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REGISTERED NUMBER: 08814778 (England and Wales)










STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

HOUZZ UK LTD.

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


HOUZZ UK LTD.

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2022







Directors: H A Bajwa
Mr H Wang





Registered office: Suite 2 First Floor
10 Temple Back
Bristol
United Kingdom
BS1 6FL





Registered number: 08814778 (England and Wales)





Auditors: Mark Arber Limited
Statutory Auditors
71-75 Shelton Street
Covent Garden
London
WC2H 9JQ

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

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

Review of business
The company is a wholly owned subsidiary of Houzz Inc. a company incorporated in the United States of America. Its principal activity is to provide sales assistance to its parent company under the terms of an intercompany service agreement signed on the 12 July 2022. The agreement with the parent company provides for the UK Subsidiary - Houzz UK Ltd to receive fees from the parent company based on its costs plus 5%.

Results and performance
The results as set out on page 7 and 9 of the audited financial statements show a profit on ordinary activities before tax of £719,029 (2021:£574,017 ). The shareholders funds of the company total £3,028,732 (2021: £2,486,047).

Key performance indicators (‘kpis’)
The directors of the company monitor the progress of the company by reference to the following KPIs:

Turnover - to be maintained at applicable costs plus 5% (FY 2021 - 5%) in line with the intercompany service agreement. The turnover for the year was: £14,779.433 (2021: £12,873,428).

Principal risks and uncertainties
All of the company's turnover is derived from sales to its parent company under the intercompany service agreement. The company's principal risk is therefore that the parent company terminates its contract with Houzz UK limited. When approving the financial statement, the directors consider the risk that the potential withdrawal from the service agreement would have on the business and assess the likelihood of such an action. The directors are confident that the intercompany service agreement will remain in effect for a period exceeding twelve months from the date of approval of these financial statements.

The company is also exposed to general business and economic risks of the market and sector in which it operates. The directors continue to monitor these risks and consider that the company has adequate procedures and policies in place to adapt to these risks as required.

Subsequent developments
There have been no changes to the business activities or risk profile of the company subsequent to the end of the reporting period.

Corporate strategy for 2022
The strategy for Houzz UK Ltd is set to continue and will remain a sales and marketing activity for the parent company and there is no change in the foreseeable future.

On behalf of the board:





Mr H Wang - Director


5 September 2024

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2022

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

Principal activity
The principal activity of the company in the year under review was that of sales and marketing activities for its parent company.

Dividends
No dividends will be distributed for the year ended 31 December 2022.

Directors
The directors who have held office during the period from 1 January 2022 to the date of this report are as follows:

W S Veazey - resigned 15 May 2022
H A Bajwa - appointed 15 May 2022
S Lee - appointed 15 May 2022

Mr H Wang was appointed as a director after 31 December 2022 but prior to the date of this report.

S Lee and A Small ceased to be directors after 31 December 2022 but prior to the date of this report.

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

On behalf of the board:





Mr H Wang - Director


5 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOUZZ UK LTD.

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

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

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

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

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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOUZZ UK LTD.


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

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

The objectives of our audit, in respect to fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework including the Companies Act 2006 and the relevant tax compliance regulations in the UK.

- We understood how the Company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures.

- We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with management from various parts of the business to understand where it considered there was a susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage the results. We considered the controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals and were designed to
provide reasonable assurance that the financial statements were free from fraud and error.

- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved journal entry testing, with a focus on journals indicating large or unusual transactions based on our understanding of the business, enquiries of Company management and focused testing. In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with the requirements of the relevant accounting standards and UK legislation.

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
HOUZZ UK LTD.


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.




Mark Arber (Senior Statutory Auditor)
for and on behalf of Mark Arber Limited
Statutory Auditors
71-75 Shelton Street
Covent Garden
London
WC2H 9JQ

9 September 2024

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022

31/12/22 31/12/21
Notes £    £   

TURNOVER 14,779,433 12,873,428

Administrative expenses (14,078,070 ) (12,301,546 )
OPERATING PROFIT 4 701,363 571,882

Profit/loss on sale of
tangible fixed assets 5 15,850 163
717,213 572,045

Interest receivable and similar income 2,150 4,426
719,363 576,471

Interest payable and similar expenses 6 (334 ) (2,454 )
PROFIT BEFORE TAXATION 719,029 574,017

Tax on profit 7 (176,344 ) (121,114 )
PROFIT FOR THE FINANCIAL YEAR 542,685 452,903

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

31/12/22 31/12/21
Notes £    £   

PROFIT FOR THE YEAR 542,685 452,903


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

542,685

452,903

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

BALANCE SHEET
31 DECEMBER 2022

31/12/22 31/12/21
Notes £    £   
FIXED ASSETS
Tangible assets 8 844,039 1,009,464

CURRENT ASSETS
Debtors 9 3,941,636 3,107,858
Cash at bank - 299,090
3,941,636 3,406,948
CREDITORS
Amounts falling due within one year 10 (877,965 ) (945,273 )
NET CURRENT ASSETS 3,063,671 2,461,675
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,907,710

3,471,139

CREDITORS
Amounts falling due after more than one year 11 (830,412 ) (943,293 )

PROVISIONS FOR LIABILITIES 14 (48,566 ) (41,799 )
NET ASSETS 3,028,732 2,486,047

CAPITAL AND RESERVES
Called up share capital 15 1 1
Retained earnings 16 3,028,731 2,486,046
SHAREHOLDERS' FUNDS 3,028,732 2,486,047

The financial statements were approved by the Board of Directors and authorised for issue on 5 September 2024 and were signed on its behalf by:





Mr H Wang - Director


HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2021 1 2,033,143 2,033,144

Changes in equity
Total comprehensive income - 452,903 452,903
Balance at 31 December 2021 1 2,486,046 2,486,047

Changes in equity
Total comprehensive income - 542,685 542,685
Balance at 31 December 2022 1 3,028,731 3,028,732

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022

31/12/22 31/12/21
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (112,054 ) 307,747
Interest paid (334 ) (2,454 )
Tax paid (194,464 ) (130,451 )
Net cash from operating activities (306,852 ) 174,842

Cash flows from investing activities
Purchase of tangible fixed assets (17,985 ) (158,160 )
Sale of tangible fixed assets 5,477 -
Interest received 2,150 4,426
Net cash from investing activities (10,358 ) (153,734 )

(Decrease)/increase in cash and cash equivalents (317,210 ) 21,108
Cash and cash equivalents at beginning of year 2 299,090 277,982

Cash and cash equivalents at end of year 2 (18,120 ) 299,090

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31/12/22 31/12/21
£    £   
Profit before taxation 719,029 574,017
Depreciation charges 177,933 189,264
Finance costs 334 2,454
Finance income (2,150 ) (4,426 )
895,146 761,309
Increase in trade and other debtors (833,778 ) (388,700 )
Decrease in trade and other creditors (173,422 ) (64,862 )
Cash generated from operations (112,054 ) 307,747

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents - 299,090
Bank overdrafts (18,120 ) -
(18,120 ) 299,090
Year ended 31 December 2021
31/12/21 1/1/21
£    £   
Cash and cash equivalents 299,090 277,982


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/1/22 Cash flow At 31/12/22
£    £    £   
Net cash
Cash at bank 299,090 (299,090 ) -
Bank overdrafts - (18,120 ) (18,120 )
299,090 (317,210 ) (18,120 )
Total 299,090 (317,210 ) (18,120 )

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

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

1. STATUTORY INFORMATION

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

The company’s functional and presentational currency is pounds sterling (£) and the financial statements have been rounded to the nearest pound (£).

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

These accounts have been drawn up on the going concern basis. The company is dependent upon the support of its parent company, and only customer, in order to meet its working capital requirements and continue as a going concern. The parent company has provided assurances that this support will continue for a period that exceeds twelve months from the date of approval of these financial statements. On the basis of these assurances the directors believe that the going concern basis is appropriate.

Turnover
Turnover represents costs for the year plus profit recharged to the parent company, plus sublease income, excluding value added tax.

The company's turnover is derived from outside the UK with the exception of the sublease income which is derived from within the UK.

Tangible fixed assets
Depreciation is provided at the following annual rates on a straight-line basis in order to write off each asset over its estimated useful life.

Computer Equipment - 33% on cost
Furniture and Fixtures - 20% on cost
Lease hold improvements - Over the term of the lease

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

Basic financial liabilities
Basic financial liabilities, including creditors, and loans from fellow group companies are initially recognised at transaction price.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are initially recognised at transaction price.


HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

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

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

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

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Share based payments
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Shares for which an option is granted are issued by the ultimate parent company and no consideration is given by this company in respect of those options. A corresponding credit is recognised in retained earnings as a component of equity.

3. EMPLOYEES AND DIRECTORS
31/12/22 31/12/21
£    £   
Wages and salaries 8,317,471 7,262,542
Social security costs 996,072 902,846
Other pension costs 387,686 353,759
9,701,229 8,519,147

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

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

3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31/12/22 31/12/21

164 160

31/12/22 31/12/21
£    £   
Directors' remuneration 263,234 238,097

Information regarding the highest paid director is as follows:
31/12/22 31/12/21
£    £   
Emoluments etc 263,234 238,097

4. OPERATING PROFIT

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

31/12/22 31/12/21
£    £   
Other operating leases 1,308,951 1,308,951
Depreciation - owned assets 177,933 189,264
Auditors' remuneration 8,295 7,650
Foreign exchange differences (442 ) (4,900 )

5. EXCEPTIONAL ITEMS
31/12/22 31/12/21
£    £   
Profit/loss on sale of
tangible fixed assets 15,850 163

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31/12/22 31/12/21
£    £   
Interest paid 334 2,454

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

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

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31/12/22 31/12/21
£    £   
Current tax:
UK corporation tax 169,577 115,331
Overprovision in prior year - (1,325 )
Total current tax 169,577 114,006

Deferred tax:
Deferred tax 6,767 1,859
Deferred tax - Prior year Adj - 5,249
Total deferred tax 6,767 7,108

Tax on profit 176,344 121,114

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:

31/12/22 31/12/21
£    £   
Profit before tax 719,029 574,017
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 -
19%)

136,616

109,063

Effects of:
Expenses not deductible for tax purposes 6,849 4,622
Adjustments to tax charge in respect of previous periods - 3,924
Deferred tax - (4,015 )
Unexplained difference - 1
Fixed asset differences 21,308 7,519
other tax adjustments, reliefs and transfers (1,048 ) -
Adjust closing deferred tax 12,619 -
Total tax charge 176,344 121,114

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

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

8. TANGIBLE FIXED ASSETS
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
Cost
At 1 January 2022 1,306,094 470,690 673,861 2,450,645
Additions - - 17,985 17,985
Disposals - - (290,564 ) (290,564 )
At 31 December 2022 1,306,094 470,690 401,282 2,178,066
Depreciation
At 1 January 2022 482,402 436,506 522,273 1,441,181
Charge for year 90,325 15,068 72,540 177,933
Eliminated on disposal - - (285,087 ) (285,087 )
At 31 December 2022 572,727 451,574 309,726 1,334,027
Net book value
At 31 December 2022 733,367 19,116 91,556 844,039
At 31 December 2021 823,692 34,184 151,588 1,009,464

9. DEBTORS
31/12/22 31/12/21
£    £   
Amounts falling due within one year:
Amounts owed by group undertakings 1,294,547 487,233
Other debtors 25,930 20,812
VAT 82,537 63,219
Prepayments 388,622 386,594
1,791,636 957,858

Amounts falling due after more than one year:
Other debtors 2,150,000 2,150,000

Aggregate amounts 3,941,636 3,107,858

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/22 31/12/21
£    £   
Bank loans and overdrafts (see note 12) 18,120 -
Trade creditors 25,400 46,888
Tax 66,408 91,295
Social security and other taxes 60,630 58,478
Other creditors - 226,849
Accrued expenses 707,407 521,763
877,965 945,273

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

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

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31/12/22 31/12/21
£    £   
Accrued expenses 830,412 943,293

12. LOANS

An analysis of the maturity of loans is given below:

31/12/22 31/12/21
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 18,120 -

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31/12/22 31/12/21
£    £   
Within one year 1,425,000 1,425,000
Between one and five years 5,700,000 5,700,000
In more than five years 4,548,125 5,973,125
11,673,125 13,098,125

14. PROVISIONS FOR LIABILITIES
31/12/22 31/12/21
£    £   
Deferred tax 48,566 41,799

Deferred
tax
£   
Balance at 1 January 2022 41,799
Provided during year 6,767
Balance at 31 December 2022 48,566

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/12/22 31/12/21
value: £    £   
1 Ordinary 1 1 1

HOUZZ UK LTD. (REGISTERED NUMBER: 08814778)

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

16. RESERVES
Retained
earnings
£   

At 1 January 2022 2,486,046
Profit for the year 542,685
At 31 December 2022 3,028,731

17. ULTIMATE PARENT COMPANY

Houzz Inc (incorporated in USA ) is regarded by the directors as being the company's ultimate parent company.

The largest and smallest group in which the results of the Company are consolidated, whose registered office is at 8605 Santa Monica Blvd., #90918 West Hollywood, CA 90069-4109

18. RELATED PARTY DISCLOSURES

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

19. SHARE-BASED PAYMENT TRANSACTIONS

The company has taken the exemption provided in FRS 102 Section 1.12D not to disclose details of share-based payment arrangements concerning equity instruments of another group entity.