REGISTERED NUMBER: 04905299 (England and Wales)

PITTEN LIMITED

T/A

SPEEDWELL

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTOR:

M D Richards

SECRETARY:

R J Richards

REGISTERED OFFICE:

The Avenue

Newton Abbot

Devon

TQ12 2DD

REGISTERED NUMBER:

04905299 (England and Wales)

AUDITORS:

WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

BANKERS:

Lloyds TSB

PO BOX 1000

Tonbridge

BX1 1LT

The director presents his strategic report for the year ended 31 December 2025.

REVIEW OF BUSINESS

The company has enjoyed another year of consolidation since moving to Exeter and the staff have settled well into the new routines.

Our key performance indicators for 2025, compared to 2024, are as follows:

2025

2024

Vehicle Sales Units (Retail New / Used)

2,171

1,996

Turnover

£52.6m

£48.9m

NPBT (£)

£0.462m

£0.417m

GPM (%)

9.3%

8.5%

There was an improvement in turnover for 2025 compared to 2024, but net profit margins are under pressure as new car sales volumes continue to be supported by Motability and Fleet volumes which have significantly lower percentage margins. The introduction of the Kia PBV Van franchise will bring additional volume to the business coupled with healthier margins. Used car volumes have again increased but margins have held at the 2024 levels. Aftersales hours have improved strongly across the group and coupled with an improved margin this is contributing to an improved overhead absorption.

Key factors currently affecting the business are;

1. Improved new vehicle supply from Kia and all manufacturers increasing competition.

2. New car margin decline affected by sales of Fleet and Motability increasing.

3. Establishing and incorporating the Kia PBV site into the total business.

4. Rising Aftersales labour costs and consequential margin decreases.

5. Refurbishment costs for the Kia PBV and vehicle preparation facility being incurred.

The consolidation of Speedwell to represent Kia in two adjacent territories continues to afford opportunities to share costs in areas like advertising, demonstrators and overheads whilst also offering opportunities in used cars, aftersales, corporate and business sales.

The Honda aftersales franchise at Newton Abbot continues to offer a good source of labour and parts sales, which, although declining, offers a good contribution to the dealership performance. It has been almost 5 years since Honda new car sales finished at Newton and the effect of a rapidly declining PARC will be felt more in the next few years although Kia growth is more than covering any reduction.

The Directors are always mindful of areas offering future growth opportunities and explore the viabilities when offered. The strength of the balance sheet offers the opportunity for well-funded growth and allows the business to act quickly if an opportunity does arise. Negotiations have been undertaken with an additional franchise to be introduced at our Kingsteignton dealership opening in mid 2026, which will offer an avenue for growth into 2027 as product deliveries come fully on stream.

PRINCIPAL RISKS AND UNCERTAINTIES

The poor consumer confidence is affecting the retail new car market, with higher interest rates, the decline of ICE product, introduction of EV and product cycle changes are all risk factors which the business will be faced with over the next months and years.

The effect of the Chinese disrupter brands on the market is being felt and the challenges ahead for established brands is to stay relevant through new product, customer loyalty and retention. Pitten Ltd will work with Kia to maximise our position in the areas of responsibility whilst viewing any further opportunities for broadening our portfolio.

ON BEHALF OF THE BOARD:

R J Richards - Secretary

26 August 2026

The director presents his report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of trading as a motor dealer.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 will be £161,000 (2024: £77,000).

DIRECTOR

M D Richards held office during the whole of the period from 1 January 2025 to the date of this report.

FINANCIAL INSTRUMENTS

The company's financial instruments comprise bank balances, trade creditors, trade debtors, an overdraft facility and vehicle finance. The company's approach to managing the risks associated with these instruments is as follows:

Currency and price risk - these do not pose a real risk to the business, due to the nature of the above financial instruments, which are all in Sterling. Although the company has a franchise with Kia, which is not a UK based brand, the invoicing is all in GBP.

Interest rate risk - interest rates are regularly monitored and re-negotiated whenever possible. Funds are allocated in a way that results in the lowest possible interest burden on the company. There is adequate interest cover from profits generated and a good relationship with bankers.

Credit risk - credit is only granted to customers who have been reviewed for credit worthiness. Amounts of credit are kept to a minimum and consistent credit control processes ensure minimal exposure to credit risk.

Liquidity risk - working capital is reviewed and managed pro-actively, on a daily basis. Planning and forecasting ensures that liquidity is always sufficient to meet future requirements of the business.

DISCLOSURE IN THE STRATEGIC REPORT

Certain disclosures surrounding review of business, future developments, KPIs and risks and uncertainties have been disclosed in the Strategic Report, rather than the Directors Report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

R J Richards - Secretary

26 August 2026

Opinion

We have audited the financial statements of Pitten Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director 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 Report of the Director.

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, 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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:

Objectives

The objectives of our audit in respect of fraud, are;

- to identify and assess the risks of material misstatement of the financial statements due to fraud;

- to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, thorough designing and implementing appropriate responses to those assessed risks; and

- to respond appropriately to instances of fraud or suspected fraud identified during the audit.

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Audit Approach

Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, FRS 102, and UK taxation legislation.

- We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance, as well a review of relevant correspondence and certifications.

- We assessed the risk of material misstatement of the financial statements and how it might occur (including the risk of material misstatement due to fraud), by holding discussions with management and those charged with governance. We used our knowledge of the company and the industry in which it operates to determine if management's explanations were consistent with our own conclusions.

- Based on our understanding developed from the above, we designed specific appropriate audit procedures to identify instances of non-compliance with the key laws and regulations which may result in potential fraud. This included making enquiries of management and those charged with governance, investigating unusual or unexpected relationships or movements in figures disclosed in the accounts and remaining alert for any transactions that appeared to be outside the normal course of business.Furthermore, as required by auditing standards, and taking into account our overall knowledge of the control environment, we have performed procedures to address the risks of management override of controls and the risk of fraudulent revenue recognition. Procedures such as a review of journal entries and assessing estimates for management bias have enabled us to conclude in this area.

No instances of fraud, non-compliance or suspected non-compliance with laws and regulations were identified from the above procedures.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control environment relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the

financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company, to express an opinion on the consolidated financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Context of the ability of the audit to detect fraud or breaches of law or regulation

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 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.

In addition, as with any audit, there remains a risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud 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 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.

Stephanie Williams (Senior Statutory Auditor)

for and on behalf of WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

26 August 2026

TURNOVER

52,564,189

48,912,409

Cost of sales

(47,668,980

)

(44,744,077

)

GROSS PROFIT

4,895,209

4,168,332

Administrative expenses

(4,885,102

)

(4,161,545

)

10,107

6,787

Other operating income

452,210

455,039

OPERATING PROFIT

6

462,317

461,826

Interest receivable and similar income

2,040

13,060

464,357

474,886

Interest payable and similar expenses

7

(2,028

)

(57,397

)

PROFIT BEFORE TAXATION

462,329

417,489

Tax on profit

8

(129,500

)

(118,714

)

PROFIT FOR THE FINANCIAL YEAR

332,829

298,775

PROFIT FOR THE YEAR

332,829

298,775

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

332,829

298,775

FIXED ASSETS

Tangible assets

10

2,179,594

2,341,429

CURRENT ASSETS

Stocks

11

6,207,991

3,369,016

Debtors

12

901,483

423,480

Cash at bank and in hand

1,900

501,006

7,111,374

4,293,502

CREDITORS

Amounts falling due within one year

13

6,077,063

2,848,570

NET CURRENT ASSETS

1,034,311

1,444,932

TOTAL ASSETS LESS CURRENT LIABILITIES

3,213,905

3,786,361

CREDITORS

Amounts falling due after more than one year

14

-

(707,285

)

PROVISIONS FOR LIABILITIES

18

(71,000

)

(108,000

)

NET ASSETS

3,142,905

2,971,076

CAPITAL AND RESERVES

Called up share capital

19

637,000

637,000

Retained earnings

20

2,505,905

2,334,076

SHAREHOLDERS' FUNDS

3,142,905

2,971,076

The financial statements were approved by the director and authorised for issue on 26 August 2026 and were signed by:

M D Richards - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

637,000

2,112,301

2,749,301

Changes in equity

Dividends

-

(77,000

)

(77,000

)

Total comprehensive income

-

298,775

298,775

Balance at 31 December 2024

637,000

2,334,076

2,971,076

Changes in equity

Dividends

-

(161,000

)

(161,000

)

Total comprehensive income

-

332,829

332,829

Balance at 31 December 2025

637,000

2,505,905

3,142,905

1.	STATUTORY INFORMATION

Pitten 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied, to all the years presented, unless otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned companies within the group.

Critical accounting judgements and key sources of estimation uncertainty

During the preparation of the accounts, the director must make certain judgements and estimates concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. However, these are not generally considered to be significantly subjective, and the majority are easily supported by subsequent transactions and documentation. 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.

There are no estimates and assumptions that are determined to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Turnover represents the sale of new and used vehicles, as well as related servicing and parts. Rental income is also generated for short term hire of some vehicles. Turnover is measured at the fair value of the consideration received or receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the Company and value added taxes.

The Company recognises revenue when the following conditions are satisfied:

i. the Company has transferred to the buyer the significant risks and rewards of ownership of the goods or services;

ii. the Company retains neither continuing managerial involvement to the degree associated with ownership nor effective control over the goods or services sold;

iii. the amount of revenue can be measured reliably;

iv. it is probable that the economic benefits associated with the transaction can be measured reliably.

Tangible fixed assets

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use and any borrowing costs capitalised.

Depreciation and residual values

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life as follows:

Long leasehold

- Straight line over the lease, capped at 50 years

Plant and machinery

- Straight line over 3 years

Fixtures and fittings

- Straight line over 3-9 years

Motor vehicles

- Straight line over 3 years

Computer equipment

- Straight line over 3 years

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any changes is accounted for prospectively.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

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

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Costs include any expenditure incurred in bringing the stock to its present location and condition. There is no consignment stock.

Included within stock is an amount related to vehicles that are rented out, before being moved into stock for sale. These vehicles are rented out for a set period of 4 months. Once these vehicles have been rented out for a minimum of 58 days during those first 4 months, they are eligible to be sold, and as such they are transferred from rental stock to saleable stock. The intention is to sell these vehicles for a profit, in the normal course of trade.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only 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. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

The tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Hire purchase and leasing commitments

At inception the Company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is a finance lease or an operating lease based on the substances of the arrangement.

Finance leases

Leases of assets that transfer substantially all the risks and rewards of ownership to the Company are classified as finance leases.

Assets held under finance leases are recognized initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss.

Assets held under finance leases are included in tangible fixed assets and depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date.

Operating leases

Leases that do no transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the profit and loss account.

Provisions for liabilities

Provisions are recognised when the company has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance costs in profit or loss in the period it arises.

The company recognises a provision for annual leave accrued by employees for services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months, measured at the salary costs payable for the period of absence.

Interest bearing borrowings

Interest bearing borrowings, such as bank loans, are recognised initially at fair value less attributable transaction costs.

Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,751,729

2,570,628

Social security costs

335,074

261,237

Other pension costs

349,330

44,611

3,436,133

2,876,476

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

2025

2024

Productive

57

53

Administrative

18

16

75

69

5.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Director's remuneration

43,500

48,000

Director's pension contributions to money purchase schemes

60,000

-

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

-

1,911

Depreciation - owned assets

272,845

233,554

Profit on disposal of fixed assets

-

(7,920

)

Auditors' remuneration

13,250

13,600

Auditors' rem - non-audit -

other compliance (accounts &

tax)

10,671

6,627

Operating lease charges

148,893

194,962

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

2,028

57,397

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

166,500

84,800

Over / under provision of tax in a prior year

-

(86

)

Total current tax

166,500

84,714

Deferred tax

(37,000

)

34,000

Tax on profit

129,500

118,714

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

462,329

417,489

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

115,582

104,372

Effects of:

Expenses not deductible for tax purposes

2,409

4,949

Capital allowances in excess of depreciation

-

(24,491

)

Depreciation in excess of capital allowances

50,716

-

Utilisation of tax losses

(2,207

)

-

Adjustments to tax charge in respect of previous periods

-

(86

)

Difference between tax liability and tax provision

-

(30

)

Deferred tax

(37,000

)

34,000

Total tax charge

129,500

118,714

9.

DIVIDENDS

2025

2024

£

£

Interim

161,000

77,000

10.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

leasehold

machinery

fittings

£

£

£

COST

At 1 January 2025

2,152,035

210,225

362,044

Additions

-

19,285

41,671

At 31 December 2025

2,152,035

229,510

403,715

DEPRECIATION

At 1 January 2025

151,255

127,463

137,578

Charge for year

107,737

48,126

88,424

At 31 December 2025

258,992

175,589

226,002

NET BOOK VALUE

At 31 December 2025

1,893,043

53,921

177,713

At 31 December 2024

2,000,780

82,762

224,466

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2025

31,957

95,027

2,851,288

Additions

40,138

9,916

111,010

At 31 December 2025

72,095

104,943

2,962,298

DEPRECIATION

At 1 January 2025

11,290

82,273

509,859

Charge for year

17,443

11,115

272,845

At 31 December 2025

28,733

93,388

782,704

NET BOOK VALUE

At 31 December 2025

43,362

11,555

2,179,594

At 31 December 2024

20,667

12,754

2,341,429

11.

STOCKS

2025

2024

£

£

Vehicle Stock

5,998,626

3,142,858

Work-in-progress

18,601

30,089

Parts & Accessories

190,764

196,069

6,207,991

3,369,016

Vehicle rental stock equates to £803,750 at the year-end (2024: £nil).

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

201,559

185,542

Amounts owed by group undertakings

473,110

112,000

Other debtors

59,591

23,898

Prepayments and accrued income

167,223

102,040

901,483

423,480

Amounts owed by group are unsecured, interest free, and repayable on demand.

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts (see note 15)

67,128

38,880

Trade creditors

4,560,461

1,961,883

Tax

166,500

84,800

Social security and other taxes

11,175

15,240

VAT

178,373

22,455

Other creditors

357,618

326,331

Directors' current accounts

112,000

112,000

Accruals and deferred income

623,808

286,981

6,077,063

2,848,570