The Directors, in preparing this Strategic Report, have complied with s414C of the Companies Act 2006.

The Company is a wholly owned subsidiary of Crossroads Group Limited.

The principal activities of the company are the sale and service of commercial vehicles and the supply of ancillary goods and services for commercial vehicles, buses and coaches. There have not been any significant changes in the company's principal activities in the year under review. The Directors are not aware, at the date of this annual report, of any likely major changes in the company's activities in the next year.

Investment in our physical and human resources has been and will continue to be made.

The Directors would like to express their thanks to customers and staff for their support during the year.

Financial key performance indicators

Turnover has reduced by £12,670,000 in 2025, due mainly to the reduction in new vehicle deliveries by 94 units. Operating profit has reduced year on year by £2,196,000, following a reduction in provisions required and hence released in 2024.

The profit for the year before taxation amounted to £7,105,000 (2024: £9,288,000). A summary of the results for the year is set out in the statement of comprehensive income on page 11 of the financial statements.

Stock has increased by £1,016,000 compared to 2024, which is attributed to higher levels of consignment stock. Cash has reduced by £1,757,000 compared to 2024 year end. The balance sheet is on page 11 of the financial statements which shows that the company's net assets increased from £35,064,000 to £36,281,000 arising from the profit for the year after allowing for the effect of dividends paid to the parent company. Details of amounts owed between the company and other group companies are shown in notes 14 and 15.

The general level of activity has remained strong and in line with the previous year in our workshops post year end. The new vehicle order book is driven by capacity in the factory, but we have seen new vehicle deliveries above prior year levels. It is expected that profitability will be maintained through continued investment in our business, improving our facilities and the services offered at the depots whilst remaining reactive against external changes in the economy.

Section 172(1) Statement

The Directors have complied with their duty to promote the success of the Company for the benefit of its members whilst having regard to the matters set out in section 172(1) (a)-(f) of the Companies Act 2006. The Directors have done this in various ways which are noted below and by cross reference in both the Strategic Report and the Directors' Report.

Stakeholder engagement

The Directors consider that the key stakeholders of the Company are those impacted by the inputs and outputs of the Company, specifically these are customers, suppliers, employees and the local community, banks, government organisations and regulators. The Company, through the Directors, engages with each stakeholder at an appropriate level and frequency depending on their specific requirements and level of influence and interest. The Directors use a variety of methods to do this, as described below and by cross reference in both the Strategic Report above and the Directors' Report.

Principal decisions

Principal decisions are those that are material to the Company and also to the above stakeholder groups. During the financial year, the Company has taken a number of operational and strategic decisions which the Directors consider are for the benefit of the Company, with a view to promoting its long term success and sustainability. A specific example is the preparation and review of the annual budget which drives the Company's long term strategy.

Engaging with suppliers, customers, employees and others

During the financial year, the Directors have endeavoured to foster the Company's mutually beneficial business relationships with customers, suppliers and others in a business relationship with the Company. This was achieved through positive interactions during meetings, written communication, telephone communications and site visits where necessary.

The Company's main external supplier is Volvo for the purchase of new and used vehicles and supply of parts stock. The Directors ensure that the Company acts responsibly when sourcing commodities and services from third-party suppliers. Our suppliers are critical partners in the Company's commitment to deliver value and to operate in a manner that is responsible, transparent and respects the human rights of all.

See the Directors' Report below with regards to engagement with employees.

Principal risks and uncertainties

The company is reliant on Volvo to develop and market competitive products, which provide viable commercial solutions for the clients. Volvo Trucks are one of the market leaders within the transport industry. Volvo trucks are fitted with advanced technology and have an excellent reliability and safety track record.

Competition and challenges in the credit market for vehicle finance continue to be one of the main risks for the company. The company manages these risks by providing added value services to its customers, having fast response times not only in supplying products but also in handling all customer queries and by maintaining strong relationships with customers.

The majority of the company's sales are to UK customers, however any sales to Europe and the Rest of the World are for services and are made in sterling. All purchases are made in sterling. There is therefore little exchange risk.

The company has some limited third party asset finance and therefore has no significant interest rate exposure.

The company continues to face uncertainty in inflation affecting purchase prices of vehicles from Volvo whilst quoting new vehicles sales to customers. This has been consistent with issues faced by our competitors.

Group risks are discussed in the group's financial statements which do not form part of this annual report.

Future developments

The Company is committed to following Volvo's net-zero greenhouse gas emission target. The Company continues on this journey by promoting sale of Electric and LNG trucks, ensuring we make appropriate investment in our workshops, and training skilled technicians and staff to manage the changing demands of the industry. The Company is keeping pace to manage the shift towards fossil fuel free transport industry and expecting new developments in using electricity as alternative fuel option.

The Company is also investing in fast paced new technologies by using advanced software, combined with innovative solutions, regular staff training, controlling single use resources and reduction in energy consumption.

The Company continues to invest in solar energy, electric courtesy cars, delivery vans and company vehicles, changing most of the company car fleet to electric in 2025. The Company is actively looking at all alternative solutions to help us to promote a sustainable future.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The Company is a wholly owned subsidiary of Crossroads Group Limited.

The principal activities of the company are the sale and service of commercial vehicles and the supply of ancillary goods and services for commercial vehicles, buses and coaches. There have not been any significant changes in the company's principal activities in the year under review. The Directors are not aware, at the date of this annual report, of any likely major changes in the company's activities in the next year.

The profit for the year, after taxation, amounted to £5,465,000 (2024 - £6,725,000).

A dividend of £4,200,000 (2024: £1,200,000) was paid to the immediate parent company in 2025. After taxation and dividends, there was a net increase in reserves of £1,217,000 (2024: £5,244,000).

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Future developments

Details of future developments can be found in the Strategic Report on page 2 and form part of this report by cross-reference.

Charitable donations

Various charitable donations amounting to £36,000 (2024: £22,000) were made. The donations were made predominantly to charities connected with and supported by our employees during the year ended 31 December 2025.

Employment of disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of staff members becoming disabled, every effort is made to ensure that their employment with the Company continues and that appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.

The Company regards its employees as one of its most valuable assets. The Company participates in the group's policies and practices to keep employees informed on matters relevant to them as employees through regular meetings and communications. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.

The Company undertakes detailed reviews of its financial performance on a monthly basis with its management teams. The managers, in turn, review this information with their staff. Managers and staff receive financial incentives based on monthly, quarterly and annual performance criteria.

Details of the number of employees and related costs are detailed in note 6 to the financial statements.

Financial instruments

The Company's principal financial instruments comprise of bank balances, trade debtors and creditors and intercompany funding. The main purpose of these instruments is to ensure continued funding for the company.

Due to the nature of the financial instruments used by the Company there is little exposure to price risk.

The Company is exposed to both credit and cash flow risk which is managed by reviewing the credit terms offered to customers and the regular monitoring of amounts outstanding against these credit terms.

The Company utilises intercompany funding if required to manage liquidity risk.

Qualifying third party indemnity provisions

The Company has made qualifying third party indemnity provisions for the benefit of the Directors which were made during the year and remain in force at the date of this report.

Environment

The Company recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that may be caused by the Company's activities. The Company is accredited with Energy Management System ISO 50001:2018, Environmental Standard ISO 14001:2015 and to the Quality Management Standard ISO 9001:2015. Initiatives designed to minimise the Company's impact on the environment include improving the Company's energy use, extension of the company’s car fleet into electric vehicles, minimising the consumption of water and the production of waste (both hazardous and non-hazardous). Information in respect of greenhouse gas emissions, energy consumption and energy efficiency action for the Company is given in the consolidated financial statements of Crossroads Group Limited.

The Company has remained in a net positive cash position throughout the trading year and has not had to draw on any new borrowings. The Company's management team have demonstrated, through careful business planning, that we are able to adapt quickly, proactively and effectively to the various economic challenges.

The Directors have used their experience of trading to prepare forecasts for the period to 31 July 2027. The forecasts take into account reasonable possible changes in trading performance and the finance facilities available to the Company. There are no significant unfunded capital expenditure requirements in the foreseeable future and the Directors have concluded that they will be able to operate within the current level of facilities.

Consequently, after making appropriate enquiries, and taking account of reasonably possible changes in trading performance, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that would cast significant doubt on the Company's ability to continue as a going concern. Accordingly, the Directors continue to adopt the going concern basis in preparing the annual report and accounts.

Sumer Auditco Limited were appointed as auditor to the company following BHP LLP becoming part of the Sumer Group on 31 December 2025, which required a change in audit firm to comply with applicable regulatory requirements.

In accordance with section 487(2) of the Companies Act 2006, Sumer Auditco Limited are deemed to be reappointed annually.

The energy consumption for the reporting period for Crossroads Truck & Bus Ltd is 4,917,705kWh for the

financial year 1st January 2025 to 31st December 2025. The greenhouse gas emissions for Crossroads Truck &

Bus Ltd are 1,252 tCO2e for the financial year 1st January 2025 to 31st December 2025. These include the

emissions associated with UK electricity, natural gas consumption, gas oil consumption, business travel in

company and private vehicles and the offset of solar PV on-site generation, as required to be disclosed by

legislation. An intensity ratio of 3.4 tonnes CO2e per company employee has been calculated to enable future

year on year comparison against the normalised revenue.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Crossroads Truck & Bus Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 auditor's 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills 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 from our commercial knowledge and experience of the trade;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company;

• we assessed the extent of compliance with the laws and regulations considered above through 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 risks of fraud through management bias and override controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

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;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's 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.

Crossroads Truck & Bus Limited is a private company limited by shares incorporated in England and Wales. The registered office is Crossroads Truck & Bus Limited, Pheasant Drive, Birstall, Batley, West Yorkshire, WF17 9LR.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity because this is the currency of the primary economic environment in which the Company operates.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27,12.29(a), 12.29(b) and 12.29А;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

This information is included in the consolidated financial statements of Crossroads Group Limited as at 31 December 2025 and these financial statements may be obtained from Companies House.

The Company has remained in a net positive cash position throughout the trading year and hastrue not had to draw on any new borrowings. The Company's management team have demonstrated, through careful business planning, that we are able to adapt quickly, proactively and effectively to the various economic challenges.

The Directors have used their experience of trading to prepare forecasts for the period to 31 July 2027. The forecasts take into account reasonable possible changes in trading performance and the finance facilities available to the Company. There are no significant unfunded capital expenditure requirements in the foreseeable future and the Directors have concluded that they will be able to operate within the current level of facilities.

Consequently, after making appropriate enquiries, and taking account of possible changes in trading performance, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that would cast significant doubt on the Company's ability to continue as a going concern. Accordingly, the Directors continue to adopt the going concern basis in preparing the annual report and accounts.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover in respect of new and used vehicle sales is recognised once the risks and rewards of ownership are deemed to have been transferred to the customer. Workshop turnover is recognised when the related work has been completed. Turnover on maintenance contracts is recognised over the life of the contract.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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.

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

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 profit or loss.

Vehicles on consignment from the manufacturer that are the subject of interest or other charges are included at cost where there has been a substantial transfer of the risks and rewards of ownership based on the terms of the agreement with the manufacturer even though title has not yet passed. The associated liability is recorded in creditors.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when;

• the contractual rights to the cash flows from the financial asset expire or are settled;

• the group transfers to another party substantially all of the risks and rewards of ownership of the financial asset or;

• the group, despite have retained some, but not all, significant risks and rewards of ownership,has transferred control of the asset to another party;

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There are no critical judgments applying the Company's accounting policies that have a significant effect on the amounts recognised in the financial statements.

The following are key estimation that the directors have made in the process of applying the company's accounting policies:

Note 18 contains details of the Company's provisions of £5,926,000 (2024: £5,436,000). Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The Company sells a wide variety of service contracts, the profitability of which can be dependent on the amount of work required on individual vehicles or fleets of vehicles. The profitability of these contracts has been reviewed using commercial judgement with regard to the assessment of the appropriate level of provisioning against a potentially loss making contract.

The Company also records dilapidation provisions in relation to the expected costs to be incurred by the company when complying with the property reinstatement provisions. This provision includes significant judgement as management make assessments of the costs expected to reinstate the property under the terms of the lease.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Included in depreciation of tangible assets is £331,000 (2024: £394,000) that relates to deprecation of assets held under finance leases and hire purchase contracts.

* Impairment of stock is recorded within cost of sales, including writedown of used vehicle stock.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2024 - 5).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Included within the net book value of motor vehicles above are assets held under hire purchase contracts of £1,111,000 (2024: £417,000).

There are no material differences between the carrying value of stocks and their replacement cost (2024: no material differences).

Stocks are stated net of provisions of £446,000 (2024: £525,000).

Amounts owed by the parent company and fellow subsidiaries of the ultimate parent company are unsecured, interest free and repayable on demand.

Trade creditors include consignment stock liabilities of £18,726,000 (2024: £19,380,000).

Amounts owed to fellow subsidiaries of the ultimate parent company are unsecured, interest free and repayable on demand.

Property dilapidations

The provision for property dilapidations relates to the expected costs to be incurred by the group in complying with the property reinstatement provisions of the group's property lease obligations.

Maintenance contract provisions

The provision for maintenance contracts relates to costs to be incurred by the group in maintaining commercial vehicle contracts in excess of the contract premiums to be received.

Other

Other provisions relate to miscellaneous operational cost items, the recovery of which is uncertain at the financial reporting date.

The above provisions are expected to be settled over the next two-five years except for property dilapidations when settlement will depend on the timing of the termination of the related lease.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

As at 31 December 2025, contributions of £105,000 (2024: £102,000) due in respect of the current reporting period had not been paid over to the schemes.

The Company operates a Defined benefit pension schemes for qualifying employees of Crossroads Truck & Bus Limited. The scheme is now closed to new employees.

The most recent full actuarial valuation of the scheme assets and the present value of the defined benefit obligation were carried out as at 1 July 2024 by Mr Michael Robins, FFA. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method. This was updated to 31 December 2025 by a qualified independent actuary using the assumptions set out later in this note.

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

The directors have not recognised the pension asset surplus on the basis that it is uncertain whether the company will be able to recover the surplus either through reduced contributions in the future or through refunds from the plan.

The defined benefit obligations arise from plans which are wholly or partly funded.

The actual return on plan assets was £579,000 (2024 - £542,000)

Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital.

A non-distributable reserve, following the redemption or purchase of the company's own shares.

Profit and loss account

Includes all current & prior periods retained profits & losses, net of dividends.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

A cross-guarantee exists with Hartshorne Crossroads Group Contracts Limited to secure it's borrowings which amounted to £58,427,000 (2024: £49,679,000) at the balance sheet date.

As permitted by FRS 102 related party transactions with wholly owned members of the Hartshorne Crossroads Group Limited group have not been disclosed.

The Company's ultimate parent company and ultimate controlling party is Hartshorne Crossroads Group Limited, a company registered in Jersey, which is the largest group in which the company's financial statements are consolidated. Copies of the group financial statements can be obtained from its registered office at 28 Esplanade, St. Helier, JE2 3QA, Jersey.

The ultimate controlling party of Hartshorne Crossroads Group Limited is Mr M J Cronin. The immediate parent company and smallest group in which the company's financial statements are consolidated, is Crossroads Group Limited, a company registered in England and Wales. Copies of the group financial statements can be obtained from its registered office at Pheasant Drive, Birstall, Batley WF17 9LR.