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REGISTERED NUMBER: NI057995 (Northern Ireland)















SEATING MATTERS LTD

STRATEGIC REPORT, DIRECTORS' REPORT AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022






SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022




Page

Company Information 1

Strategic Report 2

Directors' Report 4

Independent Auditors' Report 6

Income Statement 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


SEATING MATTERS LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2022







DIRECTORS: Martin Tierney
James Ryan Tierney
Jonathan Tierney



REGISTERED OFFICE: 131 Carnamuff Road
Limavady
Co. Derry
BT49 9JG



REGISTERED NUMBER: NI057995 (Northern Ireland)



INDEPENDENT AUDITORS: CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP



BANKERS: Danske Bank
North Business Centre
1-2 Broadway
Ballymena
Co. Antrim
BT43 7AA



SOLICITORS: Caldwell & Robinson Solicitors
10-12 Artillery Street
Derry
BT48 6RG

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their strategic report for the year ended 31 December 2022.

REVIEW OF BUSINESS
Seating Matters Ltd continues to deliver a strong trading performance in respect of the year ended 31 December 2022 and the business remains in a sound financial position at the year end. The company returned a profit before tax for the financial year of £2,026,218 (2021: £2,813,943).

The directors consider the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and operating profit.

The directors have provided an analysis of the key performance indicators of the business below. The directors continue to monitor revenue and costs to ensure the company remains profitable. The company continues to maintain a strong net asset position.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company relate to competition. The directors carry out regular strategic reviews including assessments of competitor activity and market trends. The risks are also, addressed through not being overly reliant on any one customer, strong customer service as well as investment in its people and facilities.

Financial Risk Management

The company's operations expose it to a variety of financial risks that include foreign exchange risk, price risk and credit risk.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

Foreign Exchange Risk

While the greater part of the company's revenues and expenses are denominated in sterling, the company is exposed to some foreign exchange risk in the normal course of business, both on sales and purchases in Canadian dollars and US dollars. While the company has not used financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review.

Price Risk Management

The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. The company has no exposure to equity securities price risk as it holds no listed or other equity investments.

Credit Risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board.

Covid-19 Risk

The directors continue to monitor the situation closely and implement changes where necessary to minimise the risk of business disruptions. The company is flexible, having adapted easily to social distancing amongst employees.

STRATEGY & DEVELOPMENT
The company's success is dependent on understanding and meeting the developing needs of customers and developing innovative solutions for their needs. The company will continue to improve upon its position and concentrate on achieving maximum growth in its market sector while at the same time continuing to improve efficiency in all areas of its operations. With its proven track record the company believes it will be well placed to retain existing customers and generate new business.


SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

HEALTH AND SAFETY
The company is committed to achieving the highest practicable standards in health and safety management and strives to make its sites and offices safe environments for employees and customers alike.

FINANCIAL KEY PERFORMANCE INDICATORS
The directors consider the key performance indicators of the company to be those that reflect the performance of the company as a whole:

2022 2021
Revenue: £8,317,795 £7,253,056
Gross profit margin: 41.45% 54.27%
Operating profit: £2,025,877 £2,737,161

FUTURE DEVELOPMENTS
The company is committed to long term creation of shareholder value by increasing the company's market share. The company aims to increase revenue and operating profits. The company will continue to meet the needs of the customers and develop innovative solutions for their needs while remaining highly competitive.

EMPLOYEES
The company's policy is to consult and discuss with employees matters likely to affect employees' interests.

The company's most important resource is its people, their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical.

ON BEHALF OF THE BOARD:





Martin Tierney - Director


29 September 2023

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report with the audited financial statements of the Company for the year ended 31 December 2022.

PRINCIPAL ACTIVITY
The principal activity of the Company in the year under review was that of manufacturing of chairs for use in the healthcare sector.

DIVIDENDS
The company paid interim dividends in the year of £500,000 (2021: £2,694,500).

The directors do not recommend the payment of a final dividend (2021: £Nil).

RESEARCH AND DEVELOPMENT
The company continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

Martin Tierney
James Ryan Tierney
Jonathan Tierney

POLITICAL DONATIONS AND EXPENDITURE
The Company made no political donations or incurred any political expenditure during the current or prior year.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Directors' 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022


AUDITORS
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





Martin Tierney - Director


29 September 2023

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
SEATING MATTERS LTD

Opinion
We have audited the financial statements of Seating Matters Ltd (the 'Company') for the year ended 31 December 2022 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the Company's affairs as at 31 December 2022 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 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.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
SEATING MATTERS LTD


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 Directors' Report.

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 Directors' Responsibilities Statement 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.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
SEATING MATTERS LTD


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 an Auditors' 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.

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. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- We obtained an understanding of the legal and regulatory requirements applicable to the
company’s financial statements and considered the most significant are the Companies Act 2006,
Financial Reporting Standards (FRS102) and UK taxation legislation;
- We have assessed the risk of material misstatement of the financial statements, including risk of
material misstatement due to fraud and how it might occur by holding discussions with
management and those charged with governance;
- We enquired of management and those charged with governance as to any known instances of
non-compliance or suspected non-compliance with laws and regulations;
- We obtained understanding of the internal controls established to mitigate risks related to fraud or
non-compliance with laws and regulations; and
- We held discussions amongst the audit engagement team regarding how fraud might occur in the
financial statements and any potential indicators of fraud. As part of this discussion we identified
the following potential areas where fraud may occur: timing of revenue recognition and
management override.

The audit response to risks identified included:

- Reviewing the financial statements disclosures and testing to supporting documentation to assess
compliance with the relevant laws and regulations above;
- Performing analytical procedures to identify any unusual or unexpected relationships that may
indicate risk of material misstatement due to fraud;
- In addressing the risk of fraud through management override of controls, testing the
appropriateness of journal entries and other adjustments, assessing whether the judgements
made in making accounting estimates are reasonable and evaluating the business rationale of any
significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
SEATING MATTERS LTD


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 Auditors' 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.




Mr. Ryan Falls (F.C.A) (Senior Statutory Auditor)
for and on behalf of CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP

29 September 2023

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Notes £ £

REVENUE 5 8,317,795 7,253,056

Cost of sales (4,870,189 ) (3,316,869 )
GROSS PROFIT 3,447,606 3,936,187

Administrative expenses (1,762,678 ) (1,397,180 )
1,684,928 2,539,007

Other operating income 340,949 198,154
OPERATING PROFIT 7 2,025,877 2,737,161

Finance income 341 207
2,026,218 2,737,368
Gain/loss on revaluation of investments - 77,463
2,026,218 2,814,831

Finance costs 8 - (888 )
PROFIT BEFORE TAXATION 2,026,218 2,813,943

Tax on profit 9 (6,242 ) (211,616 )
PROFIT FOR THE FINANCIAL YEAR 2,019,976 2,602,327

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,019,976

2,602,327

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2022

2022 2021
Notes £ £
NON-CURRENT ASSETS
Intangible assets 12 8,012 11,206
Property, plant and equipment 13 529,629 436,134
Investment property 14 775,000 775,000
1,312,641 1,222,340

CURRENT ASSETS
Inventories 15 472,918 266,602
Receivables 16 2,311,818 2,346,504
Cash at bank and in hand 2,305,812 1,596,995
5,090,548 4,210,101
PAYABLES
Amounts falling due within one year 17 (936,332 ) (1,714,023 )
NET CURRENT ASSETS 4,154,216 2,496,078
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,466,857

3,718,418

PROVISIONS FOR LIABILITIES 18 (439,853 ) (211,390 )
NET ASSETS 5,027,004 3,507,028

CAPITAL AND RESERVES
Called up share capital 19 1 1
Capital redemption reserve 20 2 2
Retained earnings 20 5,027,001 3,507,025
SHAREHOLDERS' FUNDS 5,027,004 3,507,028

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by:





Martin Tierney - Director


SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£ £ £ £

Balance at 1 January 2021 1 3,599,198 2 3,599,201

Changes in equity
Dividends - (2,694,500 ) - (2,694,500 )
Total comprehensive income - 2,602,327 - 2,602,327
Balance at 31 December 2021 1 3,507,025 2 3,507,028

Changes in equity
Dividends - (500,000 ) - (500,000 )
Total comprehensive income - 2,019,976 - 2,019,976
Balance at 31 December 2022 1 5,027,001 2 5,027,004

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1. STATUTORY INFORMATION

Seating Matters Ltd is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

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


2. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention modified when necessary to include the revaluation of certain fixed assets.

The accounting policies detailed below have been applied consistently throughout the year.

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

the requirements of Section 7 Statement of Cash Flows.

Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the significant risks and rewards of ownership have been transferred to the buyer;
- the company retains no continuing involvement or control over the goods;
- the amount of revenue can be measured reliably;
- it is probable that future economic benefits will flow through the company
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services and contracting
Revenue from a contract to provide services is recognised in the period in which the serves are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;
- it is probable that the company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured
reliably, and;
- the costs incurred and the costs to complete the contract can be measured reliably.

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 4 years.

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

3. ACCOUNTING POLICIES - continued

Property, plant and equipment
Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Freehold property- 4% Straight Line
Plant and machinery- 25% Straight Line
Fixtures and fittings- 15% Straight Line
Motor vehicles- 25% Reducing Balance

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Investment property
Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually. The valuations use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the Income Statement.

Income from investment property is recognised in the Income Statement as rental income.

Inventories
Inventories are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition.

Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

3. ACCOUNTING POLICIES - continued

Financial instruments
The company have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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 when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and 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.


SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

3. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Property, plant and equipment held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement.

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 Income Statement in the period to which they relate.

Cash and cash equivalents
Cash and cash equivalents includes cash in hand and deposits held at call with banks.

Share capital
Ordinary Shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares are shown in equity as a deduction, net of tax, from the proceeds.

Distributions to equity holders
Dividends and other distributions to the Company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the Company's shareholders. These amounts are recognised in the statement of changes in equity.

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Judgements In applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(a) Critical judgements in applying the entity's accounting policies

There are no critical judgements in applying the entity's accounting policies.

(b) Key accounting estimates and assumptions

Warranty Provision
The company offers a warranty for any faulty goods sold. Provision is made for potential claims under warranty for goods which have been returned. Management review the level of sales and the number of warranty claims made on a regular basis in order to calculate the provision for future claims for goods sold.

5. REVENUE

All turnover is derived from the company's principal activities. No analysis of turnover is presented as the directors consider disclosure to be seriously prejudicial to the interests of the company.

6. EMPLOYEES AND DIRECTORS
2022 2021
£ £
Wages and salaries 1,345,291 1,117,617
Social security costs 126,448 97,410
Other pension costs 18,382 9,616
1,490,121 1,224,643

The average number of employees during the year was as follows:
2022 2021

Production and processing 33 33
Administrative 22 20
55 53

2022 2021
£ £
Directors' remuneration 25,687 19,422

7. OPERATING PROFIT

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

2022 2021
£ £
Commissions payable 1,192,700 1,103,200
Depreciation - owned assets 93,057 85,308
Loss/(profit) on disposal of fixed assets 208 (233,645 )
Computer software amortisation 3,194 3,194
Auditors' remuneration 10,200 8,500
Foreign exchange differences (73,658 ) 36

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

8. FINANCE COSTS
2022 2021
£ £
Hire purchase interest - 888

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2022 2021
£ £
Current tax:
UK corporation tax 3,297 189,484

Deferred tax 2,945 22,132
Tax on profit 6,242 211,616

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2022 2021
£ £
Profit before tax 2,026,218 2,813,943
Profit multiplied by the standard rate of corporation tax in the UK
of 19% (2021 - 19%)

384,981

534,649

Effects of:
Expenses not deductible for tax purposes 52 14,041
Income not taxable for tax purposes - (59,347 )
Capital allowances in excess of depreciation - (23,106 )
Adjustments to tax charge in respect of previous periods - 4,248
Tax benefit of SME R&D relief (351,666 ) (281,001 )
Impact of super deduction (3,133 ) -
Impact of rate change 453 -
Adjustments in respect of prior periods 1,349 -
Group relief (claimed)/surrendered (26,491 ) -
Non relevant depreciation 697 -
Deferred tax movements - 22,132
Total tax charge 6,242 211,616

10. DIVIDENDS
2022 2021
£ £
Ordinary Shares shares of 0.0079 each
Interim 500,000 2,694,500

11. PRIOR YEAR ADJUSTMENTS

Certain classes of transactions have been reclassed in the prior year to be brought into line with the current year classification. There has been no impact to the results of the prior year.

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

12. INTANGIBLE FIXED ASSETS
Patents and Computer
licences software Totals
£ £ £
COST
At 1 January 2022
and 31 December 2022 3,310 15,585 18,895
AMORTISATION
At 1 January 2022 - 7,689 7,689
Amortisation for year - 3,194 3,194
At 31 December 2022 - 10,883 10,883
NET BOOK VALUE
At 31 December 2022 3,310 4,702 8,012
At 31 December 2021 3,310 7,896 11,206

13. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Long Plant and and Motor
leasehold machinery fittings vehicles Totals
£ £ £ £ £
COST
At 1 January 2022 152,700 100,203 315,108 193,880 761,891
Additions 86,403 30,238 17,624 64,995 199,260
Disposals - - - (82,122 ) (82,122 )
At 31 December 2022 239,103 130,441 332,732 176,753 879,029
DEPRECIATION
At 1 January 2022 11,186 34,325 159,121 121,125 325,757
Charge for year 7,125 21,629 44,462 19,841 93,057
Eliminated on disposal - - - (69,414 ) (69,414 )
At 31 December 2022 18,311 55,954 203,583 71,552 349,400
NET BOOK VALUE
At 31 December 2022 220,792 74,487 129,149 105,201 529,629
At 31 December 2021 141,514 65,878 155,987 72,755 436,134

14. INVESTMENT PROPERTY
Total
£
FAIR VALUE
At 1 January 2022
and 31 December 2022 775,000
NET BOOK VALUE
At 31 December 2022 775,000
At 31 December 2021 775,000

The directors consider that such valuations are reflective of the open market value of the property at 31 December 2022.

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

14. INVESTMENT PROPERTY - continued

Fair value at 31 December 2022 is represented by:
£
Valuation in 2021 77,463
Cost 697,537
775,000

Investment Properties were subject to independent, professional valuations at 31 December 2021 by DMC Properties and Mortgages Ltd.

The valuations were undertaken in accordance with the Appraisal and Valuation Manual of the Royal Institute of Chartered Surveyors in the United Kingdom.

15. INVENTORIES
2022 2021
£ £
Finished goods 472,918 266,602

There is no material difference between the replacement cost of inventories and their balance sheet values.

16. RECEIVABLES
2022 2021
£ £
Trade receivables 1,512,499 1,502,358
Amounts owed by group undertakings 217,590 30,127
Amounts owed by participating interests 49,592 21,355
Other receivables 312,944 520,536
Directors' current accounts - 39,718
Tax 139,142 1,173
Prepayments and accrued income 80,051 231,237
2,311,818 2,346,504

The amounts owing by the group undertakings are interest free and receivable on demand.

17. PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£ £
Trade payables 629,722 710,628
Amounts owed to group undertakings - 613,006
Tax - 25,236
Social security and other taxes 50,474 43,968
VAT 10,497 45,287
Other payables 16,144 19,290
Accruals and deferred income 229,495 256,608
936,332 1,714,023

The amounts owed to the group undertakings are interest free and repayable on demand.

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

18. PROVISIONS FOR LIABILITIES
2022 2021
£ £
Deferred tax 65,694 62,749
Warranty provision 374,159 148,641
439,853 211,390

Deferred Warranty
tax provision
£ £
Balance at 1 January 2022 62,749 148,641
Utilised during year 2,945 429,129
Balance at 31 December 2022 65,694 577,770

The company offers a warranty for any goods sold. Provision is made for potential claims under warranty for goods which have a default. Management review the level of sales and the number of warranty claims made on a regular basis in order to calculate the provision for future claims for goods sold.

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £ £
126 Ordinary Shares 0.0079 1 1

20. RESERVES
Capital
Retained redemption
earnings reserve Totals
£ £ £

At 1 January 2022 3,507,025 2 3,507,027
Profit for the year 2,019,976 2,019,976
Dividends (500,000 ) (500,000 )
At 31 December 2022 5,027,001 2 5,027,003

21. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Amounts of £49,592 (2021: £21,355) were due at the year end to the company by Related Parties. The Related Parties are related by virtue of ultimate common shareholder and/or directors.

Included within Other Receivables is a balance of £252,048 (2021: £266,813) in respect of money due to the company from 'close family members'.

22. PARENT AND ULTIMATE PARENT COMPANY

The company regards Phoenix James Limited as its parent company.

The company's ultimate parent undertaking is Phoenix James Limited. The address of Phoenix James Limited is 131 Carnamuff Road, Ballykelly, Limavady, Northern Ireland, BT49 9JG.

SEATING MATTERS LTD (REGISTERED NUMBER: NI057995)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

23. COMMITMENTS UNDER OPERATING LEASES

At 31 December, the company had future minimum lease payments under non-cancellable operating leases as follows:

2022 2021
£ £
Land and buildings expiry date:

Within 1 year 189,333 189,333
Within 1-2 years 189,336 189,333
Within 2-5 years 169,336 378,666
548,008 757,332