REGISTERED NUMBER: 08053298 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 July 2023 |
for |
Silverlining Furniture Group Limited |
REGISTERED NUMBER: 08053298 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 July 2023 |
for |
Silverlining Furniture Group Limited |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 July 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Statement of Financial Position | 12 |
Company Statement of Financial Position | 13 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Statement of Cash Flows |
18 |
Notes to the Consolidated Financial Statements |
19 |
Silverlining Furniture Group Limited |
Company Information |
for the Year Ended 31 July 2023 |
Directors: |
Registered office: |
Registered number: |
Senior statutory auditor: | Robert Ellis FCA |
Auditors: |
Chartered Accountants |
and Statutory Auditors |
114-120 Northgate Street |
Chester |
CH1 2HT |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Group Strategic Report |
for the Year Ended 31 July 2023 |
The directors present their strategic report of the company and the group for the year ended 31 July 2023. |
Incorporated in May 2012, Silverlining Furniture Group Limited is a private limited company which is family owned. The company is the holding company of a UK group which has four trading companies, one investment company, one non-trading company and two dormant companies. All of the subsidiaries are 100% owned by Silverlining Furniture Group Limited. |
Review of business |
The group had a satisfactory year in terms of margin and net profit however worldwide economic and geopolitical events are resulting in no or slower sales in some countries. |
The results were boosted by a fuller order book and an element of profit from a large project cancellation. |
2024 will again be more challenging due to continued overhead, labour and raw material cost increases. |
The directors believe the group is in a good position to manage this period of ongoing uncertainty, given the actions taken to minimise inflationary costs and with the investments in new products, marketing and particularly expanding investment in new business development in strong existing and new markets, not affected by economic and geopolitical events. |
Principal risks and uncertainties |
The principal risks to the group include: |
- Exchange rates: These are mitigated by agreeing all sale contracts in Sterling and being paid in Sterling. |
- Gaps in production pipeline due to client decisions: this is avoided as much as possible by having multiple projects at any one time and continual monitoring by our scheduling department. |
- China, Hong Kong and some East European markets falling away. These are being negated as stated above by expanding new business development in strong existing and new markets not effected by economic and geopolitical events. |
Financial key performance indicators |
Financial performance is measured by monthly work in progress calculations, gross profit monitoring of projects, profit and loss and balance sheet management accounts and weekly deposit and creditors analysis as well as daily cash flow. |
During the year group turnover fell slightly to £7.6m (2022: £7.7m) and the group profit before tax was in line with the previous year at £1.7m (2022: £1.7m). |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Group Strategic Report |
for the Year Ended 31 July 2023 |
Other key performance indicators |
Attracting, retaining, and developing employees is vital to the success of the group. The group has worked hard to improve culture in the last year through training, regular catch ups on individual's growth pathways, benchmarking salaries to be above market rates, flexible working/working from home, social, green, charity and employee forum committees, and payment of discretionary bonus, resulting in record retention and recruitment. |
Skills in furniture making are enhanced by the group's investment in its own academy and training organization. |
As a group working in the premium sector, quality is monitored on a daily basis to ensure we exceed the expectations of clients, especially as 98% of clients return and 78% of annual turnover is through repeat clients. |
Financial risk management and funding |
The company has no borrowing in the form of an overdraft or asset finance. The group does have a loan secured against a commercial building owned by the group which will be repaid within 4 years. The Loan to Value is less than 15% of the asset value and so constitutes a low risk. |
Cashflow and cash reserves are strong due to contract deposits and stage payments in advance and strong retained earnings. |
Debtors and creditors are reviewed and managed weekly. Monthly trade creditor and trade debtor balances are typically less than 5% of turnover. Creditors are paid weekly and any late payment of debtors is managed by placing the project on hold until any balance is paid. |
To assess the group's and the parent company's ability to continue as a going concern, the directors have reviewed the group's trading performance and the group's business plans for a period of at least 12 months from the date of approval of these financial statements. The directors are satisfied that the group has the orders and resources going forward and the group and parent company are a going concern. |
On behalf of the board: |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Report of the Directors |
for the Year Ended 31 July 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 July 2023. |
Dividends |
Interim dividends were paid during the year. The first interim dividend was paid on 22 August 2022 at £320 per share and the last interim dividend of £140 per share was paid on 31 July 2023. The total interim dividends per share were £4,920. The directors recommend that no final dividend be paid. |
The total dividends for the year ended 31 July 2023 will be £492,000. |
Directors |
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report. |
Disclosure in the strategic report |
The directors have disclosed in the Group Strategic Report information regarding the principal risks and uncertainties affecting the group. |
Directors' responsibilities statement |
The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Report of the Directors |
for the Year Ended 31 July 2023 |
Auditors |
The auditors, Ellis & Co (Accountants & Business Advisers) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Silverlining Furniture Group Limited |
Opinion |
We have audited the financial statements of Silverlining Furniture Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 July 2023 and of the group's 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 group 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 group's and the parent 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. |
Report of the Independent Auditors to the Members of |
Silverlining Furniture Group Limited |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Silverlining Furniture Group Limited |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then design and perform audit procedures in response to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- | the nature of the industry and sector, control environment and business performance including the design of remuneration policies, key drivers for Directors' remuneration, bonus levels and performance targets |
- | results of our enquiries of management about their own identification and assessment of the risks of irregularities |
- | any matters we identified having obtained and reviewed documentation of policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether management were aware of any instances of non-compliance |
- | detecting and responding to the risks of fraud and whether management have knowledge of any actual, suspected or alleged fraud |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations |
- | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the completeness of revenue. In common with all audits under ISA (UK), we are also required to perform specific procedures to respond to the risk of management override. |
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 |
Silverlining Furniture Group 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
114-120 Northgate Street |
Chester |
CH1 2HT |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Consolidated |
Income Statement |
for the Year Ended 31 July 2023 |
31/7/23 | 31/7/22 |
Notes | £ | £ |
Turnover | 3 | 7,597,539 | 7,727,386 |
Cost of sales | 4,200,708 | 4,579,929 |
Gross profit | 3,396,831 | 3,147,457 |
Administrative expenses | 1,859,009 | 1,764,994 |
1,537,822 | 1,382,463 |
Other operating income | 642 | 1,995 |
Operating profit | 5 | 1,538,464 | 1,384,458 |
Gain on revaluation of investment property |
180,000 |
300,000 |
1,718,464 | 1,684,458 |
Interest payable and similar expenses |
6 |
20,541 |
11,852 |
Profit before taxation | 1,697,923 | 1,672,606 |
Tax on profit | 7 | 373,230 | 310,908 |
Profit for the financial year |
Profit attributable to: |
Owners of the parent | 1,324,693 | 1,361,698 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 July 2023 |
31/7/23 | 31/7/22 |
Notes | £ | £ |
Profit for the year | 1,324,693 | 1,361,698 |
Other comprehensive income | - | - |
Total comprehensive income for the year |
1,324,693 |
1,361,698 |
Total comprehensive income attributable to: |
Owners of the parent | 1,324,693 | 1,361,698 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Consolidated Statement of Financial Position |
31 July 2023 |
31/7/23 | 31/7/22 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 11 | - | - |
Tangible assets | 12 | 252,065 | 256,095 |
Investments | 13 | - | - |
Investment property | 14 | 2,280,000 | 2,100,000 |
2,532,065 | 2,356,095 |
Current assets |
Stocks | 15 | 140,454 | 150,854 |
Debtors | 16 | 1,206,820 | 1,112,227 |
Cash at bank and in hand | 1,260,666 | 2,272,434 |
2,607,940 | 3,535,515 |
Creditors |
Amounts falling due within one year | 17 | 1,645,179 | 3,194,470 |
Net current assets | 962,761 | 341,045 |
Total assets less current liabilities | 3,494,826 | 2,697,140 |
Creditors |
Amounts falling due after more than one year |
18 |
(245,172 |
) |
(328,260 |
) |
Provisions for liabilities | 22 | (189,491 | ) | (141,410 | ) |
Net assets | 3,060,163 | 2,227,470 |
Capital and reserves |
Called up share capital | 23 | 100 | 100 |
Other reserves | 24 | 658,033 | 523,033 |
Retained earnings | 24 | 2,402,030 | 1,704,337 |
Shareholders' funds | 3,060,163 | 2,227,470 |
The financial statements were approved by the Board of Directors and authorised for issue on 14 March 2024 and were signed on its behalf by: |
J M Boddington - Director |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Company Statement of Financial Position |
31 July 2023 |
31/7/23 | 31/7/22 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
Investment property | 14 |
Current assets |
Stocks | 15 |
Debtors | 16 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 17 |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 22 |
Net assets |
Capital and reserves |
Called up share capital | 23 |
Retained earnings | 24 |
Shareholders' funds |
Company's profit for the financial year |
1,095,036 |
938,219 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Company Statement of Financial Position - continued |
31 July 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 July 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 August 2021 | 100 | 1,073,538 | 294,534 | 1,368,172 |
Changes in equity |
Dividends | - | (502,400 | ) | - | (502,400 | ) |
Total comprehensive income | - | 1,361,698 | - | 1,361,698 |
Transfer between reserves | - | (228,499 | ) | 228,499 | - |
Balance at 31 July 2022 | 100 | 1,704,337 | 523,033 | 2,227,470 |
Changes in equity |
Dividends | - | (492,000 | ) | - | (492,000 | ) |
Total comprehensive income | - | 1,324,693 | - | 1,324,693 |
Transfer between reserves | - | (135,000 | ) | 135,000 | - |
Balance at 31 July 2023 | 100 | 2,402,030 | 658,033 | 3,060,163 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Company Statement of Changes in Equity |
for the Year Ended 31 July 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 August 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2023 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Consolidated Statement of Cash Flows |
for the Year Ended 31 July 2023 |
31/7/23 | 31/7/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (50,727 | ) | (467,163 | ) |
Interest paid | (20,541 | ) | (11,803 | ) |
Interest element of hire purchase or finance lease rental payments paid |
- |
(49 |
) |
Tax paid | (260,148 | ) | (205,196 | ) |
Net cash from operating activities | (331,416 | ) | (684,211 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (105,264 | ) | (140,615 | ) |
Sale of tangible fixed assets | - | 25,101 |
Net cash from investing activities | (105,264 | ) | (115,514 | ) |
Cash flows from financing activities |
Loan repayments in year | (83,088 | ) | (85,540 | ) |
Capital repayments in year | - | (15,657 | ) |
Amount introduced by directors | - | 3,397 |
Equity dividends paid | (492,000 | ) | (502,400 | ) |
Net cash from financing activities | (575,088 | ) | (600,200 | ) |
Decrease in cash and cash equivalents | (1,011,768 | ) | (1,399,925 | ) |
Cash and cash equivalents at beginning of year |
2 |
2,272,434 |
3,672,359 |
Cash and cash equivalents at end of year |
2 |
1,260,666 |
2,272,434 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Statement of Cash Flows |
for the Year Ended 31 July 2023 |
1. | Reconciliation of profit before taxation to cash generated from operations |
31/7/23 | 31/7/22 |
£ | £ |
Profit before taxation | 1,697,923 | 1,672,606 |
Depreciation charges | 109,294 | 155,080 |
Profit on disposal of fixed assets | - | (19,144 | ) |
Gain on revaluation of fixed assets | (180,000 | ) | (300,000 | ) |
Finance costs | 20,541 | 11,852 |
1,647,758 | 1,520,394 |
Decrease/(increase) in stocks | 10,400 | (58,515 | ) |
Increase in trade and other debtors | (94,594 | ) | (167,226 | ) |
Decrease in trade and other creditors | (1,614,291 | ) | (1,761,816 | ) |
Cash generated from operations | (50,727 | ) | (467,163 | ) |
2. | Cash and cash equivalents |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 July 2023 |
31/7/23 | 1/8/22 |
£ | £ |
Cash and cash equivalents | 1,260,666 | 2,272,434 |
Year ended 31 July 2022 |
31/7/22 | 1/8/21 |
£ | £ |
Cash and cash equivalents | 2,272,434 | 3,672,359 |
3. | Analysis of changes in net funds |
At 1/8/22 | Cash flow | At 31/7/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,272,434 | (1,011,768 | ) | 1,260,666 |
2,272,434 | (1,011,768 | ) | 1,260,666 |
Debt |
Debts falling due within 1 year | (90,000 | ) | - | (90,000 | ) |
Debts falling due after 1 year | (328,260 | ) | 83,088 | (245,172 | ) |
(418,260 | ) | 83,088 | (335,172 | ) |
Total | 1,854,174 | (928,680 | ) | 925,494 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 July 2023 |
1. | Statutory information |
Silverlining Furniture Group Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Basis of consolidation |
In the parent company financial statements, the cost of a business combination is accounted for by applying the purchase method. The cost of a business combination is the fair value of the consideration given and liabilities incurred or assumed plus the costs directly attributable to the business combination. On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities. |
The Group consolidated financial statements include the financial statements of the Company and its subsidiary undertakings. A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where a subsidiary has different accounting policies to the Group, adjustments are made to those subsidiary financial statements to apply the Group's accounting policies when preparing the consolidated financial statements. All intra-Group transactions, balances, income and expenses are eliminated on consolidation. |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | Accounting policies - continued |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
In the opinion of the directors, there are no critical judgements other than those involving estimates. |
The directors make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: |
i. Stage of completion of contracts |
The directors have used their judgement to estimate the stage of completion of contracts ongoing at 31 July 2023. Small variances in these estimates can have a significant impact on the turnover figure included in the financial statements. |
ii. Valuation of Investment Propery |
The directors consider that the value of the commercial property at 31 July 2023 was £2.28m. The investment property was valued on an open market value basis with vacant possession by Legat Owen of Chester on 4 October 2023 for this amount. |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | Accounting policies - continued |
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 from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of the goods; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Revenue from the rendering of services is measured by reference to the stage of completion |
of the service transaction at the end of the reporting period provided that the outcome can |
be reliably estimated. When the outcome cannot be reliably estimated, revenue is |
recognised only to the extent that expenses recognised are recoverable. |
Profit is recognised on long-term contracts if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity advances. |
Long-term contracts |
Amounts recoverable on long-term contracts are included in debtors and are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments received on account. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible fixed assets are initially recorded at cost then subsequently at cost net of depreciation and any impairment losses. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Leasehold improvements | - | 20% on cost |
Plant and machinery | - | 15% on cost |
Fixtures and fittings | - | 20% on cost |
Motor vehicles | - | 20% reducing balance |
Office equipment | - | 20% on cost |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | Accounting policies - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing stock to its present location and position. |
Financial instruments |
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | Accounting policies - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account on a straight line basis over the term of the agreement. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | Turnover |
An analysis of the company's turnover has not been disclosed as it is deemed to be |
commercially sensitive. |
4. | Employees and directors |
Staff costs were as follows: |
Group | Company |
31/7/23 | 31/7/22 | 31/7/23 | 31/7/22 |
£ | £ | £ | £ |
Wages and salaries | 2,276,124 | 2,096,116 | 360,368 | 286,411 |
Social security costs | 239,887 | 223,298 | 36,067 | 31,320 |
Other pension costs | 113,784 | 216,005 | 12,434 | 130,322 |
2,629,795 | 2,535,419 | 408,869 | 448,053 |
The average number of employees during the year was as follows: |
Group | Company |
31/7/23 | 31/7/22 | 31/7/23 | 31/7/22 |
Sales and marketing | 2 | 2 | 2 | 2 |
Administration | 6 | 6 | 6 | 6 |
Production | 52 | 50 | - | - |
60 | 58 | 8 | 9 |
31/7/23 | 31/7/22 |
£ | £ |
Directors' remuneration | 26,492 | 25,825 |
Directors' pension contributions to money purchase schemes | - | 120,000 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
4. | Employees and directors - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
5. | Operating profit |
The operating profit is stated after charging/(crediting): |
31/7/23 | 31/7/22 |
£ | £ |
Other operating leases | 171,387 | 167,030 |
Depreciation - owned assets | 109,294 | 155,081 |
Profit on disposal of fixed assets | - | (19,144 | ) |
Auditors' remuneration | 36,575 | 36,000 |
Foreign exchange differences | (2,072 | ) | - |
6. | Interest payable and similar expenses |
31/7/23 | 31/7/22 |
£ | £ |
Interest on overdue tax | 736 | 873 |
Bank loan interest | 19,805 | 10,930 |
Hire purchase interest | - | 49 |
20,541 | 11,852 |
7. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31/7/23 | 31/7/22 |
£ | £ |
Current tax: |
UK corporation tax | 325,149 | 260,148 |
Prior year overprovision | - | (36,364 | ) |
Total current tax | 325,149 | 223,784 |
Deferred tax | 48,081 | 87,124 |
Tax on profit | 373,230 | 310,908 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
7. | Taxation - continued |
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: |
31/7/23 | 31/7/22 |
£ | £ |
Profit before tax | 1,697,923 | 1,672,606 |
Profit multiplied by the standard rate of corporation tax in the UK of 21 % (2022 - 19 %) |
356,564 |
317,795 |
Effects of: |
Expenses not deductible for tax purposes | 11,182 | 13,910 |
Adjustments to tax charge in respect of previous periods | - | (36,364 | ) |
Enhanced deductions | (2,209 | ) | (18,371 | ) |
Deferred tax - change in tax rates | 7,693 | 33,938 |
Total tax charge | 373,230 | 310,908 |
8. | Individual income statement |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | Dividends |
31/7/23 | 31/7/22 |
£ | £ |
Ordinary shares of £1 each |
Interim | 492,000 | 502,400 |
10. | Reduced disclosure in the financial statements |
The group has taken advantage of the reduced disclosure framework under FRS 102 not to include the parent company statement of cashflow. |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
11. | Intangible fixed assets |
Group |
Trademarks |
£ |
Cost |
At 1 August 2022 |
and 31 July 2023 | 2,359 |
Amortisation |
At 1 August 2022 |
and 31 July 2023 | 2,359 |
Net book value |
At 31 July 2023 | - |
At 31 July 2022 | - |
Company |
Trademarks |
£ |
Cost |
At 1 August 2022 |
and 31 July 2023 |
Amortisation |
At 1 August 2022 |
and 31 July 2023 |
Net book value |
At 31 July 2023 |
At 31 July 2022 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
12. | Tangible fixed assets |
Group |
Fixtures |
Leasehold | Plant and | and |
improvements | machinery | fittings |
£ | £ | £ |
Cost |
At 1 August 2022 | 488,070 | 970,778 | 59,726 |
Additions | 20,748 | 10,156 | - |
At 31 July 2023 | 508,818 | 980,934 | 59,726 |
Depreciation |
At 1 August 2022 | 452,853 | 832,639 | 56,759 |
Charge for year | 14,833 | 58,690 | 983 |
At 31 July 2023 | 467,686 | 891,329 | 57,742 |
Net book value |
At 31 July 2023 | 41,132 | 89,605 | 1,984 |
At 31 July 2022 | 35,217 | 138,139 | 2,967 |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
Cost |
At 1 August 2022 | 77,249 | 182,614 | 1,778,437 |
Additions | 43,950 | 30,410 | 105,264 |
At 31 July 2023 | 121,199 | 213,024 | 1,883,701 |
Depreciation |
At 1 August 2022 | 36,732 | 143,359 | 1,522,342 |
Charge for year | 16,818 | 17,970 | 109,294 |
At 31 July 2023 | 53,550 | 161,329 | 1,631,636 |
Net book value |
At 31 July 2023 | 67,649 | 51,695 | 252,065 |
At 31 July 2022 | 40,517 | 39,255 | 256,095 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
12. | Tangible fixed assets - continued |
Company |
Fixtures |
Leasehold | and | Office |
improvements | fittings | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 August 2022 |
Additions |
At 31 July 2023 |
Depreciation |
At 1 August 2022 |
Charge for year |
At 31 July 2023 |
Net book value |
At 31 July 2023 |
At 31 July 2022 |
13. | Fixed asset investments |
Company |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 August 2022 |
and 31 July 2023 |
Net book value |
At 31 July 2023 |
At 31 July 2022 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
13. | Fixed asset investments - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Silverlining Furniture Limited |
Registered office: United Kingdom |
Nature of business: Makers of bespoke furniture |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31/7/23 | 31/7/22 |
£ | £ |
Aggregate capital and reserves | 494,312 | 459,620 |
Profit for the year | 34,692 | 71,496 |
Silverlining Marine Limited |
Registered office: United Kingdom |
Nature of business: Makers of bespoke furniture |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31/7/23 | 31/7/22 |
£ | £ |
Aggregate capital and reserves | 593,998 | 547,889 |
Profit for the year | 46,109 | 37,961 |
Silverlining Special Projects Limited |
Registered office: United Kingdom |
Nature of business: Makers of bespoke furniture |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31/7/23 | 31/7/22 |
£ | £ |
Aggregate capital and reserves | 72,440 | 102,533 |
(Loss)/profit for the year | (30,093 | ) | 58,644 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
13. | Fixed asset investments - continued |
Studio Silverlining Limited |
Registered office: United Kingdom |
Nature of business: Makers of bespoke furniture |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31/7/23 | 31/7/22 |
£ | £ |
Aggregate capital and reserves | (23,407 | ) | (22,354 | ) |
Loss for the year | (1,053 | ) | (1,259 | ) |
Under section 479A Companies Act 2006, Studio Silverlining Limited (Company registration number 08052384) is exempt from from the requirements relating to the audit of individual accounts. |
Silverlining Commercial Properties Limited |
Registered office: United Kingdom |
Nature of business: Property investment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31/7/23 | 31/7/22 |
£ | £ |
Aggregate capital and reserves | 806,527 | 627,453 |
Profit for the year | 179,074 | 256,895 |
Silverlining Workshops Limited |
Registered office: United Kingdom |
Nature of business: Non-trading |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31/7/23 | 31/7/22 |
£ | £ |
Aggregate capital and reserves | 3,922 | 3,922 |
Under section 479A Companies Act 2006, Silverlining Workshops Limited (Company registration number 02886595) is exempt from from the requirements relating to the audit of individual accounts. |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
13. | Fixed asset investments - continued |
Silverlining Interiors Limited |
Registered office: United Kingdom |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31/7/23 | 31/7/22 |
£ | £ |
Aggregate capital and reserves | 1 | 1 |
Silverlining Yachts Limited |
Registered office: United Kingdom |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31/7/23 | 31/7/22 |
£ | £ |
Aggregate capital and reserves | 1 | 1 |
14. | Investment property |
Group |
Total |
£ |
Fair value |
At 1 August 2022 | 2,100,000 |
Revaluations | 180,000 |
At 31 July 2023 | 2,280,000 |
Net book value |
At 31 July 2023 | 2,280,000 |
At 31 July 2022 | 2,100,000 |
Fair value at 31 July 2023 is represented by: |
£ |
Valuation in 2023 | 2,280,000 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
14. | Investment property - continued |
Group |
If investment property had not been revalued it would have been included at the following historical cost: |
31/7/23 | 31/7/22 |
£ | £ |
Cost | 1,615,923 | 1,615,923 |
Aggregate depreciation | (210,069 | ) | (177,751 | ) |
The directors consider that the value of the commercial property at 31 July 2023 was £2.28m. The investment property was valued on an open market value basis with vacant possession by Legat Owen of Chester on 4 October 2023 for this amount. |
Leasing agreements |
Minimum lease receipts fall due as follows: |
Group |
Non-cancellable |
operating lease |
31/7/23 | 31/7/22 |
£ | £ |
Within one year | 230,000 | 230,000 |
Between one and five years | 862,500 | 920,000 |
Greater than five years | 172,500 |
1,092,500 | 1,322,500 |
The corresponding figures for the company are £Nil. |
15. | Stocks |
Group | Company |
31/7/23 | 31/7/22 | 31/7/23 | 31/7/22 |
£ | £ | £ | £ |
Raw materials | 64,627 | 73,851 |
Finished goods | 75,827 | 77,003 |
140,454 | 150,854 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
16. | Debtors: amounts falling due within one year |
Group | Company |
31/7/23 | 31/7/22 | 31/7/23 | 31/7/22 |
£ | £ | £ | £ |
Trade debtors | 350,574 | 160,569 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contracts | 382,205 | 378,512 |
Other debtors | 9,159 | 16,649 |
Directors' loan accounts | 4,917 | 4,917 | 4,917 | 4,917 |
VAT | 77,010 | 249,490 |
Prepayments and accrued income | 382,955 | 302,090 |
1,206,820 | 1,112,227 |
17. | Creditors: amounts falling due within one year |
Group | Company |
31/7/23 | 31/7/22 | 31/7/23 | 31/7/22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 90,000 |
90,000 |
Payments on account | 498,339 | 1,982,979 |
Trade creditors | 340,276 | 397,497 |
Amounts owed to group undertakings | - | - |
Tax | 325,149 | 260,148 |
Social security and other taxes | 60,924 | 55,426 |
VAT | - | - | 28,648 | 11,195 |
Other creditors | 66,332 | 57,845 |
Accruals and deferred income | 264,159 | 350,575 |
1,645,179 | 3,194,470 |
18. | Creditors: amounts falling due after more than one year |
Group |
31/7/23 | 31/7/22 |
£ | £ |
Bank loans (see note 19) | 245,172 | 328,260 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
19. | Loans |
An analysis of the maturity of loans is given below: |
Group |
31/7/23 | 31/7/22 |
£ | £ |
Amounts falling due within one year | or on demand: |
Bank loans | 90,000 | 90,000 |
Amounts falling due between two | and five years: |
Bank loans - 2-5 years | 245,172 | 328,260 |
20. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
31/7/23 | 31/7/22 |
£ | £ |
Within one year | 142,011 | 145,246 |
Between one and five years | 146,672 | 256,676 |
288,683 | 401,922 |
Company |
Non-cancellable | operating leases |
31/7/23 | 31/7/22 |
£ | £ |
Within one year |
Between one and five years |
21. | Secured debts |
The following secured debts are included within creditors: |
Group |
31/7/23 | 31/7/22 |
£ | £ |
Bank loans | 335,172 | 418,260 |
Bank loans are secured by way of a charge over the investment property. |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
22. | Provisions for liabilities |
Group | Company |
31/7/23 | 31/7/22 | 31/7/23 | 31/7/22 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 38,015 | 34,934 |
Other timing differences | 151,476 | 106,476 | - | - |
189,491 | 141,410 | 15,418 | 10,656 |
Group |
Deferred |
tax |
£ |
Balance at 1 August 2022 | 141,410 |
Charge to Income Statement during year | 48,081 |
Balance at 31 July 2023 | 189,491 |
Company |
Deferred |
tax |
£ |
Balance at 1 August 2022 |
Charge to Income Statement during year |
Balance at 31 July 2023 |
23. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/7/23 | 31/7/22 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
Silverlining Furniture Group Limited (Registered number: 08053298) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
24. | Reserves |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 August 2022 | 1,704,337 | 523,033 | 2,227,370 |
Profit for the year | 1,324,693 | 1,324,693 |
Dividends | (492,000 | ) | (492,000 | ) |
Transfer between reserves | (135,000 | ) | 135,000 | - |
At 31 July 2023 | 2,402,030 | 658,033 | 3,060,063 |
Company |
Retained |
earnings |
£ |
At 1 August 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 July 2023 |
Under FRS 102 surpluses on the revaluation of investment property are treated as fair value adjustments and are recognised in the Consolidated Income Statement. However under company law, these surpluses are not distributable. In these financial statements, the cumulative revaluation surpluses have been included in other reserves under profit and loss - not distributable. On disposal of an investment property, any revaluation surplus realised on disposal is transferred to distributable reserves. |
25. | Directors' advances, credits and guarantees |
The following advances and credits to a director subsisted during the years ended 31 July 2023 and 31 July 2022: |
31/7/23 | 31/7/22 |
£ | £ |
J M Boddington |
Balance outstanding at start of year | 4,917 | 8,314 |
Amounts repaid | - | (3,397 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 4,917 | 4,917 |
The maximum overdrawn balance during the year was £4,917. Advances to directors are interest free, unsecured and repayable on demand. |