REGISTERED NUMBER: 14938085 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST JANUARY 2026

FOR

CHARLES TRENT LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

M J Trent

N Trent

REGISTERED OFFICE:

8 St. Georges Avenue

Avenue Parkstone

Poole

Dorset

BH12 4ND

REGISTERED NUMBER:

14938085 (England and Wales)

AUDITORS:

Cook & Partners Limited

Statutory Auditor

Manufactory House

Bell Lane

Hertford

Hertfordshire

SG14 1BP

The directors present their strategic report for the year ended 31st January 2026.

REVIEW OF BUSINESS

Charles Trent continues to build a world class technology and data driven circular vehicle production business, with the ambition to maximise the value recovered from every vehicle, component and material, placing CTL at the forefront of the latest EU Regulation 2026/1738 - Circularity Requirements for Vehicle Design and Management of End-of-Life Vehicles. Our reverse production model brings together industrial processes, market data and digital systems to improve vehicle purchasing, parts recovery, stock management, and sales.

The business has invested significantly in its infrastructure, technology, and people. The priority is now to turn that investment into stronger operating performance and cash generation. We have built capacity for growth, but capacity alone does not deliver a return. We need to increase productive throughput, recover the right parts, and sell them at the right margin, while maintaining control of costs and working capital.

Strategy and outlook

Our direction remains clear: to develop a world class scalable & sustainable circular vehicle business that delivers value through reuse, remanufacture and recycling. Technology and data are central to that model, supporting better decisions from the point of vehicle purchase through to the sale of parts and recovery of materials.

The immediate priorities are to improve utilisation of our production capability, strengthen parts sales, increase stock conversion, and control operating costs. Growth must improve cash generation as well as turnover. We will assess further investment against its commercial return and the company's funding capacity.

We are developing proposals to improve access to European customers and strengthen relationships with vehicle manufacturers and other strategic partners. These are opportunities for future growth and are not presented as completed developments or guaranteed financial returns.

The business enters its centenary year with a clear ambition and a substantial operational platform. The task ahead is to make that platform deliver consistent profitability and cash generation. That is the measure against which we will judge progress.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the company are:

> Liquidity and funding: Operating losses, stock investment and funding obligations create pressure on cash. Continued access to funding, the terms of related party balances and any relevant lender covenants require close monitoring.

> Demand, pricing and stock recovery: Changes in used vehicle prices, demand for recycled parts and stock ageing can affect sales, margins, and the recoverable value of stock. Vehicle purchasing and parts recovery must remain aligned with market demand.

> Production and operational delivery: The return on investment depends on reliable production, effective warehousing, and timely order fulfilment. Disruption or insufficient utilisation can reduce profitability and delay cash generation.

> Commodity prices and operating costs: Scrap prices, fuel, energy, wages, and employment-related costs can affect returns. These pressures need to be reflected in purchasing decisions, pricing, and operating plans.

> People and technology: Delivery depends on skilled employees, effective leadership, and reliable digital systems. Recruitment, retention, system resilience, and data security remain important to business continuity.

> Environmental and regulatory requirements: The company operates in a regulated industry. Changes in environmental obligations, vehicle technology and requirements for handling vehicles and materials may require changes to processes and further investment.

The directors monitor financial and operational performance and review these risks regularly, acting where required.

ON BEHALF OF THE BOARD:

M J Trent - Director

15th October 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of vehicle recycling.

DIVIDENDS

No dividends will be distributed for the year ended 31st January 2026.

DIRECTORS

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

M J Trent

N Trent

Other changes in directors holding office are as follows:

J Trent - deceased 3rd October 2025

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, Cook & Partners Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M J Trent - Director

15th October 2026

Opinion

We have audited the financial statements of Charles Trent Limited (the 'company') for the year ended 31st January 2026 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31st January 2026 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 four, 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:

Explanation as to what extent 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:

Auditors approach to assessing the risks of material misstatement due to irregularities, including fraud.

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity. The following laws and regulations are considered to be significant to the entity:

Financial reporting Standard 102

Companies Act 2006

UK General Data Protection Regulation

Environmental Agency

We assessed the risks of material misstatement in respect of fraud as follows:

> Discussed the risk of material misstatement due to irregularities, including fraud with management at the planning stage to confirm that risks had been adequately identified and that the controls in place are sufficient for the size and nature of the business to reduce those risks to an acceptably low level.

> Undertook an initial analytical review of the financial statements to identify any potentially unusual or unexpected relationships or high risk audit areas.

> Completed a risk assessment checklist to aid in the identification of risks for a company of this size and nature.

> We considered the risk of fraud through management override of controls, a common risk in a company of this size and nature, in response; we incorporated testing of manual journal entries into our audit approach and undertook a purely substantive approach to the audit with no reliance placed on controls.

> Accounting policies were reviewed at the planning stage to identify any subjective measurements or complex transactions where management would have the potential to show bias.

> Ensured all in the audit team are aware of the risks identified and particular areas that were susceptible to misstatement and during the audit planning meeting.

> Throughout the audit additional substantive testing was undertaken in areas where there was perceived to be a medium or high risk of misstatement.

> Audit testing was undertaken in a manner that was unpredictable in nature, selection and timing when compared to previous years work.

> The engagement Partners final review of the audit file and financial statements included a detailed review of all areas of medium or high risk identified at the planning stage of the audit.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above:

> Financial reporting Standard 102, Companies Act 2006 and UK General Data Protection Regulation. The audit team all have a good understanding of the requirements under these laws and regulations common to most trading businesses and were alert throughout the audit to any potential instances of non-compliance.

> Further, at both the planning and completion stage of the audit enquiries where made of management any known instances of fraud or non-compliance with laws and regulations

> These representations were corroborated where possible through the review of board minutes. No contradictory evidence was noted.

We consider that the work detailed above has ensured that the likelihood of detection of irregularities including fraud is considered to be high both at management level and during our audit approach. It is however worth noting that there is an inherent difficulty in detecting irregularities and there is no guarantee that all irregularities have been identified.

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.

Jeffrey Oliver (Senior Statutory Auditor)

for and on behalf of Cook & Partners Limited

Statutory Auditor

Manufactory House

Bell Lane

Hertford

Hertfordshire

SG14 1BP

15th October 2026

TURNOVER

39,810,103

43,523,492

Cost of sales

30,206,687

33,850,300

GROSS PROFIT

9,603,416

9,673,192

Administrative expenses

11,266,907

10,630,329

(1,663,491

)

(957,137

)

Other operating income

180,000

-

OPERATING LOSS

4

(1,483,491

)

(957,137

)

Exceptional items

5

2,500,000

1,804,383

1,016,509

847,246

Interest receivable and similar income

4,405

-

1,020,914

847,246

Interest payable and similar expenses

6

889,592

776,323

PROFIT BEFORE TAXATION

131,322

70,923

Tax on profit

7

(509,081

)

(235,385

)

PROFIT FOR THE FINANCIAL YEAR

640,403

306,308

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

640,403

306,308

FIXED ASSETS

Intangible assets

8

159,255

217,123

Tangible assets

9

3,508,561

5,120,977

Investments

10

1

-

3,667,817

5,338,100

CURRENT ASSETS

Stocks

11

6,281,628

5,811,600

Debtors

12

2,636,195

1,931,642

Cash at bank and in hand

1,766,929

74,397

10,684,752

7,817,639

CREDITORS

Amounts falling due within one year

13

12,611,387

12,447,167

NET CURRENT LIABILITIES

(1,926,635

)

(4,629,528

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,741,182

708,572

CREDITORS

Amounts falling due after more than one year

14

1,507,500

1,115,293

NET ASSETS/(LIABILITIES)

233,682

(406,721

)

CAPITAL AND RESERVES

Called up share capital

19

100

100

Retained earnings

20

233,582

(406,821

)

SHAREHOLDERS' FUNDS

233,682

(406,721

)

The financial statements were approved by the Board of Directors and authorised for issue on 15th October 2026 and were signed on its behalf by:

M J Trent - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st February 2024

100

(713,129

)

(713,029

)

Changes in equity

Total comprehensive income

-

306,308

306,308

Balance at 31st January 2025

100

(406,821

)

(406,721

)

Changes in equity

Total comprehensive income

-

640,403

640,403

Balance at 31st January 2026

100

233,582

233,682

Cash flows from operating activities

Cash generated from operations

1

628,958

(855,182

)

Interest paid

(888,904

)

(763,159

)

Tax paid

34,815

-

Net cash from operating activities

(225,131

)

(1,618,341

)

Cash flows from investing activities

Purchase of intangible fixed assets

(18,972

)

(88,065

)

Purchase of tangible fixed assets

(298,505

)

(705,111

)

Purchase of fixed asset investments

(1

)

-

Sale of tangible fixed assets

770,232

125,099

Loans to related parties

(69,814

)

(199,413

)

Interest received

4,405

-

Net cash from investing activities

387,345

(867,490

)

Cash flows from financing activities

Loan repayments in year

(477,273

)

(265,152

)

Related party loans in year

7,991,048

1,747,934

New hire purchase in year

117,180

497,296

Hire purchase repayments in year

(1,996,256

)

(896,615

)

Amount introduced by directors

-

108,760

Amount withdrawn by directors

(108,760

)

-

Net cash from financing activities

5,525,939

1,192,223

Increase/(decrease) in cash and cash equivalents

5,688,153

(1,293,608

)

Cash and cash equivalents at beginning of year

2

(3,921,224

)

(2,627,616

)

Cash and cash equivalents at end of year

2

1,766,929

(3,921,224

)

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

2026

2025

£

£

Profit before taxation

131,322

70,923

Depreciation charges

1,282,381

1,360,957

Profit on disposal of fixed assets

(64,851

)

(89,068

)

Write back of intercompany loan

-

(1,804,382

)

Finance costs

889,592

776,323

Finance income

(4,405

)

-

2,234,039

314,753

Increase in stocks

(470,028

)

(1,564,654

)

Increase in trade and other debtors

(160,471

)

(20,559

)

(Decrease)/increase in trade and other creditors

(974,582

)

415,278

Cash generated from operations

628,958

(855,182

)

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 31st January 2026

31.1.26

1.2.25

£

£

Cash and cash equivalents

1,766,929

74,397

Bank overdrafts

-

(3,995,621

)

1,766,929

(3,921,224

)

Year ended 31st January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

74,397

126,499

Bank overdrafts

(3,995,621

)

(2,754,115

)

(3,921,224

)

(2,627,616

)

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.2.25

Cash flow

At 31.1.26

£

£

£

Net cash

Cash at bank and in hand

74,397

1,692,532

1,766,929

Bank overdrafts

(3,995,621

)

3,995,621

-

(3,921,224

)

5,688,153

1,766,929

Debt

Finance leases

(1,879,073

)

1,879,073

-

Debts falling due within 1 year

(318,182

)

318,182

-

Debts falling due after 1 year

(159,091

)

159,091

-

(2,356,346

)

2,356,346

-

Total

(6,277,570

)

8,044,499

1,766,929

4.	MAJOR NON-CASH TRANSACTIONS

On the 29th September 2023 the trade, assets and liabilities of Charles Trent Oldco Limited (Formally Charles Trent Limited) were transferred at no gain no loss to the company the net value of the trading assets at 29th September 2023 was £1,804,382.

This created an intercompany loan balance of £1,804,382 that during the year ending 31st January 2025 was assigned to the ultimate parent company (at the time Charles Trent Holdings Limited) and then subsequently written back.

1.	STATUTORY INFORMATION

Charles Trent 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.

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.

Going concern assumption

The company has invested significantly in developing its reverse production model, technology, and operational capability.

The directors' focus is on improving utilisation of this infrastructure, strengthening operating performance, and managing working capital.

For the year ended 31 January 2026, the company recorded an operating loss of £1,483,491. At that date, it had cash at bank and in hand of £1,766,929 and net current liabilities of £1,926,635. The directors have considered these factors, together with the company's related party funding arrangements, in assessing the appropriateness of the going concern basis of accounting.

The directors have reviewed current trading and cash flow forecasts covering a period of at least twelve months from the date the financial statements are authorised for issue. Their assessment takes account of operating expenditure, working capital requirements, the availability and repayment terms of funding, and relevant financial covenants. It also considers reasonably possible downside scenarios, including lower sales and slower conversion of stock into cash.

Based on this assessment and the funding arrangements available to the company, the directors consider that the company has sufficient resources to meet its liabilities as they fall due throughout the assessment period. Accordingly, they consider it appropriate to prepare the financial statements on a going concern basis.

Acquisition of trade and assets

On the 29th September 2023 the company acquired the trade, assets and liabilities of a fellow subsidiary company Charles Trent Oldco Limited on a no gain no loss basis.

Turnover

Turnover represents amounts invoiced, excluding VAT, in respect of the sale of goods and services to customers, excepting third party storage and recovery charges. These charges represent amounts paid by Charles Trent Limited on behalf of their insurance company clients to compensate those third parties for the recovery and storage of the insured vehicle. These charges are charged, at cost, to the respective insurance company by Charles Trent Limited. The directors believe that such recharges do not constitute turnover, and to include them separately would distort the reporting of business performance. This policy is generally accepted by the sector.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

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

Land and buildings

land is not depreciated and buildings are depreciated over 20 years

Long leasehold

Straight line over 20 years

Plant and machinery

15% on cost

Motor vehicles

20% on cost

Office equipment

20% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Salvage vehicle stock is valued at the lower of cost and net realisable value, after due regards for obsolete and slow moving stock. Net realisable value is based on selling price.

Stock of parts from the breaking of vehicles are included at selling price less an estimated profit margin in line with FRS 102 Section 13.16 Inventories.

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 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.

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 profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss 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 profit or loss in the period to which they relate.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values 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.

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

Stock Valuation

The valuation of parts stock is considered a key source of estimation uncertainty.

Salvage vehicle stock is valued at the lower of cost and net realisable value, after due regards for obsolete and slow moving stock. Net realisable value is based on selling price.

Stock of parts from the breaking of vehicles are included at selling price less an estimated profit margin in line with FRS 102 Section 13.16 Inventories.

The two key areas of estimation include:

>Estimated selling price and margin

>Obsolete and slow moving stock

Selling price and margin

Part valuation is undertaken by suitably qualified engineers and reviewed on a regular basis to confirm that estimated selling prices are at a market rate. Estimate margin is monitored regularly and adjusted where efficiencies are gained through technological advancement.

Obsolete and slow moving stock

Data insights to the purchasing, inventorying, and dismantling of parts have been developed to ensure that there is suitable demand for the stock that is going to be removed from the vehicle.

Various software solutions have been developed to do this which uses live market demand and pricing data to calculate the following:

> a maximum bid price when purchasing a vehicle to ensure that the price paid takes into account the value of parts where there is demand for them

>only parts that have been specified are removed from the vehicle.

With these tools and the associated data analysis, the need for an arbitrary obsolete stock provision based on age alone is now considered unnecessary.

A detailed review of all stock items is undertaken at the year end and any stock items categorized as slow moving are provided for where demand for the part appears to have diminished on review of market data.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

3.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

7,541,701

7,397,174

Social security costs

895,574

724,868

Other pension costs

256,677

258,105

8,693,952

8,380,147

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

2026

2025

Admin and support

71

73

Production

144

159

215

232

2026

2025

£

£

Directors' remuneration

-

-

4.	OPERATING LOSS

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

2026

2025

£

£

Hire of plant and machinery

8,951

9,307

Depreciation - owned assets

733,839

718,814

Depreciation - assets on hire purchase contracts

471,701

580,810

Profit on disposal of fixed assets

(64,851

)

(89,068

)

Computer software amortisation

76,840

61,332

Audit related services

28,000

25,000

Non audit services

17,850

21,200

5.	EXCEPTIONAL ITEMS

2026

2025

£

£

Exceptional items

2,500,000

1,804,383

On the 29th September 2023 the assets and liabilities were acquired from Charles Trent Oldco Limited (formerly Charles Trent Limited) on a no gain no loss basis which created an intercompany loan of £1,804,382.(See the basis of preparation note in the accounting policies for more detail)

During the financial year ending 31st January 2025 this loan was initially transferred to Charles Trent Holdings Limited (the parent company at the time) and then written back.

During the financial year ending 31st January 2026, the company received £2,500,000 in a life insurance payout following the death of one of the directors, Jonathan Trent.