
£
£
£
£
£
£
Cost
At 1 October 2024
10,665,899
838,612
2,347,957
2,219,536
137,459,317
153,531,321
Additions
5,258,887
-
0
216,877
280,631
25,235,519
30,991,914
Disposals
-
0
(39,291)
(101,386)
(395,220)
(22,508,992)
(23,044,889)
Transfers
-
0
-
0
-
0
73,334
(73,334)
-
0
At 30 September 2025
15,924,786
799,321
2,463,448
2,178,281
140,112,510
161,478,346
Depreciation and impairment
At 1 October 2024
1,159,071
198,157
1,844,284
1,047,833
60,607,480
64,856,825
Depreciation charged in the year
254,991
27,240
196,266
267,663
17,882,616
18,628,776
Eliminated in respect of disposals
-
0
(39,291)
(101,386)
(234,830)
(13,606,161)
(13,981,668)
Transfers
-
0
-
0
-
0
29,306
(29,306)
-
0
At 30 September 2025
1,414,062
186,106
1,939,164
1,109,972
64,854,629
69,503,933
Carrying amount
At 30 September 2025
14,510,724
613,215
524,284
1,068,309
75,257,881
91,974,413
At 30 September 2024
9,506,828
640,455
503,673
1,171,703
76,851,837
88,674,496

Included within Motor vehicles for hire are vehicles under construction with a cost of £3,725,070 (202 4: £2,903,711). These vehicles are held at cost as there is no depreciation charged until the asset becomes available for use.

The net carrying value of tangible fixed assets includes the following in respect of assets held under hire purchase agreements.

2025
2024
£
£
Motor vehicles
41,325,700
46,733,295

Freehold & leasehold land and buildings with a carrying amount of £2,295,797 (2024 - £2,360,417) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Assets under hire purchase obligations are secured against the assets to which they relate.

LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 25 -
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
5,137,643
4,508,779
Other debtors
-
0
251
Prepayments and accrued income
878,078
681,044
6,015,721
5,190,074
2025
2024
Amounts falling due after more than one year:
£
£
Other debtors
1,572,589
1,566,820
Total debtors
7,588,310
6,756,894
14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Obligations under finance leases
17
15,789,447
18,451,816
Other borrowings
16
1,912,653
3,146,210
Trade creditors
1,347,800
1,113,712
Corporation tax
889,849
951,455
Other taxation and social security
331,140
873,837
Other creditors
719,964
725,057
Accruals and deferred income
1,150,113
1,062,685
22,140,966
26,324,772
15
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
17
21,881,270
24,144,736

Obligations under hire purchase contracts are secured on the assets to which they relate.

LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 26 -
16
Loans and overdrafts
2025
2024
£
£
Other loans
1,912,653
3,146,210
Payable within one year
1,912,653
3,146,210
17
Finance lease obligations
2025
2024
Amounts due:
£
£
Within one year
15,789,447
18,451,816
After more than one year
21,881,270
24,144,736
37,670,717
42,596,552
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
15,789,447
18,451,816
In two to five years
21,881,270
24,144,736
37,670,717
42,596,552

Hire purchase payments represent net capital repayments payable by the company for certain vehicles. Agreements include purchase options at the end of the period, and no restrictions are placed on the use of the assets. The average hire purchase term is 4 years. Hire purchase agreements are on a mixture of fixed and variable repayment basis and no arrangements have been entered into for contingent capital repayments.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances / depreciation
5,219,946
5,078,337
Short term timing differences
(14,957)
(9,627)
5,204,989
5,068,710
LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
18
Deferred taxation
(Continued)
- 27 -
2025
Movements in the year:
£
Liability at 1 October 2024
5,068,710
Charge to profit or loss
136,279
Liability at 30 September 2025
5,204,989

19
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
365,329
354,683

The company operates a number of defined contribution pension schemes for all qualifying employees. The assets of the scheme s are held separately from those of the company in independently administered fund s.

20
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
135,450
135,450
135,450
135,450
Ordinary B shares of £1 each
29,925
29,925
29,925
29,925
Ordinary C shares of £1 each
29,925
29,925
29,925
29,925
195,300
195,300
195,300
195,300

The Ordinary A, Ordinary B and Ordinary C shares are entitled to vote at shareholders meetings and are entitled to receive dividends.

The holder of the Ordinary A shares holds the casting vote.

21
Financial commitments, guarantees and contingent liabilities

The company's bankers hold a debenture including a fixed charge over certain freehold and leasehold property, first fixed charge over book and other debtors, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertakings both present and future.

Assets under hire purchase obligations are secured against the assets to which they relate.

LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 28 -
22
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within 1 year
28,948
40,393
Years 2-5
74,042
51,200
After 5 years
751,291
709,598
854,281
801,191
23
Capital commitments

Amounts contracted for but not provided in the financial statements:

2025
2024
£
£
Acquisition of tangible fixed assets
15,738,419
8,167,515
24
Related party transactions
Remuneration of key management personnel

Key management personnel are the directors of the business. Their remuneration is disclosed within the Directors' remuneration note.

Directors' transactions

Dividends totalling £2,5 00,000 (202 4 - £3,000,000) were paid in the year in respect of shares held by a company Director and their family members.

The company has been provided loans by a Director and their family members. Interest is charged on these loans at 5%. The amount due as at 30 September 202 5 was £1,912,653 (202 4 - £3,146,210).

The company rents a property from a pension scheme of which one of the directors is a trustee. The rent paid during the year was £56,550 (202 4 - £110,089).

A loan was made to an entity under common control during the prior year, on which interest is charged at 2.5% above base rate. The balance due at the 30 September 202 5 was £1,572,589 (202 4 - £1,566,820).

LEEDS COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 29 -
25
Cash generated from operations
2025
2024
£
£
Profit after taxation
5,392,794
6,491,742
Adjustments for:
Taxation charged
1,883,692
2,245,823
Finance costs
2,152,335
2,326,835
Investment income
(205,121)
(245,917)
Gain on disposal of tangible fixed assets
(5,080,035)
(6,985,073)
Profit on second hand vehicle trading
31,582
(154,565)
Depreciation and impairment of tangible fixed assets
18,628,776
19,134,028
Movements in working capital:
(Increase)/decrease in stocks
(278,297)
271,801
(Increase)/decrease in debtors
(831,416)
584,774
Decrease in creditors
(226,274)
(773,440)
Cash generated from operations
21,468,036
22,896,008
26
Analysis of changes in net debt
1 October 2024
Cash flows
30 September 2025
£
£
£
Cash at bank and in hand
11,982,326
(7,827,829)
4,154,497
Borrowings excluding overdrafts
(3,146,210)
1,233,557
(1,912,653)
Lease liabilities
(42,596,552)
4,925,835
(37,670,717)
(33,760,436)
(1,668,437)
(35,428,873)
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