The directors present the strategic report for the year ended 31 December 2025.
The Company is the holding company of the Hartshorne group of companies ("the Group"). The Company does not trade and accordingly it has no direct Key Performance Indicators, other than those driven by the activities of its principal trading subsidiary. The main risk the Company faces is the diminution in the carrying value of its investments.
The principal activities of the Company is that of a holding company and the principal activities of the Group are the sale and service of commercial vehicles and the supply of ancillary goods and services for commercial vehicles, buses & coaches. There have not been any significant changes in the Group's principal activities in the year under review. The directors are not aware, at the date of this report, of any likely major changes in the Group'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
| 2025 | 2024 |
| £000 | £000 |
|
|
|
Turnover | 134,606 | 122,007 |
Number of new commercial vehicles sold | 597 | 562 |
Operating profit | 6,963 | 5,874 |
Operating profit margin | 5.3% | 4.8% |
Profit before taxation | 6,418 | 5,414 |
Cash at bank and in hand | 8,910 | 9,413 |
Turnover has increased by £13,247,000 in 2025, impacted mainly by new vehicle sales value, with an increase in volume by 35 units. Operating profit increased year on year by £878,000, following a reduction of provisions in 2025.
The profit for the year before taxation amounted to £5,893,000 (2024: £5,100,000). 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 £4,716,000 compared to 2024, which is attributed to higher levels of consignment stock. Cash has decreased by £655,000 compared to 2024 year end. The statement of financial position is on page 12 of the financial statements which shows that the Group's net assets increased from £17,409,000 to £17,925,000 arising from the profit for the year after allowing the effect of dividends paid to the parent company. Details of amounts owed between the Group and other group companies are shown in notes 17 and 18.
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 Group 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 Group are those impacted by the inputs and outputs of the Group, specifically these are customers, suppliers, employees and the local community, banks, government organisations and regulators. The Group, 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 Group and also to the above stakeholder groups. During the financial year, the Group has taken a number of operational and strategic decisions which the Directors consider are for the benefit of the Group, 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 Group's long-term strategy.
Engaging with suppliers, customers, employees and others
During the financial year, the Directors have endeavoured to foster the Group's mutually beneficial business relationships with customers, suppliers and others in a business relationship with the Group. This was achieved through positive interactions during meetings, written communication, telephone communications and site visits where necessary.
The Group's main external supplier is Volvo for the purchase of new and used vehicles and supply of parts stock. The Directors ensure that the Group acts responsibly when sourcing commodities and services from third-party suppliers. Our suppliers are critical partners in the Group'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 Group 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 Group. The Group 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 Group'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 Group has some limited third party asset finance and therefore has no significant interest rate exposure.
The Group 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.
Future developments
The Group is committed to following Volvo's net-zero greenhouse gas emission target. The Group 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 Group 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 Group is also investing in introducing 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 Group 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 Group 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 profit for the year, after taxation, amounted to £4,214,000 (2024: £3,791,000).
A dividend of £3,700,000 (2024: nil) was paid to the parent company in the year.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Various charitable donations amounting to £15,000 (2024: £17,000) were made. The donations were made predominantly to charities connected with and supported by our employees during the year ended 31 December 2025.
The Group's principal financial instruments comprise bank balances, trade debtors and creditors and intercompany funding. The main purpose of these instruments is to ensure continued funding for the Group.
Due to the nature of the financial instruments used by the Group there is little exposure to price risk.
The Group 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 Group utilises intercompany funding if required to manage liquidity risk.
The Group regards its employees as one of its most valuable assets. The Group 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 Group 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 of the financial statements.
Environment
The Group 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 group’s activities. The Group 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 group’s impact on the environment include improving the company’s energy use, extension of the Group’s car fleet into electric vehicles, minimising the consumption of water and the production of waste (both hazardous and non-hazardous).
Going concern
The Group has remained in a net positive cash position throughout the trading year and has not had to draw on any new borrowings. The Group management team have demonstrated, through careful business planning, that they 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 consider reasonable possible changes in trading performance and the finance facilities available to the Group. The directors have considered the current issues facing manufacturers in the supply of new vehicles in their forecasts. 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 Group 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 Group'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.
An ‘operational control’ approach has been used to define the Greenhouse Gas emissions boundary1.
This approach captures emissions associated with the operation of the building of Hartshorne Group Limited and company-owned and grey fleet transport.
This information was collected and reported in line with the methodology set out in the UK Government’s Environmental Reporting Guidelines, 2019.
Emissions have been calculated using the latest conversion factors provided by the UK Government. There are no material omissions from the mandatory reporting scope.
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting
The chosen intensity measurement ratio are the total gross emissions in metric tonnes CO2e per number of employees.
1. All sites have now been fitted with LED lighting
2. Car charging points added
3. Photovoltaic panels fitted to several sites within the group
4. We are aiming to go gas free by 2040
5. All fork trucks to become fully electric
6. All compressors to be on variable speed
7. All company car fleet to be fully electric by 2040
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.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, 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;
state whether applicable United Kingdom 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 group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Hartshorne Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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).
Basis for 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 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
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,700,000 (2024 - £0 profit).
Hartshorne Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Pheasant Drive, Birstall, Batley, West Yorkshire WF17 9LR.
The group consists of Hartshorne Group Limited and all of its subsidiaries.
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 are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The Company 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. All accounting policies are consistent with prior year.
The consolidated group financial statements consist of the financial statements of the parent company Hartshorne Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
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 recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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 group 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 group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
Operating leases
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 group’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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Note 21 contains details of the Group's provisions of £5,049,000 (2024: £4,471,000). Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The Group 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 Group also records dilapidation provisions in relation 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).
The average monthly number of persons (including directors) employed by the group and 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 1 (2024: 1)
All remuneration is attributable to the highest paid director and therefore no separate disclosure is shown.
The disclosure relates solely to the remuneration of the directors of Hartshorne Group Limited as presented in the consolidated financial statements. The remuneration of directors of subsidiary companies is disclosed in the respective subsidiary financial statements.
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:
Included within the net book value of motor vehicles above are assets held under hire purchase contracts of £487,000 (2024: £256,000).
Details of the company's subsidiaries at 31 December 2025 are as follows:
*the above company is dormant.
For the year ended 31 December 2025, Penn Commercials Limited is exempt from the requirement to the audit of individual financial statements by virtue of s479A-479C exemption of the Companies Act 2006.
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 £226,000 (2024: £451,000).
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 £18,826,000 (2024: £14,155,000).
Amounts owed to fellow subsidiaries of the ultimate parent company are unsecured, interest free and repayable on demand.
These liabilities are secured against relevant assets.
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.
Company
The company had no provisions at the year end (2024: none).
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
As at 31 December 2025, contributions of £54,000 (2024: £54,000) due in respect of the current reporting period had not been paid over to the schemes.
The Group operates defined contribution retirement benefit schemes for all qualifying employees. The assets of the schemes are held separately from those of the Group in funds under the control of trustees.
There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital.
At the reporting end date the group 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 its 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.