The directors present their strategic report for the year ended 30 April 2025.

There have been a number of drag factors on the UK retail sector in the year:

• The continued high interest rate environment has impacted the ability of customers to purchase vehicles;

• The climate following the budget and increases in Employers NIC have reduced demand.

In this overall context vehicle sales revenue has remained comparable to 2024, in part due to the company experiencing very successful trading from two new franchises.

Despite the relatively consistent sales volumes, total vehicle sales revenue increased by £4.65m (2.3%) to £207.89m primarily due to an increase in vehicle units sold. 731 additional new vehicles were sold during 2025 alongside 837 more used vehicles sold.

It has been a challenging year for the aftersales departments due to contract renewals in the year with revenues falling by 13.2% and total sales of £23.88m in 2025 compared to £27.52m in 2024.

As the market has greater supply of new vehicles, trading conditions have been more challenging and overall gross profit and margin were comparable to 2024 at £14.46m (£15.24m) and 6.2% (6.5%) respectively.

Profitability has been impacted by growing employment and rates costs and as a result profit before tax has fallen from £1.70m to £0.65m.

Net assets have increased by £0.68m to £19.31m from £18.63m in 2024 with cash at bank of £3.69m compared to £6.67m.

Over the past five years the company's net assets have increased from £10.32m to £19.31m representing an increase of 87%. The company is in a considerably more robust position having reinvested profits into the business.

The directors are pleased with the overall results given the overall market conditions and recognise the contribution made from managers and staff in achieving these results in a very challenging market.

FCA Motor Market Review

The Financial Conduct Authority (FCA) is currently investigating Discretionary Commission Arrangements (DCAs) within automotive finance. Preliminary findings suggest that motor finance providers and motor finance credit brokers who have engaged in finance agreements including DCAs could be impacted. The company ceased sales including DCAs in January 2021 following the FCA's policy statement prohibiting their use.

On 1 August 2025 the supreme court ruled that in many cases commission payments were legal. The FCA is consulting on a redress scheme however the Directors believe both that the cost of this would fall on individual lenders and not dealerships and that any arrangements they had in place were appropriate.

The company is not directly involved in the sale of finance products to customers instead referring them to third parties who administer and are responsible for the finance product themselves. Because of this the Directors believe that the probability of a liability arising to be remote and no provision is made in respect of potential claims.

The management of the business is subject to a number of risks. The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below and the directors are satisfied procedures are in place to manage the risks identified and ensure appropriate mitigating action is taken.

Economic performance

The success of the business is reliant in part on consumer confidence. An economic downturn resulting in a reduction in consumer confidence will have a direct impact on the income achieved by the company. The directors keep abreast of economic conditions to allow the business to make an effective response.

Competition

The motor industry is highly competitive. As a result there is constant pressure on margins.

Franchise representation

The company is exposed to the vehicle life cycles of the manufacturers it represents however constant awareness and the diverse franchise representation mitigate this risk.

Employees

The success of the company is largely dependent upon the recruitment and retention of its employees. Policies are in place to ensure suitable staff resources are employed within the business.

Liquidity risk

The company is subject to liquidity risk arising from the use of a bank overdraft facility and capital repayment obligations on bank term loans. S G Petch Limited mitigates this risk through close monitoring and management of operating cash flows, and periodic review of its financing needs with the bank.

Market risk

The company is exposed to any fall in the price of used vehicles in the market. The company mitigates this risk by closely monitoring the market and ensuring the stocking period of vehicles is actively managed. As regards the supply of new vehicles, the company benefits from long term arrangements with a variety of franchises which helps to mitigate the risk.

The business monitors performance against the following key performance indicators:

The Directors of the business are aware of their “Section 172” duty to promote the success of the business. In promoting the success of the company they consider long term consequences and seek to act fairly, balancing the interests of customers, shareholders, employees, suppliers, business partners and others.

The Directors foster good relationships with external parties including customers. We strive to deliver excellent customer service every time and utilise customer feedback to improve our customer service process.

We recognise our workforce as a key asset and crucial to our success. All employees are offered fair benefits relative to their role. The company's policy is to consult and discuss with employees, through staff meetings, matters likely to affect employees' interests.

We recognise and value the significant role our suppliers and business partners play in our success. We therefore take time to build rapport, working closely with them to maximise value and to support the needs of our customers. We treat suppliers fairly and pay bills promptly.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 April 2025.

The company is a multi-franchise car dealership with branches in Darlington, Durham, Middlesbrough, Middlesbrough South Bank, York, Richmond and Sunderland. The principal activities are the sale of new and used cars and vans, the maintenance and repair of vehicles, and the retail trade of vehicle parts and accessories. The company also operates a forecourt.

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company mitigates liquidity risk through management of its cash and borrowing requirements including regular cash flow forecasting and periodic review of its financing needs with the bank.

The company is exposed to interest rate risk on its variable rate bank loans, stocking loans and hire purchase agreements. The company does not undertake active hedging of this risk but the directors keep the arrangements and their terms under regular review.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

The directors' focus is on the continued growth of the company's branches and to consolidate the company's position. The company continually reviews new franchise opportunities and the performance of the recently opened franchises with new Chinese electric vehicle manufacturers has exceeded expectations. The company continues to look for new opportunities to build on this success through further partnerships.

The auditor, Xeinadin Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and Emissions Reporting

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 May 2024 to 30 April 2025, pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government’s Streamlined Energy and Carbon Reporting (SECR) policy.

Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)’, using DESNZ's 2023 and 2024 conversion factors as applicable. In some cases, consumption has been extrapolated from available data or direct comparison made to a comparable period.

We report using a financial control approach to define our organisational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.

During the reporting period £54.8k has been invested in PV and £2.5k in LED lighting upgrades. The table below includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.

Please note, due to rounding, individual figures may not sum to the totals provided

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

We have audited the financial statements of S. G. Petch Limited (the 'company') for the year ended 30 April 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 30 April 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 directors' report.

We have nothing to report in respect of the following matters in relation to which 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.

As explained more fully in the directors' responsibilities statement, 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 is 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.

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 an auditor's report 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement principal ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the new and used vehicle markets;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

• understanding the design of the company’s remuneration policies.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with HMRC, the company's legal advisors and any other relevant body.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

S. G. Petch Limited is a private company limited by shares incorporated in England and Wales. The registered office is McMullen Road, Darlington, County Durham, DL1 1XZ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 402 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

The trade and assets of the only subsidiary of the company were hived-up into S. G. Petch Limited immediately on acquisition during the previous year and following that the subsidiary has remained dormant. The subsidiary therefore qualified to be excluded from the consolidation under section 405 of the Companies Act 2006. The subsidiary was dissolved on 10 June 2025.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, usually on delivery of the vehicles or parts.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Unlisted investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

The cost of vehicle stock is calculated on a unit by unit basis. The cost of parts and other stock is calculated using the weighted average method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at cost. Such assets are subsequently measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank and other loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

Consignment stock

Any stock of new vehicles held on consignment together with the corresponding liability for such consignment stock is recognised in the financial statements in circumstances where the directors consider such stock to be an asset of the company.

In the application of the company’s accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Judgement is applied in the assessment of used vehicle inventory carrying values at 30 April 2025. Assessment of market conditions, latest industry guidance and the length of time vehicles have been held in inventory are all considered in the application of this judgement.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

As described in Note 12 to the financial statements, land and buildings are stated at fair value based on the 2025 valuation performed by an independent firm of chartered surveyors, Sanderson Weatherall Ltd, with recent experience in the location and category of property valued. The valuer used observable market prices adjusted as necessary for any difference in the future, location or condition of the specific assets.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Freehold land and buildings with a carrying amount of £19,344,575 (2024: £19,155,289) have been pledged to secure borrowings of the company.

Freehold land and buildings were revalued as at 30 April 2025 by Sanderson Weatherall Ltd, a firm of independent chartered surveyors. The valuations were undertaken on the basis of open market value in accordance with the Appraisal and Valuation Manual of The Royal Institute of Chartered Surveyors, and were based on recent market transactions on arm's length terms for similar properties.

If these properties were measured using the cost model, the carrying amounts would have been approximately:

Details of the company's subsidiaries at 30 April 2025 are as follows:

The above financial information for the subsidiary is based on the financial records of the company to dissolution.

The investments in subsidiaries are all stated at cost less impairment.

The total cost of vehicles held on consignment at 30 April 2025 and not recognised in these financial statements on the basis that the directors do not regard such stock as an asset of the company is £3,416,148 (2024: £3,641,891) Correspondingly no liability has been recognised in respect of this consignment stock.

£41,451,429 (2024: £39,579,415) of the stock value is pledged as security against stocking loans and other bank loans.

The consignment and finance lease creditors are secured by charges over the assets to which they relate.

Other borrowings include stocking loans of £14,503,934 (2024: £3,895,500) which are secured over the assets to which they relate and £211,424 (2024: £211,424) of other loans which are secured by a legal charge over freehold assets of the company.

Included in trade creditors are amounts owed to vehicle manufacturers for new vehicles totalling £23,834,381 (2024: £19,080,584) which are secured over the assets to which they relate.

The bank loans are secured by a legal charge over freehold and long leasehold land and buildings owned by the company and a debenture over the company's other assets.

Included in trade creditors are amounts owed to vehicle manufacturers relating to stock. Of these creditors, liabilities totalling £275,000 (2024: £275,000) are covered by a guarantee provided by the company's bankers.

Included in other borrowings is an amount of £1,470,243 (2024: £1,470,247) which is secured by way of legal charge over freehold land owned by the company,

The loans repayable by instalments detailed below incur interest at rates of 2.49% above LIBOR and 3.23% above Volkswagon Base Rate and are repayable in equal instalments over 9 to 10 years.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Finance lease obligations are secured on the assets to which they relate.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

A net reversal of the deferred tax liability amounting to £47,807 (2024: £47,452) is expected during the current financial year subject to the impact of any further capital additions and capital allowances claimed thereon.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Included in other creditors are £63,681 (2024: £57,848) of contributions owed to the pension scheme at the year end.

The company has two classes of ordinary shares both of which carry no right to fixed income.

Includes the cumulative revaluation gains on the revaluation of freehold land and buildings, net of any deferred tax charge.

Includes amounts arising from the redemption or purchase of the company's own shares.

Includes all current and prior period retained profits and losses.

Operating lease payments represent rentals payable by the company for certain of its properties. Leases are negotiated for terms of between 15 and 25 years and rentals are fixed for the duration of the lease.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

On 31 July 2025 the company repurchased and immediately cancelled 1,387 Ordinary B shares with nominal value of £1 each from one of its directors for total consideration of £356,653.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

Dividends totalling £0 (2024 - £246,557) were paid in the year in respect of shares held by the company's directors.

Advances or credits have been granted by the company to its directors as follows:

The advances to directors were unsecured and repayable on demand.

The company is under the control of the Director, S G Petch.

Exposure to foreign currency, credit, interest rate and liquidity risks arises in the normal course of the company's business. These risks are limited by the company's financial management policies and practices as described below.

Interest rate risk

The company is exposed to interest rate risk on its variable rate bank loans, stocking loans and hire purchase agreements. The company does not undertake active hedging of this risk but the directors keep the arrangements and their terms under regular review.

Liquidity risk

The company mitigates liquidity risk through management of its cash and borrowing requirements including regular cash flow forecasting, and periodic review of its financing needs with the bank.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

The investment income was not received in cash being offset in full against a creditor owed to the subsidiary.