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Furniture World Limited

Annual Report and Financial Statements
Year Ended 30 April 2023

Registration number: 04811439

 

Furniture World Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12 to 23

 

Furniture World Limited

Company Information

Directors

Mrs K Long

Mr R J Long

Mr R N Long

Mrs M Long

Registered office

Unit 1 Cardrew Way
Cardrew Industrial Estate
Redruth
Cornwall
TR15 1SH

Auditors

PKF Francis Clark
Statutory Auditor
Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

 

Furniture World Limited

Strategic Report for the Year Ended 30 April 2023

The directors present their strategic report for the year ended 30 April 2023.

Principal activity

The principal activity of the company is that of a furniture retailer.

Fair review of the business

The 2022/23 year has been another profitable year for the company, with similar levels of trade to the prior year. Sales have slighly decreased from £9,817k to £9,507k which is a 3.2% decrease. This decrease is largerly due to a reduction in sales from the online store, as store sales have recovered since the post pandemic due to customers now being able to come and view products in person before commiting to a purchase. Cost of sales have also decreased slightly from £5,765k to £5,688k which is a 1.3% decrease.

This has resulted in a slight drop in gross profit margin 41.27% to 40.16% and therefore profit for the year decreased from £372k to £326k. Overall, this is a strong result for the company given the cost of living crisis and continued economic uncertainty.

Principal risks and uncertainties

In the opinion of the Directors the principal risks faced by the group in the forthcoming year come from the uncertainty in UK economy going into 2023. There is a risk that hardship will mean lower demand for products. However we continue to source quality products at competitive prices and understand that choice and availability can sway the customers decision. We recognise that business on the high street will continue to be challenging for the foreseeable future and we have invested further in our website where overhead costs are lower, and profit margins are higher. We need to listen to customer feedback and work to provide our customers with what they want in terms of both product and service.

Approved and authorised by the Board on 13 November 2023 and signed on its behalf by:
 

.........................................
Mr R N Long
Director

 

Furniture World Limited

Directors' Report for the Year Ended 30 April 2023

The directors present their report and the financial statements for the year ended 30 April 2023.

Directors of the company

The directors who held office during the year were as follows:

Mrs K Long

Mr R J Long

Mr R N Long

Mrs M Long

Financial instruments
Classification
The company holds the following financial instruments:

Short term trade and other debtors and creditors;
Bank loans; and
Cash and bank balances.

All financial instruments are classified as basic.

Financial risk management objectives and policies

Trading activities expose the company to a number of financial risks. These risks include cash flow risk and overall liquidity risk. The company seeks to manage and mitigate these risks by adopting a policy of daily monitoring of the bank balance. Management also remain hands-on, reviewing cash flows, pre-empting future cash movements and planning accordingly. The director maintains regular
contact with the company's bank and keeps them informed of business levels and results, in order to safeguard the bank's continuing support.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 13 November 2023 and signed on its behalf by:
 

.........................................
Mr R N Long
Director

 

Furniture World Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom 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.

 

Furniture World Limited

Independent Auditor's Report to the Members of Furniture World Limited

Opinion

We have audited the financial statements of Furniture World Limited (the 'company') for the year ended 30 April 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, 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 30 April 2023 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 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Furniture World Limited

Independent Auditor's Report to the Members of Furniture World Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and 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 Statement of Directors' Responsibilities set out on page 4, 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.

Auditor 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 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.

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:

 

Furniture World Limited

Independent Auditor's Report to the Members of Furniture World Limited

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraud.

We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting.

In the year, we identified an additional risk associated with fraudulent or erroneous CJRS (Coronavirus Job Retention Scheme) claims. In response to the identified risk, as part of our audit work, we obtained an understanding of how the claims were prepared and assessed the risk
associated with this, reconciled claims back to cash received, and tested a sample of individuals by recalculating the amount of grant the company was entitled to claim. No issues were identified.

Audit procedures performed by the engagement team include, but were not limited to, discussion and inquiries with management of compliance with laws and regulations, review of board minutes and review of correspondence and contracts with third parties. We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Duncan Leslie (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

17 November 2023

 

Furniture World Limited

Profit and Loss Account

Year Ended 30 April 2023

Note

2023
£

2022
£

Turnover

9,506,996

9,817,064

Cost of sales

 

(5,687,635)

(5,765,331)

Gross profit

 

3,819,361

4,051,733

Administrative expenses

 

(3,342,257)

(3,538,387)

Other operating income

3

-

20,045

Operating profit

4

477,104

533,391

Other interest receivable and similar income

8

4,004

7,967

Interest payable and similar expenses

9

(46,007)

(53,192)

   

(42,003)

(45,225)

Profit before tax

 

435,101

488,166

Tax on profit

10

(109,371)

(116,527)

Profit for the financial year

 

325,730

371,639

The above results were derived from continuing operations.

 

Furniture World Limited

Statement of Comprehensive Income

Year Ended 30 April 2023

2023
£

2022
£

Profit for the year

325,730

371,639

Surplus on property, plant and equipment revaluation

7,856

7,857

Total comprehensive income for the year

333,586

379,496

 

Furniture World Limited

Balance Sheet

30 April 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

11

385,503

481,880

Tangible assets

12

2,935,156

3,028,259

 

3,320,659

3,510,139

Current assets

 

Stocks

13

1,264,665

1,269,744

Debtors

14

1,270,593

1,362,560

Cash at bank and in hand

 

351,140

920,762

 

2,886,398

3,553,066

Creditors: Amounts falling due within one year

15

(2,079,163)

(2,726,317)

Net current assets

 

807,235

826,749

Total assets less current liabilities

 

4,127,894

4,336,888

Creditors: Amounts falling due after more than one year

15

(1,369,840)

(1,623,595)

Provisions for liabilities

18

(245,528)

(265,353)

Net assets

 

2,512,526

2,447,940

Capital and reserves

 

Called up share capital

100

100

Fair value reserve

835,260

835,064

Profit and loss account

1,677,166

1,612,776

Shareholders' funds

 

2,512,526

2,447,940

Approved and authorised by the Board on 13 November 2023 and signed on its behalf by:
 

.........................................
Mr R N Long
Director

Company Registration Number: 04811439

 

Furniture World Limited

Statement of Changes in Equity

Year Ended 30 April 2023

Share capital
£

Fair value reserve
£

Profit and loss account
£

Total
£

At 1 May 2022

100

835,064

1,612,776

2,447,940

Profit for the year

-

-

325,730

325,730

Other comprehensive income

-

7,856

-

7,856

Total comprehensive income

-

7,856

325,730

333,586

Dividends

-

-

(269,000)

(269,000)

Transfers

-

(7,660)

7,660

-

At 30 April 2023

100

835,260

1,677,166

2,512,526

Share capital
£

Fair value reserve
£

Profit and loss account
£

Total
£

At 1 May 2021

100

834,867

1,471,877

2,306,844

Profit for the year

-

-

371,639

371,639

Other comprehensive income

-

7,857

-

7,857

Total comprehensive income

-

7,857

371,639

379,496

Dividends

-

-

(238,400)

(238,400)

Transfers

-

(7,660)

7,660

-

At 30 April 2022

100

835,064

1,612,776

2,447,940

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 1 Cardrew Way
Cardrew Industrial Estate
Redruth
Cornwall
TR15 1SH

These financial statements were authorised for issue by the Board on 13 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

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'.

Basis of preparation

The financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
It is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

Tangible assets

Tangible assets, except freehold land and buildings are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Freehold land and buildings are stated in the balance sheet at valuation. An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold Property

2% straight line

Leasehold Property

10% straight line

Fixtures and Fittings

10% reducing balance

Computer Equipment

25% reducing balance

Motor Vehicles

25% reducing balance

Office Equipment

25% reducing balance

Goodwill

Goodwill was capitalised upon incorporation in 2007 and is being amortised over its useful life, which has been estimated to be 20 years.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

5% straight line

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

 

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

3

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Other COVID grants

-

4,278

CJRS income

-

15,767

-

20,045

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

95,183

106,311

Amortisation expense

96,376

96,377

Operating lease expense - property

221,530

205,038

5

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,543,069

1,620,729

Social security costs

141,822

143,318

Pension costs, defined contribution scheme

26,694

32,367

1,711,585

1,796,414

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

62

67

62

67

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

57,999

56,400

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

7

Auditor's remuneration

2023
£

2022
£

Audit of the financial statements

11,500

9,600


 

8

Other interest receivable and similar income

2023
£

2022
£

Other finance income

4,004

7,967

9

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

42,415

48,086

Interest on obligations under finance leases and hire purchase contracts

3,592

5,106

46,007

53,192

10

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

121,340

128,647

Deferred taxation

Arising from origination and reversal of timing differences

(11,969)

(12,120)

Tax expense in the income statement

109,371

116,527

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 19.49% (2022 - 19%).

The differences are reconciled below:

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

2023
£

2022
£

Profit before tax

435,101

488,166

Corporation tax at standard rate

84,801

92,752

Effect of expense not deductible in determining taxable profit (tax loss)

28,340

27,663

UK deferred tax credit relating to changes in tax rates or laws

(3,770)

(3,888)

Total tax charge

109,371

116,527

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Origination and reversal of timing differences

45,811

Deferred tax on revalued property

199,718

245,529

2022

Liability
£

Origination and reversal of timing differences

57,779

Deferred tax on revalued property

207,574

265,353

11

Intangible assets

Goodwill
 £

Cost or valuation

At 1 May 2022

1,927,535

At 30 April 2023

1,927,535

Amortisation

At 1 May 2022

1,445,655

Amortisation charge

96,377

At 30 April 2023

1,542,032

Carrying amount

At 30 April 2023

385,503

At 30 April 2022

481,880

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

12

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 May 2022

3,159,873

355,614

188,930

3,704,417

Additions

-

2,080

-

2,080

At 30 April 2023

3,159,873

357,694

188,930

3,706,497

Depreciation

At 1 May 2022

377,140

177,635

121,383

676,158

Charge for the year

57,882

20,412

16,889

95,183

At 30 April 2023

435,022

198,047

138,272

771,341

Carrying amount

At 30 April 2023

2,724,851

159,647

50,658

2,935,156

At 30 April 2022

2,782,733

177,979

67,547

3,028,259

Revaluation

The fair value of the company's freehold property was revalued on 26 July 2018. An independent valuer was not involved. The basis used for this valuation was market value. Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,604,112 (2022 - £1,639,759).

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Motor vehicles

45,656

66,344

     

Included within the net book value of land and buildings above is £2,662,854 (2022 - £2,694,279) in respect of freehold land and buildings and £61,997 (2022 - £88,454) in respect of short leasehold land and buildings.
 

13

Stocks

2023
£

2022
£

Other inventories

1,264,665

1,269,744

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

14

Debtors

2023
£

2022
£

Trade debtors

184,009

212,491

Amounts owed by group undertakings

633,280

632,758

Other debtors

287,370

227,122

Prepayments

165,934

290,189

1,270,593

1,362,560

15

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

16

249,941

232,440

Trade creditors

 

663,032

896,524

Amounts due to group undertakings

 

301,297

304,054

Social security and other taxes

 

156,222

153,722

Other creditors

 

523,921

896,035

Accruals

 

61,543

113,029

Corporation tax

10

123,207

130,513

 

2,079,163

2,726,317

Due after one year

 

Loans and borrowings

16

1,369,840

1,623,595

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

16

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

1,347,632

1,576,378

Finance lease liabilities

22,208

47,217

1,369,840

1,623,595

2023
£

2022
£

Current loans and borrowings

Bank borrowings

218,276

212,176

Bank overdrafts

11,762

-

Finance lease liabilities

19,903

20,264

249,941

232,440

Bank borrowings

The Barclays bank loan is denominated in £ with a nominal interest rate of 2.37%, and the final instalment is due on 1 April 2026. The carrying amount at year end is £1,257,575 (2022 - £1,380,221).

The Barclays bank loan is secured by charges over the freehold properties owned by the company, a personal guarantee from the directors and a cross guarantee from Neon Property Limited.

The Barclays CBILS loan is denominated in £ with a nominal interest rate of 3.5%, and the final instalment is due on 1 April 2026. The carrying amount at year end is £308,333 (2022 - £408,333).

The Barclays CBILS loan is secured by charges over the freehold properties owned by the company and a cross guarantee from Neon Property Limited.

The Barclays current account overdraft is denominated in £. The carrying amount at year end is £11,762 (2022 - £Nil).

The current account was in a debit position in the prior year, the amount in the overdraft at year end makes up less than 3% of the total facility.

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

The bank borrowings are due as below -

Amount due

£

Within 1 year

218,276

Within 1 - 5 years

1,347,632

1,565,908

17

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

19,903

25,370

Later than one year and not later than five years

22,208

42,111

42,111

67,481

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

210,353

214,764

Later than one year and not later than five years

381,301

591,654

591,654

806,418

The amount of non-cancellable operating lease payments recognised as an expense during the year was £221,530 (2022 - £205,037).

18

Deferred tax and other provisions

Deferred tax
£

Total
£

At 1 May 2022

265,353

265,353

Increase (decrease) in existing provisions

(19,825)

(19,825)

At 30 April 2023

245,528

245,528

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £26,694 (2022 - £32,367).

20

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         

21

Contingent liabilities

The company is party to a cross guarantee with related parties in favour of Barclays Bank UK PLC and Nat West. The bank borrowings are secured by a charge over the freehold properties owned by the related parties.

The bank borrowing of the group at the balance sheet date amounted to £2,531,479 (2022 - £2,812,393).

22

Related party transactions

Transactions with directors

2023

At 1 May 2022
£

Advances to director
£

Repayments by director
£

Other payments made to company by director
£

At 30 April 2023
£

Mr R N Long

Director's loan account

(203,424)

(295,676)

333,602

(3,986)

(169,484)

           

Mr R J Long

Director's loan account

26,349

(97,906)

70,342

(18)

(1,233)

           

 

Furniture World Limited

Notes to the Financial Statements

Year Ended 30 April 2023

2022

At 1 May 2021
£

Advances to director
£

Repayments by director
£

Other payments made to company by director
£

At 30 April 2022
£

Mr R N Long

Director's loan account

(143,208)

(765,731)

713,482

(7,967)

(203,424)

           
         

Mr R J Long

Director's loan account

50,538

(86,550)

62,361

-

26,349

           
         

 

23

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £2,690.00 (2022 - £2,384.00) per each Ordinary share

 

269,000

 

238,400

         

24

Parent and ultimate parent undertaking

The company's immediate parent is Neon (Holdings) Limited, incorporated in England and Wales.

 The ultimate parent is Neon (Holdings) Limited, incorporated in England and Wales.

 The ultimate controlling party are the shareholders of Neon (Holdings) Limited.