REGISTERED NUMBER: 08777828 (England and Wales)

GREEN 4 MOTOR GROUP LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Income and Retained Earnings

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

Mr T Leggett

Mr A P Dodds

Mr D Everitt

Mrs A C France

SECRETARIES:

Mrs A C France

Mrs J V Leggett

REGISTERED OFFICE:

540 London Road

Coventry

CV3 4EW

REGISTERED NUMBER:

08777828 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

Pinnacle House

1 Pinnacle Way

Derby

Derbyshire

DE24 8ZS

The directors present their strategic report of the company and the group for the year ended 31 October 2025.

REVIEW OF BUSINESS

The group turnover increased in the year to £54.9 million from £47.1 million, a increase of 16.5% (2024: decrease of 3.3%).

The profit before tax of the group increased in the year to £686k compared to £410k in the previous year

The directors are satisfied with the results for the year and look forward to an increase in profitability in the future.

Cash projections are prepared frequently and reviewed by management to ensure that adequate financial resources exist for the company. The board has continued to maintain adequate funding capital within the company and no changes in facilities are envisaged in the foreseeable future.

The financial results in 2025 were in line with the boards expectations and the company continues to be well placed to maintain its position in difficult trading conditions.

PRINCIPAL RISKS AND UNCERTAINTIES

The trading performance of the company to the year ended 31 October 2025 is in line with directors' expectations.

The general uncertainty of the worldwide economy including the effect of equity markets and inflation pressure is considered to be of greater risk to the business going forward. The directors and their management team are keeping all margins and costs under review.

Due to its strong cash position, the directors feel the company is well placed to weather the economic effects of the current trading climate.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors use turnover and operating profits as key performance indicators for the business.

ON BEHALF OF THE BOARD:

Mr T Leggett - Director

2 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 October 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the sale of motor vehicles.

DIVIDENDS

The total distribution of dividends for the year ended 31 October 2025 was £351,955 (2024: £359,997).

RESEARCH AND DEVELOPMENT

The company is not currently undertaking any research and development activities.

DIRECTORS

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

Mr T Leggett

Mr A P Dodds

Mr D Everitt

Mrs A C France

FINANCIAL INSTRUMENTS

Treasury operations

The company operates a centralised treasury function which is responsible for managing the liquidity and interest rate risks associated with the company's activities. The company's principal instruments are a bank loan and bank and cash balances. In addition the company has various other financial assets and liabilities such as trade debtors, trade creditors and consignment stock creditors arising directly from the operations of the business.

Liquidity risk

The company manages its cash requirements centrally to maximise interest income and minimise interest expense, whilst ensuring the the company has sufficient liquid resources to meet the operating needs of its business.

Interest rate risk

The company is exposed to fair value interest rate risk on its bank loan facility only. The company does not have a bank overdraft facility.

Foreign currency risk

The company does not have any foreign currency risk as all sales and purchases are made within the UK.

Credit risk

Investments of cash surpluses are made with the company's main bankers. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

DISCLOSURE IN THE STRATEGIC REPORT

The directors have chosen to disclose the Review of the Business and Principal Risks and Uncertainties of the business within the the company's Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

Mr T Leggett - Director

2 July 2026

Opinion

We have audited the financial statements of Green 4 Motor Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 Report of the Directors.

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

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

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

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Identifying and assessing potential risks related to irregularities

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.

In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following;

- The nature of the industry and sector, control environment and business performance

- The company's own assessment of the risks that irregularities may occur either as a result of fraud or error that was approved by the board

- Any matters identified having reviewed the company's procedures

- Matters discussed among our audit engagement team and other members of Underwood Green regarding how fraud might occur in the financial statements.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risks of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered included UK companies Act and tax legislation.

We also considered adherence to anti bribery laws, data protection employment law and health and safety regulations.

Audit response to risks identified

As a result of performing the above, we identified the disclosure of adjusting items in the financial statements.

In addition to the above, our procedures to respond to risks identified included;

- Reviewing the financial statement disclosures

- Enquiring of management concerning actual and potential litigation and claims

- Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud

- In addressing the risk of fraud through management override of controls, testing the appropriateness of journals and assessing whether judgements made in making accounting estimates are indicative of potential bias.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Gary Underwood Gary Underwood

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

Pinnacle House

1 Pinnacle Way

Derby

Derbyshire

DE24 8ZS

2 July 2026

TURNOVER

4

54,910,132

47,112,308

Cost of sales

52,369,036

44,795,196

GROSS PROFIT

2,541,096

2,317,112

Administrative expenses

1,438,542

1,447,632

OPERATING PROFIT

6

1,102,554

869,480

Interest receivable and similar income

10,603

9,985

1,113,157

879,465

Interest payable and similar expenses

7

427,050

469,380

PROFIT BEFORE TAXATION

686,107

410,085

Tax on profit

8

168,977

99,007

PROFIT FOR THE FINANCIAL YEAR

517,130

311,078

Retained earnings at beginning of year

1,336,381

1,385,300

Dividends

10

(328,312

)

(359,997

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

1,525,199

1,336,381

Profit attributable to:

Owners of the parent

517,130

311,078

FIXED ASSETS

Intangible assets

11

(113,682

)

(126,314

)

Tangible assets

12

1,524,250

1,546,728

Investments

13

-

-

1,410,568

1,420,414

CURRENT ASSETS

Stocks

14

9,881,692

7,246,496

Debtors

15

1,449,567

1,599,219

Cash at bank and in hand

1,014,066

690,473

12,345,325

9,536,188

CREDITORS

Amounts falling due within one year

16

11,481,329

8,773,339

NET CURRENT ASSETS

863,996

762,849

TOTAL ASSETS LESS CURRENT LIABILITIES

2,274,564

2,183,263

CREDITORS

Amounts falling due after more than one year

17

(561,143

)

(653,369

)

PROVISIONS FOR LIABILITIES

21

(38,822

)

(44,113

)

NET ASSETS

1,674,599

1,485,781

CAPITAL AND RESERVES

Called up share capital

22

124,600

124,600

Capital redemption reserve

23

24,800

24,800

Retained earnings

23

1,525,199

1,336,381

SHAREHOLDERS' FUNDS

1,674,599

1,485,781

The financial statements were approved by the Board of Directors and authorised for issue on 2 July 2026 and were signed on its behalf by:

Mr T Leggett - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

250,100

250,100

250,100

250,100

CURRENT ASSETS

Debtors

15

484,116

531,878

Cash at bank

732,749

107,515

1,216,865

639,393

CREDITORS

Amounts falling due within one year

16

1,293,922

740,093

NET CURRENT LIABILITIES

(77,057

)

(100,700

)

TOTAL ASSETS LESS CURRENT LIABILITIES

173,043

149,400

CAPITAL AND RESERVES

Called up share capital

22

124,600

124,600

Capital redemption reserve

23

24,800

24,800

Retained earnings

23

23,643

-

SHAREHOLDERS' FUNDS

173,043

149,400

Company's profit for the financial year

351,955

359,997

The financial statements were approved by the Board of Directors and authorised for issue on 2 July 2026 and were signed on its behalf by:

Mr T Leggett - Director

Cash flows from operating activities

Cash generated from operations

1

1,362,673

1,221,356

Interest paid

(427,050

)

(469,380

)

Tax paid

(114,964

)

(242,195

)

Net cash from operating activities

820,659

509,781

Cash flows from investing activities

Purchase of tangible fixed assets

(108,420

)

(1,341,002

)

Sale of tangible fixed assets

39,586

-

Interest received

10,603

9,985

Net cash from investing activities

(58,231

)

(1,331,017

)

Cash flows from financing activities

New loans in year

-

752,500

Loan repayments in year

(158,272

)

(161,396

)

Amount introduced by directors

-

248

Amount withdrawn by directors

47,749

123,388

Equity dividends paid

(328,312

)

(359,997

)

Net cash from financing activities

(438,835

)

354,743

Increase/(decrease) in cash and cash equivalents

323,593

(466,493

)

Cash and cash equivalents at beginning of year

2

690,473

1,156,966

Cash and cash equivalents at end of year

2

1,014,066

690,473

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

686,107

410,085

Depreciation charges

76,172

71,159

Loss on disposal of fixed assets

2,508

-

Finance costs

427,050

469,380

Finance income

(10,603

)

(9,985

)

1,181,234

940,639

(Increase)/decrease in stocks

(2,635,196

)

1,336,266

Decrease in trade and other debtors

36,890

222,003

Increase/(decrease) in trade and other creditors

2,779,745

(1,277,552

)

Cash generated from operations

1,362,673

1,221,356

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

1,014,066

690,473

Year ended 31 October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

690,473

1,156,966

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank and in hand

690,473

323,593

1,014,066

690,473

323,593

1,014,066

Debt

Debts falling due within 1 year

(146,068

)

66,046

(80,022

)

Debts falling due after 1 year

(653,369

)

92,226

(561,143

)

(799,437

)

158,272

(641,165

)

Total

(108,964

)

481,865

372,901

1.	STATUTORY INFORMATION

Green 4 Motor Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The consolidated financial statements includes all of group's subsidiaries being; Green 4 Holdings Limited,Green 4 Motor Company Limited and Green 4 Investments Limited.

Turnover

The company recognises revenue when the amount of revenue can be reliably measured, and it is probable that future economic benefits can be reliably measured, and it is probable that future economic benefits will flow to the entity. Revenue from the sale of goods is recognised when the risks and rewards of ownership are transferred to the customer. Revenue from services is recognised in the accounting periods in which the services are rendered.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 0, is being amortised evenly over its estimated useful life of nil years.

Intangible assets

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

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual

value of each asset over its estimated useful life.

Improvement to property

-

14.28%/20% on cost

Plant and machinery

-

20/33% on cost

Fixtures and fittings

-

20%/33% on cost

Computer equipment

-

33% on cost

Motor vehicles

-

20/33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks consists of new and used cars for sale, together with spare parts and are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is determined using the first-in, first out (FIFO) method. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Stocks held on consignment are accounted for on the balance sheet when in terms of a consignment and commercial practice indicate that the principal benefit and risks of owning the stocks rest with the company. The corresponding creditor is accordingly accounted for on the balance sheet.

Financial instruments

The company has chosen to adopt the FRS102 1A in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Intangible fixed liabilities

Negative goodwill arises on the consolidation of the group accounts following the purchase of Coventry Motor Company Holdings Limited in January 2014 and is being amortised over 20 years. In the opinion of the directors, this represents a prudent estimate of the period over which the company will derive economic benefit from the reputation and customer loyalty acquired as part of that business.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Company makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the Company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have an increased risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements, the directors have made the following judgements:

Goodwill, intangible assets and amortisation

The Company establishes a reliable estimate of the useful life of intangible assets. The directors assess carrying value and impairment of intangible assets subject to amortisation, whenever events or changes in circumstances indicate the carrying value may not be recoverable.

Depreciation and residual values

The directors have reviewed the asset lives and associated residual values of all tangible fixed asset classes and have concluded that asset lives and residual values are appropriate.

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions,the remaining life of the asset and projected disposal values.

Recoverability of trade debtors

Trade and other debtors are recognised to the extent that they are judged recoverable. Management reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is considered to be uncertain.

Management makes allowance for doubtful debts based on an assessment of the recoverability of debtors.Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyse historical bad debts, customer creditworthiness,current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the profit and loss account.

Taxation

There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due.

Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.

Provisions

A provision is recognised when the Company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flow at a rate that reflects the time value of money and the risks specific to the liability.

Stock

Stock provisions are made as applicable when the net realisable value if lower than the actual cost of the motor vehicle held in stock.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

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

2025

2024

£

£

Car Sales

50,641,103

43,249,934

Parts, servicing & leasing

4,269,029

3,862,374

54,910,132

47,112,308

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

54,910,132

47,112,308

54,910,132

47,112,308

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,120,329

1,868,341

Social security costs

232,514

182,097

Other pension costs

39,986

25,897

2,392,829

2,076,335

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

2025

2024

Management and Administration

20

18

Sales

18

12

Parts and Servicing

28

28

66

58

The average number of employees by undertakings that were proportionately consolidated during the year was 66 (2024 - 58 ) .

2025

2024

£

£

Directors' remuneration

150,734

182,829

6.	OPERATING PROFIT

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

2025

2024

£

£

Other operating leases

251,130

297,370

Depreciation - owned assets

88,804

83,791

Loss on disposal of fixed assets

2,508

-

Goodwill amortisation

(12,632

)

(12,632

)

Auditors' remuneration

25,725

29,161

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Interest on overdue tax

-

1,591

Stocking interest

427,050

467,789

427,050

469,380

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

174,268

115,053

Deferred tax

(5,291

)

(16,046

)

Tax on profit

168,977

99,007

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

686,107

410,085

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

171,527

102,521

Effects of:

Expenses not deductible for tax purposes

911

778

Depreciation in excess of capital allowances

2,608

12,549

Deferred tax charge

(5,291

)

(16,046

)

Allowable expenses for tax purposes

(778

)

(795

)

Total tax charge

168,977

99,007