REGISTERED NUMBER: 02999408

BROWNHILLS MOTORHOMES LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Page

Company Information

1

Strategic Report

2

to

5

Report of the Directors

6

to

7

Report of the Independent Auditors

8

to

10

Income Statement

11

Other Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

to

22

DIRECTORS:

M Cantrell

J Colloff

A Craggs

S B Cullen

M Halley

REGISTERED OFFICE:

A1/A46 Junction

Newark

Nottinghamshire

NG24 2EA

REGISTERED NUMBER:

02999408

SENIOR STATUTORY AUDITOR:

Rachel Rudkin

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

14 London Road

Newark

Nottinghamshire

NG24 1TW

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

PRINCIPAL ACTIVITIES, REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

The company is a multi-franchise operation representing leading motorhome manufacturers from across the UK and Europe.

The company operates at Newark and is the biggest single site retailer of new and used motorhomes in the UK. As well as retailing motorhomes the company also has comprehensive aftersales, servicing and repair facilities along with an accessory shop. The Newark site is a unique destination which, in addition to its showroom displaying up to forty motorhomes for sale, has a cafe and leisure centre together with overnight camping facilities for the exclusive use of its customers.

The results for the period and the financial position of the company are shown in the annexed financial statements.

After many years of strong profitability, the company made a loss in the financial year to 30th September 2025. This was due to excess new motorhome stock levels throughout the industry leading to a much more competitive trading environment following a reduction in consumer demand for new motorhomes after the covid years boom and an increase in manufacturers’ production as they had better access to chassis and component parts than during those covid years. This also adversely affected used motorhome valuations which had previously risen when new motorhomes were in short supply. As a result, the company had to take action to reduce both new and used stock levels by discounting and operating at lower profit margins. The company made a loss before tax of £0.96m (2024: profit of £1.12m).

The company has excellent relationships with its bankers and franchisors and meets all its requirements on time.

There are no planned changes to the principal activities of the company. The directors believe the business is well placed to face the challenges ahead and are encouraged by the continued demand for motorhomes since the financial yearend. The 2025/26 financial year will continue to be adversely impacted by continued excess stock levels throughout the industry, leading to an ongoing competitive trading environment but the company expects to return an improved financial result.

Review of financial position

At 30th September 2025, the company remained in a strong net cash position with a net balance of £5.7m (2024: £3.4m). Due to the actions taken by the directors in this difficult year the cash position has improved which leaves the company in an excellent position going forward.

As a result of the losses in the year, the company's net assets reduced to £5.5m (2024: £6.6m). The net current asset position reduced to £4.4m (2024: £5.2m).

Based upon the strong financial position of the company, the directors are still able to make strategic decisions and take advantage of opportunities as they arise.

Key performance indicators

2025

2024

Method of calculation

Profit/(loss) for the year (£'000)

(961)

1,217

Profit before tax

Gross margin (%)

8.4

11.2

Gross profit divided by turnover

Capital expenditure (£'000)

204

1,082

Investment in capital items in the year

Average number of staff

203

201

Average number taken from payroll records

The board also monitors non financial key performance indicators, which include:

- Customer satisfaction, as measured by independent third parties

- Employee turnover and absences

PRINCIPAL RISKS AND UNCERTAINTIES

Business environment

The management of the business and the execution of the company’s strategy are subject to a number of risks such as the UK economy, the reliance on motorhome manufacturers and their supply chain, and the GBP/EUR exchange rate. These risks are reviewed by the Board and where appropriate, monitored and mitigated by suitable processes.

The directors keep abreast of the current economic conditions and will continue to modify policies to reflect the market conditions.

They continue to have good relationships with and the continued support of their bankers and franchisors.

The policies of the board of directors are implemented by the company's finance department. The department has policies and procedures to manage interest and currency rate risks together with credit risk and the circumstances where it would be appropriate to use financial instruments to manage these.

Inventory control

The directors review the levels, ageing and valuation of stock monthly. This close control ensures that availability and choice for customers is maintained. This means that the company is able to make informed decisions and react quickly to changes in market conditions as required.

Financial control

The company’s operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk, currency risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and related finance costs.

Policies are also in place to ensure that funds are cleared on vehicles prior to delivery to ensure this risk is minimised. Where consumer finance is utilised, this is subject to acknowledgement that a customer has been accepted for finance prior to delivery.

SECTION 172(1) STATEMENT

The directors of the company act in accordance with the duties set out in section 172(1) of the Companies Act 2006 to promote the success of the company for the benefit of its members, and in doing so have regard (amongst other matters) to:

a. The likely consequences of any decision in the long term;

b. The interests of the company's employees;

c. The need to foster the company's business relationships with suppliers, customers and others;

d. The impact of the company's operations on the community and the environment;

e. The desirability of the company maintaining a reputation for high standards of business conduct; and

f. The need to act fairly as between members of the company.

The board of directors meet monthly and all major decisions are discussed and agreed based on their potential short and long-term risks and rewards.

The directors are mindful that good employees are key to any business and staff are regularly consulted by way of a monthly newsletter, employee council meetings, suggestion boxes and representation at health and safety meetings. The company believes that staff pay is competitive and undertakes a pay review every year with all staff receiving an annual increase. Additionally, employees benefit from private medical insurance, death-in-service life assurance and a profit share bonus, where the company makes over £0.5m profit, since the company became an Employee Ownership Trust. The company believes it to be a good employer as evidenced by low level of staff turnover, an increasing number of long serving employees and a very stable and long serving management team.

The company has excellent relationships with its key suppliers, the motorhome manufacturers, and for many years has had a strategy of limiting the number of manufacturers it represents and being a major supplier for each to enhance those relationships for the benefit of all parties. The company has five manufacturer relationships and is the UK's biggest selling dealer (by motorhomes sold) for each of these. Strategically, around 75% of the motorhomes the company sells are sourced from UK manufacturers which gives greater certainty on supply as almost all their product is built for the UK market. The remaining 25% is sourced from European manufacturers.

Customer satisfaction is of great importance to the company and is measured by surveys sent to all motorhome buying and service customers and TrustPilot reviews. The feedback is read by the executive directors and management team and acted upon to continuously improve customer service.

The company also operates Club Brownhills which all its motorhome buying customers automatically become members of for the lifetime of their ownership of that motorhome and includes complimentary benefits such as overnight stays with electric hook-up; use of the swimming pool, sauna, spa and washroom/changing facilities; use of the club lounge and kitchen; attendance at member weekend events where food and entertainment is laid on; and an invite to member Christmas lunches throughout December. This offering is unique throughout the industry and is very well received by the members and along with good service helps maintain customer loyalty.

The company always aims to foster good relationships with its neighbours, local authorities and community, and sponsors local football and rugby clubs. Additionally, the company nominates a charity of the year and the proceeds raised at club member events are passed on. Wherever possible the company uses local suppliers to help the local economy.

The company takes its environmental responsibilities seriously and recycles, has solar panels on the roof of the building, and minimises energy consumption by using low energy lighting and software to minimise energy waste.

The directors always strive to act professionally and with integrity in the interests of the company’s reputation, financial wellbeing and the stakeholders. The company is not controlled by any one individual and therefore decision making is undertaken collectively by the directors. The Chief Executive Officer and one of the Non-Executive Directors are members of the Employee Ownership Trust board of trustees where they explain director decision-making to the other trustees - two employee trustees and an independent trustee.

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

ON BEHALF OF THE BOARD:

J Colloff - Director

25 June 2026

The directors present their report with the financial statements of the company for the year ended 30 September 2025.

DIVIDENDS

The loss for the year, after taxation, amounted to £894,523 (2024 - £964,547 (profit)).

The directors do not recommend the payment of a dividend.

Financial risk management objectives and policies

These are disclosed in the Strategic Report.

FUTURE DEVELOPMENTS

Information on the likely future developments in the business of the company has been included in the Strategic Report.

Post balance sheet events

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2024 to the date of this report.

M Cantrell

J Colloff

A Craggs

S B Cullen

M Halley

STREAMLINED ENERGY AND CARBON REPORTING

The company has reviewed its energy consumption and calculated its greenhouse gas emissions for the period 1 October 2024 to 30 September 2025 as follows along with a comparison to the prior year figures.

Units

2025

2024

Energy Consumption- Electricity

kWh

538,003

513,043

Energy Consumption- Gas

kWh

777,997

700,287

Energy Consumption- Own transport

Litres

61,834

69,318

Electricity Emissions

tCO2e

125

120

Gas Emissions

tCO2e

143

129

Own Transport Emissions

148

166

Total Gross Emissions

tCO2e

416

415

Turnover

£m

102.4

101.2

Intensity Ratio

tCO2e/£m

4.1

4.1

The group’s Intensity Ratio remained consistent with the prior year.

The company has taken action and will continue to do so to improve energy efficiency including:

- Generating a portion of its electricity from 149.76 KWp solar panels on the building roof

- Using LED lighting in all areas of the business

- Increasing the number of fully electric cars which now comprise 29% of its total vehicle fleet

- Discussing energy consumption and means to reduce it at management and director level

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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;

-	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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J Colloff - Director

25 June 2026

Opinion

We have audited the financial statements of Brownhills Motorhomes Limited (the 'company') for the year ended 30 September 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2025 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of 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 Statement of Directors' Responsibilities set out on page seven, 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 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.

Auditors' responsibilities for the audit of the financial statements

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

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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws and regulations as part of our financial statements audit. This included the identification and testing of unusual material journal entries and challenging management on key areas of uncertainty being the estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Employment law and Environmental regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statements items.

Owing 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. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all 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 Report of the Auditors.

Use of our report

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

Rachel Rudkin (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

14 London Road

Newark

Nottinghamshire

NG24 1TW

26 June 2026

REVENUE

4

102,471,796

101,193,058

Cost of sales

93,890,906

89,881,030

GROSS PROFIT

8,580,890

11,312,028

Administrative expenses

9,827,141

10,300,298

(1,246,251

)

1,011,730

Other operating income

832,091

587,113

OPERATING (LOSS)/PROFIT

7

(414,160

)

1,598,843

Interest receivable and similar income

93,637

116,144

(320,523

)

1,714,987

Interest payable and similar expenses

8

641,032

498,229

(LOSS)/PROFIT BEFORE TAXATION

(961,555

)

1,216,758

Tax on (loss)/profit

9

(67,032

)

252,211

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(894,523

)

964,547

(LOSS)/PROFIT FOR THE YEAR

(894,523

)

964,547

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(894,523

)

964,547

FIXED ASSETS

Intangible assets

10

-

-

Property, plant and equipment

11

1,193,221

1,342,253

1,193,221

1,342,253

CURRENT ASSETS

Inventories

12

25,644,346

27,378,105

Debtors

13

2,066,606

2,690,043

Cash at bank

5,701,661

3,419,563

33,412,613

33,487,711

CREDITORS

Amounts falling due within one year

14

29,053,352

28,245,228

NET CURRENT ASSETS

4,359,261

5,242,483

TOTAL ASSETS LESS CURRENT LIABILITIES

5,552,482

6,584,736

PROVISIONS FOR LIABILITIES

16

62,523

32,348

NET ASSETS

5,489,959

6,552,388

CAPITAL AND RESERVES

Called up share capital

17

2

2

Retained earnings

18

5,489,957

6,552,386

SHAREHOLDERS' FUNDS

5,489,959

6,552,388

The financial statements were approved by the Board of Directors and authorised for issue on 25 June 2026 and were signed on its behalf by:

J Colloff - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

2

7,087,839

7,087,841

Changes in equity

Total comprehensive income

-

964,547

964,547

Contributions to employment ownership trust

-

(1,500,000

)

(1,500,000

)

Balance at 30 September 2024

2

6,552,386

6,552,388

Changes in equity

Total comprehensive income

-

(894,523

)

(894,523

)

Contributions to employment ownership trust

-

(167,906

)

(167,906

)

Balance at 30 September 2025

2

5,489,957

5,489,959

1.	STATUTORY INFORMATION

Brownhills Motorhomes Limited is a private company, limited by shares , registered in Not specified/Other. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared under the historical cost convention as modified by the revaluation of freehold buildings 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 judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Hosting Developments Limited as at 30 September 2024 and these financial statements may be obtained from the registered office of the company.

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company will have sufficient funds available to enable it to continue to trade for the foreseeable future. In making their assessment that this assumption is correct the directors have undertaken an in depth review of the business, its current prospects, and cash resources.

After due consideration of these forecasts, current and forecast cash resources and the support of the company's bankers, the directors consider that the company has adequate financial resources to continue in operational existence for the foreseeable future, and for this reason the financial statements have been prepared on a going concern basis.

Turnover

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents sales to external customers at invoiced amounts less value added tax or local taxes on sales.

Sales of motorhomes, parts and accessories are recognised on the earlier of full payment or delivery to the customer. Service sales are recognised on completion of the agreed work.

Intangible asset

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Goodwill relates to the acquisition of a business in 2008, and is the difference between the fair value of the consideration paid and the fair value of the assets and liabilities acquired. Positive goodwill is capitalised and amortised through the statement of comprehensive income over the directors' estimate of its useful economic life of 20 years. Impairment tests on the carrying value of goodwill are undertaken:

• at the end of the first full financial year following acquisition; and

• in other periods if events or changes in circumstances indicate that the carrying value may not be

recoverable.

Tangible fixed assets

Depreciation is provided to write off the cost, less estimated residual values, of all tangible fixed assets, except for freehold land, evenly over their expected useful lives. It is calculated at the following rates:

Freehold Property

- 2% on cost

Fixtures and fittings

- Between 10% and 33% on cost

Motor vehicles

- 20% on cost

Computer equipment

- Between 20% and 33% on cost

Stocks

Vehicle stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Where the nature of the agreement with the manufacturer confers the benefit and associated risk of ownership to the company on consignment, such stocks and the corresponding creditor are included on the balance sheet although legal title remains with the supplier until sold.

Parts stock is shown at weighted average purchase price paid. Provision is made for obsolete, slow moving or defective items where appropriate.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties.

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

Foreign currencies

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

Financial liability and equity

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

Finance costs

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

Dividends

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

Hire purchase and leasing commitments

Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to the statement of comprehensive income over the shorter of estimated useful economic life and the period of the lease.

Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to the statement of comprehensive income over the period of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor.

All other leases are treated as operating leases. Their annual rentals are charged to the statement of comprehensive income on a straight-line basis over the term of the lease.

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are management's best knowledge of the amount, events or actions, actual amounts ultimately may differ from those estimates.

The directors have made the following critical estimates and judgements deemed to be applicable to the financial statements:

Stocks

Consideration has been given by the directors to the level of provision against vehicle stocks. In determining the provision required the directors have used guidance from independent valuation tools and their knowledge of the industry.

4.

REVENUE

The revenue and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

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

2025

2024

£

£

Vehicles

98,505,253

97,937,896

Aftersales

3,715,874

3,009,163

Other

250,669

245,999

102,471,796

101,193,058

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

5,266,049

6,791,088

Social security costs

716,184

666,206

Other pension costs

171,453

162,122

6,153,686

7,619,416

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

2025

2024

Sales

57

56

Administration

48

48

Service

82

81

Parts

16

16

203

201

6.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

334,944

517,122

Information regarding the highest paid director is as follows:

2025

2024

£

£

Accrued lump sum at 30 September 2025

144,966

159,363

During the year retirement benefits were accruing to 2 directors (2024 - 4) in respect of defined contribution pension schemes.

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £15,022 (2024 - £13,622).

7.	OPERATING (LOSS)/PROFIT

The operating loss (2024 - operating profit) is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

621

1,915

Depreciation - owned assets

239,781

232,470

Loss/(profit) on disposal of fixed assets

5,587

(24,927

)

Auditors remuneration

38,670

42,000

Operating lease expense

676,817

632,271

Exchange differences

(117,414

)

127,304

Impairment of stocks

252,742

30,060

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

641,032

498,229

9.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

27,916

29,036

Deferred tax

(94,948

)

223,175

Tax on (loss)/profit

(67,032

)

252,211

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

(Loss)/profit before tax

(961,555

)

1,216,758

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

(240,389

)

304,190

Effects of:

Expenses not deductible for tax purposes

10,234

20,771

Capital allowances in excess of depreciation

(22,793

)

(10,771

)

Adjustments to tax charge in respect of previous periods

12,559

-

Change in deferred tax rate

-

(9,876

)

Remeasurement of deferred tax for changes in tax rates

173,357

(52,103

)

Total tax (credit)/charge

(67,032

)

252,211