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

Expectations for 2025 were reserved with no end to the stagnant economy and continued poor response to the fiscal adjustments from the treasury. The Seat showrooms were closed until April for the refurbishment work and to install Cupra. There was also a new build at Scorrier for the additional workshops and body repair centre. This caused massive disruption and the staff all responded positively and worked to bring a hugely impressive result.

We gained a lot of traction with BEV in 2024 and this continued into 2025, but we feel that the momentum has stalled and shifted over to hybrid cars. The increased number of new BEV models across all franchises will no doubt bring more sales but it will continue to be hard work to meet the Governments targets.

2025 saw an increase in turnover of 5.2% to £95,598,104 and an increase in gross profit to 12.4% (2024 12.2%). Whilst new and used car numbers stayed relatively static with new car numbers at 1951 (2024 1996 new cars) and used car numbers at 2291 (2024 2226 used cars), there was a significant increase in workshop hours, 47424 in 2025 vs 44312 in 2024, and parts turnover, £3,785,169 in 2025 vs £3,525,145 in 2024.

Our administration expenses saw an increase to 9.6% of turnover (2024 9.1%). This can be explained by increases outside of our control such as national insurance costs, and increases in insurance and rates. We continue to focus on rewarding staff and as such costs have risen both from a larger number of employees and pay rises.

This all resulted in a reduction in PBT to £2,421,145 (2024 £2,619,447) and net profit percentage 2.53% (2024 2.88%). Whilst a decrease it is an outstanding result in the industry even without considering the challenges in 2025.

The principle risks and uncertainties to the business are monitored by the directors and are considered to be:

• Vehicle manufacturers’ and incentive programmes:

The group depends on the vehicle manufacturers’ financial condition, marketing, vehicle design, production and distribution capabilities, reputation, management and industrial relations. A failure by the manufacturer in the areas noted could lead to losses. The manufacturers (Renault, Vauxhall, SEAT, Cupra, Suzuki and Dacia) provide a wide variety of sales incentives, warranties and other programmes that are intended to promote and support new vehicle sales at our dealerships. If the manufacturers reduce or discontinue incentive programmes, this could have an adverse impact on our business.

• Used vehicle price variation:

Used vehicle prices can vary significantly and as a significant proportion of our business comprises of used vehicle sales these variations can have a material impact on our business. Whilst currently experiencing a buoyant market as a result of the suppressed new car production the impact of any future declines in used vehicle prices could result in reduced profits on sales and also write-downs in the value of used vehicle stock.

• Group, people and reputation:

The group has invested heavily in its people and its reputation over a number of years. It is therefore reliant on these individuals to a degree in delivering the company result and reinforcing the underlying Dales brand. The group undertakes a regular review of remuneration and packages to ensure that it attracts and retains the best people.

• Competition:

The group competes with other franchised vehicle dealerships, independent used vehicle sellers, private buyers and sellers, internet based dealers, independent service and repair shops and vehicle manufacturers who have entered the retail market. We compete for the sale of new and used vehicles, the performance of warranty repairs, non-warranty repairs, routine maintenance business and for the provision of spare parts. The principle competitive factors in service and parts sales are price, familiarity with a manufacturer’s brands and models and the quality of customer service.

• Economic downturn:

The success of the business is reliant on consumer spending. An economic downturn, resulting in reduction of consumer spending power will have a direct impact on the income achieved by the group and is a very real risk in the current uncertain market.

In response to this risk, senior management aim to keep abreast of economic conditions. In cases of severe economic downturn, marketing and pricing strategies are modified to reflect the new market conditions.

The challenge represented by the Chinese manufactures cannot be under stated. They are genuinely disrupting the market and changing expectations of what is considered normal from bringing new models to the market in record speed to achieving growth beyond what was considered possible before. We took one Chinese brand with Leap Motors in Q3 of 2025 which we operate through our Vauxhall dealership and have in Q2 2026 taken another in Gealy which will be sited in a new 6 car showroom extension to be built in Q3 2026 at our Scorrier Cupra dealership. These 2 brands we consider to be strong contenders in the market.

There will be further full refurbishment of the 2 Renault Dealerships and the Vauxhall Dealership over the next 2 years and this will be funded through cash reserves.

The directors have monitored the overall group strategy and the individual strategic elements by reference to gross margin and operating profit. Monthly management accounts produced by the trading companies are analysed in order to ensure the group continues to trade profitably.

On behalf of the board

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

The principal activity of the group continued to be the operation of a motor dealership along with commercial property investment.

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,002,379. The directors do not recommend payment of a further dividend.

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

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 prepared 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.

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 auditor of the company 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 auditor of the company is aware of that information.

We have audited the financial statements of DCM (Cornwall) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, 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).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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

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 group and the parent company and their 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 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.

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 group's and 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 parent 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.

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

We consider that the group's financial statements have a low susceptibility of material misstatement as a result of fraud. The main trading subsidiary is a motor dealership and the opportunity for fraud to occur would be limited due to the strict regulations in place for registering new vehicles with the manufacturer and the DVLA and the internal controls over used vehicle stock. There is minimal cash handling by nature of the type of transactions and therefore any fraud from misappropriation of cash would be trivial.

The main laws and regulations of significance to the group would be those of the main subsidiary trading company. These are: FCA compliance, health and safety regulations, employment law, tax and accounting law, etc.

Our audit work in response to the risks identified included but was not limited to:

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing legal fee invoices for any evidence of non-compliance.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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 s408 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 £182,735 (2024: £169,846 profit).

DCM (Cornwall) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Wheal Rose, Scorrier, Redruth, Cornwall, TR16 5BX.

The group consists of DCM (Cornwall) 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 £.

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

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

The consolidated group financial statements consist of the financial statements of the parent company DCM (Cornwall) 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.

Based on current bank balances, facilities and the level of trade at the time of approving the financial statements the directors have a reasonable expectation that the group has 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.

Turnover is recognised in the consolidated Statement of Income and Retained Earnings at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on handover of the vehicle or in the case of workshop services, when the work is complete).It is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Cherished registrations are not amortised as the directors believe their residual value to equate to at least cost.

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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.

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.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stock and work in progress are stated at the lower of cost and estimated selling price, after making due allowances for obsolete and slow-moving stock.

Estimated selling price less costs to complete and sell is based on the estimated selling price of the goods less any estimated completion or selling costs likely to be incurred on the sale.

The group has applied the accounting treatment required by FRS 102 Section 13 to its vehicle consignment stock. Where the interest free consignment period has expired, vehicles are included in the statement of financial position as stock with a matching liability for the purchase price included in trade creditors.

Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including Glass' and CAP valuation guides. The directors maintain oversight of ageing stock profiles and a monthly review of the relevant provision is performed.

Cash and cash equivalents are basic financial assets and include only cash in hand.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets are all receivable within one year and are therefore not amortised.

Basic financial liabilities, including creditors,bank and other loans are initially recognised at transaction price. Financial liabilities are all potentially payable within one year and are therefore not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts are all classified as current liabilities as payment is due within one year or less.

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 group operates a defined contribution plan for its employees. The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

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 judgements which have the most significant impact on the financial statements are those related to stock valuations, which is regularly monitored against age profile and market demand using CAP valuation guides. Any provision is reviewed on a monthly basis.

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

Their aggregate remuneration comprised:

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 in the cost of freehold property is freehold land amounting to £1,286,531 which is not depreciated.

Investment property comprises of commercial buildings used for trading purposes by group companies. The year end market value of the investment properties equated to cost in the opinion of the directors and was considered by reference to market evidence.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Excluded from stocks at the year end are vehicles received on consignment costing £2,400,551 (2024: £4,692,682) which are not accruing interest and are therefore not considered to be in substance assets of the group as at the balance sheet date.

The bank loans are secured by way of a first legal charge over all of the freehold properties owned by the company and a cross guarantee with Dale's Central Motors Limited and Dales Cornwall Limited.

The other loan is secured by a floating charge over all the assets of Dale's Central Motors Limited.

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

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. There were no amounts outstanding at the year end.

On 8th December 2005, the Dale's Central Motors Limited Discretionary Pension Scheme was established. This is a Small Self Administered Scheme (SSAS), the trustees and members of which are the directors of the group. The group's contributions are charged against profit in the year in which they accrue. The group made payments to the SSAS of £240,000 (2024: £160,000) during the year. There were no amounts outstanding at the year end.

All shares have equal voting and distribution rights on winding up, but dividends are calculated separately.

Barclays Bank PLC holds an unlimited multi lateral guarantee over the assets of DCM (Cornwall) Limited, Dales Cornwall Limited and Dale's Central Motors Limited for security over the overdraft facility and bank loan. At 31 December 2025 and 2024 the bank borrowings of Dales Cornwall Limited and Dale's Central Motors Limited were nil.

The remuneration of key management personnel is as follows.

The company has taken advantage of the exemption under FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' Section 33, not to disclose related party transactions with the subsidiary companies, which meet the definition of "wholly owned" by way of the fact that all shareholders act only behalf of the entities within the group.

Mr T Dale and Mrs M Dale have personally guaranteed the other loan of £250,000 (2024: £250,000).

The ultimate controlling party is Mr T Dale and his wife Mrs M Dale who are both directors and shareholders of the company.

Group

Included within creditors due within one year are amounts due to the directors amounting to £37,869 (2024: £42,076). The loans are interest free with no set terms for repayment. The balances remained in credit throughout the period.

Company

Included within creditors due within one year are amounts due to the directors amounting to £16,105 (2024: £20,105). The loans are interest free with no set terms for repayment. The balances remained in credit throughout the period.

Dividends totalling £1,002,379 (2024: £1,002,379) were paid in the year in respect of shares held by the company's directors.