Company Registration Number: 00442329
31 DECEMBER 2025
PAYNES GARAGES LIMITED
COMPANY INFORMATION
PAYNES GARAGES LIMITED
CONTENTS
PAYNES GARAGES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their strategic report for the year ended 31 December 2025.
The Company reported a profit before tax of £75,518 compared with £102,486 in the previous year. Turnover decreased by 8.2% to £44.0m, while gross profit reduced to £3.1m, resulting in a gross profit margin of 7% compared with 7.6% in 2024.
Despite lower revenue levels, the business remained profitable and maintained a strong financial position. Net assets increased slightly during the year to £3.59m and the Company continued to generate positive operating profits. Finance costs reduced significantly compared with the prior year, reflecting lower funding costs and improved working capital management.
Despite lower revenue levels, the business remained profitable and maintained a strong financial position. Net assets increased slightly during the year to £3.59m and the Company continued to generate positive operating profits. Finance costs reduced significantly compared with the prior year, reflecting lower funding costs and improved working capital management.
The Company operates in a competitive and changing automotive retail market. Key risks include economic conditions affecting consumer demand, competition from other retailers and online platforms, the recruitment and retention of skilled employees, and maintaining strong relationships with key manufacturer partners.
People and Reputation
The Company’s long-term success is closely tied to the calibre of its people and the strength of its reputation. Significant investment has been made over the years in both areas. The Company recognises its reliance on key individuals to drive performance and uphold its brand values. To mitigate this risk, regular reviews of remuneration and benefits are conducted to attract and retain top talent.
Competition
The Company operates in a highly competitive market, facing pressure from franchised dealerships, independent vehicle sellers, private buyers and sellers, online platforms, independent service centres, and vehicle manufacturers with direct retail channels. Key areas of competition include new and used vehicle sales, warranty and non-warranty repairs, routine maintenance, and parts supply. Success in these areas depends on competitive pricing, brand familiarity, and a strong customer service offering.
Manufacturer Relationships
A significant portion of the Company’s profitability is derived from its relationship with vehicle manufacturers, in particular The Ford Motor Company. Any shift in the strategy or performance of this key partner could have a direct and material impact on the Company’s results.
People and Reputation
The Company’s long-term success is closely tied to the calibre of its people and the strength of its reputation. Significant investment has been made over the years in both areas. The Company recognises its reliance on key individuals to drive performance and uphold its brand values. To mitigate this risk, regular reviews of remuneration and benefits are conducted to attract and retain top talent.
Competition
The Company operates in a highly competitive market, facing pressure from franchised dealerships, independent vehicle sellers, private buyers and sellers, online platforms, independent service centres, and vehicle manufacturers with direct retail channels. Key areas of competition include new and used vehicle sales, warranty and non-warranty repairs, routine maintenance, and parts supply. Success in these areas depends on competitive pricing, brand familiarity, and a strong customer service offering.
Manufacturer Relationships
A significant portion of the Company’s profitability is derived from its relationship with vehicle manufacturers, in particular The Ford Motor Company. Any shift in the strategy or performance of this key partner could have a direct and material impact on the Company’s results.
The directors consider the key performance indicators to be turnover growth, gross profit margin and net profit margin:
2025 2024
Turnover growth/(reduction) (8.2)% 4.1%
Gross profit margin 7.0% 7.6%
Net Profit Margin (before tax) 0.17% 0.21%
2025 2024
Turnover growth/(reduction) (8.2)% 4.1%
Gross profit margin 7.0% 7.6%
Net Profit Margin (before tax) 0.17% 0.21%
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PAYNES GARAGES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors remain focused on improving operational performance, maintaining strong customer relationships and managing costs effectively. Whilst market conditions remain challenging, the Company is well positioned to continue serving its customers and delivering sustainable long-term performance.
This report was approved by the board and signed on its behalf.
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PAYNES GARAGES LIMITED
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 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;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 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 £39,050 (2024 - £80,777).
A dividend of £NIL (2024: £48,810) was declared and paid during the year.
The directors who served during the year were:
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PAYNES GARAGES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The company uses a number of financial instruments which include cash, and other various items such as trade debtors and trade creditors which arise directly from its operations.
The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below.
The main risks arising from the company's financial instruments are liquidity risk, credit risk and interest rate risk. The directors review and agree policies for the management of each of these risks which are noted below. These policies are consistent with those from the previous year.
Liquidity Risk
The company seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably.
The company's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.
Credit Risk
The company's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited therefore the principal credit risk arises from its trade debtors.
In order to manage credit risk, the directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
Interest rate risk
The company finances its operations through a mixture of bank and other external borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. The Statement of Financial Position includes trade debtors and creditors which do not attract interest.
The company policy throughout the year has been to achieve its objective of managing interest rate risk through day to day involvement of management in business decisions rather than through setting maximum or minimum levels for the level of fixed interest rate borrowings.
Even with recent rises in Bank of England base rates, the directors consider that interest rate risk is low owing to minimal borrowings.
The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below.
The main risks arising from the company's financial instruments are liquidity risk, credit risk and interest rate risk. The directors review and agree policies for the management of each of these risks which are noted below. These policies are consistent with those from the previous year.
Liquidity Risk
The company seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably.
The company's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.
Credit Risk
The company's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited therefore the principal credit risk arises from its trade debtors.
In order to manage credit risk, the directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
Interest rate risk
The company finances its operations through a mixture of bank and other external borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. The Statement of Financial Position includes trade debtors and creditors which do not attract interest.
The company policy throughout the year has been to achieve its objective of managing interest rate risk through day to day involvement of management in business decisions rather than through setting maximum or minimum levels for the level of fixed interest rate borrowings.
Even with recent rises in Bank of England base rates, the directors consider that interest rate risk is low owing to minimal borrowings.
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PAYNES GARAGES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors' Review of Business, and their consideration of the risks and uncertainties surrounding the business may be found in the Strategic Report.
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PAYNES GARAGES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 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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PAYNES GARAGES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAYNES GARAGES LIMITED
We have audited the financial statements of Paynes Garages Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the 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).
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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PAYNES GARAGES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAYNES GARAGES 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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PAYNES GARAGES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAYNES GARAGES 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.
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:
- 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.
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PAYNES GARAGES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAYNES GARAGES LIMITED (CONTINUED)
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.
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
Manchester
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PAYNES GARAGES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGES LIMITED
REGISTERED NUMBER: 00442329
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 July 2026 .
The notes on pages 14 to 25 form part of these financial statements.
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PAYNES GARAGES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Paynes Garages Limited is a private company, limited by shares, registered in England and Wales under registration number 00442329.
The Company's registered office and single place of business is Paynes Garages Limited, Watling Street, Hinckley, LE10 3ED.
The presentation currency of the financial statements is Pound Sterling (£).
The principal activity of the Company in the year under review was that of the operation of a motor dealership involving the sale, maintenance and repair of motor vehicles and the supply of related accessories.
The Company's registered office and single place of business is Paynes Garages Limited, Watling Street, Hinckley, LE10 3ED.
The presentation currency of the financial statements is Pound Sterling (£).
The principal activity of the Company in the year under review was that of the operation of a motor dealership involving the sale, maintenance and repair of motor vehicles and the supply of related accessories.
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 Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Paynes Garage (Holdings) Limited as at 31 December 2025 and these financial statements may be obtained from Companies House, Crown Way,Cardiff, CD14 3UZ.
At the reporting date the Company had net current assets of £3,292,824 (2024: £3,345,336). The directors have considered cash flow forecasts and available facilities, together with current trading and are confident 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. Accordingly, the financial statements have been prepared on a going concern.
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Commission income is recognised on a receivable basis.
The Company operates a defined contribution pension scheme for its employees. A defined contribution pension 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 Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.
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 Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the reporting date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Land is not depreciated. Depreciation on other assets 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.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
The company only has basic financial instruments which are measured at amortised cost.
The fair values of the company's financial assets, cash and cash equivalents and financial liabilities (which includes liabilities in respect of consignment stock) are assumed to approximate to their book value. The company does not enter into derivative financial instruments.
The fair values of the company's financial assets, cash and cash equivalents and financial liabilities (which includes liabilities in respect of consignment stock) are assumed to approximate to their book value. The company does not enter into derivative financial instruments.
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including CAP valuation guides. The directors maintain oversight of ageing stock profiles and a monthly review of any provision required is performed. At the year end the provision for obsolete stock was £508,391 (2024: £548,307).
Incentives 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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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Vehicle funding is secured over the vehicles to which it relates. This balance is held within trade creditors.
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Retained earnings
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PAYNES GARAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
During the current and preceding year there was no single ultimate controlling party.
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