REGISTERED NUMBER: 10474193 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

LESLIES MOTORS LIMITED

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

8

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

to

16

Notes to the Consolidated Financial Statements

17

to

31

DIRECTORS:

L Vanassche

Ms J Vanassche

G L Vanassche

SECRETARY:

L Vanassche

REGISTERED OFFICE:

341-351 Newport Road

Cowes

Isle of Wight

PO31 8PG

REGISTERED NUMBER:

10474193 (England and Wales)

AUDITORS:

Bright Brown Limited

Chartered Accountants

Statutory Auditor

Exchange House

St. Cross Lane

Newport

Isle of Wight

PO30 5BZ

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

Market Condition

The market in 2025 has remained challenging, particularly against new entrants joining the new car market throughout the year. New vehicle supply was stable, supporting consistent sales activity, although consumer demand remains constrained by high interest rates and ongoing cost-of-living pressures. Used vehicle values, while still requiring careful management, continue to be consistent however used EV vehicles continue to be an area of value concern.

Company Position

Leslies Motors Limited operates several franchised dealerships across the Isle of Wight and continues to represent leading manufacturers Kia, Toyota and Suzuki. During 2025 the decision was made to end long standing partnerships with both Mazda and Hyundai, these brands will be replaced with new entrant brands in 2026. The company enjoys strong relationships with the remaining brands.

Internal

Ownership and management remain stable, with no changes planned.

Financial

Overall the group showed a small profit for 2025, which was pleasing following a year of losses in 2024. This was partially driven by company restricting that occurred late in 2025 including that sale of a property. There was also considerable cost associated with a redundancy program which happened at the end of 2025. This has allowed the company to be on a positive trajectory into 2026.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the company's strategic direction continue to be subject to several key risks. The directors have identified the following principal areas:

Manufacturers Supply of New and Improved Products

The company remains reliant on the supply of new vehicle products from its manufacturer partners. Risks include:

- Availability of new vehicle products

- Quality of new vehicle products

- Pricing of new vehicle products

The directors remain confident that manufacturers will continue to provide competitively priced, high-quality products. This has been further negated be the diversification of brand choices moving forward.

Used Vehicle Prices

While used vehicle price volatility remains a core risk, 2025 remained a consistent year with aa return to more normal used trading condition. The company continues to invest in systems to support accurate pricing.

People and Reputation

The company's success relies heavily on its skilled team and strong reputation. The business while having made some changes in staffing in 2025, remains adequately staffed and continue to invest in training programmes to support continued learning.

The Competitive Environment

The motor retail sector remains highly competitive. The relaxation of Block Exemption legislation continues to allow independent repairers greater market access. The directors mitigate this risk by maintaining superior customer service standards and leveraging the advantages of holding key manufacturer franchises. The ongoing shift toward EVs reinforces the value of these franchises and supports the company's continued investment in EV infrastructure and staff training. The removal of legacy brands during 2025 and the investment in new entrants keeps the business competitive within a fast changing market.

Other Market Issues

High interest rates and subdued consumer confidence remain headwinds for the wider automotive sector. The introduction of the UK's Zero Emission Vehicle (ZEV) mandate continues to create uncertainty around new and used EV demand, and the pace of the EV market's growth remains difficult to predict.

FINANCIAL KEY PERFORMANCE INDICATORS

Year ended31 December 2025

Year ended31 December 2024

Sales per sales executive

157

158

Average used vehicle days in stock

80

67

Workshop sold/attended hours %

82%

82%

Parts gross profit %

24%

20%

ON BEHALF OF THE BOARD:

G L Vanassche - Director

23 September 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of motor dealer and related services. The principal activity of the company is that of a holding company.

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.

L Vanassche

Ms J Vanassche

G L Vanassche

FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES

The group uses various financial instruments, other than derivatives, which include bank and stocking loans, cash and various items, such as consignment stock, trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the group's operations. Their existence exposes the group to a number of financial risks.

The main risks arising from the group's financial instruments are interest rate risk, liquidity risk and credit risk. The directors review and agree policies for managing each of these risks, which are summarized below. These policies have remained unchanged from previous years.

Interest Rate Risk

The group finances its operations through a mixture of bank and other external borrowings. The group's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. The balance sheet includes trade debtors and creditors, which do not attract interest.

The group policy through the year has been to achieve its objective of managing interest rate risk through day to day involvement of management in business decisions rather than through setting maximum or minimum levels for the level of fixed interest rate borrowings.

Credit Risk

The group's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparts have high credit ratings assigned by international credit-rating agencies. The principal credit risk therefore arises from its trade debtors.

In order to manage credit risk, the directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the directors on a regular basis in conjunction with debt aging and collection history.

Liquidity Risk

The group seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably.

The group's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.

DISCLOSURE IN THE STRATEGIC REPORT

The directors' review of the business, and their consideration of the risks and uncertainties surrounding the business may be found in the Strategic Report.

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;

-	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 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 group's auditors are aware of that information.

AUDITORS

The auditors, Bright Brown Limited, will be proposed for re-appointment in accordance with Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

G L Vanassche - Director

23 September 2026

Opinion

We have audited the financial statements of Leslies Motors Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, 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 December 2025 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 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 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.

As part of our planning we determined materiality and assessed the risks of material misstatement in the financial statements. Based on our understanding of the company we identified the principal risk as management override of controls.

Audit procedures performed by the engagement team included:

-

A review of journals made in preparing the final results, and a review of accounting estimates made by management.

-

A review of transactions and records to ensure there are no transactions that have no apparent commercial purpose, or that are processed outside of the usual accounting systems.

-

A review of an appropriate sample of vehicles to ensure sufficient evidence has been obtained over valuations in what is a more subjective area of the accounts.

-

Discussions with management, including consideration of any known or suspected instances of fraud or non-compliance with laws or regulations.

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 are to become aware of it. 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 or intentional misrepresentations.

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.

Gavin Kelly ACA ACCA (Senior Statutory Auditor)

for and on behalf of Bright Brown Limited

Chartered Accountants

Statutory Auditor

Exchange House

St. Cross Lane

Newport

Isle of Wight

PO30 5BZ

23 September 2026

TURNOVER

3

39,289,994

40,788,637

Cost of sales

34,832,397

36,194,060

GROSS PROFIT

4,457,597

4,594,577

Administrative expenses

3,908,570

4,227,251

549,027

367,326

Other operating income

4,969

-

OPERATING PROFIT

5

553,996

367,326

Interest payable and similar expenses

6

495,585

519,958

PROFIT/(LOSS) BEFORE TAXATION

58,411

(152,632

)

Tax on profit/(loss)

7

(16,850

)

(20,666

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

75,261

(131,966

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

75,261

(131,966

)

Profit/(loss) attributable to:

Owners of the parent

75,261

(131,966

)

Total comprehensive income attributable to:

Owners of the parent

75,261

(131,966

)

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

3,321,910

3,769,957

Investments

11

-

-

3,321,910

3,769,957

CURRENT ASSETS

Stocks

12

5,323,784

6,426,363

Debtors

13

1,020,894

973,777

Cash in hand

648

648

6,345,326

7,400,788

CREDITORS

Amounts falling due within one year

14

7,067,211

7,858,978

NET CURRENT LIABILITIES

(721,885

)

(458,190

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,600,025

3,311,767

CREDITORS

Amounts falling due after more than one year

15

(1,111,102

)

(1,881,255

)

PROVISIONS FOR LIABILITIES

19

(61,800

)

(78,650

)

NET ASSETS

1,427,123

1,351,862

CAPITAL AND RESERVES

Called up share capital

20

100

100

Share premium

21

1,359,090

1,359,090

Retained earnings

21

67,933

(7,328

)

SHAREHOLDERS' FUNDS

1,427,123

1,351,862

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2026 and were signed on its behalf by:

G L Vanassche - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

388,500

388,500

Investments

11

1,880,123

1,884,515

2,268,623

2,273,015

CREDITORS

Amounts falling due within one year

14

7

7

NET CURRENT LIABILITIES

(7

)

(7

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,268,616

2,273,008

CREDITORS

Amounts falling due after more than one year

15

1,059,657

1,044,986

NET ASSETS

1,208,959

1,228,022

CAPITAL AND RESERVES

Called up share capital

20

100

100

Share premium

1,359,090

1,359,090

Retained earnings

(150,231

)

(131,168

)

SHAREHOLDERS' FUNDS

1,208,959

1,228,022

Company's loss for the financial year

(19,063

)

(18,926

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2026 and were signed on its behalf by:

G L Vanassche - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

100

124,638

1,359,090

1,483,828

Changes in equity

Total comprehensive income

-

(131,966

)

-

(131,966

)

Balance at 31 December 2024

100

(7,328

)

1,359,090

1,351,862

Changes in equity

Total comprehensive income

-

75,261

-

75,261

Balance at 31 December 2025

100

67,933

1,359,090

1,427,123

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

100

93,666

1,359,090

1,452,856

Prior year adjustment

-

(205,908

)

-

(205,908

)

As restated

100

(112,242

)

1,359,090

1,246,948

Changes in equity

Total comprehensive income

-

(18,926

)

-

(18,926

)

Balance at 31 December 2024

100

(131,168

)

1,359,090

1,228,022

Changes in equity

Total comprehensive income

-

(19,063

)

-

(19,063

)

Balance at 31 December 2025

100

(150,231

)

1,359,090

1,208,959

Cash flows from operating activities

Cash generated from operations

1

437,617

790,428

Interest paid

(495,585

)

(518,303

)

Interest element of hire purchase payments paid

-

(1,655

)

Tax paid

-

(48,705

)

Net cash from operating activities

(57,968

)

221,765

Cash flows from investing activities

Purchase of tangible fixed assets

(335,035

)

(363,136

)

Sale of tangible fixed assets

1,040,001

-

Net cash from investing activities

704,966

(363,136

)

Cash flows from financing activities

New loans in year

-

270,000

Loan repayments in year

(815,057

)

(237,802

)

Capital repayments in year

(2,168

)

(32,156

)

Amount withdrawn by directors

-

(9,372

)

Net cash from financing activities

(817,225

)

(9,330

)

Decrease in cash and cash equivalents

(170,227

)

(150,701

)

Cash and cash equivalents at beginning of year

2

(602,409

)

(451,708

)

Cash and cash equivalents at end of year

2

(772,636

)

(602,409

)

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

2025

2024

£

£

Profit/(loss) before taxation

58,411

(152,632

)

Depreciation charges

233,538

173,270

(Profit)/loss on disposal of fixed assets

(490,458

)

88

Finance costs

495,585

519,958

297,076

540,684

Decrease/(increase) in stocks

1,102,579

(310,536

)

Increase in trade and other debtors

(3,793

)

(102,304

)

(Decrease)/increase in trade and other creditors

(958,245

)

662,584

Cash generated from operations

437,617

790,428

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 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

648

648

Bank overdrafts

(773,284

)

(603,057

)

(772,636

)

(602,409

)

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

648

628

Bank overdrafts

(603,057

)

(452,336

)

(602,409

)

(451,708

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

648

-

648

Bank overdrafts

(603,057

)

(170,227

)

(773,284

)

(602,409

)

(170,227

)

(772,636

)

Debt

Finance leases

(2,168

)

2,168

-

Debts falling due within 1 year

(237,631

)

1,581

(236,050

)

Debts falling due after 1 year

(1,881,255

)

813,477

(1,067,778

)

(2,121,054

)

817,226

(1,303,828

)

Total

(2,723,463

)

646,999

(2,076,464

)

1.	STATUTORY INFORMATION

Leslies Motors 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 General Information page.

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.

The presentational and functional currency of the consolidated and company accounts is Pound Sterling (£).

Basis of consolidation

The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill.

Goodwill is recognised on the Consolidated Balance Sheet and released to the Consolidated Income Statement, up to the fair value of non-monetary assets acquired, over the period in which the non-monetary assets are recovered and any excess over the fair value of non-monetary assets in the Consolidated Income Statement over the period expected to benefit.

The consolidated financial statements present the results of the group and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at acquisition date. The results of acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are de-consolidated from the date control ceases.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, 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 judgements have been made by the directors in applying the company's accounting policies:

Consignment stock

New vehicles held on consignment are included in stocks where it is considered that the significant risks and rewards of ownership have passed to the company. The directors have assessed that this applies to all vehicles held on consignment, except Toyota and Suzuki where the significant risks and rewards of ownership are not transferred until the vehicle has been adopted by the company.

At 31 December 2025, the group held on consignment £1,086,047 (2024: £809,957) vehicles not recognised in stocks, and funded by stocking loans to the same value.

Stock valuation

Stock valuation is regularly monitored against the age profile and market demand. Management use a number of market tools during the appraisal process including 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

At each reporting date, property, plant and equipment is assessed for any indication of impairment. If such indication exists, the recoverable amount of the asset is determined based on value in use calculations which require estimates to be made of future cash flow.

An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Brand incentives

The group 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 specific 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 satisfactions 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 the incentive will be received for the relevant period.

The company may also receive contributions towards advertising, promotional and rent 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 is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

In general a sale is recognised when vehicles or parts have been supplied or when a service has been completed. Commission is recognised on a receivable basis.