Company registration number 01247580 (England and Wales)
COOKES FURNITURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
COOKES FURNITURE LIMITED
COMPANY INFORMATION
DIRECTORS
G A Cooke
J D Pike
M L Pike
V J Hoe
J A Davies
S J Houghton
(Appointed 28 November 2023)
N J Davies
(Appointed 14 November 2023)
COMPANY NUMBER
01247580
REGISTERED OFFICE
28 Goosemoor Lane
Erdington
Birmingham
B23 5PN
AUDITOR
JW Hinks LLP
Chartered Accountants
19 Highfield Road
Edgbaston
Birmingham
B15 3BH
COOKES FURNITURE LIMITED
CONTENTS
PAGE
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
COOKES FURNITURE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

REVIEW OF THE BUSINESS

Cookes Furniture continues to retail high quality furniture from its two extensive retail showrooms. The showrooms serve an affluent customer base in and around Sutton Coldfield in the West Midlands and Christchurch, Dorset. The diverse range covers products across the entire premium furniture spectrum including lounge, dining, beds, and bedroom furniture.

Continued investment in both showrooms has improved the customer experience and allowed us to showcase a wider range of products from several new brand partners, further strengthening the quality and depth of our product offer.

The Directors and senior management team have produced a strong set of results for the business, despite a challenging year, where domestic and international events created instability, which led customers to remain cautious in committing to big ticket purchases. Whilst turnover was reduced from the prior year, margin improved by 0.6 percentage points and increases in overhead costs were below inflation.

Cookes continued its long-term investment strategy in our showrooms, product offer and teams, to develop the exceptional and trusted retail experience we strive to deliver. A focus on the innovative use of technology, to connect with existing and new customers is helping Cookes develop a unique shopping experience for our customers and maintain our five-star standards of service through every step of the customer journey.

In a highly competitive retail market, Cookes family-oriented outlook, strong product knowledge, trusted after sales and expansive showrooms and online offering have proved crucial in maintaining strong sales and margins.

 

PRINCIPAL RISKS AND UNCERTAINTIES

The experienced management team has successfully navigated the challenging year, maintaining a strong orderbook for the 2024-25 year. The business has strengthened partnerships with existing and new suppliers, and we continue to invest to further improve the margin and control overhead costs within the business. The customer experience remains at the heart of everything we do, this continued focus will place the business in a position of continued growth once economic conditions improve in the coming months.

 

KEY PERFORMANCE INDICATORS

A detailed suite of financial KPI’s enable the business to continuously measure and maintain the sales performance and operational capabilities against forecast, whilst monitoring gross profit margin and cashflow. The Directors have excellent visibility of company performance, through robust and timely reporting procedures.

 

OTHER PERFORMANCE INDICATORS

The company’s main exposure is foreign currency exchange rates and interest rates. The company’s principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors and bank loans. These instruments are used to balance the company’s working capital requirements for its business operations with continual investment in its showrooms and sales teams.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility, through the use of overdrafts at floating rates of interest. The company’s cash balances are held in such a way that achieves a competitive rate of interest.

Loans comprise of loans from financial institutions. The company uses a mixture of fixed and variable interest rate loans as part of its treasury management.

 

COOKES FURNITURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

On behalf of the board

J D Pike
DIRECTOR
22 July 2024
COOKES FURNITURE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

PRINCIPAL ACTIVITIES

The principal activity of the company continued to be that of a home furnishings retailer.

RESULTS AND DIVIDENDS

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £225,700. The directors do not recommend payment of a further dividend.

DIRECTORS

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G A Cooke
J D Pike
M L Pike
V J Hoe
J A Davies
S J Houghton
(Appointed 28 November 2023)
N J Davies
(Appointed 14 November 2023)
STATEMENT OF DISCLOSURE TO AUDITOR

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

MEDIUM-SIZED COMPANIES EXEMPTION

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
J D Pike
DIRECTOR
22 July 2024
COOKES FURNITURE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

COOKES FURNITURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF COOKES FURNITURE LIMITED
- 5 -
OPINION

We have audited the financial statements of Cookes Furniture Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

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

 

We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of our audit:

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

COOKES FURNITURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF COOKES FURNITURE LIMITED
- 6 -
RESPONSIBILITIES OF DIRECTORS

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

AUDITOR'S 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 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements and discussed the policies and procedures regarding compliance.

Specific areas considered were as follows:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected all irregularities including those leading to material misstatements in the financial statements or non-compliance with regulation, even though we have properly planned and performed our audit in accordance with auditing standards.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

USE OF OUR REPORT

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's 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 member, for our audit work, for this report, or for the opinions we have formed.

COOKES FURNITURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF COOKES FURNITURE LIMITED
- 7 -
JAMES CRUSE ACA, FCCA, BSC (ECON) HONS
SENIOR STATUTORY AUDITOR
FOR AND ON BEHALF OF
JW HINKS LLP
JW Hinks LLP
CHARTERED ACCOUNTANTS
STATUTORY AUDITOR
19 Highfield Road
Edgbaston
Birmingham
B15 3BH
22 July 2024
COOKES FURNITURE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
TURNOVER
3
9,505,617
10,775,951
Cost of sales
(5,371,397)
(6,151,622)
GROSS PROFIT
4,134,220
4,624,329
Distribution costs
(1,271,885)
(1,226,980)
Administrative expenses
(3,092,228)
(2,967,234)
Other operating income
353,711
252,329
OPERATING PROFIT
4
123,818
682,444
Interest receivable and similar income
7
1,154
680
Interest payable and similar expenses
8
(41,799)
(21,345)
PROFIT BEFORE TAXATION
83,173
661,779
Tax on profit
9
(237)
(94,817)
PROFIT FOR THE FINANCIAL YEAR
82,936
566,962

The profit and loss account has been prepared on the basis that all operations are continuing operations.

COOKES FURNITURE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
PROFIT FOR THE YEAR
82,936
566,962
OTHER COMPREHENSIVE INCOME
Revaluation of tangible fixed assets
-
0
(1,244,451)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
82,936
(677,489)
COOKES FURNITURE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
FIXED ASSETS
Tangible assets
12
4,385,986
4,406,997
Investments
11
38,099
39,076
4,424,085
4,446,073
CURRENT ASSETS
Stocks
13
1,901,126
1,861,647
Debtors
14
1,116,979
1,022,983
Cash at bank and in hand
82,989
809,464
3,101,094
3,694,094
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
15
(2,174,027)
(2,550,251)
NET CURRENT ASSETS
927,067
1,143,843
TOTAL ASSETS LESS CURRENT LIABILITIES
5,351,152
5,589,916
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
16
(385,891)
(482,128)
PROVISIONS FOR LIABILITIES
Deferred tax liability
19
6,637
6,400
(6,637)
(6,400)
NET ASSETS
4,958,624
5,101,388
CAPITAL AND RESERVES
Called up share capital
21
14,545
14,545
Revaluation reserve
1,721,259
1,721,259
Profit and loss reserves
3,222,820
3,365,584
TOTAL EQUITY
4,958,624
5,101,388

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 22 July 2024 and are signed on its behalf by:
G A Cooke
J D Pike
DIRECTOR
DIRECTOR
Company registration number 01247580 (England and Wales)
COOKES FURNITURE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
BALANCE AT 1 APRIL 2022
14,545
2,965,710
3,034,322
6,014,577
YEAR ENDED 31 MARCH 2023:
Profit for the year
-
-
566,962
566,962
Other comprehensive income:
Revaluation of tangible fixed assets
-
(1,244,451)
-
(1,244,451)
Total comprehensive income for the year
-
(1,244,451)
566,962
(677,489)
Dividends
10
-
-
(235,700)
(235,700)
BALANCE AT 31 MARCH 2023
14,545
1,721,259
3,365,584
5,101,388
YEAR ENDED 31 MARCH 2024:
Profit and total comprehensive income for the year
-
-
82,936
82,936
Dividends
10
-
-
(225,700)
(225,700)
BALANCE AT 31 MARCH 2024
14,545
1,721,259
3,222,820
4,958,624
COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
ACCOUNTING POLICIES
COMPANY INFORMATION

Cookes Furniture Limited is a private company limited by shares incorporated in England and Wales. The registered office is 28 Goosemoor Lane, Erdington, Birmingham, B23 5PN.

1.1
ACCOUNTING CONVENTION

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Cookes Furniture (Holdings) Limited. These consolidated financial statements are available from its registered office,

1.2
GOING CONCERN

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
TURNOVER

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
TANGIBLE FIXED ASSETS

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
not provided
Fixtures and fittings
15% and 25% reducing balance
Motor vehicles
25% reducing balance
COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
ACCOUNTING POLICIES
(Continued)
- 13 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Individual freehold properties are carried at fair value at the date of revaluation less any subsequent accumulated depreciation and impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using the fair value at the balance sheet date.

 

Depreciation is not provided on freehold properties as the directors believe the value does not depreciate due to ongoing maintenance on the properties to maintain their current value. This is a departure from the provisions contained in FRS 102 Section 17 but is considered to give a true and fair view.

1.5
FIXED ASSET INVESTMENTS

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
IMPAIRMENT OF FIXED ASSETS

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
STOCKS

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
ACCOUNTING POLICIES
(Continued)
- 14 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
CASH AND CASH EQUIVALENTS

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
ACCOUNTING POLICIES
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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 recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
EQUITY INSTRUMENTS

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
TAXATION

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
ACCOUNTING POLICIES
(Continued)
- 16 -
1.12
EMPLOYEE BENEFITS

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
RETIREMENT BENEFITS

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
LEASES

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
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.

3
TURNOVER AND OTHER REVENUE
2024
2023
£
£
TURNOVER ANALYSED BY CLASS OF BUSINESS
Sale of home furnishings
9,505,617
10,775,951
2024
2023
£
£
TURNOVER ANALYSED BY GEOGRAPHICAL MARKET
United Kingdom
9,505,617
10,775,951
COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
TURNOVER AND OTHER REVENUE
(Continued)
- 17 -
2024
2023
£
£
OTHER REVENUE
Interest income
1,154
680
4
OPERATING PROFIT
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,135
9,040
Depreciation of owned tangible fixed assets
119,475
106,757
Loss/(profit) on disposal of tangible fixed assets
3,117
(10,873)
Operating lease charges
405,558
331,877
5
EMPLOYEES

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Sales
25
23
Distribution
17
18
Administration
23
24
Total
65
65

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,896,420
1,858,052
Social security costs
188,327
189,881
Pension costs
314,779
247,270
2,399,526
2,295,203
6
DIRECTORS' REMUNERATION
2024
2023
£
£
Remuneration for qualifying services
310,009
286,303
Company pension contributions to defined contribution schemes
184,767
135,333
494,776
421,636
COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
DIRECTORS' REMUNERATION
(Continued)
- 18 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
83,234
75,811
Company pension contributions to defined contribution schemes
60,000
40,000
7
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
INTEREST INCOME
Interest on bank deposits
1,154
680
8
INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Interest on bank overdrafts and loans
39,904
21,345
Interest on finance leases and hire purchase contracts
1,895
-
41,799
21,345
9
TAXATION
2024
2023
£
£
DEFERRED TAX
Origination and reversal of timing differences
237
94,817
COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
TAXATION
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
83,173
661,779
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
20,793
125,738
Tax effect of expenses that are not deductible in determining taxable profit
6,243
10,750
Tax effect of utilisation of tax losses not previously recognised
-
0
(115,092)
Group relief
(26,799)
(16,869)
Permanent capital allowances in excess of depreciation
-
0
(4,527)
Deferred tax movement
-
0
94,817
Taxation charge for the year
237
94,817
10
DIVIDENDS
2024
2023
£
£
Final paid
225,700
235,700
11
FIXED ASSET INVESTMENTS
2024
2023
£
£
Unlisted investments
38,099
39,076
MOVEMENTS IN FIXED ASSET INVESTMENTS
Investments
£
COST OR VALUATION
At 1 April 2023
39,076
Valuation changes
(977)
At 31 March 2024
38,099
CARRYING AMOUNT
At 31 March 2024
38,099
At 31 March 2023
39,076
COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
12
TANGIBLE FIXED ASSETS
Freehold land
Fixtures and
Motor
and buildings
fittings
vehicles
Total
£
£
£
£
COST OR VALUATION
At 1 April 2023
3,800,000
3,082,549
261,256
7,143,805
Additions
-
0
26,819
89,580
116,399
Disposals
-
0
(11,776)
(83,466)
(95,242)
At 31 March 2024
3,800,000
3,097,592
267,370
7,164,962
DEPRECIATION AND IMPAIRMENT
At 1 April 2023
-
0
2,552,767
184,041
2,736,808
Depreciation charged in the year
-
0
89,139
30,336
119,475
Eliminated in respect of disposals
-
0
(3,268)
(74,039)
(77,307)
At 31 March 2024
-
0
2,638,638
140,338
2,778,976
CARRYING AMOUNT
At 31 March 2024
3,800,000
458,954
127,032
4,385,986
At 31 March 2023
3,800,000
529,782
77,215
4,406,997

Freehold land and buildings relating to the Birmingham showroom were valued on 13 July 2023 by Harris Lamb Limited Chartered Surveyors on a market value basis at £3,800,000. The directors do not consider the value to have materially changed since this valuation.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Freehold property
2024
2023
£
£
Cost
2,034,290
2,034,290
13
STOCKS
2024
2023
£
£
Finished goods and goods for resale
1,901,126
1,861,647
COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
14
DEBTORS
2024
2023
AMOUNTS FALLING DUE WITHIN ONE YEAR:
£
£
Trade debtors
25,213
18,082
Amounts owed by group undertakings
883,359
686,887
Other debtors
55,435
51,509
Prepayments and accrued income
152,972
266,505
1,116,979
1,022,983
15
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
Notes
£
£
Bank loans
17
129,081
124,836
Obligations under finance leases
18
28,290
-
0
Payments received on account
710,713
832,212
Trade creditors
532,905
745,064
Amounts owed to group undertakings
302,108
-
0
Taxation and social security
264,814
268,518
Other creditors
2,600
117,579
Accruals and deferred income
203,516
462,042
2,174,027
2,550,251
16
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
2023
Notes
£
£
Bank loans and overdrafts
17
345,551
482,128
Obligations under finance leases
18
40,340
-
0
385,891
482,128
17
LOANS AND OVERDRAFTS
2024
2023
£
£
Bank loans
474,632
606,964
Payable within one year
129,081
124,836
Payable after one year
345,551
482,128

The bank overdraft and loans are secured by debentures over and cross guarantees with set off between group companies, in addition to a first charge over the freehold property of Cookes Furniture Limited at 28 Goosemoor Lane, Erdington, Birmingham, B23 5PN.

COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
LOANS AND OVERDRAFTS
(Continued)
- 22 -

The company has three bank loans. The first bank loan of £350,953 (2023: £431,867) is repayable in installments by August 2027. Interest is charged at 2.9% above the bank's base rate.

 

The second bank loan of £27,054 (2023: £47,801) is repayable in installments by December 2024. Interest is charged at 3.9% per annum.

 

The third bank loan of £96,625 (2023: £127,290) is repayable in installments by May 2027. Interest is charged at 3.5% per annum.

18
FINANCE LEASE OBLIGATIONS
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
28,290
-
0
In two to five years
40,340
-
0
68,630
-
0

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
DEFERRED TAXATION

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
BALANCES:
£
£
Accelerated capital allowances
133,777
133,540
Tax losses
(127,140)
(127,140)
6,637
6,400
2024
MOVEMENTS IN THE YEAR:
£
Liability at 1 April 2023
6,400
Charge to profit or loss
237
Liability at 31 March 2024
6,637
COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
20
RETIREMENT BENEFIT SCHEMES
2024
2023
DEFINED CONTRIBUTION SCHEMES
£
£
Charge to profit or loss in respect of defined contribution schemes
314,779
247,270

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
SHARE CAPITAL
2024
2023
2024
2023
ORDINARY SHARE CAPITAL
Number
Number
£
£
ISSUED AND FULLY PAID
Ordinary of £1 each
14,545
14,545
14,545
14,545
22
FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES

The company has an unlimited debenture incorporating a fixed and floating charge over all present and future property and undertakings of the company in favour of its bankers. At the year end £474,632 (2023: £606,964) was due by the company.

23
OPERATING LEASE COMMITMENTS
LESSEE

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
601,190
601,190
Between two and five years
2,259,780
2,318,970
In over five years
1,678,000
2,220,000
4,538,970
5,140,160
LESSOR

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
Within one year
49,640
49,640
Between two and five years
37,230
86,870
86,870
136,510
COOKES FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
24
RELATED PARTY TRANSACTIONS

The company has taken advantage of Section 33 of FRS102 (Related Party Disclosures), not to disclose related party transactions with wholly owned subsidiaries within the group.

 

During the year ended 31 March 2024 the company incurred property rental charges of £451,000 (2023: £335,000) from the Cooke Family Pension Scheme, in which the company directors are also trustees. No amounts remained outstanding at the balance sheet date.

 

Included in other debtors are balances owed by family trusts, in which some of the company directors are also trustees, being the E R Cooke Family Settlement of £3,399 (2023: £3,399), the Moor Hall Trust of £6,510 (2023: £6,510) and the Quay Trust of £3,526 (2023: £nil). No interest is charged on these amounts.

25
ULTIMATE CONTROLLING PARTY

The ultimate parent company is Cookes Furniture (Holdings) Limited, a company registered in England and Wales. Their registered office is 28 Goosemoor Lane, Erdington, Birmingham, B23 5PN.

 

Group accounts of Cookes Furniture (Holdings) Limited are obtainable from Companies House.

 

There is no ultimate controlling party of Cookes Furniture (Holdings) Limited.

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