IRIS Accounts Production v23.3.0.418 02575156 Board of Directors Board of Directors 1.4.22 31.3.23 31.3.23 bedding manufacturers. true false true true false false true true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure025751562022-03-31025751562023-03-31025751562022-04-012023-03-31025751562021-03-31025751562021-04-012022-03-31025751562022-03-3102575156ns16:EnglandWales2022-04-012023-03-3102575156ns15:PoundSterling2022-04-012023-03-3102575156ns11:Director12022-04-012023-03-3102575156ns11:Director22022-04-012023-03-3102575156ns11:PrivateLimitedCompanyLtd2022-04-012023-03-3102575156ns11:FRS1022022-04-012023-03-3102575156ns11:Audited2022-04-012023-03-3102575156ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-04-012023-03-3102575156ns11:LargeMedium-sizedCompaniesRegimeForAccounts2022-04-012023-03-3102575156ns11:FullAccounts2022-04-012023-03-3102575156ns11:OrdinaryShareClass12022-04-012023-03-3102575156ns11:RegisteredOffice2022-04-012023-03-3102575156ns11:Director32022-04-012023-03-3102575156ns6:CurrentFinancialInstruments2023-03-3102575156ns6:CurrentFinancialInstruments2022-03-3102575156ns6:Non-currentFinancialInstruments2023-03-3102575156ns6:Non-currentFinancialInstruments2022-03-3102575156ns6:ShareCapital2023-03-3102575156ns6:ShareCapital2022-03-3102575156ns6:RetainedEarningsAccumulatedLosses2023-03-3102575156ns6:RetainedEarningsAccumulatedLosses2022-03-3102575156ns6:ShareCapital2021-03-3102575156ns6:RetainedEarningsAccumulatedLosses2021-03-3102575156ns6:RetainedEarningsAccumulatedLosses2021-04-012022-03-3102575156ns6:RetainedEarningsAccumulatedLosses2022-04-012023-03-3102575156ns6:LeaseholdImprovements2022-04-012023-03-3102575156ns6:PlantMachinery2022-04-012023-03-3102575156ns6:MotorVehicles2022-04-012023-03-3102575156ns6:ComputerEquipment2022-04-012023-03-3102575156ns11:HighestPaidDirector2022-04-012023-03-3102575156ns11:HighestPaidDirector2021-04-012022-03-3102575156ns6:OwnedAssets2022-04-012023-03-3102575156ns6:OwnedAssets2021-04-012022-03-3102575156ns6:LeasedAssets2022-04-012023-03-3102575156ns6:LeasedAssets2021-04-012022-03-3102575156ns6:HirePurchaseContracts2022-04-012023-03-3102575156ns6:HirePurchaseContracts2021-04-012022-03-3102575156ns6:LeaseholdImprovements2022-03-3102575156ns6:PlantMachinery2022-03-3102575156ns6:MotorVehicles2022-03-3102575156ns6:ComputerEquipment2022-03-3102575156ns6:LeaseholdImprovements2023-03-3102575156ns6:PlantMachinery2023-03-3102575156ns6:MotorVehicles2023-03-3102575156ns6:ComputerEquipment2023-03-3102575156ns6:LeaseholdImprovements2022-03-3102575156ns6:PlantMachinery2022-03-3102575156ns6:MotorVehicles2022-03-3102575156ns6:ComputerEquipment2022-03-3102575156ns6:PlantMachineryns6:LeasedAssetsHeldAsLessee2022-03-3102575156ns6:MotorVehiclesns6:LeasedAssetsHeldAsLessee2022-03-3102575156ns6:LeasedAssetsHeldAsLessee2022-03-3102575156ns6:PlantMachineryns6:LeasedAssetsHeldAsLessee2023-03-3102575156ns6:MotorVehiclesns6:LeasedAssetsHeldAsLessee2023-03-3102575156ns6:LeasedAssetsHeldAsLessee2023-03-3102575156ns6:PlantMachineryns6:LeasedAssetsHeldAsLessee2022-04-012023-03-3102575156ns6:MotorVehiclesns6:LeasedAssetsHeldAsLessee2022-04-012023-03-3102575156ns6:LeasedAssetsHeldAsLessee2022-04-012023-03-3102575156ns6:PlantMachineryns6:LeasedAssetsHeldAsLessee2022-03-3102575156ns6:MotorVehiclesns6:LeasedAssetsHeldAsLessee2022-03-3102575156ns6:LeasedAssetsHeldAsLessee2022-03-3102575156ns6:WithinOneYearns6:CurrentFinancialInstruments2023-03-3102575156ns6:WithinOneYearns6:CurrentFinancialInstruments2022-03-3102575156ns6:WithinOneYearns6:CurrentFinancialInstrumentsns6:HirePurchaseContracts2023-03-3102575156ns6:WithinOneYearns6:CurrentFinancialInstrumentsns6:HirePurchaseContracts2022-03-3102575156ns6:BetweenOneFiveYearsns6:HirePurchaseContracts2023-03-3102575156ns6:BetweenOneFiveYearsns6:HirePurchaseContracts2022-03-3102575156ns6:HirePurchaseContracts2023-03-3102575156ns6:HirePurchaseContracts2022-03-3102575156ns6:WithinOneYear2023-03-3102575156ns6:WithinOneYear2022-03-3102575156ns6:BetweenOneFiveYears2023-03-3102575156ns6:BetweenOneFiveYears2022-03-3102575156ns6:AllPeriods2023-03-3102575156ns6:AllPeriods2022-03-3102575156ns6:DeferredTaxation2022-03-3102575156ns6:DeferredTaxation2023-03-3102575156ns11:OrdinaryShareClass12023-03-3102575156ns6:RetainedEarningsAccumulatedLosses2022-03-31
REGISTERED NUMBER: 02575156 (England and Wales)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 March 2023

for

The Mansion House Bedding Company
Limited

The Mansion House Bedding Company
Limited (Registered number: 02575156)






Contents of the Financial Statements
for the Year Ended 31 March 2023




Page


Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


The Mansion House Bedding Company
Limited

Company Information
for the Year Ended 31 March 2023







DIRECTORS: Mr S D Eccles
Mr C Payne





REGISTERED OFFICE: 6 Whittle Road
Hadleigh Road Industrial Estate
Ipswich
Suffolk
IP2 0UH





REGISTERED NUMBER: 02575156 (England and Wales)





AUDITORS: Cunninghams Statutory Auditors
Number Sixty One
Alexandra Road
Lowestoft
Suffolk
NR32 1PL

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Strategic Report
for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS
The principal activity of the company remains the sale of beds and mattresses, along with associated products to the contract, domestic and bespoke markets primarily within the United Kingdom as well as internationally.

Turnover increased from the previous financial year largely from increases in the contract sector. Gross profit percentage dropped compared to the previous financial year due to increases in raw material costs and greater labour costs, as well as a greater reliance on outsourced skilled labour. Similarly Net profit percentage dropped compared to the previous financial year due to price increases across the board, as well as expenditure on site maintenance that had been delayed during Covid-19. There was also a significant increase in depreciation charge as a result of the investment in improvement to property and new vehicles.

The company continues to invest heavily into new automated machinery and is continuing to look at ways to bring in new machinery to help reduce costs and maximise productivity. Investment was also made on the factory property, with renovations taking place to allow for a new showroom which can showcase the product ranges available to the contract and retail sectors.

The company, as with the rest of the country, has experienced extremely high price increases across both goods and services, for example with diesel prices and the cost of new energy contracts. Some of these increases have been absorbed by the company, however price increases have also had to be put in place with customers.

The company has committed to a new accounting package and ERP system, with the aim to consolidate and improve internal processes and provide more insight into stock availability and manufacturing capacity in real time. It is expected that this change will be implemented by the end of Q3 in the next financial year.

Monthly management accounts are produced for the directors which after reviewing we are able to provide immediate resolutions on trends in operations, logistics and resources.

PRINCIPAL RISKS AND UNCERTAINTIES
All risks are monitored on an on-going basis by the directors and improvements/ strategies are implemented as required to mitigate against such risks occurring and minimising their impact. The principal risks and uncertainties are set out below:

Credit Risk

The company has been able to minimise the risk of credit issues by insuring all of its debtors along with having strict credit terms with its customers which have been adhered to.

The businesses credit control department procedures are monitored regularly as the business developed both in the domestic and international markets and this can be seen as bad debts have remained low for yet another consecutive year despite another good year's turnover.

Cashflow Risk

The company operates a detailed cash flow forecast and is currently working on growing different sales avenues and areas to keep the cash being generated quickly enabling the business to keep on top of its outgoings and meet future projects, demands and ambitions.

Price Risk

The company is continually working and communicating hard with all its suppliers to reduce the amount of price increases to reduce the effect on the businesses margins as well as minimising any potential price increases for its customers.


The Mansion House Bedding Company
Limited (Registered number: 02575156)

Strategic Report
for the Year Ended 31 March 2023

KEY PERFORMANCE INDICATORS
The company's board of directors use a variety of measures to analyse the performance of the business including gross & net profit margins, current ratios, analysis against prior year accounts and labour cost percentages.

ENVIRONMENT & HEALTH AND SAFETY
The company is committed to supporting the environment and co-operates fully with relevant authorities to ensure that legal obligations are met. The company recycles the majority of its raw materials used in production via a third party and also employs a third party to make sure that we are up-to-date with all the health and safety regulations regarding the businesses workplace and employees.

ON BEHALF OF THE BOARD:





Mr S D Eccles - Director


31 August 2023

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Report of the Directors
for the Year Ended 31 March 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2023.

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

Mr S D Eccles
Mr C Payne

Other changes in directors holding office are as follows:

Mr K Nunn - resigned 31 March 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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.

AUDITORS
The auditors, Cunninghams Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr S D Eccles - Director


31 August 2023

Report of the Independent Auditors to the Members of
The Mansion House Bedding Company
Limited

Opinion
We have audited the financial statements of The Mansion House Bedding Company Limited (the 'company') for the year ended 31 March 2023 which comprise the 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 31 March 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
The Mansion House Bedding Company
Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

- Enquiry of management around actual and potential litigation and claims;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
- Performing audit work reviewing relevant documentation for any evidence of non-compliance, including health and safety files, invoices/correspondence in respect of legal fees and correspondence with regulatory authorities.

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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
The Mansion House Bedding Company
Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Benjamin Lynes (Senior Statutory Auditor)
for and on behalf of Cunninghams Statutory Auditors
Number Sixty One
Alexandra Road
Lowestoft
Suffolk
NR32 1PL

24 November 2023

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Statement of Comprehensive
Income
for the Year Ended 31 March 2023

31.3.23 31.3.22
Notes £    £    £    £   

TURNOVER 8,409,200 8,059,864

Cost of sales 4,688,419 4,314,340
GROSS PROFIT 3,720,781 3,745,524

Distribution costs 517,906 404,771
Administrative expenses 2,884,753 2,700,441
3,402,659 3,105,212
318,122 640,312

Other operating income - 59,498
OPERATING PROFIT 4 318,122 699,810

Interest receivable and similar income 280 -
318,402 699,810

Interest payable and similar expenses 5 2,936 4,189
PROFIT BEFORE TAXATION 315,466 695,621

Tax on profit 6 74,839 101,298
PROFIT FOR THE FINANCIAL YEAR 240,627 594,323

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

240,627

594,323

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Balance Sheet
31 March 2023

31.3.23 31.3.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 1,157,714 1,026,182

CURRENT ASSETS
Stocks 8 742,118 818,050
Debtors 9 1,194,375 1,231,771
Cash at bank and in hand 893,079 1,107,191
2,829,572 3,157,012
CREDITORS
Amounts falling due within one year 10 1,388,112 1,849,501
NET CURRENT ASSETS 1,441,460 1,307,511
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,599,174

2,333,693

CREDITORS
Amounts falling due after more than one
year

11

(15,413

)

(46,238

)

PROVISIONS FOR LIABILITIES 14 (161,076 ) (105,397 )
NET ASSETS 2,422,685 2,182,058

CAPITAL AND RESERVES
Called up share capital 15 1,000 1,000
Retained earnings 16 2,421,685 2,181,058
SHAREHOLDERS' FUNDS 2,422,685 2,182,058

The financial statements were approved by the Board of Directors and authorised for issue on 31 August 2023 and were signed on its behalf by:




Mr S D Eccles - Director



Mr C Payne - Director


The Mansion House Bedding Company
Limited (Registered number: 02575156)

Statement of Changes in Equity
for the Year Ended 31 March 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 April 2021 1,000 1,586,735 1,587,735

Changes in equity
Total comprehensive income - 594,323 594,323
Balance at 31 March 2022 1,000 2,181,058 2,182,058

Changes in equity
Total comprehensive income - 240,627 240,627
Balance at 31 March 2023 1,000 2,421,685 2,422,685

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Notes to the Financial Statements
for the Year Ended 31 March 2023

1. STATUTORY INFORMATION

The Mansion House Bedding Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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


2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards and United Kingdom Generally Accepted Accounting Practice, which has been applied consistently, except as otherwise stated.

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS
The company has taken advantage of the following disclosure exemptions 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;
the requirement of paragraph 33.7.

The parent company of the group is Mansion House Bedding Group Limited and accounts are available from the public register at Companies House.

RELATED PARTY EXEMPTION
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.

TURNOVER
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised when the goods are delivered to the customer.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 20% on cost and 10% on cost
Plant and machinery - 25% on reducing balance, 20% on cost and 20% on reducing balance
Motor vehicles - 33% on cost and 20% on cost
Computer equipment - 33% on cost and 20% on cost

STOCKS
Stocks are stated at the lower of cost and net realisable value. The cost of finished goods and work in progress includes direct labour and an attributable proportion of appropriate production overheads based on normal levels of activity. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow-moving or defective items where appropriate.


The Mansion House Bedding Company
Limited (Registered number: 02575156)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

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

Current or deferred taxation assets and liabilities are not discounted.

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

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

HIRE PURCHASE AND LEASING COMMITMENTS
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

INVOICE DISCOUNTING
Where debts are invoice discounted the separate presentation treatment has been adopted. In accordance with this treatment the gross amount of the debts is included within trade debtors with the advances received from invoice discounting being shown as a liability.

3. EMPLOYEES AND DIRECTORS
31.3.23 31.3.22
£    £   
Wages and salaries 2,794,902 2,621,796
Social security costs 303,436 278,992
Other pension costs 111,397 142,463
3,209,735 3,043,251

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31.3.23 31.3.22

Administration 11 11
Sales 10 9
Manufacture 67 66
88 86

31.3.23 31.3.22
£    £   
Directors' remuneration 576,581 631,292
Directors' pension contributions to money purchase schemes 53,149 81,878

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

Information regarding the highest paid director is as follows:
31.3.23 31.3.22
£    £   
Emoluments etc 334,659 313,345
Pension contributions to money purchase schemes 10,000 10,000

4. OPERATING PROFIT

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

31.3.23 31.3.22
£    £   
Other operating leases 1 1
Depreciation - owned assets 211,777 151,280
Depreciation - assets on hire purchase contracts 55,769 60,522
Profit on disposal of fixed assets (3,427 ) (39,900 )
Auditors' remuneration 16,485 15,700

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.3.23 31.3.22
£    £   
Bank loan interest - 354
Hire purchase 2,936 3,835
2,936 4,189

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.3.23 31.3.22
£    £   
Current tax:
UK corporation tax 19,160 84,735

Deferred tax:
Timing differences 55,679 16,563
Tax on profit 74,839 101,298

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.23 31.3.22
£    £   
Profit before tax 315,466 695,621
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

59,939

132,168

Effects of:
Expenses not deductible for tax purposes 250 692
Capital allowances in excess of depreciation - (3,436 )
Depreciation in excess of capital allowances 2,123 -
Movement in accrued pension contributions - (1,996 )
Enhanced expenditure (26,130 ) (26,130 )
Change in tax rate 38,657 -
Total tax charge 74,839 101,298

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

7. TANGIBLE FIXED ASSETS
Improvements
to Plant and Motor Computer
property machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 April 2022 933,432 1,424,718 623,152 55,063 3,036,365
Additions 163,589 130,161 204,381 4,118 502,249
Disposals - (454,524 ) (105,631 ) - (560,155 )
At 31 March 2023 1,097,021 1,100,355 721,902 59,181 2,978,459
DEPRECIATION
At 1 April 2022 512,559 999,336 459,877 38,411 2,010,183
Charge for year 81,027 100,328 78,565 7,626 267,546
Eliminated on disposal - (445,980 ) (11,004 ) - (456,984 )
At 31 March 2023 593,586 653,684 527,438 46,037 1,820,745
NET BOOK VALUE
At 31 March 2023 503,435 446,671 194,464 13,144 1,157,714
At 31 March 2022 420,873 425,382 163,275 16,652 1,026,182

Included within improvements to property is assets in the course of construction of £Nil (2022: £219,000).

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 April 2022 85,000 203,756 288,756
Transfer to ownership (85,000 ) (101,001 ) (186,001 )
At 31 March 2023 - 102,755 102,755
DEPRECIATION
At 1 April 2022 36,040 93,732 129,772
Charge for year 9,792 45,977 55,769
Transfer to ownership (45,832 ) (90,900 ) (136,732 )
At 31 March 2023 - 48,809 48,809
NET BOOK VALUE
At 31 March 2023 - 53,946 53,946
At 31 March 2022 48,960 110,024 158,984

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

8. STOCKS
31.3.23 31.3.22
£    £   
Consumables 5,962 13,205
Raw materials 601,385 674,153
Finished goods 134,771 130,692
742,118 818,050

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
£    £   
Trade debtors 959,673 958,532
Other debtors 90,409 241,712
Accrued income 14,890 -
Prepayments 129,403 31,527
1,194,375 1,231,771

Trade debtors are discounted with limited recourse.

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
£    £   
Hire purchase contracts (see note 12) 30,835 61,440
Trade creditors 548,461 544,015
Tax 19,160 84,735
Social security and other taxes 80,380 83,859
VAT 204,949 217,379
Other creditors 253,725 646,583
Accruals and deferred income 250,602 211,490
1,388,112 1,849,501

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.3.23 31.3.22
£    £   
Hire purchase contracts (see note 12) 15,413 46,238

12. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.3.23 31.3.22
£    £   
Net obligations repayable:
Within one year 30,835 61,440
Between one and five years 15,413 46,238
46,248 107,678

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

12. LEASING AGREEMENTS - continued

Non-cancellable operating leases
31.3.23 31.3.22
£    £   
Within one year 25,449 27,998
Between one and five years 9,892 33,871
35,341 61,869

13. SECURED DEBTS

The following secured debts are included within creditors:

31.3.23 31.3.22
£    £   
Hire purchase contracts 46,248 107,678

The company's banking facilities are secured by a charge on the assets of the company. The hire purchase liabilities are secured on the underlying assets.

Other creditors includes an amount of £Nil (2022: £59,434) which relates to amounts advanced under an invoice discounting facility. The balance is secured by fixed and floating charges on the assets of the company.

14. PROVISIONS FOR LIABILITIES
31.3.23 31.3.22
£    £   
Deferred tax 161,076 105,397

Deferred
tax
£   
Balance at 1 April 2022 105,397
Accelerated capital allowances 15,726
Movement in accrued pensions 1,296
Change in tax rate 38,657
Balance at 31 March 2023 161,076

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.3.23 31.3.22
value: £    £   
1,000 Ordinary £1 1,000 1,000

The Mansion House Bedding Company
Limited (Registered number: 02575156)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

16. RESERVES
Retained
earnings
£   

At 1 April 2022 2,181,058
Profit for the year 240,627
At 31 March 2023 2,421,685

17. PENSION COMMITMENTS

The company operates a defined contribution pension scheme and the amount committed to be paid after the year end is £20,170 (2022: £26,337).

18. ULTIMATE PARENT COMPANY

Mansion House Bedding Group Limited is regarded by the directors as being the company's ultimate parent company.

The parent company is Mansion House Holdings Limited. The registered office is 6 Whittle Road, Hadleigh Road Industrial Estate, Ipswich, Suffolk, IP2 0UH.