The directors present the strategic report for the year ended 31 December 2025.

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

The principal activity of the company is the provision of contract hire and contract maintenance services for commercial vehicles throughout the United Kingdom. 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 Directors would like to express their thanks to customers and staff for their support during the year.

                                    2025        2024

                                    (£000)        (£000)

Turnover                                    34,339        30,942

Operating profit                                3,736        4,673

Operating profit margin                            10.9%        15.1%

Profit before taxation                            1,224        3,110

Cash at bank and in hand                            4,754        3,717

Revenue increased due to higher volume of vehicles on contract hire with customers which led to increased volume of maintenance agreements sold compared to 2024. Competitive pressure and economic uncertainties continue to be risks for the Company. The Company manages the risk by providing added value services to its customers, having fast response times, not only in supplying products and services, but also in handling all customer queries, and by maintaining strong relationships with customers.

Despite higher sales volume, profit for the year before taxation amounted to £1,224,000 (2024: £3,110,000) which is mainly due to a lesser profit release year on year on close out contracts, and due to an increase in provisions. Total dividends paid to the shareholders of the Company was £Nil (2024: £2,999,000). A summary of the results for the year is set out in the statement of comprehensive income on page 9 of the financial statements.

Year on year cash has increased, principally due to operating profit cash flows.

The balance sheet on page 10 of the financial statements shows that the Company’s net assets have increased from £5,131,000 to £6,052,000.

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

The Directors consider that the key stakeholders of the Company are those impacted by the inputs and outputs of the Company, specifically those are customers, suppliers, employees and local community, banks, government organisations and regulators. The Company, through the Directors, engages with each stakeholder at the appropriate level of detail 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 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.

Competition and challenges in the credit market continue to be one of the main risks for the company. The company has excellent track record of managing credit portfolio and developed specific analysis which measure the ongoing risk with the credit portfolio. The management team is involved in the regular review of credit information and making strategic decisions to manage the company's exposure to credit risk.

The majority of the Company's sales are to UK customer, 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 is partially financed by third party asset finance only. The finance is predominantly at fixed rates of interest therefore interest rate exposure is considered low risk as it's passed on to customers.

Future developments

The Directors believe that continued success of the company is due to its employees, the system and control environment in which they operate. The Company will continue to invest in specific staff training, system development and exploring new opportunities to ensure that the company’s performance continues to be strong in securing medium and long-term prospects.

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 £921,000 (2024 - £2,331,000).

A dividend of £Nil (2024: £2,999,000) 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:

Employee involvement

The Company has no employees. All operations are performed by employees of a fellow subsidiary company and costs are recharged for those services.

Future developments

Details of future developments can be found in the Strategic report on page 1 and form part of this report by cross-reference.

The Company's principal financial instruments comprise of bank balances, hire purchase agreements, trade debtors and creditors, 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.

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

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

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 part of a group 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, minimising the consumption of water and the production of waste (both hazardous and non-hazardous).

The Company has remained in a net positive cash position throughout the trading year and has not had to draw on any new borrowings other than to fund vehicle purchase via hire purchase in the normal course of business. 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.

Forecasts for the period ending 31 December 2027 have been prepared on a group basis. The directors believe this is sufficient as this company is a strategic part of the group operating model. The forecasts take into account reasonable possible changes in trading performance and the finance facilities available to the Group of companies. The directors have taken current economic issues into account in preparing the 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 including the support of other group companies, and taking account of reasonably possible changes in trading performance, the directors have 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.

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.

Auditor

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.

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 Hartshorne Crossroads Group Contracts 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, the 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).

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.

All of the activities of the company are from continuing operations.

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

Hartshorne Crossroads Group Contracts 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 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.

There were no employees of the company during the year except for the directors (2024: no employees). Directors' emoluments were paid by fellow Group companies in both the current and prior years, and it is not practicable to make an apportionment between companies (2024: no apportionment practicable). Recharges for staff costs were borne by a fellow subsidiary of the ultimate parent company.

Disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

• The requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Hartshorne Crossroads Group Limited as at 31 December 2025 and these financial statements may be obtained from 28 Esplanade, St Helier, Jersey, JE2 3QA.

The Company has remained in a net positive cash position throughout the trading year and hastrue not had to draw on any new borrowings other than to fund vehicle purchase via hire purchase in the normal course of business. 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.

Forecasts for the period ending 31 December 2027 have been prepared on a group basis. The directors believe this is sufficient as this company is a strategic part of the group operating model. The forecasts take into account reasonable possible changes in trading performance and the finance facilities available to the Group of companies. The directors have taken current economic issues into account in preparing the 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 including the support of other group companies, 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.

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 rental and maintenance contracts are recognised over the life of the contract as the services are provided to the customer. Turnover in respect of used vehicle sales is recognised once the risks and rewards of ownership are deemed to have been transferred to the customer.

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation

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 its useful economic life of the asset as follows:

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.

The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

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:

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

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

3) 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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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. Amounts 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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:

• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Finance leases and hire purchase contracts

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.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

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 judgements, involved in applying the company's accounting policies that have a significant effect on the amounts recognised in the financial statements.

Note 15 contains details of the company's provisions. The company prepares certain provisions in relation to the expected costs required to maintain accounting consistency. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, considering the risks and uncertainties surrounding the liability.

The depreciation policy has been set to write the cost of motor vehicles down to their residual value on a straight-line basis over 2-5 years. There is a significant element of judgement involved with determining the residual values of motor vehicles due to the unpredictability of second-hand vehicle markets. Management use their long-standing experience of such markets to make informed estimates of future residual values.

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

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:

There was no dividend paid for the year ended 31 December 2025 (2024: £2,999 per share).

Included within the net book value of vehicles above are assets held under hire purchase contracts of £64,575,000 (2024: £55,377,000).

The assets above are leased to third parties for periods expiring between 2026 and 2030.

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

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

These liabilities are secured against the relevant assets.

Provisions

During the year the Directors have reviewed the Company's present obligations and prepared below provisions.

Finance interest provision

Finance interest relates to early termination of contracts where company will be liable to pay remaining finance liability.

Mileage excess provision

This provision relates to maintenance contract liabilities for excess mileage.

The above provisions are expected to be settled over the next two-five years.

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

Deferred tax assets and liabilities are offset only where the Company has a legally enforceable right to do so and where the assets and liabilities related to income taxes levied by the same taxation authority on the same taxable entity or another entity within the Company.

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

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, Jersey, JE2 3QA.

The ultimate controlling party of Hartshorne Crossroads Group Limited is Mr M J Cronin.