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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2025
Page Kirk LLP
Chartered Accountants and Statutory Auditors
Sherwood House
7 Gregory Boulevard
Nottingham
NG7 6LB
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CONTENTS
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COMPANY INFORMATION
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors, in preparing this Strategic Report, have complied with s414C of the Companies Act 2006.
The groups principal activities are those of commercial vehicle sales, service, repair, contract hire and rental of commercial vehicles and other assets.
The RH Group Ltd is also active in the development of industrial property and the letting of commercial property. 2025 saw a significantly improved performance in RH Commercial Vehicles (RHCV) following a very disappointing prior year. A reasonable forward orderbook carried into the first quarter and a number of substantial orders through the early part of the year generated registrations to meet our manufacturer volume targets, something missed in 2024. That said, the overall market for medium and heavy-duty vehicles (MHDV) was down on the prior year (2024) by some 10%+ as business confidence weakened during the period following the unprecedented increase in employers’ national insurance contributions and thresholds alongside substantive wage pressure following the increases to the national minimum wage. This decline in registrations followed through into reduced customer orders in Q4 of the year; correspondingly we are back in the cycle of challenges around this year’s volume target. Data for the Q1 this year showed registrations down a further 10% nationally against the corresponding period last year. The year will also be remembered for increasing insolvency issues; we suffered several business failures across both RHCV and RH Rentals (RHR) during the year. Consequently, we have bolstered our credit management and further in this current year by recruitment of a Credit Manager, along with the introduction of more sophisticated credit analysis and the management of credit limits. Although all business was put under considerable pressure in the year, the logistics sector is notorious for working with very fine margins, that pressure was too much to bear for a number borne out by our own experience and wider notifications through various media across the country. Of course there were plenty of positives; our first full year of operation in Coventry, acquired in late 2024 allowed us to start to build workshop volume, although there is work to do, I was pleased to see robust growth in that business unit. Across the business we almost hit a long-standing aspiration billing just short of 150,000 labour hours through our now seven operational sites with the corresponding parts sales contributing to our overall result. Our aftersales business is now circa £30m turnover in its own right. RH Rentals enjoyed another solid year; as I have stated before, maturity in a business that in our ownership dates only from 2016 allows for both new business and disposals. Disposals continue to contribute to this business unit’s profitability. We saw good growth in asset numbers during the year increasing the asset base to some 430 pieces. As with RHCV, the dampener was business insolvency, and although we have managed to reallocate or dispose of assets displaced by these occurrences the business suffered a hit to profitability consequently.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The RH Group. Having sold its subsidiary Carlton Road Development (CRD) in the prior year, inevitably 2025 was going to be somewhat less exciting. Turnover increased by some 8%, in the most part due to increased property rental income, albeit the full benefit of the Coventry lease was only felt in the last two months of the year; correspondingly administrative expenses and increased borrowing supporting the acquisition conspired to reduce profits in the year. In this year of course, the group benefits from the full rental income from all its property portfolio.
At the time of writing the effects of the conflict in the Middle East alongside the continued war in the Ukraine are still playing out. Our own cost base is of course affected, road fuel particularly, however pressure of our customer base of which fuel is typically 30 – 40% of total operating costs is immense. Some operators of course will be protected by contractual ‘escalators’ but all the same fuel purchases are generally settled in days not weeks or months, putting acute strain on cash-flow for many. Taking a positive from the situation above, product development in battery electric vehicles (BEV) continues apace; the distance range we can now rely on across the product range is quite extraordinary and new grant funding through a very welcome government initiative ZETG (zero emission truck grant) goes a long way to price parity with diesel (ICE) equivalents. If we can manage charging capacity which stills impedes many projects then we should be able to cultivate some growth in this area, something that has been a challenge of us, our peers, and the industry as a whole. In summary, business conditions are challenging, simply reading any media will confirm that, but we are a resilient business, continuing to invest in our people, dealerships and systems including some early work with artificial intelligence (AI) which will open up numerous avenues of efficiency across all our operations. Our Q1 management figures are solid, as such despite the headwinds we continue to drive the business forward.
Aside from financial KPIs the business monitors a number of operational KPIs such as the number of vehicles sold, recovery rate and parts purchases.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The management of the business and the execution of the Group's strategy are subject to a number of risks. The key business risks and uncertainties affecting the Group are considered to relate to competition from other companies operating in the same market. The Group manages risk by providing excellent service and maintaining strong relationships with both customers and suppliers.
Financial risk management, objectives and policies The Group's activities expose it to a number of financial risks relating to credit risk, cash flow risk and liquidity risk. The Group does not use derivative financial instruments. Credit risk The Group's principal financial assets are bank balances and cash, trade and other debtors. The Group's credit risk is primarily attributable to its trade debtors. The amounts presented in the Group's Statement of Financial Position are net of allowances for doubtful debts. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The Group has no significant concentration of credit risk, with exposure spread over a large number of counter parties and customers. Cash flow risk Cash flow risk is the risk exposure to variability in cash flows that is attributable to a particular risk associated with acquisition of capital assets through short term borrowings such as repayment and interest payment on short term borrowings. Liquidity risk In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Group uses a mixture of external borrowings and cash flows generated from within the Group.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors of the Group, as those of all UK Companies, must act in accordance with a set of general duties. These duties are detailed in section 172 (1) of the UK Companies Act 2006 which can be summarised as follows; "a director of a company must act in a way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its shareholders as a whole, and in doing so have regard (amongst other matters) to:
• the likely consequences of any decisions in the long term • the interest of the Group's employees • the need to foster the Group's business relationship with suppliers, customers and others • the impact of the Group's operations on the community and the environment • the desirability of the Group maintaining a reputation for high standards of business conduct and • the need to act fairly between shareholders of the Group It is important to recognise that in an organisation of this size, some of the Directors duties are fulfilled through policies and governance which delegate day to day decision making to employees of the Group. The following paragraphs summarise how the Directors fulfil their duties: Our strategy and consideration of consequences of decisions for the long term As Directors of the Group we provide overall risk oversight, with a focus on the most significant risks facing the Group. In addition, we are responsible for ensuring overall crisis management and business continuity plans are in place. Together with partners and senior management, we frequently discuss the Group's business strategy, operations, policies, controls and risks. Our values and culture The RH Group is committed to conducting its business consistently with the highest standards of business ethics. We have an obligation to our employees, shareholders, customers, suppliers, partners, and other business contacts to be honest, fair and forthright in all our business activities. Our employees We recognise the importance of good communications and relationships with employees. We continue to encourage and increase employee participation and involvement in matters which affect their interests. We provide updates to employees on developments within the Group on a regular basis. We celebrate success and share good practice as we strive to be a regional employer of choice. Business relationships Our diverse, global customer, partner and supplier base includes some of the largest blue-chip multinationals in the road transport sector. We value our customers and suppliers and have long term relationships in place. We have dedicated customer and supplier account managers who safeguard the interests of ourselves, our customers and our suppliers. As a Group we consciously endeavour to purchase from regional suppliers, with the intention of contributing to strengthening the local economy. Community and environment We are committed to the protection of the environment, using our environment management system to ensure compliance with legislation and regulations, and to help achieve our objectives for improvement in environmental performance. This includes reducing waste by increased recycling and reuse where possible and transitioning to electric and hybrid vehicles in the company fleet. We are a partner with a network of dealers committed to helping the transport industry and our customers through energy transition and decarbonisation strategies to lower their environmental impact.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
This report was approved by the board on 4 June 2026 and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The profit for the year, after taxation and minority interests, amounted to £977k (2024 - £3,863k).
The directors who served during the year were:
The Directors have prepared this statement of going concern for The RH Group Ltd and its subsidiary companies utilising shared resources and linked funding.
2025 was in many respects a good year overall; RH Commercial Vehicles returned to profitability following a challenging prior year with much improved new vehicle sales volume being key. That said, the market for new trucks and light commercial vans was significantly down nationally against the prior year, and at the time of writing looks to be tracking down further ( -10% Q1YoY) in the current year as the effects of governmental economic policies and geopolitical events weigh on business sentiment. Correspondingly I expect our new registrations to finish lower in the current year than 2025. However, in our aftersales business, in Coventry a full year’s trading following its acquisition in November 2024 we saw good growth in both labour hours and parts sales invoiced; both records as might be expected with a larger area of influence but pleasing all the same and more so that the growth pattern continues in this current year. Our truck rental business continued to perform well, utilisation running at very acceptable levels; that said, new contracts are challenging to secure, the sector is very competitive, and we are reluctant to participate in deals that don’t meet our margin aspirations which tend to store up issues as contracts mature often in five years’ time. As has been the case since our acquisition in 2012, we continue to look for further opportunities for growth despite the current headwinds. There will always be demand for transport solutions in both new technologies, BEV (battery electric vehicles) and ICE (internal combustion engine) variants. The movement of goods is something that cannot be replaced by artificial intelligence; as such it is inevitable that assets continue to need replacement or repair affording opportunities to us in sales, aftersales, contract hire and rental. Providing we continue to offer high service levels for which we have a strong reputation I have little concern as to continued business volumes; the task though is to generate margin and profitability in this challenging period. As such, although we are working hard to do so, my expectation is to deliver a result similar to 2025, which in the current climate feels both realistic and acceptable.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Companies Act 2006 (Strategic Report and Directors Report) Regulations 2018 requires The RH Group to disclose annual UK energy consumption and Greenhouse Gas (GHG) emissions from SECR regulated sources.
Energy and GH emissions are reported from buildings and transport where operational control is held – this includes natural gas, electricity and fuel consumed, and group owned or leased vehicles. The tables below details the SECR energy and GHG emissions for the reporting period 2025.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
UK businesses continue to face challenging conditions, in part as a result of UK Government policies, recent changes to employer NIC (national insurance contributions) have added significantly to the group's employment costs and will inevitably impact on the group's overall profitability alongside proposed changes to employment legislation and wider taxation initiatives.
In addition, global events continue to colour business sentiment, with specific concerns around oil prices, as the group's customer base is transport focused, fuel remains a key cost effecting their own profitability, and thus outlook including investment in new and used vehicles, in turn inevitably potentially reflecting on the RH Group's financial performance. However, the directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The directors have taken account of these potential impacts in their going concern assessment. The RH Group Ltd continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.
As permitted by section 414C(11) of the Companies Act 2006, certain matters which are required to be disclosed in the Directors' Report have been omitted as they are included in the Strategic Report instead.
There have been no significant events affecting the Group since the year end.
The auditors, Page Kirk LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RH GROUP LTD
FOR THE YEAR ENDED 31 DECEMBER 2025
We have audited the financial statements of The RH Group Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated Profit and Loss Account, the Consolidated Analysis of Net Debt, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity 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).
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 Group's or the Parent 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RH GROUP LTD (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RH GROUP LTD (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation and money laundering regulations. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included: • Enquiries of management about their own identification and assessment of the risks of irregularities. • Sample testing on the posting of journals. • Reviewing regulatory correspondence and professional fees. • Detailed substantive testing on the completeness of income. 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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RH GROUP LTD (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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 and Statutory Auditors
Sherwood House
7 Gregory Boulevard
NG7 6LB
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2025
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CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 June 2026.
The notes on pages 25 to 53 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2025
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COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 25 to 53 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is: Birkbeck House Colliers Way Nottingham England NG8 6AT
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 financial statements are presented in Sterling (£) which is the functional currency of the company.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Directors have prepared this statement of going concern for The RH Group Ltd and its subsidiary companies utilising shared resources and linked funding.
2025 was in many respects a good year overall; RH Commercial Vehicles returned to profitability following a challenging prior year with much improved new vehicle sales volume being key. That said, the market for new trucks and light commercial vans was significantly down nationally against the prior year, and at the time of writing looks to be tracking down further ( -10% Q1YoY) in the current year as the effects of governmental economic policies and geopolitical events weigh on business sentiment. Correspondingly I expect our new registrations to finish lower in the current year than 2025. However, in our aftersales business, in Coventry a full year’s trading following its acquisition in November 2024 we saw good growth in both labour hours and parts sales invoiced; both records as might be expected with a larger area of influence but pleasing all the same and more so that the growth pattern continues in this current year. Our truck rental business continued to perform well, utilisation running at very acceptable levels; that said, new contracts are challenging to secure, the sector is very competitive, and we are reluctant to participate in deals that don’t meet our margin aspirations which tend to store up issues as contracts mature often in five years’ time. As has been the case since our acquisition in 2012, we continue to look for further opportunities for growth despite the current headwinds. There will always be demand for transport solutions in both new technologies, BEV (battery electric vehicles) and ICE (internal combustion engine) variants. The movement of goods is something that cannot be replaced by artificial intelligence; as such it is inevitable that assets continue to need replacement or repair affording opportunities to us in sales, aftersales, contract hire and rental. Providing we continue to offer high service levels for which we have a strong reputation I have little concern as to continued business volumes; the task though is to generate margin and profitability in this challenging period. As such, although we are working hard to do so, my expectation is to deliver a result similar to 2025, which in the current climate feels both realistic and acceptable. I therefore consider The RH Group to be an going concern.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Page 27
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Page 28
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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.
The estimated useful lives range as follows:
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Balance Sheet when the Group 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
Page 30
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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 Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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 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.
Page 31
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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 if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. The Directors have not identified any critical judgements in preparing these financial statements. The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below: Valuation of investments - Investment property Estimations have been made with regards to the carrying value of the investment properties which are held at market value. The Directors have sought expert valuations from a valuation firm to assist with these key estimations. Further details are disclosed in note 15. Useful economic life of tangible fixed assets Residual values are estimated for commercial vehicles held as fixed assets. The Directors use available market data, history of recoverable values and their judgement in making these estimates.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 33
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 34
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 35
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
11.Taxation (continued)
Page 36
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 37
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 38
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
13.Tangible fixed assets (continued)
Page 39
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
13.Tangible fixed assets (continued)
Page 40
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
13.Tangible fixed assets (continued)
The carrying amount of investment property, which the Company rents to another group entity when it has chosen to account for such properties using the cost model is £5,698k (2024 - £5,827k)
Page 41
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 42
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Indirect subsidiary undertaking (continued)
Page 43
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Freehold investment properties were valued in June 2023, based on an exercise carried out by FHP, an independent surveyor, having an appropriate recognised qualification and recent experience in the location and class of property being valued.
The directors have reviewed the investment property valuation and deem to appropriate.
Freehold properties were valued in June 2023, based on an exercise carried out by FHP, an independent surveyor, having an appropriate recognised qualification and recent experience in the location and class of property being valued.
The directors have reviewed the investment property valuation and deem to appropriate.
Page 44
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 45
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 46
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Bank overdraft is secured with Barclays Bank PLC by a fixed and floating charge over the assets of the group, supported by a company cross guarantee.
Bank loans are secured with Barclays Bank PLC over the investment properties, freehold property and long leasehold property held by the group with a net book value of £8,723k at 31 December 2025. Finance leases and hire purchase contracts are secured over the assets to which they relate with Lombard North Central PLC, Barclays Mercantile Business Finance Limited, HSBC Asset Finance (UK) LTD, HSBC Equipment Finance (UK) LTD and Bmbf (No.24) Limited. Assets under finance lease and hire purchase agreements have a net book value of £24,964k at 31 December 2025.
Page 47
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Bank loans are secured with Barclays Bank PLC over the investment properties, freehold property and long leasehold property held by the group with a net book value of £8,723k at 31 December 2026.
Finance leases and hire purchase contracts are secured over the assets to which they relate with Lombard North Central PLC, Barclays Mercantile Business Finance Limited, HSBC Asset Finance (UK) LTD, HSBC Equipment Finance (UK) LTD and Bmbf (No.24) Limited. Assets under finance lease and hire purchase agreements have a net book value of £24,964k at 31 December 2025.
Page 48
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 49
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 50
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
24.Deferred taxation (continued)
Page 51
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The following general charges were outstanding at the year end:
• A charge with Mr Frank Litchfield created on 10 May 2018 over Allegro Transport Limited, Birchwood Way, Somercotes Alfreton, Derbyshire, DE55 4QQ. • A charge with Barclays Bank PLC created on 31 March 2016 contains a fixed and floating charge and a negative pledge over all the property or undertaking of the group. • A charge with Barclays Bank PLC created on 2 December 2013 contains a fixed and floating charge over all the property or undertaking of RH Commercial Vehicles Ltd. • A legal charge with Barclays Bank PLC created on 12 December 2006 over the leasehold property known as The White Villa, Dark Lane, Whatton, Nottingham. • A legal charge with Barclays Bank PLC created on 12 December 2006 over the land and buildings near West Garth, West Tanfield, North Yorkshire. • A debenture with Barclays Bank PLC created on 18 February 1994 contains a fixed and floating charge over the undertaking and all property and assets present and future including goodwill, bookdebts, uncalled capital, buildings, fixtures and fixed plant and machinery.
The Group operates a defined contribution scheme, the assets being held separate from the Company in an independent administered fund. The employer contributions are charged directly to the consolidated profit and loss account.
In the current year there was a charge to the consolidated profit and loss account in respect of the pension costs for the defined contribution scheme of £198k (2024 - £156k). Contributions totalling £42k (2024 - £38k) were payable to the fund at the year end and are included within creditors.
Page 52
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The RH Group Ltd is controlled by the Directors.
Page 53
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