The director presents the strategic report for the year ended 31 December 2025.
The Bassetts Group is one of the leading motor dealer groups in South Wales, operating a network of dealerships representing Abarth, Chery, Citroën, Fiat, Honda, Jaecoo, Jeep, Nissan and Omoda. In addition to new and used vehicle sales, the Group provides comprehensive aftersales services including servicing, repairs, parts distribution and vehicle finance, supporting a loyal customer base across South Wales.
The Group has continued to adapt to the rapidly evolving automotive sector, with manufacturers introducing new vehicle brands and technologies alongside the continued transition towards electrified vehicles. Whilst economic uncertainty and inflationary pressures continued to influence consumer spending during the year, improving vehicle supply, the successful introduction of new franchise opportunities and continued operational focus enabled the Group to deliver a significant improvement in trading performance compared with the previous year.
Group revenue increased to £122.6 million, reflecting strong growth across both new and used vehicle sales together with the continued strength of the aftersales businesses. Gross profit increased to £11.6 million, representing a gross profit margin of 9.5%, driven by higher sales volumes, an improved sales mix, disciplined stock management and the continued contribution of the Group's servicing and parts operations.
Although the Group reported a profit before taxation of £100,377, the result includes a number of non-trading accounting adjustments recognised during the year. The directors consider that the underlying trading performance of the Group improved significantly during the year, reflecting the benefits of operational improvements implemented across the business, continued investment in its people and facilities, and the successful integration of new franchise opportunities.
The Group continues to invest in its dealership network, digital capability and customer experience whilst maintaining a disciplined approach to cost management and working capital. The directors remain committed to developing long-term relationships with manufacturers, customers and employees, recognising that these remain fundamental to the continued success of the business.
Looking ahead, the directors remain confident in the Group's long-term prospects. The breadth of the franchise portfolio, the strength of the Group's regional presence and its established aftersales operations provide a solid platform from which to respond to changing market conditions and capitalise on opportunities arising from the continued evolution of the automotive sector.
Key performance indicators
2025 2024
Revenue £122,587,483 £108,945,203
Gross profit £11,642,330 £9,905,214
Gross Profit % 9.5% 9.09%
Net Profit/(loss) £100,377 (£526,832)
Stakeholder engagement
Statement by the directors in performance of their statutory duties in accordance with Section 172(1) Companies Act 2006.
The board of directors consider that we have acted in good faith and have made decisions in the way that we believe would be most likely to promote the success of the company and its subsidiaries for the benefit of its members as a whole, noting the matters set out in Section 172(1)(a)-(f) of the Act. Our plans were intended to have a positive, beneficial impact on the company over the mid to long term and to contribute to its continued success in our delivery of a high quality of service across all of our retail, leasing and finance divisions. In order to facilitate this approach we have identified each of our key stakeholder groups, evaluated their interests and considered how we have engaged with and responded to each group during the year.
Employees
Our senior management and wider team members are critical to the delivery of our plan. We are fortunate in that we have a proven track record of finding, training and retaining an outstanding workforce, with the majority of both our Board and senior management team having been promoted from within. This ensures a continuity of delivery and an inherent understanding by the team of the company’s desire for excellence in all that we do. Our people wish to work for an organisation with a strong commitment to ethical practices and compliance, whilst knowing that their views are recognised and acted upon. We therefore endeavour to be a responsible employer in our approach to the pay and benefits our team members receive, while the health, safety and wellbeing of our team is a key consideration in how we operate. The Group has Regular Board meetings and Board communications with employees. There are regular team meetings and a full and comprehensive appraisal system for all staff members. We have developed over the years group values and policies in respect of workplace conduct to produce a supportive, respectful and friendly working environment. We invest heavily in learning & development to ensure that staff are equipped with the skills they need to do their roles. A rigorous Health, Safety and Environment policy is adopted to promote safe working practices as well as monitoring trends and making changes to procedures in response to those trends.
Customers
Customers have more choice now than ever before in terms of both who they purchase goods and services from and how these transactions are carried out. In order to ensure we continue to maintain and provide the trusted sales support that our customers have come to expect from our team we continually seek to improve our sales processes. We have therefore continued with our programme of training and development for all of our Sales Executives, to ensure they deliver a high quality experience for all customers on a consistent basis. Regular feedback is provided through customer satisfaction surveys or Franchise led ‘mystery shopper’ visits, and manufacturer assessments with such feedback contributing to continual improvements where opportunities arise. Complaints are closely monitored and remedial actions are taken quickly where appropriate to retain customer goodwill. Our aim is to develop a strong relationship with our customers over the long term and we understand that the nature in which our team provides balanced advice on both vehicle purchases and aftersales services is critical in retaining such relationships. Our good relationships with our Franchised brands also enable us to deliver value for our customers.
Funders and financial institutions
We are fortunate to enjoy strong, well established links with each of our funding partners and maintain these relationships through regular meetings and other communications. The provision of reliable, timely management information to each funder further enables these trusted partners to monitor our financial position, and provides comfort of the financial headroom available within the group at any time.
Suppliers
Engagement with our suppliers is also key to our success, and we seek to develop trusted long term, collaborative partnerships in order to facilitate improved performance, in particular with each of our Franchise manufacturers. Communications with all suppliers are intended to be prompt, clear and responsive. We meet with our key strategic suppliers, including our major manufacturing partners, regularly throughout the year and involving our senior management team within these meetings ensures that any issues or opportunities can be effectively considered in an open forum, while continuing to develop the relationship between us.
Shareholders
As the Board of Directors, our intention is to behave responsibly towards our shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plan.
Local community
Our plans and strategies further consider the impact of our operations on the community and environment, as well as our wider social responsibilities, and in particular how we comply with environmental legislation and react promptly to local community concerns. Our intention is to behave responsibly and to ensure that the management operate the business in a responsible manner, recognising the high standards of business conduct and good governance expected for a business such as ours. We will also seek to continue to offer high quality employment opportunities for local residents, and currently employ over 150 people across the regions. Our plans involve continuing to invest in our dealership property portfolio, ensuring all sites are well maintained and take advantage of improvements to energy consumption to reduce our environmental footprint. We also plan to continue to support local community causes through regular fundraising and charitable events. We would hope that this approach will nurture our reputation in the local communities in which we operate.
The principal risk facing Bassetts remains the wider economic and political environment and the overall strength of
the UK economy. Continued pressure from inflation, elevated interest rates and broader economic uncertainty may
impact consumer confidence and demand for both new and used vehicles.
According to the Society of Motor Manufacturers and Traders (SMMT), the UK new car market experienced modest
growth during 2025, with registrations exceeding two million units for the first time since before the pandemic.
Demand for electrified vehicles continued to increase, with approximately one in four new vehicles registered being
battery electric. However, the pace of adoption remains subject to consumer affordability, charging infrastructure
availability and evolving government policy under the Zero Emission Vehicle (ZEV) mandate.
While the transition to electrified vehicles and emerging automotive technologies continues to reshape the sector,
internal combustion engine vehicles still represent a significant proportion of the market. Legislative developments
relating to emissions and environmental targets will continue to influence manufacturer strategies and product
supply.
Despite these uncertainties, the used vehicle market has remained comparatively resilient and continues to
represent a significant opportunity for the Group. To mitigate economic risk and fluctuations in new vehicle demand,
the whole Group will continue to focus on its established used vehicle operations alongside its aftersales and servicing activities, which provide a stable and recurring revenue stream
Financial risk management objectives and policies
Bassetts operates a number of risk management policies designed to minimise its exposure to financial risk.
Liquidity and cash flow risk
Bassetts produces detailed monthly management accounts and forecasts, which enable the directors to monitor the cash position and ensure that there is sufficient liquidity and cash flow to minimise the risk of being unable to pay debts as they fall due.
Interest rate risk
Bassetts utilises a number of financial instruments including bank overdrafts and franchise vehicle stocking loans to finance its operations. The primary risk faced by the company of its use of these financial instruments is interest rate risk.
The bank overdraft borrowings at variable rates expose the company to cash flow interest rate risk, however the directors actively manage this risk by transferring funds between group company bank accounts in order to minimise use of overdraft facilities. The company does not currently seek to hedge any interest rate risk.
Credit risk
The company operates a number of policies to minimise credit risk. All customers are subject to a detailed credit review prior to any terms being agreed. Directors must authorise any larger value loans and the company will only conduct business with customers deemed to be credit worthy.
Price risk
The company operates in a highly competitive market. Significant product innovations, technical advances or the intensification of price competition could adversely affect the results of the company. Bassetts invests in significant training of its staff to ensure that the company is well placed to provide a choice for customers, to ensure that they are aware of their options and are satisfied with the level of service we provide. Bassetts also continually works to streamline its cost base to ensure that it remains competitive.
Climate legislation risk
The potential impact of climate change and the associated future legislation on our business is a concern. As outlined in the directors’ report under our streamlined energy and carbon report, the business is proactively investing in the future and exploring ways to adapt to the changing landscape.
Electric vehicle adoption risk
The shift towards electric and hybrid vehicles is continuing to gain political traction, which could hasten its pace and potentially disrupt the traditional business model. We maintain a close partnership with our manufacturing partners, granting us access to these vehicles and enabling us to support our customer base, which currently owns or is considering purchasing electric or hybrid vehicles. We are investing in our staff to upskill them and meet the new requirements for assisting customers after their purchases.
On behalf of the board
The director presents her annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 11.
Ordinary dividends were paid amounting to £41,000. The director does not recommend payment of a further dividend.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
The Group meets its day to day working capital requirements from its cash reserves and overdraft facilities. At the date of signing all divisions are reporting sales in line with expected budgeted levels. The Group's forecasts and projections show that the company will be able to comfortably operate within those facilities.
The directors have also analysed the cash flow requirements for various scenarios with the current increasing cost of living issues. The directors have a reasonable expectation that with the continued support of its bankers and funders in the form of facility levels which it has historically been provided with, in the scenarios reviewed the company will be able to continue to operate within those facilities. However, the extent of reduced consumer spending is unclear and it is difficult to evaluate all the potential implications on the company’s trade, customers, suppliers and the wider economy.
At the time of approving the financial statements, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The Group will continue to focus on sustained profitability and growth.
Employment policy
Bassetts recognises the importance of maintaining a high quality, motivated workforce and is committed to employee involvement throughout the company.
Employees are encouraged to discuss with management any matters which they are concerned about or that affect the company. Additionally, the Board takes account of employees' interests when making decisions, and they are kept informed of the company's performance and objectives through regular briefings and meetings.
It is the company's policy to encourage career development for all employees to help achieve job satisfaction while increasing personal motivation.
Further details in relation to employee and other stakeholder engagements is provided in the Strategic Report in accordance with Section 172(1) Companies Act 2006.
This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 January 2025 to 31 December 2025, pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government’s Streamlined Energy and Carbon Reporting (SECR) policy.
Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)’, using DESNZ's 2025 conversion factors. This provides a like-for-like basis on which the year-on-year movement reflects genuine changes in consumption rather than annual revisions to the underlying emission factors. The whole estate has been reviewed prior to data collection, considering changes and potential data sources for the most accurate data available. In some cases, consumption has been extrapolated from available data or direct comparison made to a comparable period. Records of all source data and extrapolations have been maintained and are outlined within backing data on a supply-by-supply basis.
We report using a financial control approach to define our organisational boundary, the companies included within this report are: Bassett Property Holdings Limited, Arthur Basset & Co Limited, Bassetts (Wales) Limited and Bassetts (South Wales) Limited. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.
The table above includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover, the recommended ratio for the sector.
The Group recognises the importance of its environmental responsibilities and accepts that concern for the environment and all employees is an integral and fundamental part of its corporate business strategy. The Group has been committed to reducing its environmental impact by implementing a range of environmental initiatives across its business. These initiatives have been focused on managing, reducing, creating/recycling, and offsetting the group's material consumption, energy usage, and CO2 footprint. Initiatives include the centralised measuring of energy consumption data, replacing energy inefficient assets with low energy consuming ones, introduced paperless solutions to reduce paper and printing across the business, improving efficiency and reducing costs while also reducing our environmental impact.
Redwood Wales Limited will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
We have audited the financial statements of Bassett Property Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
As explained more fully in the director's responsibilities statement, 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 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 director is responsible for assessing the group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or parent company or to cease operations, or has no realistic alternative but to do so.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtain an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on operations of the company. The key laws and regulations we consider in this context include the UK Companies Act and relevant tax legislation.
Audit procedures performed by the engagement team to resined to the risk of irregularities and non-compliance with laws and regulations, including fraud, include the following:
discussions with management to enquire of any known instances of non-compliance with laws and regulations,including fraud;
discussions with management in respect of any actual or potential litigation claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
testing the appropriateness of journal enteries and other adjustments to address the risks of fraud through management override of control;
review of accounting estimates and challenging assumptions made by management in respect of significant estimates;
review of the financial statements disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations; and
evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business
There are inherent limitations in the audit procedures which means we are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the 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.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £600,067 (2024 - £112,443 profit).
Bassett Property Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .
The group consists of Bassett Property Holdings Ltd and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Bassett Property Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The financial statements have been prepared on a going concern basis which assumes that the group will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.
The group meets its day to day working capital requirements from its cash reserves and overdraft facilities, the group's forecasts and projections show that the company will be able to comfortably operate within those facilities.
The directors have a reasonable expectation that with the continued support of its bankers and funders in the form of facility levels which it has historically been provided with, in the scenarios reviewed the group will be able to continue to operate within those facilities. At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on supply of vehicles and parts or when mechanical services have been completed), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The Group holds significant inventories of new and used motor vehicles. The directors exercise judgement in determining whether inventories are stated at the lower of cost and net realisable value by considering recent selling prices, vehicle age, manufacturer support, market conditions and expected costs to sell. Stock provisions are reviewed at each reporting date and adjusted where appropriate.
Inventory provisions
The calculation of inventory provisions requires estimates of future selling prices, expected disposal costs and the timing of sales. Actual outcomes may differ from those estimates.
Recoverability of manufacturer receivables
The Group recognises amounts receivable from vehicle manufacturers in respect of volume incentives, marketing support and other contractual arrangements. Judgement is exercised in assessing the amounts recoverable at the reporting date based on the terms of the relevant agreements and expected settlement.
Accrued manufacturer income
Certain manufacturer incentives are recognised before settlement based on contractual arrangements and performance achieved at the reporting date. Estimation is required in determining the amount earned where final settlement has not yet been agreed.
Recoverability of trade receivables
The directors review trade receivables for indicators of impairment and make provision where recovery is considered doubtful, taking account of customer circumstances, payment history and subsequent cash receipts.
The Group owns a portfolio of freehold and leasehold properties that are carried at professional valuation. In determining the depreciation policy for these properties, the directors exercise judgement in assessing the useful economic lives and residual values of the buildings.
Having considered the most recent independent professional valuations together with the nature, condition and expected future value of the properties, the directors consider that the estimated residual values of the buildings are not materially different from their carrying amounts. Accordingly, any depreciation charge would not be material to the financial statements.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
Freehold and leasehold land and buildings were revalued at 31 December 2021 by Lambert Smith Hampton, independent valuers not connected with the company on the basis of market value. Included within leasehold land and buildings are investment properties where the valuation at 31 December 2021 has remained unchanged. The directors have considered the carrying values and do not consider them to be materially different to market value.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Subsidiaries
Arthur Bassett & Co Limited
Registered office: c/o Bassetts Honda Ltd, Valley Way, Enterprise Park, Swansea. SA6 8QX
Nature of business: Motor Dealer
%
Class of shares: holding
Ordinary 100.00
Bassetts (South Wales) Limited
Registered office: c/o Bassetts Honda Ltd, Valley Way, Enterprise Park, Swansea. SA6 8QX
Nature of business: Motor Dealer
%
Class of shares: holding
Ordinary 100.00
Bassetts (Wales) Limited
Registered office: c/o Bassetts Honda Ltd, Valley Way, Enterprise Park, Swansea. SA6 8QX
Nature of business: Motor Dealer
%
Class of shares: holding
Ordinary 100.00
Details of the company's subsidiaries at 31 December 2025 are as follows:
Included in stock is consignment stock of £900,068 (2024:£1,049,357).
Other creditors included consignment stock of £900,068 (2024:£1,049,357).
Bank overdrafts are secured by fixed and floating charges over assets of the company.
PSA Wholesale Limited hold a legal charge in respect of liabilities included in Other loans amounted to £1,800,000 (2024: £1,800,000) which are secured against the property held at Atlantic Close, Swansea. Interest on the loan is 3.3% and has flexible repayment terms.
The following are the major deferred tax liabilities and assets recognised by the group and company:
The deferred tax liability set out above is expected to reverse over the useful life of the assets or gain realisation, and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.