REGISTERED NUMBER: 14981703 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2025

for

Wiltshire Motor Company Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

A J Bailey

J A Bailey

REGISTERED OFFICE:

Chippenham Motor Company

Bumpers Way

Bumpers Farm

Chippenham

Wiltshire

SN14 6LF

REGISTERED NUMBER:

14981703 (England and Wales)

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

On 22 September 2023 the group set up an employee ownership trust (EOT), Chippenham Motor Company Employee Ownership Trust 2023. Prior to this date the group was headed by Adam Bailey Limited. The shares in Adam Bailey Limited held by A J Bailey and J A Bailey were acquired by Wiltshire Motor Company Limited which is 100% owned by the EOT. The EOT has a corporate trustee, Chippenham Motor Company EOT Limited, which is dormant other than its role as trustee.

REVIEW OF BUSINESS

The Group's principal activity for the year ended 31 December 2025 is the sales and service of new and used motor vehicles together with the associated sale of parts and accessories.

The UK new car market recorded its third consecutive year of growth with total registrations of 2.02 million new cars sold during 2025 - an increase of 3.5% over the previous year, and the first year of this decade that it has exceeded 2 million units. The growth was shared in both private and fleet sectors, and the year saw pure electric car sales (BEVs) rise to almost half a million registrations taking a market share of total new car sales to 23.4%, largely driven by the fleet sector.

In terms of how the Kia franchise that we represent performed compared with the national market, sales grew by 1.1% over last year and it was the fourth best-selling brand in the UK. We have retained Authorised Repairer status for Peugeot, Citroën, Volvo and Ford, and this enables us to continue to serve our longstanding customers and retain their service and repair business in our Workshops.

Group turnover in the year ended 31 December 2025 grew to £31.83m, driven by an increase of 20.4% in New Car Sales of £1.4m when compared with the year to 31 December 2024. Aftersales contributed to the growth in Group turnover adding £611.6K, an increase of 14.4%. The overall gross profit grew yielding a gross margin of 7.23%, which was lower than planned due to the pressure on overall vehicle margins. Used car margins reduced by 1% over the period to 8.7%. Firm control of all departmental expenses during the year enabled the Group operating profit margin to grow to 2.0%.

New retail car sales volumes for the year outperformed the market, with an increase of 15% over the previous year, whereas used retail volumes reduced by 151 over 2024. This was largely due to a high mix of EV stock carried over from the previous year which had been overvalued and proved difficult to retail, which had a negative effect on used margins.

Group administrative expenses rose over the period primarily due to increases in rates, rent and utility costs, and the Group has recorded a net profit before tax for the year of £500.1k (1.6%). The Vehicle Sales team has seen a stable growth in experience and productivity, and we are starting to see benefits from the recent additions to the Aftersales teams.

It looks as though the challenging economic climate we are facing will remain with us for the foreseeable future, and with it comes the increasing pressures on the cost of living driven by high utility costs and interest rates resulting in potential pressure on retail demand in the automotive sector. The Government's Budget saw the Company confronted with an increase in Business Rates and Employer National Insurance contributions from April 2025 which added significant increases to the overhead cost structure of the business. This, together with the ongoing war in Ukraine and the volatile Republican administration in the USA has affected both the market and our business, but the Company approaches the year ahead with cautious optimism, assisted by the growing attractiveness and range of the Kia franchise, and the growing opportunities in the Used Car market.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal challenges of the group continue due to the economy and competition from other dealerships and manufacturers.

Financial Instruments

The group's principal financial instruments comprise of cash, borrowings, trade debtors and trade creditors. The main purpose of these financial instruments is to raise finance for the group's operations. The main risks arising from the group's financial instruments are:

Interest rate risk

Interest rate risks arise from the group's exposure to interest rate fluctuations and is managed by use of a mixture of fixed and floating facilities.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds and available for the ongoing and future development, the group uses a mixture of long term and short term debt finance.

Credit risk

Credit risk arises from the group's trade debtors and in order to minimise this, limits are set based on a combination of payment history and third party credit references. Outstanding amounts are monitored regular based upon debt ageing and collection history.

FINANCIAL KEY PERFORMANCE INDICATORS

The Director uses a number of key performance measures to monitor and manage performance within the business. The key performance indicators used are turnover, gross profit and operating profit and these are disclosed in the financial statements. The director monitors these key performance indicators on a regular basis throughout the year to ensure the group's strategy is achieved.

FUTURE DEVELOPMENTS

The business is firmly established in two trading locations in Chippenham, and we continue to focus on methods by which we can grow volumes across all departments of the business, whilst seeking to improve margins and maintain a firm control on staffing levels and costs.

ON BEHALF OF THE BOARD:

A J Bailey - Director

23 July 2026

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

A J Bailey

J A Bailey

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Sumer Auditco Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A J Bailey - Director

23 July 2026

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Group. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:

-

Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

-

Understanding of management's internal controls designed to prevent and detect irregularities, and fraud;

-

Reviewing the Group's legal costs to check for non-compliance with laws and regulations and fraud;

-

Review of tax compliance with the involvement of our tax specialists in the audit;

-

Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses;

-

Testing transactions entered into outside of the normal course of the Group's business; and

-

Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers.

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

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

Use of our report

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

David Iain Black (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Statutory Auditors

Hermes House

Fire Fly Avenue

Swindon

Wiltshire

SN2 2GA

28 July 2026

TURNOVER

31,834,122

38,858,961

Cost of sales

29,533,234

36,188,396

GROSS PROFIT

2,300,888

2,670,565

Administrative expenses

1,673,626

2,144,295

627,262

526,270

Other operating income

-

6,423

OPERATING PROFIT

4

627,262

532,693

Interest payable and similar expenses

5

127,145

179,506

PROFIT BEFORE TAXATION

500,117

353,187

Tax on profit

6

69,892

164,359

PROFIT FOR THE FINANCIAL YEAR

430,225

188,828

Profit attributable to:

Owners of the parent

430,225

188,828

PROFIT FOR THE YEAR

430,225

188,828

OTHER COMPREHENSIVE INCOME

Merger relief reserve

-

5,516,180

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

5,516,180

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

430,225

5,705,008

Total comprehensive income attributable to:

Owners of the parent

430,225

5,705,008

FIXED ASSETS

Tangible assets

8

848,923

997,378

Investments

9

-

-

848,923

997,378

CURRENT ASSETS

Stocks

10

3,430,972

2,848,524

Debtors

11

2,625,963

2,694,787

Cash at bank and in hand

113,535

562,396

6,170,470

6,105,707

CREDITORS

Amounts falling due within one year

12

4,601,308

4,353,750

NET CURRENT ASSETS

1,569,162

1,751,957

TOTAL ASSETS LESS CURRENT LIABILITIES

2,418,085

2,749,335

CREDITORS

Amounts falling due after more than one year

13

(1,740,127

)

(1,835,292

)

PROVISIONS FOR LIABILITIES

17

(121,592

)

(217,902

)

NET ASSETS

556,366

696,141

CAPITAL AND RESERVES

Called up share capital

18

100

100

Merger relief reserve

19

5,516,180

5,516,180

Retained earnings

19

(4,959,914

)

(4,820,139

)

SHAREHOLDERS' FUNDS

556,366

696,141

The financial statements were approved by the Board of Directors and authorised for issue on 23 July 2026 and were signed on its behalf by:

A J Bailey - Director

FIXED ASSETS

Tangible assets

8

-

-

Investments

9

99

99

99

99

CURRENT ASSETS

Debtors

11

1

1

NET CURRENT ASSETS

1

1

TOTAL ASSETS LESS CURRENT LIABILITIES

100

100

CAPITAL AND RESERVES

Called up share capital

18

100

100

SHAREHOLDERS' FUNDS

100

100

Company's profit for the financial year

570,000

5,008,967

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 23 July 2026 and were signed on its behalf by:

A J Bailey - Director

Called up

Merger

share

Retained

relief

Total

capital

earnings

reserve

equity

£

£

£

£

Changes in equity

Issue of share capital

100

-

-

100

Contribution to employee ownership trust

-

(5,008,967

)

-

(5,008,967

)

Total comprehensive income

-

188,828

5,516,180

5,705,008

Balance at 31 December 2024

100

(4,820,139

)

5,516,180

696,141

Changes in equity

Contribution to employee ownership trust

-

(570,000

)

-

(570,000

)

Total comprehensive income

-

430,225

-

430,225

Balance at 31 December 2025

100

(4,959,914

)

5,516,180

556,366

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Contribution to employee ownership trust

-

(5,008,967

)

(5,008,967

)

Total comprehensive income

-

5,008,967

5,008,967

Balance at 31 December 2024

100

-

100

Changes in equity

Contribution to employee ownership trust

-

(570,000

)

(570,000

)

Total comprehensive income

-

570,000

570,000

Balance at 31 December 2025

100

-

100

Cash flows from operating activities

Cash generated from operations

1

213,144

1,341,703

Interest paid

(127,145

)

(179,506

)

Tax paid

(111,426

)

-

Net cash from operating activities

(25,427

)

1,162,197

Cash flows from investing activities

Purchase of tangible fixed assets

(75,436

)

-

Purchase of net assets of group

-

100

Sale of tangible fixed assets

4,605

-

Net cash from investing activities

(70,831

)

100

Cash flows from financing activities

Net movement of loans in year

217,397

-

Share issue

-

99

Contribution to employee ownership trust

(570,000

)

(600,000

)

Net cash from financing activities

(352,603

)

(599,901

)

(Decrease)/increase in cash and cash equivalents

(448,861

)

562,396

Cash and cash equivalents at beginning of year

2

562,396

-

Cash and cash equivalents at end of year

2

113,535

562,396

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

Period

5.7.23

Year Ended

to

31.12.25

31.12.24

£

£

Profit before taxation

500,117

353,187

Depreciation charges

213,760

280,704

Loss on disposal of fixed assets

5,526

-

Decrease in net assets of group

-

528,306

Finance costs

127,145

179,506

846,548

1,341,703

Increase in stocks

(582,448

)

-

Decrease in trade and other debtors

68,824

-

Decrease in trade and other creditors

(119,780

)

-

Cash generated from operations

213,144

1,341,703

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

113,535

562,396

Period ended 31 December 2024

31.12.24

5.7.23

£

£

Cash and cash equivalents

562,396

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

562,396

(448,861

)

113,535

562,396

(448,861

)

113,535

Debt

Debts falling due within 1 year

(2,256,281

)

(312,562

)

(2,568,843

)

Debts falling due after 1 year

(1,835,292

)

95,165

(1,740,127

)

(4,091,573

)

(217,397

)

(4,308,970

)

Total

(3,529,177

)

(666,258

)

(4,195,435

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The financial statements consolidate the accounts of Wiltshire Motor Company Limited and all of its subsidiary undertakings ('subsidiaries'). Intercompany transactions and balances between group companies are therefore eliminated in full.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances.

The items in the financial statements where these estimates and judgements have been made include:

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values of all assets are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of the property plant and equipment, and note 2 for the useful economic lives for each class of assets.

Stock provisioning

Significant estimates are involved in the determination of stock provisions. Management exercise judgement in determining whether the costs of a particular item of stock are recoverable on an item by item basis. Management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability and future usage. A provision is made where a loss can be reliably estimated.

Impairment of debtors

The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 11 for the net carrying amount of the debtors and associated impairment provision.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the and group the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

-

the group has transferred the significant risks and rewards of ownership to the buyer;

-

the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

-

the amount of turnover can be measured reliably;

-

it is probable that the group will receive consideration due under the transaction; and

-

the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Sales of vehicles are recognised on delivery to the customer together with the associated manufacture bonus income. Any other manufacturer income in relation to achieving targets is recognised on an accruals basis.

Sale of parts are recognised at point of sale or delivery of goods to the customer. Service sales are recognised on completion of all work and handover to the customer.

Tangible fixed assets

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 is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method. Depreciation is provided on the following basis:

Leasehold land and buildings

- 10% straight line

Equipment, fixtures and fittings

- 20% straight line

Stocks

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

The directors consider the substance of stocking arrangements with manufacturers and where the group has access to the benefits of the stock and exposure to the risk and costs, the stock is treated as an asset of the group.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme and also contributes to the personal pension plans of certain permanent employee. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Contributions to employee ownership trust

Contributions to the employee ownership trust set up by the group are accounted for as a distribution of profits at the point the contribution is made and are therefore reflected in the statement of changes in equity.

3.	EMPLOYEES AND DIRECTORS

Period

5.7.23

Year Ended

to

31.12.25

31.12.24

£

£

Wages and salaries

1,789,185

2,230,324

Social security costs

198,612

204,449

Other pension costs

34,934

40,770

2,022,731

2,475,543

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

Period

5.7.23

Year Ended

to

31.12.25

31.12.24

Sales staff

9

9

Service and parts staff

31

31

Administration staff and management

14

16

54

56

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

Period

5.7.23

Year Ended

to

31.12.25

31.12.24

£

£

Directors' remuneration

33,333

44,249

4.	OPERATING PROFIT

The operating profit is stated after charging:

Period

5.7.23

Year Ended

to

31.12.25

31.12.24

£

£

Depreciation - owned assets

213,760

280,703

Loss on disposal of fixed assets

5,526

-

Auditors remuneration for the audit of the parent company financial statements

3,150

3,985

Auditors remuneration for the audit of the financial statements of the group's subsidiaries

17,240

24,230