REGISTERED NUMBER: 02324482 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

EASTBOURNE MOTORING CENTRE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

8

Report of the Independent Auditors

11

Income Statement

15

Other Comprehensive Income

16

Balance Sheet

17

Statement of Changes in Equity

19

Notes to the Financial Statements

20

DIRECTORS:

M D J Lambird

A Bray

M Piper

REGISTERED OFFICE:

103 Bourne Street

Eastbourne

East Sussex

BN21 3SE

REGISTERED NUMBER:

02324482 (England and Wales)

AUDITORS:

LMDB Limited

t/a LMDB Accountants

Statutory Auditors

Railview Lofts

19c Commercial Road

Eastbourne

East Sussex

BN21 3XE

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

REVIEW OF BUSINESS

The principal activity of the company continued to be the sale, servicing and repair of new and used cars and commercial vehicles, together with the sale of associated parts and products.

The year ended 31 December 2025 was a challenging one for the company. The business experienced significant increases in operating costs, many of which were outside the direct control of the directors. These included increases in business rates, employers' National Insurance contributions, employment costs, utilities and other general overheads.

These additional costs, together with continued pressure on vehicle margins, resulted in the profitability of the company being lower than anticipated. The directors are actively addressing these challenges and have implemented measures intended to improve operational efficiency, control costs, manage stock levels and restore profitability during 2026.

The directors and management team remain focused on the company's core strategy of retaining customers, delivering high levels of customer satisfaction, investing in staff training, carefully managing stock and cash resources and maintaining a strong balance sheet.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is subject to a number of risks and uncertainties, many of which arise from external economic, regulatory and market conditions. These risks are regularly reviewed by the directors and senior management team.

Increased operating costs

The continued increase in employment costs, employers' National Insurance contributions, business rates, energy costs and other overheads represents a significant risk to profitability.

The directors are addressing this through regular reviews of departmental performance, staffing requirements, expenditure, supplier arrangements and operating processes. The objective is to ensure that the business operates as efficiently as possible without adversely affecting customer service.

Interest rates and consumer confidence

Interest rates and the wider cost-of-living pressures continue to affect consumer confidence and the affordability of vehicle finance. Although interest rates have stabilised, finance costs remain higher than in previous years and may continue to influence customer purchasing decisions.

Higher interest rates also increase the cost of funding vehicle stock. The company therefore continues to closely monitor stock levels, stock ageing, vehicle funding and cash flow.

Electric vehicle transition

The transition from internal combustion engine vehicles to battery electric and hybrid vehicles presents both risks and opportunities for the company.

The company is required to invest in staff training, workshop equipment, charging infrastructure, demonstrator vehicles and manufacturer corporate identity requirements. Customer demand for electric vehicles can also be affected by charging infrastructure, vehicle pricing, government policy and changes to incentives.

The directors believe that the company's investment in BYD, together with the electric vehicle products available from its existing manufacturers, places the business in a stronger position to respond to the changing market.

Manufacturer supply and product competitiveness

The company is reliant on its franchise manufacturers for the supply of new vehicles and associated products. This exposes the group to risks relating to:

- The availability and range of new vehicle products.

- The availability and competitiveness of battery electric and hybrid vehicles.

- The quality and reliability of new vehicle products.

- Manufacturer pricing and incentive programmes.

- The competitiveness of products against new market entrants.

- Changes to manufacturer franchise and distribution strategies.

- The availability of replacement parts.

- The management and financial effects of the Zero Emission Vehicle mandate.

The company's Stellantis brands have experienced increased competition, particularly from Chinese manufacturers offering competitively priced electric and hybrid vehicles. This has placed pressure on vehicle margins and profitability.

The directors continue to work closely with the company's manufacturer partners and regularly review the performance of each franchise. These risks are also mitigated by the company's diversified activities, including used vehicle sales, servicing, repairs, warranty work, parts sales and the addition of the BYD franchise.

Used vehicle price variations

Used vehicle values can increase or decline significantly. As a substantial proportion of the company's business relates to used vehicle sales, changes in market values can have a material effect on profitability.

A reduction in used vehicle values may result in lower margins and write-downs in the value of used vehicle inventory. The availability of suitable used vehicle stock also remains challenging in certain areas of the market.

The directors seek to manage this risk by regularly reviewing stock values, monitoring stock ageing, maintaining appropriate stock levels and ensuring that vehicles are priced competitively.

Competition

The company operates in a highly competitive marketplace. Competition arises from:

- Other franchised motor dealerships.

- Chinese and other new vehicle manufacturers entering the UK market.

- Independent used vehicle retailers.

- Internet-based vehicle retailers and purchasing services.

- Private vehicle buyers and sellers.

- Independent service and repair businesses.

- Vehicle manufacturers operating direct-to-consumer or agency sales models.

The principal competitive factors include vehicle pricing, product availability, finance costs, brand strength, location, customer experience and the quality of aftersales service.

The company seeks to differentiate itself through its established reputation, experienced employees, strong local presence, manufacturer relationships and commitment to customer service.

KPI MONITORING AND MEASUREMENT

The company uses the following ratios to monitor the business:

2025

2024

Turnover

£33,852,326

£34,679,958

Gross profit

£4,507,632

£4,431,932

Gross profit margin

13.32%

12.78%

Operating profit

£264,823

£568,258

Operating profit margin

0.78%

1.64%

MARKET AND FRANCHISE PERFORMANCE

The UK motor industry continues to undergo significant change, particularly as a result of the growth of Chinese vehicle manufacturers and the continued transition towards battery electric vehicles.

The company experienced increased competition from Chinese manufacturers during 2025. The introduction of competitively priced and well-equipped vehicles has placed pressure on a number of established manufacturers and has affected the performance and profitability of the company's Stellantis brands. The company has experienced a reduction in margins and profitability on certain Stellantis vehicle sales as a result of increased competition, manufacturer pricing strategies and changing customer demand.

Suzuki continued to perform well against its manufacturer targets during the year. However, the reduced availability and range of products within the Suzuki brand has had an effect on sales opportunities. The directors continue to work closely with Suzuki and remain confident in the strength of the brand, its customer base and the contribution it makes to the group.

As part of the company's strategy to diversify its franchise portfolio and create additional routes to market, the company has taken on the BYD franchise. Full dealership facilities have been established at the Eastbourne site, with a satellite sales operation located within the company's Uckfield showroom.

The initial results from the BYD franchise have been very positive. Customer interest in the brand and its range of electric and plug-in hybrid vehicles has been encouraging. The directors believe that BYD provides the company with an important opportunity to participate in the continued growth of Chinese vehicle manufacturers within the UK market.

The company will continue to develop its existing franchises while reviewing opportunities to strengthen and diversify its brand portfolio.

DEVELOPMENT AND PERFORMANCE

The directors remain committed to the long-term development of the company.

During 2026, the principal areas of focus will include:

- Improving profitability across all departments.

- Controlling overheads and operating costs.

- Reviewing staffing structures and operational efficiency.

- Improving stock turn and reducing stock funding costs.

- Developing the BYD franchise at Eastbourne and Uckfield.

- Maximising opportunities within the group's existing franchises.

- Continuing to grow used vehicle, service, parts and repair activities.

- Maintaining high standards of regulatory compliance and customer service.

The directors believe that the addition of BYD provides a significant opportunity for future growth and further diversifies the company's franchise representation.

Although market conditions remain challenging, the directors are confident that the actions being taken will strengthen the business and improve its performance during 2026 and beyond.

COMPANY, PEOPLE AND REPUTATION

The company has invested significantly in its employees, facilities and reputation over many years. The skills, knowledge and commitment of its employees are essential to delivering the company's results and maintaining its reputation.

The company regularly reviews remuneration, employee benefits, training and development opportunities to ensure that it can attract and retain appropriately skilled employees.

The continued development of electric and hybrid vehicles requires further investment in technical and product training. The company will continue to work with its manufacturer partners to ensure that employees have the skills and qualifications required to support new products and technologies.

The company is committed to maintaining a safe, inclusive and professional working environment and to providing customers with a high standard of service.

CUSTOMER DUTY AND REGULATORY COMPLIANCE

The company remains committed to complying with the Financial Conduct Authority's Consumer Duty requirements and ensuring that good customer outcomes are central to its activities.

Management information, customer feedback, complaints, finance penetration, product performance and customer satisfaction measures are regularly reviewed by the directors and senior management team.

The company continues to identify areas for improvement and to develop its processes, training and controls to ensure that it meets both regulatory requirements and the expectations of its manufacturer partners and customers.

FUTURE OUTLOOK

The directors recognise that 2026 will continue to present challenges. Increased costs, pressure on vehicle margins, changing manufacturer strategies and the transition towards electric vehicles will continue to affect the motor retail industry.

The company has responded by reviewing its cost base, improving operational controls, diversifying its franchise portfolio and investing in the BYD brand.

The positive initial performance of BYD provides confidence that the group is well positioned to benefit from changing customer demand and the continued growth of electric and plug-in hybrid vehicles.

The directors remain confident in the underlying strength of the group, its employees, its franchise relationships and its established reputation. Through careful management of costs, stock, cash flow and customer service, the directors believe that the group is well placed to improve profitability and achieve sustainable future growth.

ON BEHALF OF THE BOARD:

M D J Lambird - Director

8 September 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of sales and servicing of new and used cars and commercial vehicles.

DIVIDENDS

Interim dividends per share were paid as follows:

Ordinary £1 shares

£11.12

- 5 February 2025

D Shares £1 shares

£9561.69

- 14 July 2025

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 December 2025 will be £ 457,273 .

DIRECTORS

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

M D J Lambird

A Bray

M Piper

Other changes in directors holding office are as follows:

D C Lambird ceased to be a director after 31 December 2025 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The company's operations expose it to a variety of financial risks which include credit risk, liquidity risk and interest rate risk. The company has in place risk management policies, which are implemented by the company's finance department. These policies, which are consistent with those from the previous year, seek to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and related finance costs.

Liquidity risk:

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future

developments, the company uses a mixture of long-term and short-term debt finance.

The company makes efforts to manage the financial risk by the monitoring of cashflow to ensure that the company is able to meet its foreseeable debts as they fall due and to invest any cash assets profitably.

Credit risk:

The company's principal financial assets are stock and trade debtors. The credit risk associated with stock is limited and therefore the principal credit risk arises from its trade debtors.

In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. These credit limits are reviewed regularly by the directors together with the aged debtors and collection history.

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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, LMDB Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M D J Lambird - Director

8 September 2026

Opinion

We have audited the financial statements of Eastbourne Motoring Centre Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management and those charged with governance on the actual and potential litigation and claims, and also any instances of non-compliance with laws and regulations.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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

- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

- Professional scepticism in course of the audit and with audit sampling in material audit areas.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Samuel David Jaquet FCCA (Senior Statutory Auditor)

for and on behalf of LMDB Limited

t/a LMDB Accountants

Statutory Auditors

Railview Lofts

19c Commercial Road

Eastbourne

East Sussex

BN21 3XE

18 September 2026

TURNOVER

3

33,852,326

34,679,958

Cost of sales

29,344,694

30,248,026

GROSS PROFIT

4,507,632

4,431,932

Administrative expenses

4,277,809

3,893,816

229,823

538,116

Other operating income

35,000

30,142

OPERATING PROFIT

5

264,823

568,258

Interest receivable and similar income

64,727

81,303

329,550

649,561

Interest payable and similar expenses

6

10,799

12,116

PROFIT BEFORE TAXATION

318,751

637,445

Tax on profit

7

99,342

182,928

PROFIT FOR THE FINANCIAL YEAR

219,409

454,517

PROFIT FOR THE YEAR

219,409

454,517

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

219,409

454,517

FIXED ASSETS

Intangible assets

9

19,794

32,294

Tangible assets

10

3,556,078

3,571,271

Investment property

11

473,000

473,000

4,048,872

4,076,565

CURRENT ASSETS

Stocks

12

5,530,013

4,300,901

Debtors

13

1,523,009

1,322,406

Prepayments and accrued income

208,887

119,549

Cash at bank and in hand

1,660,784

2,047,890

8,922,693

7,790,746

CREDITORS

Amounts falling due within one year

14

5,578,374

4,265,821

NET CURRENT ASSETS

3,344,319

3,524,925

TOTAL ASSETS LESS CURRENT LIABILITIES

7,393,191

7,601,490

PROVISIONS FOR LIABILITIES

17

124,771

95,206

NET ASSETS

7,268,420

7,506,284

CAPITAL AND RESERVES

Called up share capital

18

39,404

39,404

Share premium

19

63,811

63,811

Revaluation reserve

19

175,173

175,173

Capital redemption reserve

19

4,320

4,320

Retained earnings

19

6,985,712

7,223,576

SHAREHOLDERS' FUNDS

7,268,420

7,506,284

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2026 and were signed on its behalf by:

M D J Lambird - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2024

39,404

7,222,350

63,811

Changes in equity

Dividends

-

(453,291

)

-

Total comprehensive income

-

454,517

-

Balance at 31 December 2024

39,404

7,223,576

63,811

Changes in equity

Dividends

-

(457,273

)

-

Total comprehensive income

-

219,409

-

Balance at 31 December 2025

39,404

6,985,712

63,811

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1 January 2024

175,173

4,320

7,505,058

Changes in equity

Dividends

-

-

(453,291

)

Total comprehensive income

-

-

454,517

Balance at 31 December 2024

175,173

4,320

7,506,284

Changes in equity

Dividends

-

-

(457,273

)

Total comprehensive income

-

-

219,409

Balance at 31 December 2025

175,173

4,320

7,268,420

1.	STATUTORY INFORMATION

Eastbourne Motoring Centre Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgments (apart from those involving estimates) have had the most significant affect on amounts recognised in the financial statements:

Consignment stock - Vehicles held on consignment have been included in 'vehicle stock' within 'stocks' on the basis that the company has determined that it holds the significant risks and rewards attached to these vehicles.

Vehicle stock valuation - Stock valuation is regularly monitored against age profile and market demand. Management use a market tool during the appraisal process, being CAP valuation guides. The directors maintain oversight of ageing stock profiles and a monthly review of any provision required is performed.

Property, plant and equipment assets - Property, plant and equipment are reviewed for impairment if events or circumstances indicate that the carrying value may not be recoverable. When an impairment review is carried out the recoverable value is determined based on value in use calculations which require estimates to be made of future cash flows.

Investment property - Investment property is carried at fair value determined annually by either external valuers or the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.

Incentives and other rebates from brand partners - The company receives income in the form of various incentives which are determined by the brand partners. The amount received is generally based on achieving specific objectives such as a specified sales volume, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly or annual basis.

Where incentives are based on a specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered or when it is reasonably certain that the related target will be met. Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards, they are recognised as a reduction in cost of sales when it is reasonably certain that the incentive will be received for the relevant period.

The company may also receive contributions towards advertising and promotional expenditure. Where such contributions are received they are recognised as a reduction in the related expenditure in the period to which they relate.

Turnover

Turnover from the sale of goods and services is recognised at fair value in the Statement of Comprehensive Income, net of discounts and value added tax, when the significant risks and rewards of ownership have been transferred to the buyer. In general this occurs when vehicles or parts have been supplied or when a service has been completed.

Commission income is recognised on a receivable basis.

Rental income

Rental income is recognised on an accruals basis.

Interest income

Interest income is recognised in the Statement of Comprehensive Income on a receivable basis.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life of 10 years.

Tangible fixed assets

Tangible fixed assets under the cost model, other than investment properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis.

Depreciation is provided on the following basis:

Freehold property

- 2% on cost of building

Long - term leasehold property

- 5% on reducing balance

Plant and machinery

- 25% or 15% on reducing balance

Motor vehicles

- 20% on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

Investment properties

Investment properties are valued annually using a yield of methodology using market rental values capitalised at a market capitalisation rate, but there is an inevitable degree of judgment involved in that each property is unique and value can only ultimately be reliably tested in the market itself.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving items.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.

Consignment stocks

Consignment vehicles which bear considerably more of the risks and rewards of ownership are regarded as being under the control of the company and, in accordance with FRS 102, are included within stocks on the Statement of Financial Position, although legal title has not passed to the company. The corresponding liability is included in trade creditors and is secured directly on these vehicles.

Current taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Operating leases: the company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.

Pension costs and other post-retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Debtors

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

Creditors

Short term creditors are measured at the transaction price.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income on an accruals basis.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.

3.

TURNOVER

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

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

2025

2024

£

£

Sale of goods

30,186,332

30,998,233

Rendering of services

3,412,500

3,488,115

Commissions receivable

253,494

193,610

33,852,326

34,679,958

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,178,012

2,951,074

Social security costs

379,228

302,402

Other pension costs

78,992

75,751

3,636,232

3,329,227

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

2025

2024

Sales and service

84

80

Administration

16

16

100

96

2025

2024

£

£

Directors' remuneration

213,010

229,829

Directors' pension contributions to money purchase schemes

6,048

5,966

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

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

82,298

81,570

Pension contributions to money purchase schemes

3,291

3,263