REGISTERED NUMBER: 01022321 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

FOR

K J SHORTIS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Income and Retained Earnings

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

Mr R J Shortis

Mr C J Shortis

SECRETARY:

Mr S P Allman

REGISTERED OFFICE:

Salhouse Road

Norwich

Norfolk

NR7 9AH

REGISTERED NUMBER:

01022321 (England and Wales)

SENIOR STATUTORY AUDITOR:

I A Barlow

AUDITORS:

Sexty & Co

Chartered Certified Accountants

& Statutory Auditor

124 Thorpe Road

Norwich

Norfolk

NR1 1RS

BANKERS:

Lloyds Bank Plc

16 Gentleman's Walk

Norwich

Norfolk

NR2 1LZ

SOLICITORS:

Howes Percival

Flint Buildings

1 Bedding Lane

Norwich

Norfolk

NR3 1RG

The directors present their strategic report of the company and the group for the year ended 31 January 2026.

CHAIRMAN'S REPORT

The principal activity of the company during the year was the renting of commercial units to group subsidiaries.

FAIR REVIEW OF THE BUSINESS INCLUDING PRINCIPAL RISKS AND UNCERTAINTIES

The Group has had a strong increase in turnover over the past year partly due to new branches opening and a modest increase in sales in real terms. We continue working hard to improve the margin. During the year the Group was hit with massive increases in the living wage and employers national insurance forced upon us by the Labour Government, which affected the bottom line with additional wage cost of £1.4m.

With the average vehicle age being 9.7 years in the UK, although in East Anglia it is almost 12 years this is good for us, that means drivers are keeping their car for longer and getting them serviced or repaired at independent garages, who are our customers, rather than main dealers.

The Group has actively been looking to improve margin where possible as well as trying to improve processes with technology. More electric vans have been added to the fleet and where possible branches have been fitted with solar panels to power them.

The current financial year has had uncertainty due to ongoing conflict in the Middle East. This is affecting one of our main product groups that we sell, oil. Thanks to our good relationships established over many years with suppliers and strong financial position, we were able to bulk buy stock in advance to maintain supply. Also the cost of fuel for our own vehicles has massively increased, which comes straight off the bottom line, as we are unable to put a fuel surcharge on our deliveries.

Further changes of Labour Government and Prime Minister could upset the UK market.

Business risks:

The UK Aftermarket, has been in a state of flux for the past few years, with mergers and formations of new buying groups has settled down temporarily. However independent businesses have been more active with expansion, partly due to lower interest rates. There will be opportunities and when the right opportunities arise, the group can take advantage of these opportunities, due to its strong financial position. The company can afford and hold stocks when suitable deals become available via our good supplier and customer relationships.

Competition:

The UK Aftermarket is a highly competitive marketplace, we have always prided ourselves on being family owned and family run, as well as being totally independent and not members to any buying groups. This allows us to differentiate ourselves from the competition, which we know our customers value. The Company manages this by continually assessing, reviewing and developing suitable systems and practises to ensure quality of service to maintain good customer relationships and competitive pricing.

Regulatory compliance risk:

The Company is subject to various laws and regulations set by local authorities and the Health and Safety Executive. The directors ensure that they are up to date and comply with all relevant areas of legislation to mitigate the risk of fines or other disciplinary actions.

Financial risk management:

The directors continually monitor the performance of the group, trade debtors, stock levels and stock movements to minimise the financial risk of the business. In addition, the Company ensures adequate financing facilities are in place to meet the requirements of the business, along with the strong financed strength of the group companies.

Financial key performance indicators:

The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the Company and the Group as a whole, these being turnover, operating profit, profit after tax and shareholders' funds.

31 January 2026

31 January 2025

£'000

£'000

Turnover

59,380

56,991

Operating profit

1,428

2,151

Profit after tax

1,592

2,216

Shareholders' funds

50,220

49,378

Turnover has increased by £2,389,682 in the year.

Operating profit has decreased by £724,969 in the year.

Profit after tax has decreased by £624,196 in the year.

Shareholders’ funds have increased by £842,122 in the year.

The directors are very pleased with the results of the past year; however, the current year is very testing. Inflationary costs are increasing the cost of wages, with fuel and heating being highest. As with most industries, being able to recruit staff has been the biggest problem. We are fortunate that we have loyal key staff to drive the group forward, to assist the group in continuing to reinvest and expand the business.

SECTION 172(1) STATEMENT

The directors consider that their decisions made during the year have satisfied the requirements of s172(1) of the Companies Act 2006 to act in a manner that they consider, in good faith, promotes the success of the group for the benefit of the members and stakeholders.

ON BEHALF OF THE BOARD:

Mr R J Shortis - Director

30 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 January 2026.

DIVIDENDS

An interim dividend of £0.30 per share was paid in the year.

DIRECTORS

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

Mr R J Shortis

Mr C J Shortis

Other changes in directors holding office are as follows:

Mrs V C Shortis - deceased 5 March 2025

EMPLOYEES

Provision of information

During the year the Group has continued its policy of managers holding regular briefing and dissemination meetings, to provide information and the opportunity for questions and discussions.

Equal opportunities

The Group is committed to providing equal opportunities to all employees irrespective of sex, marital status, creed, colour, race, ethnic origin or disability. The Group will continue to review and monitor this policy in order to ensure its application complies with relevant legislation and codes of practice.

Future Developments

Narrative for future developments is included within the strategic report.

GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION & ENERGY EFFICIENCY

The company's energy consumption for the year was less than 40,000 KWh. The greenhouse gas emissions, energy consumption and energy efficiency disclosures are not given for this reason, in accordance with schedule 7 part 7A of the Large and Medium-sized Companies and Groups (Accounts and Reports) regulations 2008.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The directors have regarded the need to foster the Company's business relationships with suppliers, customers and others. We have built and maintained long standing business relationships with our suppliers and customers. We continue to consider the needs of our suppliers, customers and others with regards to the principle business decisions made throughout the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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). 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Sexty & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr R J Shortis - Director

30 July 2026

Opinion

We have audited the financial statements of K J Shortis Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2026 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 January 2026 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We have made enquiries with management regarding their procedures for complying with laws and regulations along with detecting and preventing fraud. We also review minutes of meetings and any published news articles to identify any instances of non-compliance with laws and regulations.

- Evidence has been obtained where applicable. Written representation has been obtained to confirm there have been no breaches of laws and regulations.

- The audit procedures are designed so that with reasonable assurance, material misstatements can be detected, including those relating to fraud. Specifically, areas which involve provisions or estimations have been tested where material.

- We consider our approach to be reasonable for this entity.

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.

I A Barlow (Senior Statutory Auditor)

for and on behalf of Sexty & Co

Chartered Certified Accountants

& Statutory Auditor

124 Thorpe Road

Norwich

Norfolk

NR1 1RS

30 July 2026

TURNOVER

59,380

56,991

Cost of sales

28,253

27,664

GROSS PROFIT

31,127

29,327

Administrative expenses

29,699

27,176

OPERATING PROFIT

5

1,428

2,151

Interest receivable and similar income

814

943

PROFIT BEFORE TAXATION

2,242

3,094

Tax on profit

7

650

878

PROFIT FOR THE FINANCIAL YEAR

1,592

2,216

Retained earnings at beginning of year

48,746

47,344

Dividends

9

(750

)

(814

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

49,588

48,746

Profit attributable to:

Owners of the parent

1,592

2,216

FIXED ASSETS

Intangible assets

10

1,577

1,756

Tangible assets

11

21,860

22,236

Investments

12

-

-

23,437

23,992

CURRENT ASSETS

Stocks

13

9,614

8,841

Debtors: amounts falling due within one year

14

3,415

3,238

Debtors: amounts falling due after more than one year

14

500

500

Cash at bank and in hand

21,213

20,707

34,742

33,286

CREDITORS

Amounts falling due within one year

15

7,361

7,264

NET CURRENT ASSETS

27,381

26,022

TOTAL ASSETS LESS CURRENT LIABILITIES

50,818

50,014

PROVISIONS FOR LIABILITIES

17

598

636

NET ASSETS

50,220

49,378

CAPITAL AND RESERVES

Called up share capital

18

247

247

Revaluation reserve

19

385

385

Retained earnings

19

49,588

48,746

SHAREHOLDERS' FUNDS

50,220

49,378

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2026 and were signed on its behalf by:

Mr R J Shortis - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

18,073

18,221

Investments

12

257

257

18,330

18,478

CURRENT ASSETS

Debtors: amounts falling due within one year

14

163

264

Debtors: amounts falling due after more than one year

14

500

500

Cash at bank

20,111

19,819

20,774

20,583

CREDITORS

Amounts falling due within one year

15

10,325

10,543

NET CURRENT ASSETS

10,449

10,040

TOTAL ASSETS LESS CURRENT LIABILITIES

28,779

28,518

PROVISIONS FOR LIABILITIES

17

89

89

NET ASSETS

28,690

28,429

CAPITAL AND RESERVES

Called up share capital

18

247

247

Revaluation reserve

19

241

241

Retained earnings

19

28,202

27,941

SHAREHOLDERS' FUNDS

28,690

28,429

Company's profit for the financial year

1,011

1,287

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2026 and were signed on its behalf by:

Mr R J Shortis - Director

Cash flows from operating activities

Cash generated from operations

1

1,981

2,572

Tax paid

(800

)

(812

)

Net cash from operating activities

1,181

1,760

Cash flows from investing activities

Purchase of tangible fixed assets

(825

)

(3,853

)

Sale of tangible fixed assets

87

228

Interest received

814

943

Net cash from investing activities

76

(2,682

)

Cash flows from financing activities

Equity dividends paid

(750

)

(814

)

Net cash from financing activities

(750

)

(814

)

Increase/(decrease) in cash and cash equivalents

507

(1,736

)

Cash and cash equivalents at beginning of year

2

20,707

22,443

Cash and cash equivalents at end of year

2

21,213

20,707

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2026

2025

£'000

£'000

Profit before taxation

2,242

3,094

Depreciation charges

1,350

1,267

Profit on disposal of fixed assets

(57

)

(170

)

Finance income

(814

)

(943

)

2,721

3,248

Increase in stocks

(773

)

(77

)

Increase in trade and other debtors

(177

)

(577

)

Increase/(decrease) in trade and other creditors

210

(22

)

Cash generated from operations

1,981

2,572

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 January 2026

31.1.26

1.2.25

£'000

£'000

Cash and cash equivalents

21,213

20,707

Year ended 31 January 2025

31.1.25

1.2.24

£'000

£'000

Cash and cash equivalents

20,707

22,443

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.2.25

Cash flow

At 31.1.26

£'000

£'000

£'000

Net cash

Cash at bank and in hand

20,707

506

21,213

20,707

506

21,213

Total

20,707

506

21,213

1.	STATUTORY INFORMATION

K J Shortis 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 (£) rounded to nearest thousand £.

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 financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

The group financial statements consolidate the financial statements of the company and all subsidiaries for the financial period using acquisition accounting.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax.

Goodwill

Goodwill represents the excess of cost of acquisition over the fair value of the separable net assets of businesses acquired. Goodwill is amortised through the profit and loss account in equal instalments over its estimated useful life of 10 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold buildings

2% straight line basis

Leasehold property

Over the term of the lease

Fixtures, fittings, office equipment, plant and machinery

10-50% straight line basis

Motor vehicles

25% straight line basis

Stocks

Stocks are stated at the lower of cost and net realisable value using the average cost method, after making due allowances for obsolete and slow moving items.

Cost comprises the average cost of all purchases.

To reflect market conditions and in accordance with good accounting practice all rebates have been taken into account.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The parent company operates a money purchase scheme for directors. The assets of the scheme are invested and managed independently of the finances of the group. Contributions payable for the year are charged in the profit and loss account.

The group operates a money purchase pension scheme for other employees. Contributions payable for the year are charged in the profit and loss account.

Leasing commitments

The annual rentals due on operating leases are charged to the profit and loss account on a straight line basis over the term of the lease.

Investment property

Investment property is shown at fair value. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

4.	EMPLOYEES AND DIRECTORS

2026

2025

£'000

£'000

Wages and salaries

18,829

17,828

Social security costs

2,154

1,604

Other pension costs

508

486

21,491

19,918

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

2026

2025

Sales and administration - Group

660

646

Sales and administration - Parent

6

5

666

651

2026

2025

£

£

Directors' remuneration

179,621

176,453

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

Money purchase schemes

1

1

5.	OPERATING PROFIT

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

2026

2025

£'000

£'000

Depreciation - owned assets

1,171

1,088

Profit on disposal of fixed assets

(57

)

(170

)

Goodwill amortisation

179

179

6.	AUDITORS' REMUNERATION

2026

2025

£'000

£'000

Fees payable to the company's auditors and their associates for the audit of the company's financial statements

58

57

Included in the above is £54,000 in relation to the subsidiaries audit fees (2025 - £53,000).

7.

TAXATION

Analysis of the tax charge

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

2026

2025

£'000

£'000

Current tax:

UK corporation tax

689

759

Under/(over) provision in prior year

(1

)

(5

)

Total current tax

688

754

Deferred tax

(38

)

124

Tax on profit

650

878

UK corporation tax was charged at 25 %) in 2025.