Company Registration Number: 00850255
31 DECEMBER 2025
PAYNES GARAGE (HOLDINGS) LIMITED
COMPANY INFORMATION
PAYNES GARAGE (HOLDINGS) LIMITED
CONTENTS
PAYNES GARAGE (HOLDINGS) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their strategic report for the year ended 31st December 2025.
The Group reported a profit before tax of £318,529 compared with £351,184 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 £6.22m and the Group 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 £6.22m and the Group 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 Group 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 Group’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 Group 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 Group 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.
People and Reputation
The Group’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 Group 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 Group 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.
A significant portion of the Group'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 Group'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) 0.72% 0.73%
margin:
2025 2024
Turnover growth/(reduction) (8.2)% 4.1%
Gross profit margin 7.0% 7.6%
Net Profit Margin (before tax) 0.72% 0.73%
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PAYNES GARAGE (HOLDINGS) LIMITED
GROUP 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 Group 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 GARAGE (HOLDINGS) 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 Group Strategic Report, the Directors' Report and the consolidated 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 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.
The profit for the year, after taxation, amounted to £228,212 (2024 - £261,919).
A dividend of £28,712 (2024: £48,810) was declared and paid during the year.
The directors who served during the year were:
There have been no significant events affecting the Group since the year end.
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PAYNES GARAGE (HOLDINGS) 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 GARAGE (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAYNES GARAGE (HOLDINGS) LIMITED
We have audited the financial statements of Paynes Garage (Holdings) Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Analysis of Net Debt, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, 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).
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 Group 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 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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PAYNES GARAGE (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAYNES GARAGE (HOLDINGS) LIMITED (CONTINUED)
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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PAYNES GARAGE (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAYNES GARAGE (HOLDINGS) 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 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:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and knowledge of the Group to identify or recognise non-compliance with applicable 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 Accountant and Statutory Auditors
Manchester
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PAYNES GARAGE (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) LIMITED
REGISTERED NUMBER: 00850255
CONSOLIDATED 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 by:
The notes on pages 16 to 30 form part of these financial statements.
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PAYNES GARAGE (HOLDINGS) LIMITED
REGISTERED NUMBER: 00850255
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) LIMITED
REGISTERED NUMBER: 00850255
COMPANY 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 by:
The notes on pages 16 to 30 form part of these financial statements.
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PAYNES GARAGE (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Paynes Garage (Holdings) Limited is a private company limited by shares, registered in England and Wales under registration number 00850255.
The registered office address and its principal place of business is Paynes Garage (Holdings) Limited, Watling Street, Hinckley, LE10 3ED.
The presentation currency of the financial statements is Pound Sterling (£).
The principal activity of the Company is that of a holding company.
The principal activity of the Group 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 registered office address and its principal place of business is Paynes Garage (Holdings) Limited, Watling Street, Hinckley, LE10 3ED.
The presentation currency of the financial statements is Pound Sterling (£).
The principal activity of the Company is that of a holding company.
The principal activity of the Group 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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income 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 Statement of Financial Position, 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 Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, 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 Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
At the reporting date the Company had net current assets of £1,091,331 (2024: £943,532). The Group had net current assets of £4,389,769 (2024: £4,294,607). The directors have considered cash flow forecasts and available facilities, together with current trading and are confident that the Group will be able to meet its debt 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 GARAGE (HOLDINGS) 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.
Consignment vehicles which bear considerably more of the risks and responsibilities of ownership are regarded effectively as being under the control of the Group and, in accordance with FRS 102 are included in stocks on the Statement of Financial Position, although legal title has not passed to the Group. The corresponding liability is included in trade creditors and is secured directly on these vehicles.
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The following judgements have had the most significant effect on amounts recognised in the financial statements:
Consignment stock
Vehicles held on consignment of the value £2,515,149 (2024: £3,599,939) have been included in 'Vehicle Stock' within 'Stock' on the basis that the Company has determined that it holds the significant risks and rewards attached to these vehicles.
Stock valuation
Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including 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).
Property, plant and equipment assets
Property, plant and equipment are reviewed for impairment if events or circumstances indicate that the carrying value may not be recoverable. When an impairment review is carried out the recoverable value is determined based on value in use calculations which require estimates to be made of future cash flows.
Incentives and other rebates from brand partners
The Group 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 Group 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 GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Analysis of turnover by country of destination:
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
12.Tangible fixed assets (continued)
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PAYNES GARAGE (HOLDINGS) 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 GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
18.Deferred taxation (continued)
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Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss account
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PAYNES GARAGE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. During 2014 the Group commenced contributions to personal pension plans. The pension cost charge represents contributions payable by the Group to these funds and amounted to £112,549 (2024: £132,815 ). There were no contributions payable to the fund at the reporting date in either the current or previous year.
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