Motor finance redress provisions dominate the filings

Headline operating profit nearly tripled to £60m, though the core trading figures present a different picture. Underlying profitability tightened, with gross profit slipping to £575m and administrative expenses climbing to £63m. The difference was bridged by a £76m injection of other operating income, a sharp jump from just £1m in the prior year. The strategic report notes this period saw the approval to liquidate two subsidiaries, simplifying the wider corporate structure.

A challenging set of accounts for the UK vehicle finance arm, heavily shaped by regulatory provisions. The top line ticked up to £3.4bn, but the business booked a £725m provision for expected costs under the FCA's motor finance consumer redress scheme. That single line item moved an underlying performance—which the filing notes would have yielded a £239m operating profit—down to a statutory operating loss of £485m. The statutory pre-tax loss was accompanied by a £133m tax credit.

This principal holding entity distributed £6.4bn in dividends to the parent group, a sharp increase from the £3.9bn distributed in the prior year. Operating profit more than doubled to £6.9bn, though as a central node for the global energy major, the figures are heavily shaped by intercompany flows rather than external sales. Below the line, a £5.8bn finance cost was largely offset by £4.6bn in finance income, reflecting the scale of the internal treasury function.

The principal trading arm of the listed housebuilder recorded a 13% rise in turnover, but margin pressure was evident further down the page. Gross profit held flat at £366m, while the period also saw a £47m jump in administrative expenses. Operating profit subsequently dropped to £107m. Average headcount fell by nearly 800 employees over the year, a contraction that coincided with total staff costs decreasing by £18m.

Revenue nudged up to £2.1bn for the UK manufacturing arm, while operating profit retreated to £108m alongside climbing administrative and distribution costs. Average headcount fell by roughly 660, a contraction the filing attributes to the closure of the Fawdon site and internal staff transfers. The entity generated a £45m net profit, and the accounts note a letter of support from its Swiss parent has been received to affirm its going-concern status for the next twelve months.