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Registered number: 01196875










LARSON-JUHL UK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2023

 
LARSON-JUHL UK LIMITED
 
 
COMPANY INFORMATION


Directors
Michael John Brown 
Arie Cornelis Bijsterveld 
Paolo Botrugno 
Deborah Marion Fraser 




Company secretary
Deborah M Fraser



Registered number
01196875



Registered office
Unit 5 Bedford Logistics Park
Bell Farm Way

Kempston

Bedfordshire

MK43 9SS




Independent auditors
MHA
Chartered Accountants & Statutory Auditors

Moorgate House

201 Silbury Boulevard

Milton Keynes

Buckinghamshire

MK9 1LZ





 
LARSON-JUHL UK LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 28

 
LARSON-JUHL UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors have pleasure in presenting their report and the financial statements of the company for the period ended 31 December 2023.

Business review
 
Sales in Larson Juhl UK Ltd in 2023 saw a 3.4% year on year sales decline. UK sales were only slightly down but export sales reversed the increase seen in 2022 with an 18% decline.  Margins were also weaker with a drop of 1.4%.  
In 2022 the business dealt with problem with the supply chain and the onset of inflation and in 2023 the tightening in the UK economy through increases in interest rates had a marked effect on business volumes especially in Q2 and Q3. All segments have been affected by this market downturn although the balance in Larson Juhl’s portfolio helped the company weather this storm.
With reduced market volume competition put pressure on prices and this can be seen in the small reduction in overall margin.
Although 2023 proved to be challenging for most businesses, Larson Juhl were still able to develop our key metrics such as driving service performance over 95% “on time in full”. Continuous improvement is a major element of our business ethos and gives the company much more control of its performance.
Overall, the Directors believe that in spite of difficult trading conditions in 2023 the performance of the Company in the period ended 31st December 2023 was satisfactory.

Principal risks and uncertainties
 
The main risk for the business is the UK business environment in 2024 which is uncertain. However, the company will continue to focus on building greater value in the sales proposition to customers alongside improving its relationship with all the market segments within its customer base.

Financial key performance indicators
 

.


P/e 31 December 2023
P/e 1 January 2023
P/e 2 January 2022
P/e 3 January 2021
Stock turn

2.2

2.4

2.4
 
2.1
 
Debtor days

46

53

68
 
69
 
Creditor days

25

26

32
 
39
 
Fill rates (%)

95

93

89
 
69
 
Stock days

169

149

153
 
175
 

Page 1

 
LARSON-JUHL UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf.





Michael John Brown
Director

Date: 27 March 2024
Page 2

 
LARSON-JUHL UK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

Larson-Juhl UK Limited distributes framing materials principally moulding, mountboard and ready made frames to bespoke and contract framers. Geographically the main market for the Company is the British Isles but the Company also exports to over 40 countries worldwide.

Results and dividends

The profit for the year, after taxation, amounted to £1,380,941 (2022 - £1,743,233).

Dividends paid and declared in the period amounted to £1,956,303 (Period ended 1 January 2023 - £100,000).

Directors

The directors who served during the year were:

Michael John Brown 
Arie Cornelis Bijsterveld 
Paolo Botrugno 
Deborah Marion Fraser 

Page 3

 
LARSON-JUHL UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Future developments

The broad strategic direction for the Company remains the same as in prior years and that is to consolidate the current already strong market position through continued investment in new products, salesforce training and enhancements to the service model for the Company.

Engagement with employees

During the year regular meetings are held between management and employees to allow a free flow of information and ideas. The Directors recognise the benefits by keeping employees informed on the progress of the Company and its performance.
Health & Safety of employees is paramount and it is our policy to consider the skills of disabled persons fully and fairly. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the Company’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training if required.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsMHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Michael John Brown
Director

Date: 27 March 2024

Page 4

 
LARSON-JUHL UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LARSON-JUHL UK LIMITED
 

Opinion


We have audited the financial statements of Larson-Juhl UK Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
LARSON-JUHL UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LARSON-JUHL UK LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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.


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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 
LARSON-JUHL UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LARSON-JUHL UK LIMITED (CONTINUED)


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.


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 and those charged with governance around actual and potential litigation and claims;
• enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with 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 revieing accounting estimates for bias;
• reviewing minutes of meetings of those charged with governance;
• reviewing financial statement disclosures and testing to supporting documentation to access compliance with applicable laws and regulations.


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.


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 2006Our 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.


Page 7

 
LARSON-JUHL UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LARSON-JUHL UK LIMITED (CONTINUED)





Atul Kariya FCCA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Statutory Auditors
  
Milton Keynes, United Kingdom

Date: 
 
MHA is the trading name of MacIntyre Hudson LLp, a limited liability partnership in England and Wales (registered number OC312313).
28 March 2024
Page 8

 
LARSON-JUHL UK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

52 weeks ended
31 December
52 weeks ended
1 January
2023
2023
Note
£
£

  

Turnover
 4 
15,658,041
16,202,617

Cost of sales
  
(9,065,438)
(9,165,658)

Gross profit
  
6,592,603
7,036,959

Distribution costs
  
(834,602)
(1,042,448)

Administrative expenses
  
(3,930,171)
(3,925,944)

Operating profit
 5 
1,827,830
2,068,567

Interest receivable and similar income
 9 
5,097
158

Interest payable and similar expenses
 10 
(411)
1,174

Profit before tax
  
1,832,516
2,069,899

Tax on profit
 11 
(451,575)
(326,666)

Profit for the financial year
  
1,380,941
1,743,233

There was no other comprehensive income for the period ended 31 December 2023 (1 January 2023:£NIL).

The notes on pages 12 to 28 form part of these financial statements.
Page 9

 
LARSON-JUHL UK LIMITED
REGISTERED NUMBER: 01196875

BALANCE SHEET
AS AT 31 DECEMBER 2023

31 December 2023
31 December 2023
1 January 2023 As Restated
1 January 2023 As Restated
Note
£
£
£
£

Fixed assets
  

Tangible assets
 13 
1,027,060
2,185,722

  
1,027,060
2,185,722

Current assets
  

Stocks
 14 
4,034,158
3,577,340

Debtors: amounts falling due within one year
 15 
3,523,319
3,904,671

Cash at bank and in hand
 16 
1,750,456
1,763,148

  
9,307,933
9,245,159

Creditors: amounts falling due within one year
 17 
(4,601,342)
(5,129,049)

Net current assets
  
 
 
4,706,591
 
 
4,116,110

Total assets less current liabilities
  
5,733,651
6,301,832

Provisions for liabilities
  

Provisions
 20 
(694,441)
(687,260)

  
 
 
(694,441)
 
 
(687,260)

Net assets
  
5,039,210
5,614,572


Capital and reserves
  

Called up share capital 
 21 
1,709,998
1,709,998

Profit and loss account
 22 
3,329,212
3,904,574

  
5,039,210
5,614,572


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Michael John Brown
Director

Date: 27 March 2024

The notes on pages 12 to 28 form part of these financial statements.
Page 10

 
LARSON-JUHL UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 4 January 2022
1,709,998
2,261,341
3,971,339



Profit for the period
-
1,743,233
1,743,233

Dividends: Equity capital
-
(100,000)
(100,000)



At 1 January 2023
1,709,998
3,904,574
5,614,572



Profit for the year
-
1,380,941
1,380,941

Dividends: Equity capital
-
(1,956,303)
(1,956,303)


At 31 December 2023
1,709,998
3,329,212
5,039,210


The notes on pages 12 to 28 form part of these financial statements.
Page 11

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Larson-Juhl UK Limited is a limited liability company, incorporated in England & Wales.
The Registered Office and principal place of business is Unit 5 Bedford Logistics Park, Bell Farm Way, Kempston, Bedfordshire, MK43 9SS.
The financial statements are prepared and rounded to the nearest £1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

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 the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Berkshire Hathaway Inc, a company incorporated in the USA as at 31 December 2023 and these financial statements may be obtained from 1440 Kiewit Plaza, Omaha, Nebraska, USA.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The Directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the cost of living crisis and other external economic factors. This analysis also considers the effectiveness of available measures to assist in mitigating the impact.
Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Page 12

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.7

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 13

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Pensions

Defined contribution pension plan

The Company operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical 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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
10% - 33% per annum
Office equipment
-
20% per annum

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 15

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.18

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 16

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the Financial Statements requires management to make judgments, estimates and
assumptions that affect the amounts reported for revenues and expenses during the year. However, the
nature of estimation means that actual outcomes could differ from those estimates. There are no
judgments that have had a significant effect on amounts recognised in the Financial Statements.
i) Debtors
An allowance for doubtful debts is maintained for potential credit losses based upon managements
assessment of expected collectability of all accounts receivable. The allowance for doubtful accounts is
reviewed periodically to access the adequacy of the allowance. In making this assessment, management
takes into consideration any circumstances of which they are aware regarding a customers inability to
meet its financial obligations.
ii) Useful economic lives of tangible fixed assets
The useful economic lives used by the company in respect of tangible fixed assets are set out in the
accounting policies. These estimates are the best estimate based on past experience and expected
performance and are regularly reviewed to ensure they remain appropriate. The net book value of
tangible fixed assets as at 31 December 2023 was £1,027,060 after a depreciation charge in the period of
£441,213.
iii) Provision for slow moving and obsolete stock
The provision is made in accordance with Company guidelines and based on past experiences. This
involves an assessment of the continuability of each stock line (eg discontinued) alongside a projection of
future sales based on management judgements. The stock provision recognised as at 31 December 2023
was £393,068 (as at 1 January 2023: £361,947).


4.


Turnover

The whole of the turnover is attributable to the one principle activity of the Company.

Analysis of turnover by country of destination:

52 weeks ended
31 December
52 weeks ended
1 January
2023
2023
£
£

United Kingdom
13,897,820
14,051,880

Rest of the world
1,760,221
2,150,737

15,658,041
16,202,617


Page 17

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

52 weeks ended
31 December
52 weeks ended
1 January
2023
2023
£
£

Exchange differences
(427,107)
(273,786)

Bad debt (reversal) / expense
(8,059)
(171,595)

Depreciation
441,213
765,949

Operating lease rentals - Lessee
746,837
705,248

Operating lease rentals - Lessor
(266,731)
(266,731)


6.


Auditors' remuneration

52 weeks ended
31 December
52 weeks ended
1 January
2023
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
37,000
35,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 18

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


52 weeks ended
31 December
52 weeks ended
1 January
2023
2023
£
£

Wages and salaries
1,510,398
1,930,854

Social security costs
583,046
283,414

Cost of defined contribution scheme
120,751
174,533

2,214,195
2,388,801


The average monthly number of employees, including the directors, during the year was as follows:


   52 weeks ended
     31 December
   52 weeks ended
       1 January
        2023
        2022
            No.
            No.







Selling and distribution
8
9



Administrative staff
26
33



Warehouse staff
12
13

46
55


8.


Directors' remuneration

52 weeks ended
31 December
52 weeks ended
1 January
2023
2023
£
£

Directors' emoluments
80,097
72,775

Company contributions to defined contribution pension schemes
16,047
25,283

96,144
98,058


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

Page 19

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest receivable

52 weeks ended
31 December
52 weeks ended
1 January
2023
2023
£
£


Other interest receivable
5,097
158

5,097
158


10.


Interest payable and similar expenses

52 weeks ended
31 December
52 weeks ended
1 January
2023
2023
£
£


Bank interest payable
-
201

Interest payable on overdue taxes
411
(1,375)

411
(1,174)

Page 20

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Taxation


52 weeks ended
31 December
52 weeks ended
1 January
2023
2023
£
£

Corporation tax


Current tax on profits for the year
490,883
424,566

Adjustments in respect of previous periods
(195,649)
(166,319)


295,234
258,247


Total current tax
295,234
258,247

Deferred tax


Origination and reversal of timing differences
(34,169)
(23,068)

Changes to tax rates
(2,324)
(8,108)

Adjustments in respect of previous periods
192,834
99,595

Total deferred tax
156,341
68,419


Taxation on profit on ordinary activities
451,575
326,666
Page 21

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year/period

The tax assessed for the year/period is higher than (1 January 2023 - lower than) the standard rate of corporation tax in the UK of 23.52% (Period ended 1 January 2023 - 19%). The differences are explained below:

52 weeks ended
31 December
52 weeks ended
1 January
2023
2023
£
£


Profit on ordinary activities before tax
1,832,516
2,069,899


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
431,008
393,281

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
43,664
7,513

Adjustments to tax charge in respect of prior periods
(20,773)
(66,724)

Deferred tax assets not recognised
-
704

Changes to tax rates
(2,324)
(8,108)

Total tax charge for the year/period
451,575
326,666


Factors that may affect future tax charges

On 1 April 2023 the Corporation Tax rate increased to 25%.


12.


Dividends

31 December 2023
1 January  2023
£
£


Dividends
1,956,303
100,000

Page 22

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Plant and machinery
Office equipment
Total

£
£
£



Cost


At 1 January 2023
1,530,494
4,001,446
5,531,940


Additions
10,906
27,709
38,615


Disposals
-
(918,732)
(918,732)



At 31 December 2023

1,541,400
3,110,423
4,651,823



Depreciation


At 1 January 2023
495,913
2,850,305
3,346,218


Charge for the year on owned assets
162,539
278,674
441,213


Disposals
-
(162,668)
(162,668)



At 31 December 2023

658,452
2,966,311
3,624,763



Net book value



At 31 December 2023
882,948
144,112
1,027,060



At 1 January 2023
1,034,581
1,151,141
2,185,722


14.


Stocks

31 December 2023
1 January 2023
£
£

Finished goods and goods for resale
4,034,158
3,577,340


Page 23

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Debtors

31 December 2023
1 January 2023
£
£


Trade debtors
2,267,938
2,183,677

Amounts owed by group undertakings
408,901
613,186

Other debtors
297,611
200,636

Prepayments and accrued income
500,735
702,697

Deferred taxation
48,134
204,475

3,523,319
3,904,671



16.


Cash and cash equivalents

31 December 2023
1 January 2023
£
£

Cash at bank and in hand
1,750,456
1,763,148



17.


Creditors: Amounts falling due within one year

31 December 2023
As restated at 1 January 2023
£
£

Trade creditors
783,320
811,549

Amounts owed to group undertakings
143,625
56,920

Corporation tax
95,883
163,039

Other taxation and social security
200,006
671,795

Other creditors
94,433
82,698

Accruals and deferred income
409,075
468,048

Share capital treated as debt
2,875,000
2,875,000

4,601,342
5,129,049



18.


Financial instruments

Financial instruments are held at amortised cost.
Page 24

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Deferred taxation




2023


£






At beginning of year
204,475


Charged to profit or loss
(156,341)



At end of year
48,134

The deferred tax asset is made up as follows:

31 December 2023
1 January 2023
£
£


Accelerated capital allowances
42,957
160,423

Short term timing differences
5,177
44,052

48,134
204,475


20.


Provisions




Dilapidations
Onerous lease
Total

£
£
£





At 1 January 2023 (restated)
487,212
200,048
687,260


Charged to profit or loss
162,775
(155,594)
7,181



At 31 December 2023
649,987
44,454
694,441

Page 25

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Share capital

31 December 2023
 1 January 2023
£
£
Shares classified as equity

Allotted, called up and fully paid



1,709,998 (2022 - 1,709,998) Ordinary shares of £1.00 each
1,709,998
1,709,998

31 December 2023
 1 January 2023
£
£
Shares classified as debt

Allotted, called up and fully paid



2,875,000 (2022 - 2,875,000) Redeemable preference shares of £1.00 each
2,875,000
2,875,000


The redeemable preference shares carry no voting rights and are redeemable at par at the option of the holder at two weeks notice to the Company. 


22.


Reserves

Profit and loss account

Profit and Loss account includes all current and previous period retained profits and losses.


23.


Prior year adjustment

The comparatives stated in Creditors: amounts falling due within one year, note 17, and Provisions, note 20, have been restated to correctly present balances in the financial statements. The effect of this restatement is shown below. There has been no impact on retained earnings.
Creditors
Accruals and deferred income  Decreased  £687,260
Provisions
Dilapidations                      Increased  £487,212
Onerous lease    Increased  £200,048


24.


Contingent liabilities

The Company is part of a registered VAT group. In accordance with VAT group registration rules there is automatically a cross guarantee given to H.M. Revenue and Customs in respect of the combined VAT liability of the group companies.

Page 26

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Pension commitments

The Company is party to a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £104,704 (Period ended 1 January 2023: £149,250).
At the period end, there were balances outstanding to the scheme of £18,141 (Period ended 1 January 2023: £11,627).


26.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

31 December 2023
1 January 2023
£
£


Not later than 1 year
746,729
738,733

Later than 1 year and not later than 5 years
1,684,487
1,951,788

Later than 5 years
4,067,263
4,416,480

6,498,479
7,107,001

Lease payments recognised as an expense during the period amounted to £746,837 for the period ended 31 December 2023 (Period ended 1 January 2023: £705,248)


27.

Receivable under operating leases

At 31 December 2023 the Company had future minimum lease receivables under non-cancellable operating leases as follows:

31 December 2023
1 January 2023
        £
        £
Not later than 1 year

266,731

266,731
 
Later than 1 year and not later than 5 years

44,455

266,731
 
Later than 5 years

-

-
 

311,186

533,462
 

Lease receipts recognised as income during the period amounted to £266,731 for the period ended 31 December 2023 (Period ended 1 January 2023: £266,731).
Lease receipts are recognised within rent expense in administration expenses to net off with the associated rental expense recognised under the original lease, which is being sub-let.

Page 27

 
LARSON-JUHL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

28.


Related party transactions

As a subsidiary undertaking of Berkshire Hathaway Inc, the Company has taken advantage of the exemption in FRS102 from disclosing transactions with other members of the group headed by Berkshire Hathaway Inc. Transactions with other group companies are not disclosed since the ultimate parent company has prepared consolidated financial statements which are publicly available. 


29.


Controlling party

Northampton Acquisition Limited is the immediate parent undertaking of Larson-Juhl UK Limited. 
Berkshire Hathaway Inc, a company incorporated in the USA, is the controlling party and Ultimate Parent. 
Undertaking of the largest group of which Larson-Juhl UK Limited is a member and for which consolidated financial statements are drawn up. The principal place of business of Berkshire Hathaway Inc. is 1440 Kiewit Plaza, Omaha, Nebraska 68121, USA. The financial statements of the Group are available to the public from this address. 
 
Page 28