|
Registered number: 01407127
PARKER MOTOR SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
PARKER MOTOR SERVICES LIMITED
CONTENTS
|
|
|
|
|
|
|
|
|
|
|
|
Independent Auditors' Report
|
|
Statement of Comprehensive Income
|
|
|
|
|
Statement of Changes in Equity
|
|
Notes to the Financial Statements
|
|
|
|
PARKER MOTOR SERVICES LIMITED
COMPANY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TC Group (Statutory Auditor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The principal activity of the Company during the year continued to be that of the provision of motor spares and accessories.
The Company's turnover in 2025 totalled £57.56m, which was an increase of 7.8% on 2024 (£53.39m). This was partly due to the expansion of the Company's network to 33 branches during the year, with the opening of two new sites in 2025, alongside inflationary increases.
The profit after tax increased from £6.59m in 2024 to £6.96m in 2025. The directors are satisfied with the Company's performance and profitability in a market which remained very competitive.
The Company continues to maintain strong relationships with its suppliers in order to ensure that it can provide quality products to its customers at competitive prices.
Market conditions are expected to remain very competitive in the foreseeable future, however, the directors anticipate continued steady growth in turnover and profitability in the coming year and remain committed to focusing on opportunities for the development and growth of the company's core activity.
Principal risks and uncertainties
|
The directors consider that the Company has similar potential risks to those faced by other companies in the sector.
Loss of key customers and suppliers
There is a risk over retaining the loyalty of key customers and suppliers. Considerable emphasis is devoted to
maintaining service levels with customers and working closely with suppliers on logistical and quality issues to ensure that high levels of performance are achieved.
Credit risk
The inability of customers to pay amounts due to the Company due to financial difficulties is a risk. To minimise this risk, the Company employs pro-active credit control techniques, such as applying appropriate credit limits and monitoring payment patterns and debt levels on a regular basis.
Economic risk
There is a risk of increased interest rates and inflation having an adverse impact on the market place, as well as the risk of unrealistic increases in labour and other costs impacting adversely on the competitiveness of the Company. These risks are mitigated by maintaining strict control over costs and continual monitoring of financial performance.
Financial key performance indicators
|
The key performance indicators of the Company are turnover, gross margin and net profit, all of which can be evidenced on the Profit and Loss Account. Turnover and gross margin are monitored daily by the directors and overall Company performance is measured on a monthly basis through detailed management accounts.
Other key performance indicators
|
The Company uses non-financial KPIs as part of its overall assessment strategy. This includes monitoring the number of missed calls at the sales desks in each branch.
|
|
PARKER MOTOR SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Directors' statement of compliance with duty to promote the success of the Company
|
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole.
In doing this, Section 172 requires a director to have regard, amongst other matters, to the:
-Likely consequences of any decisions in the long-term;
-Interests of the Company's employees;
-Need to foster the Company's business relationships with suppliers, customers and others;
-Impact of the Company's operations on the community and environment;
-Desirability of the Company maintaining a reputation for high standards of business conduct; and
-Need to act fairly as between members of the Company.
The likely consequences of any decision in the long term
By understanding the business and the environment in which it operates, the directors remain mindful of the long term implications that strategic decisions will have for the Company and its stakeholders. There is a clear plan for organic growth which ensures the Company continues to offer a comprehensive and efficient distribution service to customers. This long-term strategy has resulted in the opening of 2 new sites during the year, with further branches due to open in 2026, satisfying customer and shareholder needs. The directors take care to consider the interests of all stakeholders when deciding on courses of action. Regular meetings take place to discuss business strategy, potential risks and key laws and regulations to ensure operating methods and decisions deliver on the directors' duty of care for the benefit of its members and stakeholders.
The interests of the Company's employees
The directors recognise that the employees are key to the business and its success. They engage with the workforce to ensure that they are fostering an environment that the employees are happy to work in and that best supports their well-being. The directors benefit from having a knowledgeable, experienced senior management team who, along with the directors themselves, are actively involved in the day to day running of the business and maintain regular communication with branch staff. Regular external health and safety checks are carried out which helps support employees' welfare and well-being.
The need to foster the Company's business relationships with suppliers, customers and others
The directors recognise that the success of the Company is also reliant on building strong relationships with suppliers and customers. The directors acknowledge it is their duty to provide value and quality to customers and this can only be achieved by building relationships with key suppliers. The Company has a large and varied supplier base from international to local independent family run businesses.
The impact of the Company's operations on the community and environment
The directors are committed to maintaining positive relationships with the communities in which the Company operates, and recognise the importance of minimising the impact of their operations on the community and environment. Contributions are frequently made to various charitable bodies and the Company strives to support and sponsor local sport teams, clubs and events. Good environmental management is aligned with a focus on cost optimisation and the Company is committed to reducing its carbon emissions.
The desirability of the Company maintaining a reputation for high standards of business conduct
The directors have always maintained a responsible business conduct and strong ethics. They are committed to improving quality in all aspects of the business and have implemented policies and procedures in line with regulatory requirements to prevent misconduct and discrimination.
|
|
PARKER MOTOR SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The need to act fairly between members of the Company
The directors openly engage with all shareholders on a regular basis and provide management information to ensure that the long-term strategy is understood. Any course of action is discussed with the interests of all shareholders considered equally.
This report was approved by the board.
................................................
R D Parker
Director
|
|
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The profit for the year, after taxation, amounted to £6,963,968 (2024 - £6,593,354).
During the year the directors recommended the payment of dividends amounting to £5,208,920 (2024: £4,754,688)
The directors who served during the year were:
The directors anticipate pressure on gross profit percentage to remain in the future. They will also look to take advantage of any available efficiency savings and to maintain tight control over costs.
The Company's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the Company from the directors and Parkers Motor Services (Syston) Limited. The main purpose of these instruments is to raise funds for the Company's operations and to finance the Company's operations. The risk attached to these instruments is managed by ensuring that sufficient funds are available to meet amounts as they fall due. There is minimal risk attached to the directors' loan accounts as repayments of amounts due are at the discretion of the directors.
Engagement with employees
|
Throughout the year the Company has continued to consult and discuss with employees on matters likely to affect their interests. This has been achieved through management meetings, bulletins and ad hoc reports.
Information is provided to employees in order to achieve a common awareness of financial and economic factors
affecting the Company's performance.
|
|
PARKER MOTOR SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Applications for employment by disabled persons are given full and fair consideration for all vacancies, having regard to their particular aptitudes and abilities.
In the event of employees becoming disabled, every effort is given to retrain them in order that their employment with the Company may continue.
It is the policy of the Company that training, career development and promotion opportunities should be available to all employees.
After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. The directors have not identified any material uncertainties in relation to going concern and the Company therefore continues to adopt the going concern basis in preparing its financial statements.
The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company is committed to reducing the amount of energy used throughout the business and ultimately reducing its carbon footprint. The Company has complied with all applicable legislation and regulations.
Following a change in reporting requirements, The Companies Act 2006 (Strategic Report and Directors’ Report) Regulation 2018 requires Parker Motor Services Limited to disclose annual UK energy consumption and Greenhouse Gas emissions. This is our fourth report on energy consumption and Greenhouse Gas Emissions.
Consumption (kWh) and Greenhouse Gas emissions (tCO2e) totals
Scope 1 – direct emissions from those activities owned or controlled by the Company. This relates to the combustion of natural gas, and fuels utilised for transportation operations, such as company vehicle fleets
.
Scope 2 – energy indirect emissions are those released into the atmosphere in relation to the consumption of purchased electricity in day to day business operations.
Scope 3 – other indirect emissions resulting from sources not directly owned by the Company. After careful review of the GHG Protocol, it was deemed that there were no such emissions under Scope 3 that would require disclosure.
Totals
The total consumption (kWh) figures for energy supplies reportable by Parker Motor Services Limited are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel consumed for own transport
|
|
|
|
|
|
|
|
|
|
|
Grid-supplied electricity
|
|
|
|
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The total emissions (tCO2e) figures resulting from the above consumption:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel consumed for own transport
|
|
|
|
|
|
|
|
|
|
|
Grid-supplied electricity
|
|
|
|
|
|
|
|
|
|
|
Intensity ratio
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m of turnover:
tCO2e / £m - 27.59 (2024 - 27.75)
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG
Reporting Protocol - Corporate Standard and have used the 2025 UK Government's Conversion Factors for Company Reporting.
Measures taken to improve energy efficiency
The Company is committed to year on year improvements in its operational energy efficiency. Site and transport surveys have been carried out to identify cost effective energy saving opportunities.
During recent years a number of sites have had additional thermal insulation installed above the suspended ceilings, as well as non-LED lighting being replaced with energy efficient LED lights where possible. A project to install solar panels at the majority of the Company’s sites was completed in 2024.
|
|
PARKER MOTOR SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Directors' responsibilities statement
|
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙make judgments 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;
∙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 to 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.
Disclosure of information to auditors
|
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
|
There have been no significant events affecting the Company since the year end.
The auditors, TC Group (Statutory Auditor), will be proposed for reappointment in accordance with section 485 of the Companies Act 2006 at the forthcoming Annual General Meeting.
|
|
PARKER MOTOR SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
This report was approved by the board and signed on its behalf.
................................................
R D Parker
Director
|
|
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARKER MOTOR SERVICES LIMITED
We have audited the financial statements of PARKER MOTOR SERVICES LIMITED (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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 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.
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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
|
|
PARKER MOTOR SERVICES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARKER MOTOR SERVICES LIMITED (CONTINUED)
The directors are responsible for the other information. The other information comprises the information in the 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 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.
Opinion 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 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.
Matters on which we are required to report by exception
|
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.
|
|
PARKER MOTOR SERVICES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARKER MOTOR SERVICES LIMITED (CONTINUED)
Responsibilities of directors
|
As explained more fully in the Directors' Responsibilities Statement set out on page 8, 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.
|
|
PARKER MOTOR SERVICES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARKER MOTOR SERVICES LIMITED (CONTINUED)
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 an Auditors' 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:
∙Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud;
∙Enquiry of entity staff in tax and compliance functions and external advisors to identify any instances of
non-compliance with laws and regulations;
∙Performing audit work over the risk of management override, including testing of journal entries and other
adjustments for appropriateness, evaluating the business rationale of significant transactions outside the
normal course of business and reviewing the accounting estimates for bias.
∙Reviewing financial statement disclosures and testing them against supporting documentation to assess
compliance with applicable laws and regulations.
∙Discussions amongst the engagement team in relation to how and where fraud might occur in the financial
statements and any potential indicators of fraud.
∙Reviewing minutes of meetings during the year.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and
regulations. Where the risk was considered to be higher, we performed audit procedures to address each
identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement
disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of
management, and were designed to provide reasonable assurance that the financial statements were free from
fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some
material misstatements in the financial statements, even though we have properly planned and performed our
audit in accordance with auditing standards. For example, the further removed non-compliance with laws and
regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely
the inherently limited procedures required by auditing standards would identify it. The risk is also greater
regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment,
forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and
cannot be expected to detect non-compliance with all laws and regulations.
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
Auditors' Report.
|
|
PARKER MOTOR SERVICES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARKER MOTOR SERVICES LIMITED (CONTINUED)
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 Auditors' 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.
Shiran Wynter (ACA) (Senior Statutory Auditor)
for and on behalf of
TC Group (Statutory Auditor)
1 Merus Court
Meridian Business Park
Leicester
Leicestershire
LE19 1RJ
28 August 2026
|
|
PARKER MOTOR SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest receivable and similar income
|
|
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the financial year
|
|
|
|
Other comprehensive income for the year
|
|
|
|
Total comprehensive income for the year
|
|
|
|
The notes on pages 18 to 35 form part of these financial statements.
|
|
|
PARKER MOTOR SERVICES LIMITED
REGISTERED NUMBER: 01407127
BALANCE SHEET
AS AT 31 DECEMBER 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
Provisions for liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................
R D Parker
|
|
|
|
|
|
|
The notes form part of these financial statements.
|
|
|
|
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
|
|
|
|
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends: Equity capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends: Equity capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 18 to 35 form part of these financial statements.
|
|
|
Profit and Loss Account
Includes all current and prior year retained profits and losses. All amounts are distributable.
|
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The entity is a private company limited by shares which is incorporated in England and Wales, registration
number 01407127. The registered office is 6 Foundry Square, Belgrave Gate, Leicester, LE1 3WW.
2.Accounting policies
|
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
After reviewing the Company's forecasts and projections, the directors have considered the company’s ability to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
|
|
|
Financial Reporting Standard 102 - reduced 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 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.
This information is included in the consolidated financial statements of Parkers Motor Services (Syston) Limited as at 31 December 2025 and these financial statements may be obtained from 6 Foundry Square, Belgrave Gate, Leicester, LE1 3WW.
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the Statement of Comprehensive Income over its estimated economic life.
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.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
|
|
|
Tangible fixed assets (continued)
|
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line or reducing balance method.
Depreciation is provided on the following basis:
|
|
|
|
|
Leasehold property improvements
|
|
|
|
|
|
|
|
|
|
20%, 25% or 33.3% on cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is computed on an average cost basis for each product line. Net realisable value is based on estimated selling price less the estimated cost of disposal.
|
|
|
Current and deferred taxation
|
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 balance sheet 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 balance sheet 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 balance sheet date.
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
|
|
|
Foreign currency translation
|
Functional and presentation currency
The Company's functional and presentational currency is British Pound Sterling (£).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
|
|
|
Hire purchase and leasing commitments
|
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss 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.
|
|
|
Operating leases: the Company as lessee
|
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
|
|
|
Operating leases: the Company as lessor
|
Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. 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.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
|
|
|
Provisions for liabilities
|
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at transaction price, net of transaction costs and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet 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.
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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.
|
|
Judgments in applying accounting policies and key sources of estimation uncertainty
|
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(i) Impairment of intangible assets and goodwill
The Company considers whether intangible assets and/or goodwill are impaired. Where an indication of
impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present value of those cash flows.
(ii) 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 are reassessed 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.
(iii) Stocks provisioning
The Company continues to purchase motor parts for resale. The directors consider the recoverability of the cost of stocks and any associated provisioning required. When calculating the stocks provision, the directors consider the nature and condition of the stocks, as well as applying assumptions around anticipated saleability.
(iv) Impairment of debtors
The Company 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 age profile of debtors and historical experience.
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
|
|
The turnover and profit before taxation are attributable to the one principal activity of the company.
An analysis of turnover by class of business is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision of motor spares and accessories
|
|
|
|
|
|
|
|
An analysis of turnover by geographical market is given below:
|
|
|
|
|
The operating profit is stated after charging/(crediting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation - Tangible Fixed Assets
|
|
|
|
|
Loss on disposal of fixed assets
|
|
|
|
|
Rental Received on Operating leases
|
|
|
|
|
Vehicle Operating Lease Rentals
|
|
|
|
|
Land and Buildings Operating Lease Rentals
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
|
|
During the year, fees payable to the Company's auditor for the audit of the Company's financial statements were £27,500 (2024 - £27,500).
The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
|
|
|
|
|
|
Staff costs, including directors' remuneration, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of defined contribution scheme
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The average monthly number of employees, including the directors, during the year was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and administration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the year, directors' emoluments (including benefits in kind) totalled £139,166 (2024: £143,246).
During the year, the Company's contribution to directors' defined contribution pension schemes totalled £60,000 (2024: £60,000).
During the year retirement benefits were accruing to 6 directors (2024 - 6) in respect of defined contribution pension schemes.
|
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
Bank and other interest receivable
|
|
|
|
|
|
|
|
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loan interest payable
|
|
|
|
|
Finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax on profits for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
11.Taxation (continued)
|
|
Reconciliation of total tax charge included in profit and loss
|
|
|
The tax assessed for the year is higher than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25 %). The differences are explained below
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities before tax
|
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25 %)
|
|
|
|
|
|
|
|
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
Depreciation in excess of capital allowances for year
|
|
|
|
|
Other differences leading to an increase (decrease) in the tax charge
|
|
|
|
|
Loss on disposal of fixed assets
|
|
|
|
|
Total tax charge for the year
|
|
|
|
|
Factors that may affect future tax charges
|
There were no factors that may affect future tax charges.
|
|
Ordinary Shares of £ 1.00 each
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
Leasehold property improvements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The net book value of assets held under finance leases or hire purchase contracts, included above, is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
Finished goods and goods for resale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by associated undertakings
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
Amounts owed to associates
|
|
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
Obligations under finance lease and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans and overdrafts are secured by fixed and floating charges over the assets and undertaking of the company in favour of Barclays Bank PLC.
Obligations under hire purchase agreements are secured on the assets to which they relate.
|
|
|
Hire purchase and finance leases
|
|
|
Minimum lease payments under hire purchase fall due as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
21.Deferred taxation (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
Charged to profit or loss
|
|
|
|
|
|
|
The deferred tax balance is made up as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated capital allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Authorised, allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
|
|
7,248 (2024 - 7,248) Ordinary shares of £1.00 each
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
|
|
At 31 December 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Later than 1 year and not later than 5 years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2025 the Company had future minimum lease payments receivable under non-cancellable operating leases as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Later than 1 year and not later than 5 years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related party transactions
|
|
|
The Company has taken advantage of the exemption available under FRS 102 33.1A not to disclose transactions with wholly owned subsidiaries of the Group.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions and balances with other related parties are as follows:
|
|
|
|
|
Sales to key management personnel
|
|
|
|
|
Leasing from key management personnel
|
|
|
|
|
Loans due to key management personnel
|
|
|
|
|
Interest charged by the entity to other related parties
|
|
|
|
|
Salary and pension to key management personnel
|
|
|
|
|
Leasing from other related parties
|
|
|
|
|
Sales to other related parties
|
|
|
|
|
Purchases from other related parties
|
|
|
|
|
Loans due to other related parties
|
|
|
|
|
Loans due from other related parties
|
|
|
|
|
Loans due from other related party individuals
|
|
|
|
|
PARKER MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The company’s immediate and ultimate parent undertaking is Parkers Motor Services (Syston) Limited, a company incorporated in England and Wales. The directors consider that no individual has ultimate control of the group.
The consolidated group accounts can be obtained from Parkers Motor Services (Syston) Limited, the immediate and ultimate parent Company at 6 Foundry Square, Belgrave Gate, Leicester, LE1 3WW.
|