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Registered number: 13304156










HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
J Teesdale 
G Teesdale 




Registered number
13304156



Registered office
Unit 2 Dunlop Way
Queensway Business Park

Scunthorpe

North Lincolnshire

DN16 3RN




Independent auditors
Shorts
Chartered Accountants & Statutory Auditor

63 Napier Street

Sheffield

South Yorkshire

S11 8HA





 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Consolidated Statement of Comprehensive Income
 
9
Consolidated Balance Sheet
 
10
Company Balance Sheet
 
11
Consolidated Statement of Changes in Equity
 
12
Company Statement of Changes in Equity
 
13
Consolidated Statement of Cash Flows
 
14 - 15
Consolidated Analysis of Net Debt
 
16
Notes to the Financial Statements
 
17 - 32


 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their strategic report for the year ended 31 December 2023.

Business review
 
The principle activity of the Group continued to be that of the wholesale of office furniture.
Market conditions are expected to remain competitive. The Group continues to maintain strong relationships with all suppliers, which is necessary to ensure it can continue to supply high quality products, to its customers, at competitive prices.

Principal risks and uncertainties
 
The directors consider that the risk and uncertainties surrounding the Group continue to be in line with other businesses in the sector, the key risk factor being competition in the market.
Credit Risk
The Group offers credit terms to its customers and is at risk, to the extent, that a customer may be unable to pay a debt by the specified due date. This risk is mitigated by strong on-going customer relationships and credit control procedures internally. 
Liquidity Risk
The objective of the Group in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The Group finances its operation through a mixture of retained profit, invoice finance and cash at bank. The Directors consider that the Group is not exposed to a cashflow or liquidity risk and that banking facilities are currently satisfied and not at risk of being withdrawn.
Employees
To achieve its objectives the Group recruits and retains a high calibre of employees at every level of the organisation and principles of equal opportunity are embodied throughout.

Financial key performance indicators
 
The key performance indicators of the Group are turnover, gross profit and net profit. During the year the Company has increased its gross margins, maintained costs, and increased net profits.
Turnover: £11,776,670 (2022: £10,507,340). 
Gross profit: £3,241,453 (2022: £2,445,731).
Net profit: £1,925,002 (2022: £1,130,848).

Future developments
 
The Directors believe that the forthcoming financial year will be one of concentrating on sales growth whilst
showing sustainable profitability due to focusing on improving gross margins and net profits. Their aim is to
continue investment in employees and the strong partnerships with key customers and suppliers.

Page 1

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 

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


This report was approved by the board on 14 October 2024 and signed on its behalf.



J Teesdale
Director

Page 2

 
HARLEQUIN OFFICE FURNITURE HOLDINGS 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

The directors who served during the year were:

J Teesdale 
G Teesdale 

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 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 for the Group's financial statements 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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,800,376 (2022 - £1,130,848).

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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

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

Page 3

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditors

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

This report was approved by the board on 14 October 2024 and signed on its behalf.
 





J Teesdale
Director

Page 4

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 

Qualified opinion


We have audited the financial statements of Harlequin Office Furniture Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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).

Except for the possible effects of the matter described in the Basis for qualified opinion section of our report, in our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 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 qualified opinion


We were appointed as auditors of the Company for the year ended 31 December 2023, and thus did not observe the counting of the physical inventories at the beginning of the year. We were unable to satisfy ourselves by alternative means concerning inventory existence at 31 December 2022. Since opening inventories enter into the determination of the financial performance and cash flows, we were unable to determine whether adjustments might have been necessary in respect of the profit for the year reported in the statement of comprehensive income and the net cash flows from operating activities reported in the statement of cash flows.


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 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 qualified 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 or 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.


Page 5

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARLEQUIN OFFICE FURNITURE HOLDINGS 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 ReportOur 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.

As described in the Basis for qualified opinion section of our report, our audit opinion is qualified as we were unable to satisfy ourselves by alternative means concerning inventory existence at 31 December 2022.

Opinion on other matters prescribed by the Companies Act 2006
 

Except for the matter described in the Basis for qualified opinion section of our audit report, in our opinion, based on the work undertaken in the course of the audit:

the information given in the Group 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 Group 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 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 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 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 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 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.

Page 6

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARLEQUIN OFFICE FURNITURE HOLDINGS 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 Group 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
 
the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
through discussions with the directors and other management and from our commercial knowledge and experience of the sectors that the Company operates in, we identified the laws and regulations applicable to the Company; and
focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
considered journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing any correspondence with HMRC, relevant regulators and the Company’s legal advisors.



 
Page 7

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED (CONTINUED)


There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.
Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Other matters 
 

The financial statements of the Group and the Company for the year ended 31 December 2022 were not audited as a result of the previously available exemption under s477 of the Companies Act 2006.

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.




Malcolm Pope BA FCA (Senior Statutory Auditor)
  
for and on behalf of
Shorts
 
Chartered Accountants
Statutory Auditor
  
63 Napier Street
Sheffield
South Yorkshire
S11 8HA

14 October 2024
Page 8

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
11,776,670
10,507,340

Cost of sales
  
(8,535,217)
(8,061,609)

Gross profit
  
3,241,453
2,445,731

Administrative expenses
  
(857,071)
(1,040,857)

Other operating income
 5 
5,540
14,956

Operating profit
 6 
2,389,922
1,419,830

Interest receivable and similar income
  
929
657

Interest payable and similar expenses
  
(33,381)
(31,298)

Profit before taxation
  
2,357,470
1,389,189

Tax on profit
 10 
(557,094)
(258,341)

Profit for the financial year
  
1,800,376
1,130,848

  

Surplus on revaluation of freehold property
  
580,946
-

Total comprehensive income for the year
  
2,381,322
1,130,848

Profit for the year attributable to:
  

Owners of the parent Company
  
1,800,376
1,130,848

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
2,381,322
1,130,848

The notes on pages 17 to 32 form part of these financial statements.

Page 9

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
REGISTERED NUMBER: 13304156

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
-
-

Tangible assets
 12 
1,910,836
957,313

Current assets
  

Stocks
  
1,204,965
1,829,180

Debtors: amounts falling due within one year
 14 
2,427,678
1,874,134

Cash at bank and in hand
  
1,326,807
621,227

  
4,959,450
4,324,541

Creditors: amounts falling due within one year
 15 
(1,994,586)
(2,468,994)

Net current assets
  
 
 
2,964,864
 
 
1,855,547

Total assets less current liabilities
  
4,875,700
2,812,860

Creditors: amounts falling due after more than one year
 16 
(238,042)
(73,154)

Provisions for liabilities
  

Deferred taxation
 17 
(211,383)
(87,723)

Net assets
  
4,426,275
2,651,983


Capital and reserves
  

Called up share capital 
 18 
52
52

Share premium account
 19 
35,536
35,536

Revaluation reserve
 19 
489,151
32,831

Other reserves
 19 
1,103,969
1,103,969

Profit and loss account
 19 
2,797,567
1,479,595

  
4,426,275
2,651,983


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 October 2024.


J Teesdale
Director

The notes on pages 17 to 32 form part of these financial statements.

Page 10

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
REGISTERED NUMBER: 13304156

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 13 
300,000
300,000

Current assets
  

Debtors: amounts falling due within one year
 14 
343,294
385,344

Cash at bank and in hand
  
75,511
75,511

  
418,805
460,855

Creditors: amounts falling due within one year
 15 
(589,444)
(629,494)

Net current liabilities
  
 
 
(170,639)
 
 
(168,639)

  

  

Net assets
  
129,361
131,361


Capital and reserves
  

Called up share capital 
 18 
52
52

Share premium account
 19 
35,536
35,536

Profit and loss account
  
93,773
95,773

  
129,361
131,361


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 October 2024.

J Teesdale
Director

The notes on pages 17 to 32 form part of these financial statements.

Page 11

 

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED


 

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



Called up share capital
Share premium account
Revaluation reserve
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Total equity


£
£
£
£
£
£
£



At 1 April 2022
52
35,536
32,831
1,103,969
934,877
2,107,265
2,107,265





Profit for the period
-
-
-
-
1,130,848
1,130,848
1,130,848


Dividends: Equity capital
-
-
-
-
(586,130)
(586,130)
(586,130)





At 1 January 2023
52
35,536
32,831
1,103,969
1,479,595
2,651,983
2,651,983





Profit for the year
-
-
-
-
1,800,376
1,800,376
1,800,376


Surplus on revaluation of freehold property
-
-
580,946
-
-
580,946
580,946

Total comprehensive income for the year
-
-
580,946
-
1,800,376
2,381,322
2,381,322


Dividends: Equity capital
-
-
-
-
(607,030)
(607,030)
(607,030)


Transfer to/from profit and loss account
-
-
(124,626)
-
124,626
-
-



At 31 December 2023
52
35,536
489,151
1,103,969
2,797,567
4,426,275
4,426,275



The notes on pages 17 to 32 form part of these financial statements.

Page 12

 

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED


 

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



Called up share capital
Share premium account
Profit and loss account
Total equity


£
£
£
£



At 1 April 2022
52
35,536
97,973
133,561





Profit for the period
-
-
583,930
583,930


Dividends: Equity capital
-
-
(586,130)
(586,130)





At 1 January 2023
52
35,536
95,773
131,361





Profit for the year
-
-
605,030
605,030


Dividends: Equity capital
-
-
(607,030)
(607,030)



At 31 December 2023
52
35,536
93,773
129,361



The notes on pages 17 to 32 form part of these financial statements.

Page 13

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,800,376
1,130,848

Adjustments for:

Depreciation of tangible assets
133,250
82,539

Loss on disposal of tangible assets
5,927
(11,424)

Government grants
(5,540)
(14,956)

Interest paid
33,380
31,298

Interest received
(929)
(657)

Taxation charge
557,094
258,341

Decrease in stocks
624,215
69,223

(Increase) in debtors
(553,545)
(238,077)

(Decrease)/increase in creditors
(808,220)
576,103

Corporation tax (paid)
(232,630)
(256,557)

Net cash generated from operating activities

1,553,378
1,626,681


Cash flows from investing activities

Purchase of tangible fixed assets
(451,114)
(324,173)

Sale of tangible fixed assets
361
118,000

Government grants received
5,540
14,956

Interest received
929
657

HP interest paid
(13,173)
(2,269)

Net cash from investing activities

(457,457)
(192,829)

Cash flows from financing activities

Repayment of loans
-
(250,000)

Repayment of other loans
-
(200,000)

(Repayment of)/new finance leases
236,896
(14,056)

Dividends paid
(607,030)
(586,130)

Interest paid
(20,207)
(29,029)

Net cash used in financing activities
(390,341)
(1,079,215)

Net increase in cash and cash equivalents
705,580
354,637

Cash and cash equivalents at beginning of year
621,227
266,590

Cash and cash equivalents at the end of year
1,326,807
621,227

Page 14

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£


 
 
Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,326,807
621,227

1,326,807
621,227


The notes on pages 17 to 32 form part of these financial statements.

Page 15

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023






At 1 January 2023
Cash flows
New finance leases
Other non-cash changes
At 31 December 2023
£

£

£

£

£

Cash at bank and in hand

621,227

705,580

-

-

1,326,807

Debt due within 1 year

(2,403,399)

1,036,801

-

(490,385)

(1,856,983)

Finance leases

(138,749)

-

(236,896)

-

(375,645)


(1,920,921)
1,742,381
(236,896)
(490,385)
(905,821)

The notes on pages 17 to 32 form part of these financial statements.

Page 16

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Harlequin Office Furniture Holdings Limited is a private Company limited by shares, incorporated in England and Wales (registered number: 13304156). Its registered office is Unit 2 Dunlop Way, Queensway Business Park, Scunthorpe, North Lincolnshire, DN16 3RN. The principal activity of the Company throughout the year continued to be that of a distribution holding company.

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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 17

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group has transferred the significant risks and rewards of ownership to the buyer;
the Group 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 Group 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.

 
2.4

Operating leases: the Group as lessee

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

 
2.5

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. 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 profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

Page 18

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

 
2.8

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 and the Group operate and generate 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.

 
2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 19

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

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, as follows.

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Plant and machinery
-
10%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
25%
reducing balance
Computer equipment
-
25%
reducing balance

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.

 
2.11

Revaluation of tangible fixed assets

Freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
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 weighted average 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.

Page 20

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities such as bank and cash balances, trade and other accounts receivable
and payable, loans from banks and other third parties and loans to and from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans
and other accounts receivable and payable, are initially measured at the transaction price and
subsequently at amortised cost using the effective interest method. Debt instruments that are payable
or receivable within one year, typically trade payables or receivables, 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,
the financial asset or liability is measured, initially, at the present value of the future cash flow
discounted at a market rate of interest for a similar debt instrument and subsequently at amortised
cost.
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.

 
2.15

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 21

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The Company makes 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 the greatest level of uncertainty are addressed below:

Impairment of debtors
The Company may estimate the recoverable value of debtors. When assessing impairment of trade
and other debtors, management considers factor including the current credit rating of the debtor, the
aging profile of the debt and historical experience and outcomes. The amount of debtors after making
such provision, where required, is presented in the Debtors note to these financial statements. 

Stock provisioning
The Company may estimate the recoverable value of stock for resale. When assessing whether stock
is impaired, management considers factors such as market conditions, aging profile of stock and
historical experience. The amount of stock after making any such provisions is included in the Stocks
note to these financial statements.
 
Rebates
The Company makes an estimate of the value of rebates due to customers. When assessing the
value of rebates, management consider factors such as the agreed rates per contracts and activity
levels within the current period. Any rebates are included within the Creditors note to these financial
statements.


4.


Turnover

2023
2022
£
£

Turnover
11,776,670
10,507,340


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
5,540
14,956


Page 22

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation - owned assets
39,807
32,333

Depreciation - financed assets
93,443
50,206

Lease charges - property
25,686
25,686

Lease charges - other
75,683
57,862


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Group's auditors for the audit of the consolidated financial statements and the parent Company's financial statements
20,500
-

Fees payable to the Company's auditors in respect of:

Taxation compliance services
2,250
-

All non-audit services not included above
40,431
-

Page 23

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

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


Group
Group
2023
2022
£
£


Wages and salaries
1,356,523
1,226,431

Social security costs
124,098
117,280

Cost of defined contribution scheme
21,909
20,278

1,502,530
1,363,989


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


        2023
        2022
            No.
            No.







50
48

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL)

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
21,514
51,875

Group contributions to defined contribution pension schemes
-
881

21,514
52,756


During the year retirement benefits were accruing to no directors (2022 - NIL) in respect of defined contribution pension schemes.

Page 24

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
494,435
232,630


Deferred tax


Origination and reversal of timing differences
62,659
25,711


Tax on profit
557,094
258,341

Factors affecting tax charge for the year/period

The tax assessed for the year/period is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,357,470
1,389,189


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
554,476
263,946

Effects of:


Expenses not deductible for tax purposes
123
433

Fixed asset differences
(236)
(12,626)

Remeasurement of deferred tax for changes in tax rates
8,920
6,038

Movement in deferred tax not recognised
(1,050)
1,050

Chargeable gains/(losses)
(5,139)
-

Adjustments to tax charge in respect of prior periods
-
(500)

Total tax charge for the year/period
557,094
258,341


Factors that may affect future tax charges

There are tax losses carrying forward totalling £NIL (2022: £4,200) which are available for offset against future trading profits.

Page 25

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Intangible assets

Group





Goodwill

£



Cost


At 1 January 2023
(230,814)



At 31 December 2023

(230,814)



Amortisation


At 1 January 2023
230,814



At 31 December 2023

230,814



Net book value



At 31 December 2023
-



At 31 December 2022
-



Company
The Company has no intangible assets. 

Page 26

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
749,848
100,253
294,036
164,317
55,524
1,363,978


Additions
-
49,655
350,389
13,726
37,344
451,114


Disposals
-
(82,844)
-
(20,885)
(52,531)
(156,260)


Revaluations
550,152
-
-
-
-
550,152



At 31 December 2023

1,300,000
67,064
644,425
157,158
40,337
2,208,984



Depreciation


At 1 January 2023
91,795
93,261
98,283
74,456
48,870
406,665


Charge for the year on owned assets
-
3,532
2,671
23,860
9,744
39,807


Charge for the year on financed assets
-
-
93,443
-
-
93,443


Disposals
-
(81,829)
-
(20,700)
(47,443)
(149,972)


On revalued assets
(91,795)
-
-
-
-
(91,795)



At 31 December 2023

-
14,964
194,397
77,616
11,171
298,148



Net book value



At 31 December 2023
1,300,000
52,100
450,028
79,542
29,166
1,910,836



At 31 December 2022
658,053
6,992
195,753
89,861
6,654
957,313

The freehold property was revalued at 31 December 2023 on an open market basis as determined by the
Directors.

Page 27

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           12.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
442,015
219,551


13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 January 2023
300,000



At 31 December 2023
300,000






Net book value



At 31 December 2023
300,000



At 31 December 2022
300,000


Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Holding

Harlequin Office Furniture Limited
Unit 2 Dunlop Way, Queensway Business Park, Scunthorpe, DN16 3RN.
100%

Page 28

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertaking (continued)

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Harlequin Office Furniture Limited
4,596,914
1,802,376


14.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
2,150,863
1,566,351
-
-

Amounts owed by group undertakings
-
-
343,244
385,294

Other debtors
166,526
129,553
50
50

Prepayments and accrued income
110,289
178,230
-
-

2,427,678
1,874,134
343,294
385,344



15.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
392,101
410,586
-
-

Amounts owed to group undertakings
-
-
-
-

Corporation tax
494,435
232,630
-
-

Other taxation and social security
184,904
68,988
-
-

Obligations under finance lease and hire purchase contracts
137,603
65,595
-
-

Other creditors
606,065
1,507,467
585,244
625,294

Accruals and deferred income
179,478
183,728
4,200
4,200

1,994,586
2,468,994
589,444
629,494


Included within creditors falling due within one year are net obligations under finance leases and hire purchase contracts of £137,603 (2022: £65,595) which are secured against the underlying assets.
There are also amounts totalling £NIL (2022: £862,952) included in other creditors which relate to invoice finance facilities secured against the book debt of the Company.

Page 29

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
238,042
73,154


ncluded within creditors falling due after one year are net obligations under finance leases and hire purchase contracts of £238,042 (2022: £73,154) which are secured against the underlying assets.

Page 30

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Deferred taxation


Group



2023


£






At beginning of year
(87,723)


Charged to profit or loss
(123,660)



At end of year
(211,383)

Company


2023





At beginning of year
-



At end of year
-
The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Fixed asset timing differences
(150,808)
(87,923)

Short term timing differences
426
200

Capital gains
(61,001)
-

(211,383)
(87,723)


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



52 (2022 - 52) Ordinary Shares shares of £1.00 each
52
52


Page 31

 
HARLEQUIN OFFICE FURNITURE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Reserves

Share premium account

The share premium represents the value at which the shares in the Company were subscribed above their nominal value. 

Revaluation reserve

The cumulative revaluation gains and losses in respect of freehold property, except revaluation gains and losses recognised in the profit and loss.

Other reserves

The other reserves represent the difference between the consideration and the book value of the net assets acquired in the subsidiary. 

Profit and loss account

This includes all current and prior period retained profits and losses and is considered by the directors to be fully distributable by the Group companies in which it is held. 


20.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £21,909 (2022 - £20,278). Contributions totalling £3,969 (2022 - £NIL).


21.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Not later than 1 year
52,435
46,077

Later than 1 year and not later than 5 years
63,202
51,647

115,637
97,724

22.


Controlling party

The controlling parties are J & G Teesdale. 

Page 32