REGISTERED NUMBER: 00553972 (England and Wales)

R.T. RATE LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Page

Company Information

1

Chairman's Report

2

Strategic Report

4

Report of the Directors

7

Report of the Independent Auditors

9

Statement of Income and Retained Earnings

13

Statement of Financial Position

15

Statement of Cash Flows

16

Notes to the Statement of Cash Flows

17

Notes to the Financial Statements

19

DIRECTORS:

S.J. Rate

L. Padbury-Clark

K F Campbell

REGISTERED OFFICE:

Rates Ford

Hogg Lane

Grays

Essex

RM17 5QL

REGISTERED NUMBER:

00553972 (England and Wales)

AUDITORS:

CR Bland Baker Ltd

Chartered Certified Accountants and

Statutory Auditors

21 Lodge Lane

Grays

Essex

RM17 5RY

Firstly, I would like to thank everyone at Rates Ford for their continued hard work, commitment and professionalism throughout 2025. Following what was an exceptionally challenging period for both the business and the wider motor industry, it is pleasing to report that the company has returned to profitability during the year. Whilst the profit achieved is modest, it represents an important milestone and demonstrates the resilience of the business and the dedication of our staff.

The automotive sector continues to face a period of significant change. Consumer confidence, interest rates, vehicle supply, used vehicle values, parts availability and the ongoing transition towards battery electric vehicles continue to create challenges across the industry. However, compared with the uncertainty experienced in previous years, the market has shown signs of stabilisation, allowing businesses such as ours to focus on rebuilding performance and capitalising on opportunities as they arise.

The industry transition from conventional combustion engine vehicles to battery electric vehicles will continue to take time, patience and a consumer market that has confidence in both the product and the supporting national infrastructure. Rates Ford remains committed to adapting to these changes in a measured and commercially sensible way.

One of the key strengths of Rates Ford continues to be its aftersales operation. As some customers choose to maintain and repair existing vehicles rather than replace them, our service, parts and workshop teams have continued to perform strongly. Investments in process improvements, staff development and facilities have helped enhance the customer experience whilst improving operational efficiency across the business.

Throughout 2025, the company has also continued to invest in its future through the development of its commercial vehicle offering and improvements to workshop facilities and operational processes. These investments are intended to ensure that Rates Ford remains well positioned to meet changing customer expectations, whilst creating a modern and efficient working environment for our staff.

The year was nevertheless overshadowed by the very sad passing of our former Chairman, Colin Rate. Colin dedicated his life to Rates Ford and was instrumental in building the company into the respected and successful business it is today. His leadership, vision and unwavering commitment to customers, staff and the wider community shaped the culture and values that remain at the heart of the company.

Colin's passing has been deeply felt by everyone associated with the business, following the well-deserved recognition he received from Ford Motor Company in 2024 through its inaugural Lifetime Achievement Award. We remain extremely grateful for his enormous contribution and will continue to build upon the strong foundations he created over many decades.

The return to profitability during 2025 reflects the effectiveness of the actions taken by management and staff to address the challenges encountered across the sector. Strong leadership, careful cost management and a continued focus on customer service have all contributed to the improved financial performance. While the profit achieved was modest, the turnaround from the previous year is a credit to everyone at Rates Ford.

The past few years have demonstrated the strength, adaptability and determination of our people. We have learned valuable lessons, strengthened many areas of the business and reinforced the importance of the relationships we enjoy with our customers, staff, suppliers and manufacturer partners.

Looking ahead, the Board remains positive about the prospects for Rates Ford. The actions implemented over the past two years have strengthened the business, improved operational efficiency and positioned the company to take advantage of opportunities as market conditions continue to stabilise.

Continued investment in our people, facilities and customer experience, together with the strength of our aftersales operations and growing commercial vehicle activities, provides a solid platform for future growth. Although challenges remain within the wider automotive sector, Rates Ford enters 2026 with renewed confidence, a dedicated and experienced team and a clear strategy for building upon the progress achieved during 2025.

The Board is encouraged by the return to profitability achieved during the year and believes the business is now better placed to deliver further sustainable progress. Our focus remains on providing excellent customer service, supporting our staff, maintaining sound commercial discipline and honouring the legacy of Colin Rate by continuing to develop a business of which he would be proud.

............................................

S.J.Rate - Chairman

Date: 2 September 2026

REVIEW OF BUSINESS

The UK automotive retail sector continued to operate in a challenging but improving environment during 2025. Market conditions showed signs of recovery compared with recent years, although dealerships continued to face the combined effects of inflationary pressures, higher employment costs, changing consumer behaviour, evolving regulatory requirements and the ongoing transition towards electrified vehicles.

Against this backdrop, the company's performance improved significantly during the year, and the company returned to profitability. Whilst profitability remained modest, the Directors are encouraged by the progress achieved and believe this reflects the effectiveness of measures implemented to improve operational efficiency, strengthen cost controls, enhance customer service and manage working capital more effectively.

During the year, a matter arose which remains subject to ongoing review by the company's professional advisers. The Directors have considered the implications of this matter for the financial statements and have included an appropriate contingent liability disclosure within the notes to the accounts.

Ford remained one of the United Kingdom's leading automotive brands throughout the period and continued to hold a strong position within both the passenger vehicle and commercial vehicle markets. The Directors believe that the strength of the Ford franchise, together with the Company's long-established customer relationships, strong aftersales operations and reputation within its local market, continues to provide a solid platform for future growth and development.

The used vehicle operation remains an important contributor to profitability and cash generation. The Directors continue to place significant emphasis on disciplined stock purchasing, effective inventory management and maintaining appropriate vehicle preparation standards.

Aftersales operations, including servicing, repairs, MOT testing, warranty work and parts sales, continued to provide a stable source of revenue and profitability. The ageing UK vehicle parc, together with increasing vehicle complexity and longer vehicle ownership cycles, continues to support demand for professional servicing and repair services. The Directors therefore continue to regard the aftersales operation as a key component of the Company's long-term strategy and future resilience.

The Directors remain focused on maintaining a balanced business model across new vehicle sales, used vehicle sales and aftersales operations, providing diversification of revenue streams and reducing reliance on any single area of activity.

Key Performance Indicators

The Directors monitor the performance of the business using a range of financial and operational indicators, including:

- Profitability and operating margins.

- New and used vehicle sales volumes.

- Aftersales turnover and workshop utilisation.

- Gross profit performance by department.

- Working capital and cash flow management.

- Vehicle stock turn and inventory levels.

- Customer satisfaction and retention.

- Compliance with manufacturer and regulatory requirements.

The Directors are encouraged by the Company's return to profitability during the year and continue to monitor these indicators closely.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company operates within a sector that is subject to a range of commercial, economic and regulatory risks. The principal risks and uncertainties facing the business are outlined below.

Liquidity Risk

The automotive retail sector remains capital intensive and requires significant investment in vehicle inventories, parts stocks, facilities, technology and personnel.

The principal liquidity risks affecting the Company include:

- Changes in interest rates affecting borrowing and stocking finance costs.

- Working capital requirements associated with vehicle inventory management.

- Margin pressures arising from competitive market conditions.

- Investment requirements in facilities, technology and staff training.

- Rising employment, property and operating costs.

- General economic uncertainty affecting customer demand.

Mitigation

The Directors maintain a prudent approach to cash and working capital management. Cash flow forecasts are reviewed regularly, inventory levels are actively monitored and funding facilities are maintained to provide operational flexibility. The Company continues to focus on efficient stock management and cost control to preserve liquidity and financial resilience.

Economic Risk

The Company remains exposed to wider economic conditions which influence consumer confidence and vehicle affordability.

FUTURE DEVELOPMENTS AND OUTLOOK

The Directors enter 2026 with cautious optimism.

The Company returned to profitability during 2025 and continues to benefit from improvements made to operational processes, cost management and customer service. The Directors believe the business is increasingly well positioned to benefit from stabilising market conditions whilst maintaining a prudent approach to cost control and working capital management.

Whilst the sector continues to face challenges arising from regulatory change, competitive pressures, evolving consumer behaviour and the transition towards electrified vehicles, the Directors expect opportunities to arise from improving market confidence, stronger vehicle availability and continued growth in aftersales activity.

The Company's strategy remains focused on:

- Maintaining sustainable profitability.

- Strengthening cash flow and working capital management.

- Growing aftersales revenues and customer retention.

- Maintaining disciplined stock management.

- Investing appropriately in facilities, systems and staff development.

- Enhancing electric vehicle capability and readiness.

- Delivering excellent customer service.

- Adapting proactively to future regulatory and market developments.

The Directors believe that the strength of the Ford franchise, together with the Company's established customer relationships, experienced workforce, diversified revenue streams and strong aftersales operation, position the business well to respond to future opportunities and challenges.

GOING CONCERN

Since the balance sheet date, the company has continued to manage cashflows and has been able to meet its financial obligations as they become due. The directors have reasonable grounds to assume that this will not change in the future and as such the directors continue to adopt the going concern basis of preparation of the financial statements.

ON BEHALF OF THE BOARD:

S.J. Rate - Director

2 September 2026

The directors present their 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 a Ford main dealership, including new and used car sales, parts sales and servicing.

DIVIDENDS

Dividends voted in the year ended 31 December 2025 were £196,140 (2024 - £85,950).

DIRECTORS

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

S.J. Rate

L. Padbury-Clark

Other changes in directors holding office are as follows:

C.J. Rate - deceased 5 November 2025

K F Campbell was appointed as a director after 31 December 2025 but prior to the date of this report.

Mrs C.A.M. Rate ceased to be a director after 31 December 2025 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director 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.

AUDITORS

The auditors, CR Bland Baker Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S.J. Rate - Director

2 September 2026

Opinion

We have audited the financial statements of R.T. Rate Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 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.

Emphasis of matter

We draw attention to note 24 to the financial statements concerning a contingent liability arising from certain finance transactions in respect of which it acted as an intermediary. The directors have concluded that no provision is required at the reporting date. The ultimate outcome of the litigation remains uncertain and may differ from management's current assessment. Our opinion is not modified in respect of this matter.

Other information

The directors are responsible for the other information. The other information comprises the information in the Annual Report, 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 Directors 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 Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 Directors.

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

-	adequate accounting records have not been kept, 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.

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the 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.

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:

- We have reviewed whether there were areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by auditing standards).

- We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

- With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the officers.

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

- We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

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.

Steven James Garrod (Senior Statutory Auditor)

for and on behalf of CR Bland Baker Ltd

Chartered Certified Accountants and

Statutory Auditors

21 Lodge Lane

Grays

Essex

RM17 5RY

2 September 2026

TURNOVER

3

73,495,416

-

73,495,416

Cost of sales

(71,242,976

)

-

(71,242,976

)

GROSS PROFIT

2,252,440

-

2,252,440

Administrative expenses

(2,199,816

)

-

(2,199,816

)

52,624

-

52,624

Other operating income

4

35,435

-

35,435

OPERATING PROFIT

6

88,059

-

88,059

Income from fixed asset investments

1,725

-

1,725

Interest receivable and similar income

3,486

-

3,486

Gain/loss on revaluation of assets

24,991

-

24,991

Interest payable and similar expenses

7

(78,998

)

-

(78,998

)

PROFIT BEFORE TAXATION

39,263

-

39,263

Tax on profit

8

(2,600

)

-

(2,600

)

PROFIT FOR THE FINANCIAL YEAR

36,663

-

36,663

Retained earnings at beginning of year

5,723,102

Dividends on equity shares

9

(196,140

)

RETAINED EARNINGS AT END OF YEAR

5,563,625

TURNOVER

3

70,745,559

3,282,295

74,027,854

Cost of sales

(69,786,858

)

(3,173,923

)

(72,960,781

)

GROSS PROFIT

958,701

108,372

1,067,073

Administrative expenses

(1,974,409

)

(406,225

)

(2,380,634

)

(1,015,708

)

(297,853

)

(1,313,561

)

Other operating income

4

41,811

-

41,811

OPERATING LOSS

6

(973,897

)

(297,853

)

(1,271,750

)

Income from fixed asset investments

1,542

-

1,542

Interest receivable and similar income

5,915

-

5,915

Gain/loss on revaluation of assets

4,942

-

4,942

Interest payable and similar expenses

7

(97,730

)

-

(97,730

)

LOSS BEFORE TAXATION

(1,059,228

)

(297,853

)

(1,357,081

)

Tax on loss

8

101,981

-

101,981

LOSS FOR THE FINANCIAL YEAR

(957,247

)

(297,853

)

(1,255,100

)

Retained earnings at beginning of year

7,064,152

Dividends on equity shares

9

(85,950

)

RETAINED EARNINGS AT END OF YEAR

5,723,102

FIXED ASSETS

Tangible assets

10

4,017,684

3,770,214

Investments

11

1,348

1,348

4,019,032

3,771,562

CURRENT ASSETS

Stocks

12

6,599,244

9,474,480

Debtors

13

1,687,263

1,270,368

Investments

14

70,048

45,057

Cash at bank

13,813

45,507

8,370,368

10,835,412

CREDITORS

Amounts falling due within one year

15

5,453,976

7,377,401

NET CURRENT ASSETS

2,916,392

3,458,011

TOTAL ASSETS LESS CURRENT LIABILITIES

6,935,424

7,229,573

CREDITORS

Amounts falling due after more than one year

16

1,145,999

1,280,671

NET ASSETS

5,789,425

5,948,902

CAPITAL AND RESERVES

Called up share capital

20

6,666

6,666

Share premium

21

290

290

Revaluation reserve - fixed

assets

21

215,511

215,511

Capital redemption reserve

21

3,333

3,333

Retained earnings

21

5,563,625

5,723,102

SHAREHOLDERS' FUNDS

5,789,425

5,948,902

The financial statements were approved by the Board of Directors and authorised for issue on 2 September 2026 and were signed on its behalf by:

S.J. Rate - Director

Cash flows from operating activities

Cash generated from operations

1

432,332

834,916

Interest paid

(78,998

)

(97,730

)

Tax paid

-

104,381

Net cash from operating activities

353,334

841,567

Cash flows from investing activities

Purchase of tangible fixed assets

(426,722

)

(108,540

)

Purchase of current asset investments

-

(8,662

)

Sale of tangible fixed assets

12,428

20,530

Sale of current asset investments

-

8,180

Interest received

3,486

5,915

Dividends received

1,725

1,542

Net cash from investing activities

(409,083

)

(81,035

)

Cash flows from financing activities

New loans in year

332,401

-

Loan repaid in year

(124,624

)

(488,620

)

Amount withdrawn by directors

(1,095

)

(66,653

)

Equity dividends paid

(196,140

)

(85,950

)

Net cash from financing activities

10,542

(641,223

)

(Decrease)/increase in cash and cash equivalents

(45,207

)

119,309

Cash and cash equivalents at beginning of year

2

(74,072

)

(193,381

)

Cash and cash equivalents at end of year

2

(119,279

)

(74,072

)

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

39,263

(1,357,081

)

Depreciation charges

165,105

176,732

Loss on disposal of fixed assets

1,718

169,801

Gain on revaluation of fixed assets

(24,991

)

(4,942

)

Finance costs

78,998

97,730

Finance income

(5,211

)

(7,457

)

254,882

(925,217

)

Decrease/(increase) in stocks

2,875,236

(458,347

)

(Increase)/decrease in trade and other debtors

(416,653

)

491,539

(Decrease)/increase in trade and other creditors

(2,281,133

)

1,726,941

Cash generated from operations

432,332

834,916

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

13,813

45,507

Bank overdrafts

(133,092

)

(119,579

)

(119,279

)

(74,072

)

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

45,507

46,431

Bank overdrafts

(119,579

)

(239,812

)

(74,072

)

(193,381

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

45,507

(31,694

)

13,813

Bank overdrafts

(119,579

)

(13,513

)

(133,092

)

(74,072

)

(45,207

)

(119,279

)

Liquid resources

Current asset investments

45,057

24,991

70,048

45,057

24,991

70,048

Debt

Debts falling due within 1 year

(1,082,424

)

(342,448

)

(1,424,872

)

Debts falling due after 1 year

(1,280,671

)

134,672

(1,145,999

)

(2,363,095

)

(207,776

)

(2,570,871

)

Total

(2,392,110

)

(227,992

)

(2,620,102

)

1.	STATUTORY INFORMATION

R.T. Rate 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.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, where the revision affects only that period, or in the period of the revision and future periods where the revision affects both the current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Stock provisions

New vehicle consignment inventory is held at consignment value, where financial risks are borne by the company. Due to the nature of consignment stock, items of this class can be removed by the dealer at any time and therefore no longer become an asset of the company.

Used vehicle inventory is a depreciating stock item and devalues monthly, making the estimated stock vale uncertain.

Consideration of the above factors have been given by the directors for any level of provisions against vehicle stock values. In determining the provisions required, the directors have used guidance from independent valuation tools and their knowledge of the industry.