Company Registration Number: SC083633
31 OCTOBER 2025
JIM'S GARAGE (SHETLAND) LIMITED
COMPANY INFORMATION
JIM'S GARAGE (SHETLAND) LIMITED
CONTENTS
JIM'S GARAGE (SHETLAND) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
The Directors present their strategic report for the year ended 31 October 2025.
Turnover has increased by £1,283,976 to £31,611,477 in 2025. Gross profit increased to 6.8% (2024: 6.2%).
The Company is reporting a profit before tax of £245,678 for the year ending 31 October 2025 compared to £219,220 in 2024.
The Company is reporting a profit before tax of £245,678 for the year ending 31 October 2025 compared to £219,220 in 2024.
The management of the business and the nature of the Company's strategy are subject to a number of risks. The Directors have set out below the principal risks facing the business.
General economic conditions
The general economic environment and levels of consumer and business confidence have a direct impact on levels of demand in the motor retail sector. In addition, fuel prices, interest rates, and levels of unemployment can all significantly impact sales levels. Demand levels are closely monitored by the business on an on-going basis (via sales and enquiry analysis) and action taken accordingly if these measures deviate from expectation.
Manufacturer supply of new and improved products
The Company is reliant on new vehicle products from the manufacturers. This exposes the Company to risks in a number of areas as the Company is dependent on its manufacturers/suppliers in respect of:
- Availability of new vehicle product
- Quality of new vehicle product
- Pricing of new vehicle product
The Directors are confident that future new products from its manufacturers and suppliers will continue to be competitively priced and high quality and therefore consider that this "manufacturer risk" is minimal. It is, in any case, mitigated by other core business areas of the Company, including used vehicle sales, parts sales and service work.
Manufacturer relationships
The Company relies on the strength of its relationships with vehicle manufacturers to deliver a significant component of profitability. Changes in the fortunes and strategy of the Company's key manufacturer partners could directly and materially impact the Company's result. This risk is mitigated by the fact that the Company represents three major brands, thereby reducing exposure to any one manufacturer partner.
General economic conditions
The general economic environment and levels of consumer and business confidence have a direct impact on levels of demand in the motor retail sector. In addition, fuel prices, interest rates, and levels of unemployment can all significantly impact sales levels. Demand levels are closely monitored by the business on an on-going basis (via sales and enquiry analysis) and action taken accordingly if these measures deviate from expectation.
Manufacturer supply of new and improved products
The Company is reliant on new vehicle products from the manufacturers. This exposes the Company to risks in a number of areas as the Company is dependent on its manufacturers/suppliers in respect of:
- Availability of new vehicle product
- Quality of new vehicle product
- Pricing of new vehicle product
The Directors are confident that future new products from its manufacturers and suppliers will continue to be competitively priced and high quality and therefore consider that this "manufacturer risk" is minimal. It is, in any case, mitigated by other core business areas of the Company, including used vehicle sales, parts sales and service work.
Manufacturer relationships
The Company relies on the strength of its relationships with vehicle manufacturers to deliver a significant component of profitability. Changes in the fortunes and strategy of the Company's key manufacturer partners could directly and materially impact the Company's result. This risk is mitigated by the fact that the Company represents three major brands, thereby reducing exposure to any one manufacturer partner.
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JIM'S GARAGE (SHETLAND) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
Used vehicle price variation
Used vehicle prices can decline significantly. As a significant proportion of the business comprises used vehicle sales, these declines can have a material impact on the business. The impact of declines in used vehicle prices can result in reduced profits on sales and also write-downs in the value of used vehicle stock.
Company, people and reputation
The Company has invested heavily in its people and its reputation over a number of years. It is therefore reliant on these individuals to a degree in delivering the Company result and reinforcing the underlying brand. The Company undertakes a regular review of remuneration and packages to ensure that it attracts and retains the best people.
Competition
The Company competes with other franchised vehicle dealerships, independent used vehicle sellers, private buyers and sellers, internet based dealers, independent service and repair shops and vehicle manufacturers who have entered the retail market. The Company competes for the sale of new and used vehicles. Performance of warranty repairs, non-warranty repairs, routine maintenance business and for the provision of spare parts. The principal competitive factors in service and parts sales are price, familiarity with a manufacturer's brands and models and the quality of customer service.
Environmental policy
The management continue to work towards the development of the Company's environmental policy and it is the managements' objective to continually improve performance in this area. When assessing the environmental performance of the Company management consider various measures, including reducing waste, recycling and introducing more efficient lighting etc.
Used vehicle prices can decline significantly. As a significant proportion of the business comprises used vehicle sales, these declines can have a material impact on the business. The impact of declines in used vehicle prices can result in reduced profits on sales and also write-downs in the value of used vehicle stock.
Company, people and reputation
The Company has invested heavily in its people and its reputation over a number of years. It is therefore reliant on these individuals to a degree in delivering the Company result and reinforcing the underlying brand. The Company undertakes a regular review of remuneration and packages to ensure that it attracts and retains the best people.
Competition
The Company competes with other franchised vehicle dealerships, independent used vehicle sellers, private buyers and sellers, internet based dealers, independent service and repair shops and vehicle manufacturers who have entered the retail market. The Company competes for the sale of new and used vehicles. Performance of warranty repairs, non-warranty repairs, routine maintenance business and for the provision of spare parts. The principal competitive factors in service and parts sales are price, familiarity with a manufacturer's brands and models and the quality of customer service.
Environmental policy
The management continue to work towards the development of the Company's environmental policy and it is the managements' objective to continually improve performance in this area. When assessing the environmental performance of the Company management consider various measures, including reducing waste, recycling and introducing more efficient lighting etc.
The business produces internal monthly management information including key performance indicators, which are benchmarked against well performing, similar businesses within the sector. These are scrutinised monthly, by the board, who will rapidly implement changes within the business to improve performance. Financial key performance indicators have been discussed above in the Review of Business.
The employees are considered a major asset to the business therefore staff turnover is monitored closely by the Company.
The employees are considered a major asset to the business therefore staff turnover is monitored closely by the Company.
This report was approved by the board and signed on its behalf.
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JIM'S GARAGE (SHETLAND) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
The Directors present their report and the financial statements for the year ended 31 October 2025.
The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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;
∙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 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.
The profit for the year, after taxation, amounted to £174,412 (2024 - £158,735).
The Directors who served during the year were:
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JIM'S GARAGE (SHETLAND) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
The Company uses various financial instruments, other than derivatives, which include bank and stocking loans, cash and various items, such as consignment stock, trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the Company's operations. Their existence exposes the Company to a number of financial risks.
The main risks arising from the Company's financial instruments are interest rate risk, liquidity risk and credit risk. The Directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged from previous years.
Interest rate risk
Given the current level of Bank of England base rate, the Directors consider the fluctuation in interest rate a risk and will continue to monitor this and consider the impact on the Company.
Liquidity risk
The Company makes efforts to manage the financial risk by the monitoring of cashflow to ensure that the Company is able to meet its foreseeable debts as they fall due.
Credit risk
The Company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited and therefore the principal credit risk arises from its trade debtors.
In order to manage credit risk, the Directors set limits for customers based on a combination of payment history and third party credit references. These credit limits are reviewed regularly by the Directors together with the aged debtors and collection history.
Disclosure in the strategic report
The Directors' review of the business, and their consideration of the risks and uncertainties surrounding the business may be found in the Strategic Report.
The main risks arising from the Company's financial instruments are interest rate risk, liquidity risk and credit risk. The Directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged from previous years.
Interest rate risk
Given the current level of Bank of England base rate, the Directors consider the fluctuation in interest rate a risk and will continue to monitor this and consider the impact on the Company.
Liquidity risk
The Company makes efforts to manage the financial risk by the monitoring of cashflow to ensure that the Company is able to meet its foreseeable debts as they fall due.
Credit risk
The Company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited and therefore the principal credit risk arises from its trade debtors.
In order to manage credit risk, the Directors set limits for customers based on a combination of payment history and third party credit references. These credit limits are reviewed regularly by the Directors together with the aged debtors and collection history.
Disclosure in the strategic report
The Directors' review of the business, and their consideration of the risks and uncertainties surrounding the business may be found in the Strategic Report.
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JIM'S GARAGE (SHETLAND) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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JIM'S GARAGE (SHETLAND) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JIM'S GARAGE (SHETLAND) LIMITED
We have audited the financial statements of Jim's Garage (Shetland) Limited (the 'Company') for the year ended 31 October 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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JIM'S GARAGE (SHETLAND) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JIM'S GARAGE (SHETLAND) LIMITED (CONTINUED)
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.
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.
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JIM'S GARAGE (SHETLAND) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JIM'S GARAGE (SHETLAND) LIMITED (CONTINUED)
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 Auditors' 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below;
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. 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 knowledge of the Company 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 review of appropriate industry knowledge. Key laws and regulations we identified during the audit were the UK Companies Act 2006, UK tax legislation and FCA regulations;
- we assessed the extent of compliance with the laws and regulations identified above by 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.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;
- tested journal entries recorded on the Company's finance system to identify unusual transactions that may indicate override of controls;
- reviewed key judgements and estimates for any evidence of management bias; and
- reviewed the application of accounting policies with focus on those with heightened estimation uncertainty.
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; and
- enquiring of management to identify actual and potential litigation and claims.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below;
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. 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 knowledge of the Company 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 review of appropriate industry knowledge. Key laws and regulations we identified during the audit were the UK Companies Act 2006, UK tax legislation and FCA regulations;
- we assessed the extent of compliance with the laws and regulations identified above by 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.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;
- tested journal entries recorded on the Company's finance system to identify unusual transactions that may indicate override of controls;
- reviewed key judgements and estimates for any evidence of management bias; and
- reviewed the application of accounting policies with focus on those with heightened estimation uncertainty.
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; and
- enquiring of management to identify actual and potential litigation and claims.
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JIM'S GARAGE (SHETLAND) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JIM'S GARAGE (SHETLAND) LIMITED (CONTINUED)
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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 Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
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JIM'S GARAGE (SHETLAND) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2025
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JIM'S GARAGE (SHETLAND) LIMITED
REGISTERED NUMBER: SC083633
STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 28 form part of these financial statements.
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JIM'S GARAGE (SHETLAND) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2025
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JIM'S GARAGE (SHETLAND) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2025
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JIM'S GARAGE (SHETLAND) LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 OCTOBER 2025
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
Jim's Garage (Shetland) Limited is a private Company, limited by shares, registered in Scotland. The Company's registered office address is 4 Gremista Industrial Estate, Lerwick, Shetland, ZE1 0PX. The Company number is SC083633.
The principal place of business is 4 Gremista Industrial Estate, Lerwick, Shetland.
The presentation currency of the financial statements is Pound Sterling (£).
The principal activity of Company in the year under review was that of a motor vehicle retailer and ancillary services.
The principal place of business is 4 Gremista Industrial Estate, Lerwick, Shetland.
The presentation currency of the financial statements is Pound Sterling (£).
The principal activity of Company in the year under review was that of a motor vehicle retailer and ancillary services.
2.Accounting policies
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 Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Based on current bank balances and facilities, current funding and current trading, the Directors believe that the Company will be able to meet its debts as they fall due for the period of 12 months after the approval of these financial statements. They have therefore prepared the financial statements on a going concern basis.
Turnover from the sale of goods is recognised in the Statement of Comprehensive lncome, net of discounts and value added tax, when the significant risks and rewards of ownership have been transferred to the buyer. ln general this occurs when vehicles or parts have been supplied or when a service has been completed.
Commission income is recognised on a receivable basis.
Rental income from short-term vehicle hire is recognised on an accruals basis, over the period in which the vehicles are hired.
Commission income is recognised on a receivable basis.
Rental income from short-term vehicle hire is recognised on an accruals basis, over the period in which the vehicles are hired.
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
At each reporting date, stocks are assessed for impairment. lf 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 Comprehensive lncome.
Consignment vehicles are regarded as being under the control of the Company when significant risks and responsibilities of ownership are deemed to have passed to the Company in accordance with FRS 102. These values are included within stocks on the statement of financial position, although legal title has not passed to the Company. The corresponding liability is included within creditors.
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:
Stock valuation
Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including Glass' and CAP valuation guides. The Directors maintain oversight of ageing stock profiles and a monthly review of any provision required is performed.
lncentives and other rebates from brand partners
The Company receives income in the form of various incentives which are determined by the brand partners. The amount received is generally based on achieving specific objectives such as a specified sales volume, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly or annual basis.
Where incentives are based on a specific sales volume or number of registrations, the related income is
recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered or when it is reasonably certain that the related target will be met. Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards, they are recognised as a reduction in cost of sales when it is reasonably certain that the incentive will be received for the relevant period.
The Company may also receive contributions towards advertising, promotional and rent expenditure. Where such contributions are received they are recognised as a reduction in the related expenditure in the period to which they relate.
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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Investment property is comprised of a building held for rental or capital appreciation purposes. Investment property is held at cost upon initial measurement and subsequently is measured at fair value at each reporting end date.
The Directors are satisfied that there have been no material change to the valuation of the investment property from the acquisition date in the year, and therefore the year end valuation remains appropriate.
The Directors are satisfied that there have been no material change to the valuation of the investment property from the acquisition date in the year, and therefore the year end valuation remains appropriate.
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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JIM'S GARAGE (SHETLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
Profit and loss account
The Company operates a defined contributions 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 £75,099 (2024: £76,962). Contributions totalling £16,266 (2024: £12,369 ) were payable to the fund at the reporting date.
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