REGISTERED NUMBER: 01313672 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

RELIANCE GARAGE (RYEDALE) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

11

Statement of Financial Position

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

16

DIRECTORS:

R Chapman

F S Chapman

D R Chapman

N J R Chapman

SECRETARY:

F S Chapman

REGISTERED OFFICE:

Medina House

2 Station Avenue

Bridlington

East Yorkshire

YO16 4LZ

REGISTERED NUMBER:

01313672 (England and Wales)

AUDITORS:

Cooper Parry Group Limited

St James Building

79 Oxford Street

Manchester

M1 6HT

The directors present their strategic report for the year ended 31 December 2025.

The principal activity in the year under review was that of the sale, servicing and maintenance of new and used vehicles, through the operation of four Volvo motor dealerships.

REVIEW OF BUSINESS

The company reports a profit before taxation for the year of £3,690,477 (2024: £3,220,772). Given the challenging trading conditions, rising inflation, energy costs and wage demands, the directors are pleased with the financial results.

The Volvo brand retains a high level of desirability in the UK market, and customer satisfaction and loyalty to the business remains strong. We are confident that the company is well placed to continue to operate successfully.

KEY PERFORMANCE INDICATORS

The board of directors use numerous financial key performance indicators to monitor the performance of the business, the most important of which are:

31.12.25

31.12.24

£

£

EBITDA*

5,635,299

5,603,267

Revenue

127,714,318

114,480,699

Operating profit

5,158,088

5,106,756

*EBITDA: Earnings before interest, tax, depreciation and amortisation.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is subject to a number of trading and operational risks including employment, health & safety, legal compliance and public liability risks. The board mitigates these risks by ensuring that good practice is always followed, and by maintaining adequate insurance cover where necessary.

The car market in the UK is highly competitive and margins continue to be tight. We face competition from rival brands, the import market and in particular from 'car supermarkets'. We are of course also subject to consumer spending patterns and consumers overall level of disposable income within our local economies. With these risks and uncertainties in mind, we are aware that any plans for the future development of our business may be subject to unforeseen future events outside of our control.

The directors constantly monitor the industry and the actions of competitors and target customer base in order to be able to react quickly to changing economic conditions when necessary.

SECTION 172(1) STATEMENT

The board of directors consider that they have at all times acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in Section 172 (1) (a-f) of the Companies Act 2006) when performing their duty as directors during the year.

The company's strategy has continued to focus on providing excellent customer service and nurturing brand loyalty. We strive to maintain high levels of customer satisfaction by maintaining regular and open lines of communication with customers, seeking customer feedback and making improvements to the customer experience where necessary. The company has an experienced administrative team which customers can rely on to discuss any concerns or issues. The company endeavours to resolve any issues arising in a timely and suitable manner.

This has helped ensure that the company's customer base has continued to grow, which has developed and strengthened the company's position as one of the leading Volvo retailers in the United Kingdom.

The company seeks to maintain good working relationships with its suppliers by maintaining close and regular contact, and by paying supplier invoices within agreed terms. Trade creditors are monitored regularly to ensure that supplier invoices are being settled on a timely basis.

The company's employees are fundamental to the delivery of our strategy. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in the way in which we do business.

Our strategy considers the impact of the company's operations on the environment, and our wider social responsibilities, and how we impact on our local community. We seek to support our local communities through sponsorship of various community and charitable activities.

As a board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating with the high standards of conduct and governance expected for a business such as ours. In doing so, we believe these behaviours will contribute to the delivery of our plans. The intention is to nurture our reputation, through the development and delivery of our strategy, reflecting our responsible behaviour.

As a board of directors, we behave responsibly and fairly towards our shareholders, so they may benefit from the successful delivery of our strategy.

ON BEHALF OF THE BOARD:

D R Chapman - Director

26 August 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

R Chapman

F S Chapman

D R Chapman

N J R Chapman

FINANCIAL INSTRUMENTS

The company's principal financial instruments are bank balances, bank loans, stocking loans, directors' loans, trade creditors and trade debtors. The main purpose of these instruments are to ensure sufficient funds are available to finance the company's day to day operations.

Vehicle stocking loans are utilised to enable the company to carry a large amount of vehicle stocks at the company's showrooms in order to give customers a wide choice of vehicles to view.

Bank loans are used to finance capital expenditure planned by the company. Before a capital project is committed to and funds borrowed, each such project is carefully planned using the board's industry knowledge and experience, and a full risk assessment conducted alongside financial forecasting covering a range of possible scenarios.

Loans from directors/shareholders are used to provide adequate working capital for the company.

Due to the nature of the financial instruments used by the company there is no exposure to currency risk.

Price risk is managed by negotiating volumes and terms in advance with key suppliers, to ensure that the company's products are priced correctly in order to achieve target margins, whilst still ensuring that the company remains competitive in its chosen markets.

The company manages liquidity risk by critically analysing cash flow forecasts and the timing of expected receipts and payments, to ensure that the company always has sufficient cash to meet its obligations.

Trade creditor liquidity risk is managed by agreeing payment terms with suppliers in advance of ordering goods and services and ensuring that payments are made in line with those agreed terms to foster good relationships with suppliers and strengthening those relationships. The company aims to match outgoing payments to suppliers with expected income for the business, therefore ensuring sufficient funds are available to meet liabilities as they fall due.

Credit and cash flow risks are managed by assessing the credit terms offered to customers and the regular monitoring of trade debtor balances to ensure that payment is made in line with agreed terms.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The directors are confident that the banking facilities currently in place are more than adequate for the company's working capital requirements. All of the company's transactions are conducted in sterling, therefore there is no currency risk.

The directors are satisfied that credit risk is adequately managed and the recoverability of trade debtors is regularly monitored to ensure that the possibility of non-recovery is minimised. The company has no significant concentration of credit risk, with exposure spread over a large number of customers.

BUSINESS RELATIONSHIPS

The development and maintenance of good business relationships with customers, suppliers, employees, the environment and our local communities is of strategic importance to the company, and the ways in which the board

nurture these relationships are described in more detail within the board's 'Section 172(1) Statement' in the Strategic

Report.

STREAMLINED ENERGY AND CARBON REPORTING

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 2024 and 2025 conversion factors as appropriate. In some cases, consumption has been extrapolated from available data or direct comparison made to a comparable period.

We report using a financial control approach to define our organisational boundary. 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.

We have now completed the installation of solar panels at all our dealerships and continue to prioritise electric and hybrid vehicles wherever possible. We recycle when applicable and continue to focus on our travel policy, encouraging virtual meetings or car sharing when appropriate. The table below includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.

1 January 2025 -31 December 2025

1 January 2024 -31 December 2024

Total Energy Consumption - used for Emissions Calculation (kWh)

1,920,988

1,647,753

Oil & Gas Combustion Emissions, Scope 1 (tCO2e)

118.3

139.1

Vehicle Fuel Combustion Emissions, Scope 1 (tCO2e)

99.7

49.7

Total, Scope 1 (tCO2e)

218

188.8

Purchased Electricity Emissions, Scope 2 (tCO2e)

153.6

153.1

Vehicle Electric Emissions, Scope 2 (tCO2e)

7.2

2.0

Total, Scope 2 (tCO2e)

160.8

155.1

Vehicle Fuel Combustion Emissions, Scope 3 (tCO2e)

0.02

0

Total Gross Reported Emissions (tCO2e)

378.9

343.9

Turnover (£m)

127.7

114.5

Intensity Ratio: Turnover (tc's / £m)

3.0

3.0

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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), 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;

-	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 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

D R Chapman - Director

26 August 2026

Opinion

We have audited the financial statements of Reliance Garage (Ryedale) 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.

Other information

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

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 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 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we considered the following:

- the nature of the industry and sector, control environment and business performance.

- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

- the matters discussed among the audit engagement team and involving relevant internal specialists, including tax, and industry specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: valuation of used vehicle stocks and recognition of supplier incentives. In common with all audits under the ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included the company's FCA regulatory requirements.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management and those charged with governance concerning actual and potential litigation claims;

- in addressing the risk of fraud through inappropriate valuation of used vehicle inventory, assessing net realisable value of stock items sold after the year end was above cost or assessing their value with reference to third party data sources if unsold.

- in addressing the risk of fraud through inappropriate recording of supplier incentives, ensuring amounts recorded as due were then subsequently acknowledged as such by the supplier;

- in assessing the risk of fraud through management override of controls, testing the appropriateness of journal entries and assessing whether judgements made in making accounting estimates are indicative of potential bias.

There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, 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 or intentional misrepresentations, or through collusion.

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.

Ryan Wear BSc ACA (Senior Statutory Auditor)

for and on behalf of Cooper Parry Group Limited

St James Building

79 Oxford Street

Manchester

M1 6HT

26 August 2026

REVENUE

3

127,714,318

114,480,699

Cost of sales

110,879,300

98,975,691

GROSS PROFIT

16,835,018

15,505,008

Administrative expenses

11,850,532

10,625,783

4,984,486

4,879,225

Other operating income

173,602

227,531

OPERATING PROFIT

5

5,158,088

5,106,756

Amounts written off investments

6

-

196,758

5,158,088

4,909,998

Interest payable and similar expenses

7

1,467,611

1,689,226

PROFIT BEFORE TAXATION

3,690,477

3,220,772

Tax on profit

8

710,262

920,332

PROFIT FOR THE FINANCIAL YEAR

2,980,215

2,300,440

Retained earnings at beginning of year

12,619,652

10,319,212

RETAINED EARNINGS AT END OF YEAR

15,599,867

12,619,652

FIXED ASSETS

Intangible assets

9

-

-

Property, plant and equipment

10

21,218,531

20,049,731

Investments

11

10,200

10,100

Investment property

12

433,579

-

21,662,310

20,059,831

CURRENT ASSETS

Inventories

13

18,260,141

18,031,458

Debtors

14

3,302,813

4,138,690

Cash at bank and in hand

699,903

148,063

22,262,857

22,318,211

CREDITORS

Amounts falling due within one year

15

16,799,171

19,057,749

NET CURRENT ASSETS

5,463,686

3,260,462

TOTAL ASSETS LESS CURRENT LIABILITIES

27,125,996

23,320,293

CREDITORS

Amounts falling due after more than one year

16

(10,034,987

)

(9,205,528

)

PROVISIONS FOR LIABILITIES

20

(900,144

)

(904,115

)

NET ASSETS

16,190,865

13,210,650

CAPITAL AND RESERVES

Called up share capital

21

100

100

Revaluation reserve

22

590,898

590,898

Retained earnings

22

15,599,867

12,619,652

SHAREHOLDERS' FUNDS

16,190,865

13,210,650

The financial statements were approved by the Board of Directors and authorised for issue on 26 August 2026 and were signed on its behalf by:

D R Chapman - Director

Cash flows from operating activities

Cash generated from operations

1

4,763,144

5,246,070

Interest paid

(1,467,611

)

(1,691,481

)

Tax paid

(788,043

)

(218,171

)

Net cash from operating activities

2,507,490

3,336,418

Cash flows from investing activities

Purchase of tangible fixed assets

(1,605,636

)

(5,793,605

)

Purchase of investment property

(433,579

)

-

Sale of tangible fixed assets

(1,010

)

1,600

Net cash from investing activities

(2,040,225

)

(5,792,005

)

Cash flows from financing activities

New loans in year

1,161,688

2,930,000

Loan repayments in year

(699,919

)

(580,430

)

Hire purchase capital repayments in year

(19,118

)

(19,587

)

Amount introduced/withdrawn by directors

198,838

(503,604

)

Advances to group companies

(150,512

)

(563,114

)

Net cash from financing activities

490,977

1,263,265

Increase/(decrease) in cash and cash equivalents

958,242

(1,192,322

)

Cash and cash equivalents at beginning of year

2

(258,339

)

933,983

Cash and cash equivalents at end of year

2

699,903

(258,339

)

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

31.12.25

31.12.24

£

£

Profit before taxation

3,690,477

3,220,772

Depreciation charges

479,243

511,853

Loss/(profit) on disposal of fixed assets

1,010

(435

)

Write down of investment

-

196,758

Finance costs

1,467,611

1,689,226

5,638,341

5,618,174

(Increase)/decrease in inventories

(228,683

)

782,428

Decrease/(increase) in trade and other debtors

986,289

(287,550

)

Decrease in trade and other creditors

(1,632,803

)

(866,982

)

Cash generated from operations

4,763,144

5,246,070

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

699,903

148,063

Bank overdrafts

-

(406,402

)

699,903

(258,339

)

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

148,063

933,983

Bank overdrafts

(406,402

)

-

(258,339

)

933,983

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.25

Cash flow

changes

At 31.12.25

£

£

£

£

Net cash

Cash at bank

and in hand

148,063

551,840

699,903

Bank overdrafts

(406,402

)

406,402

-

(258,339

)

958,242

699,903

Debt

Finance leases

(28,430

)

19,118

42,407

(51,719

)

Debts falling due

within 1 year

(772,201

)

92,418

-

(679,783

)

Debts falling due

after 1 year

(7,419,035

)

(554,187

)

-

(7,973,222

)

(8,219,666

)

(442,651

)

42,407

(8,704,724

)

Total

(8,478,005

)

515,591

42,407

(8,004,821

)

1.	STATUTORY INFORMATION

Reliance Garage (Ryedale) 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 freehold properties.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

Significant judgements and estimates

In the application of the company's accounting policies, which are described further in this note, management are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation and uncertainty

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

Useful economic lives of tangible assets

The annual amortisation and depreciation charges for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See the notes to the financial statements for the carrying amount of the property, plant and equipment and the useful economic lives of each class of assets.

Valuation of used vehicle stocks

Stocks are stated at the lower of cost and net realisable value. The value of all used cars as well as the provision for obsolete, slow moving or defective stock can have a significant influence on the stock valuation in the financial statements. A comprehensive review of the stock held is carried out with reference to independent market valuation data.

Revenue

Revenue represents income generated from agency commissions from motor vehicle manufacturers in respect of new motor vehicles, the retail sale of used motor vehicles, and from the service and repair of motor vehicles, measured at the fair value of the consideration receivable, excluding direct sales taxes.

Agency commission revenue in respect of new motor vehicles from manufacturers is recognised at the point the customer takes delivery of the new vehicle and the company becomes entitled to the commission payment.

Revenue is recognised from the sale of used motor vehicles when the vehicle has been 'handed over' to the buyer, as that is the point when the risks and rewards of ownership of the vehicle are considered to have been transferred.

In respect of the service and repair of motor vehicles, revenue is recognised when work has been completed to a satisfactory standard and the sales invoice has been issued to the customer.

Intangible assets - goodwill

Goodwill, being amounts paid in connection with business acquisitions, is amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

1% on cost or valuation, excluding land

Short leasehold property

-

10% on cost

Showroom fittings

-

15% on reducing balance

Tools and equipment

-

15% on reducing balance

Office equipment

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

Freehold property is shown at most recent valuation. Any aggregate surplus arising from changes in valuation is recognised in the revaluation reserve, and reported in the Statement of Other Comprehensive Income for the year. Any deficits arising on revaluations are debited against the revaluation reserve, unless there is insufficient reserve to do so in which case the excess is charged to the Income Statement for the year.

Impairment of fixed assets

At each reporting period end date, the company 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.

Fixed asset investments

Shares in unlisted companies are valued at cost less impairment.

Investment property

Investment property is initially recognised at cost, including transaction costs. Subsequent to initial recognition, investment property is measured at fair value, with the carrying value reviewed at each reporting date.

Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to statement of income and retained earnings over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to statement of income and retained earnings on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to statement of income and retained earnings in the period to which they relate.

Financial instruments

Financial assets and liabilities are recognised on the balance sheet when the company becomes a party to the contractual provisions of the instrument. Borrowings, which include interest bearing loans and overdrafts, are recorded at their initial value less any repayments. Subsequently, these are stated at amortised cost, reflecting the applicable interest rate on each loan.

Equity instruments

Equity instruments issued by the company 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 company.

Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

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

Rents receivable

Property rents are recorded on a rent receivable basis.

3.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

31.12.25

31.12.24

£

£

Sale of goods

114,794,368

102,314,081

Sale of services

4,696,488

4,055,307

Agency commissions

8,223,462

8,111,311

127,714,318

114,480,699

All turnover arose from business conducted in the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

8,517,559

8,212,719

Social security costs

989,214

831,311

Other pension costs

467,242

365,150

9,974,015

9,409,180

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

31.12.25

31.12.24

Productive and technicians

56

55

Operations and administration

138

139

Sales

39

39

233

233

31.12.25

31.12.24

£

£

Directors' remuneration

120,150

206,427

Directors' pension contributions to money purchase schemes

10,777

8,782

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

Money purchase schemes

2

2