Company registration number 09313152 (England and Wales)
COOKES FURNITURE (HOLDINGS) LIMITED
CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
COOKES FURNITURE (HOLDINGS) LIMITED
COMPANY INFORMATION
DIRECTORS
G A Cooke
J D Pike
M L Pike
V J Hoe
J A Davies
N J Davies
(Appointed 14 November 2023)
COMPANY NUMBER
09313152
REGISTERED OFFICE
28 Goosemoor Lane
Erdington
Birmingham
B23 5PN
AUDITOR
JW Hinks LLP
Chartered Accountants
19 Highfield Road
Edgbaston
Birmingham
B15 3BH
COOKES FURNITURE (HOLDINGS) 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
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
COOKES FURNITURE (HOLDINGS) 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

The group’s core business activity continued to be the retail of premium furniture, covering each of the key areas of a home. Our showrooms have an outstanding offer of lounge, dining, beds and bedroom furniture. The two retail showrooms continue to serve our established customer base in Sutton Coldfield, West Midlands, and Christchurch, Dorset.

A continued strategic review by the Directors has focused investment in key group areas and driven rationalisation of core business activities. The disposal of Cookes Bathrooms business in the year was part of a deeper focus on furniture retail and the growth of self-storage, which have strong synergies and is an important element within the Cookes Furniture Group. This refocus on core group objectives has seen the group invest heavily in the year.

Cookes Furniture has delivered a strong set of figures, despite a challenging backdrop of domestic and international events, damaging consumer confidence and spending. Cookes continued investment in showroom ranges, product knowledge and the innovative use of technology to connect with existing and new customers has positioned Cookes for future growth. This investment is balanced with strong cost controls to ensure below inflationary increases and continued improvement of margins.

Cookes Group further committed to its investment in the self-storage industry. Following the opening of its second site in Stratford-Upon-Avon in October 2022 the group has continued its investment in the site, adding more capacity to keep pace with strong demand.

The Stratford-upon-Avon facility has become an important part of the local community and the combination of business and domestic use has created a bustling local hub. Occupancy remains high at both sites and further investment in the Stratford site during and after the financial year will enable us to fully utilise the available space. These developments will provide a great return on the investment made and allow Cookes to explore future opportunities identified as beneficial to the group.

 

PRINCIPAL RISKS AND UNCERTAINTIES

Despite wider challenges across the UK economy, Cookes group remains in a strong position with furniture retail at the core of the group and Cookes Storage Service contributing significantly to the turnover and well positioned to contribute to future profitability.

The board continues to look for further investment opportunities to drive growth and deliver long term stability, diversity and profitability for the shareholders.

 

KEY PERFORMANCE INDICATORS

A detailed suite of financial KPI’s enable the group 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 group performance, through robust and timely reporting procedures.

 

OTHER PERFORMANCE INDICATORS

The group’s main exposure is foreign currency exchange rates and interest rates. The group’s principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors and loans. The main purpose of these instruments is to finance the business operations.

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 group uses a mixture of fixed and variable interest rate loans as part of its treasury management.

 

COOKES FURNITURE (HOLDINGS) 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 (HOLDINGS) 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 and group continued to be that of home furnishings, storage and bathrooms.

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
N J Davies
(Appointed 14 November 2023)
AUDITOR

In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the group will be put at a General Meeting.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
J D Pike
DIRECTOR
22 July 2024
COOKES FURNITURE (HOLDINGS) 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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

COOKES FURNITURE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COOKES FURNITURE (HOLDINGS) LIMITED
- 5 -
OPINION

We have audited the financial statements of Cookes Furniture (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 group and parent 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 group's and 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.

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:

COOKES FURNITURE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COOKES FURNITURE (HOLDINGS) LIMITED
- 6 -
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 their 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:

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 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 parent 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 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

COOKES FURNITURE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COOKES FURNITURE (HOLDINGS) LIMITED
- 7 -
JAMES CRUSE ACA, FCCA, BSC (ECON) HONS (SENIOR STATUTORY AUDITOR)
FOR AND ON BEHALF OF JW HINKS LLP
CHARTERED ACCOUNTANTS
STATUTORY AUDITOR
19 Highfield Road
Edgbaston
Birmingham
B15 3BH
22 July 2024
COOKES FURNITURE (HOLDINGS) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
TURNOVER
3
10,337,016
12,618,941
Cost of sales
(5,650,415)
(7,155,569)
GROSS PROFIT
4,686,601
5,463,372
Distribution costs
(1,271,885)
(1,226,980)
Administrative expenses
(3,709,888)
(3,918,823)
Other operating income
287,711
240,329
OPERATING (LOSS)/PROFIT
4
(7,461)
557,898
Interest receivable and similar income
8
1,154
1,016
Interest payable and similar expenses
9
(41,799)
(21,345)
(LOSS)/PROFIT BEFORE TAXATION
(48,106)
537,569
Tax on (loss)/profit
10
(9,710)
(155,279)
(LOSS)/PROFIT FOR THE FINANCIAL YEAR
(57,816)
382,290
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
COOKES FURNITURE (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
(LOSS)/PROFIT FOR THE YEAR
(57,816)
382,290
OTHER COMPREHENSIVE INCOME
Revaluation of tangible fixed assets
-
0
(1,244,451)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(57,816)
(862,161)
Total comprehensive income for the year is all attributable to the owners of the parent company.
COOKES FURNITURE (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
FIXED ASSETS
Goodwill
12
-
0
163,649
Other intangible assets
12
-
0
17,679
Total intangible assets
-
181,328
Tangible assets
13
5,350,868
5,041,907
Investments
14
38,099
39,076
5,388,967
5,262,311
CURRENT ASSETS
Stocks
16
1,907,189
1,945,597
Debtors
17
353,994
838,809
Cash at bank and in hand
88,790
854,977
2,349,973
3,639,383
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
18
(2,315,022)
(3,104,660)
NET CURRENT ASSETS
34,951
534,723
TOTAL ASSETS LESS CURRENT LIABILITIES
5,423,918
5,797,034
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
19
(385,891)
(482,128)
PROVISIONS FOR LIABILITIES
Deferred tax liability
22
6,637
-
0
(6,637)
-
NET ASSETS
5,031,390
5,314,906
CAPITAL AND RESERVES
Called up share capital
24
14,545
14,545
Revaluation reserve
1,721,259
1,721,259
Profit and loss reserves
3,295,586
3,579,102
TOTAL EQUITY
5,031,390
5,314,906
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:
22 July 2024
G A Cooke
J D Pike
DIRECTOR
DIRECTOR
Company registration number 09313152 (England and Wales)
COOKES FURNITURE (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
FIXED ASSETS
Investments
14
4,157,685
4,274,800
CURRENT ASSETS
Debtors
17
313,008
344,874
Cash at bank and in hand
169
78
313,177
344,952
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
18
(126,443)
(275,295)
NET CURRENT ASSETS
186,734
69,657
TOTAL ASSETS LESS CURRENT LIABILITIES
4,344,419
4,344,457
PROVISIONS FOR LIABILITIES
Deferred tax liability
22
910,760
662,002
(910,760)
(662,002)
NET ASSETS
3,433,659
3,682,455
CAPITAL AND RESERVES
Called up share capital
24
14,545
14,545
Other reserves
2,732,280
2,823,253
Profit and loss reserves
686,834
844,657
TOTAL EQUITY
3,433,659
3,682,455

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £23,096 (2023 - £240,106 profit).

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:
22 July 2024
G A Cooke
J D Pike
DIRECTOR
DIRECTOR
Company registration number 09313152 (England and Wales)
COOKES FURNITURE (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
BALANCE AT 1 APRIL 2022
14,545
2,965,710
3,432,512
6,412,767
YEAR ENDED 31 MARCH 2023:
Profit for the year
-
-
382,290
382,290
Other comprehensive income:
Revaluation of tangible fixed assets
-
(1,244,451)
-
(1,244,451)
Total comprehensive income
-
(1,244,451)
382,290
(862,161)
Dividends
11
-
-
(235,700)
(235,700)
BALANCE AT 31 MARCH 2023
14,545
1,721,259
3,579,102
5,314,906
YEAR ENDED 31 MARCH 2024:
Loss and total comprehensive income
-
-
(57,816)
(57,816)
Dividends
11
-
-
(225,700)
(225,700)
BALANCE AT 31 MARCH 2024
14,545
1,721,259
3,295,586
5,031,390
COOKES FURNITURE (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
BALANCE AT 1 APRIL 2022
14,545
2,823,253
840,251
3,678,049
YEAR ENDED 31 MARCH 2023:
Profit and total comprehensive income for the year
-
-
240,106
240,106
Dividends
11
-
-
(235,700)
(235,700)
BALANCE AT 31 MARCH 2023
14,545
2,823,253
844,657
3,682,455
YEAR ENDED 31 MARCH 2024:
Profit and total comprehensive income
-
-
(23,096)
(23,096)
Dividends
11
-
-
(225,700)
(225,700)
Transfers
-
(90,973)
90,973
-
BALANCE AT 31 MARCH 2024
14,545
2,732,280
686,834
3,433,659
COOKES FURNITURE (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Cash (absorbed by)/generated from operations
30
(358,536)
219,841
Interest paid
(41,799)
(21,345)
Income taxes refunded
-
0
109,261
NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES
(400,335)
307,757
INVESTING ACTIVITIES
Purchase of tangible fixed assets
(450,947)
(465,478)
Proceeds from disposal of tangible fixed assets
60,302
34,915
Proceeds from disposal of subsidiaries, net of cash disposed
53,037
-
Loans made
-
(344,874)
Repayment of loans
344,874
271,117
Interest received
1,154
1,016
NET CASH GENERATED FROM/(USED IN) INVESTING ACTIVITIES
8,420
(503,304)
FINANCING ACTIVITIES
Repayment of bank loans
(132,332)
(124,602)
Payment of finance leases obligations
(16,240)
-
Dividends paid to equity shareholders
(225,700)
(235,700)
NET CASH USED IN FINANCING ACTIVITIES
(374,272)
(360,302)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(766,187)
(555,849)
Cash and cash equivalents at beginning of year
854,977
1,410,826
CASH AND CASH EQUIVALENTS AT END OF YEAR
88,790
854,977
COOKES FURNITURE (HOLDINGS) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
Notes
£
£
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Cash absorbed by operations
31
(461,898)
(35,875)
Income taxes refunded
-
0
109,261
NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES
(461,898)
73,386
INVESTING ACTIVITIES
Proceeds from disposal of subsidiaries
117,115
-
0
Loans made
-
0
(344,874)
Repayment of loans
344,874
271,117
Interest received
-
0
336
Other income received from investments
225,700
235,700
NET CASH GENERATED FROM INVESTING ACTIVITIES
687,689
162,279
FINANCING ACTIVITIES
Dividends paid to equity shareholders
(225,700)
(235,700)
NET CASH USED IN FINANCING ACTIVITIES
(225,700)
(235,700)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
91
(35)
Cash and cash equivalents at beginning of year
78
113
CASH AND CASH EQUIVALENTS AT END OF YEAR
169
78
COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
ACCOUNTING POLICIES
COMPANY INFORMATION

Cookes Furniture (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 28 Goosemoor Lane, Erdington, Birmingham, B23 5PN.

 

The group consists of Cookes Furniture (Holdings) Limited and all of its subsidiaries.

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 and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
BUSINESS COMBINATIONS

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
BASIS OF CONSOLIDATION

The consolidated group financial statements consist of the financial statements of the parent company Cookes Furniture (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
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.

COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
ACCOUNTING POLICIES
(Continued)
- 17 -

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.

1.6
INTANGIBLE FIXED ASSETS - GOODWILL

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
INTANGIBLE FIXED ASSETS OTHER THAN GOODWILL

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Franchise
10 years
1.8
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
Improvements to property
2% on cost
Fixtures and fittings
25% on cost, 20% on reducing balance and 15% on reducing balance
Motor vehicles
25% on reducing balance and 25% on cost

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 recognised in the profit and loss account.

1.9
FIXED ASSET INVESTMENTS

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
ACCOUNTING POLICIES
(Continued)
- 18 -

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

1.10
IMPAIRMENT OF FIXED ASSETS

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
STOCKS

Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

1.12
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.

1.13
FINANCIAL INSTRUMENTS

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
ACCOUNTING POLICIES
(Continued)
- 19 -
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 group 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 group after deducting all of its liabilities.

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 group's contractual obligations expire or are discharged or cancelled.

COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
ACCOUNTING POLICIES
(Continued)
- 20 -
1.14
EQUITY INSTRUMENTS

Equity instruments issued by the group 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 group.

1.15
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 group’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 if, and only if, there is 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.

1.16
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.

1.17
RETIREMENT BENEFITS

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

1.18
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 leased 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.

COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the group’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
Furniture sales
9,505,621
10,775,951
Storage sales
677,060
487,494
Bathroom sales
154,335
1,355,496
10,337,016
12,618,941
2024
2023
£
£
TURNOVER ANALYSED BY GEOGRAPHICAL MARKET
United Kingdom
10,337,016
12,618,941
2024
2023
£
£
OTHER REVENUE
Interest income
1,154
1,016
4
OPERATING (LOSS)/PROFIT
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
159,204
143,847
Loss on disposal of tangible fixed assets
7,350
23,466
Amortisation of intangible assets
23,968
39,707
Operating lease charges
405,558
480,779
5
AUDITOR'S REMUNERATION
2024
2023
Fees payable to the company's auditor and associates:
£
£
FOR AUDIT SERVICES
Audit of the financial statements of the group and company
5,000
4,100
Audit of the financial statements of the company's subsidiaries
16,585
13,945
21,585
18,045
COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
6
EMPLOYEES

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales
26
30
-
-
Distribution
17
18
-
-
Administration
23
24
-
-
Storage
6
4
-
-
Total
72
76
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,056,154
2,137,372
-
0
-
0
Social security costs
202,535
222,023
-
-
Pension costs
320,006
258,285
-
0
-
0
2,578,695
2,617,680
-
0
-
0
7
DIRECTORS' REMUNERATION
2024
2023
£
£
Remuneration for qualifying services
275,052
286,303
Company pension contributions to defined contribution schemes
180,000
135,333
455,052
421,636
Remuneration disclosed above includes 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

During the year ended 31 March 2024 the number of directors with retirement benefits accruing under money purchase schemes amounted to 4 (2023: 4).

COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
8
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
INTEREST INCOME
Interest on bank deposits
1,154
1,016
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,154
1,016
9
INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
INTEREST ON FINANCIAL LIABILITIES MEASURED AT AMORTISED COST:
Interest on bank overdrafts and loans
39,904
21,345
OTHER FINANCE COSTS:
Interest on finance leases and hire purchase contracts
1,895
-
Total finance costs
41,799
21,345
10
TAXATION
2024
2023
£
£
DEFERRED TAX
Origination and reversal of timing differences
9,710
155,279

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

2024
2023
£
£
(Loss)/profit before taxation
(48,106)
537,569
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(12,027)
102,138
Tax effect of expenses that are not deductible in determining taxable profit
6,040
14,605
Tax effect of income not taxable in determining taxable profit
(16,235)
-
0
Tax effect of utilisation of tax losses not previously recognised
26,904
(81,223)
Unutilised tax losses carried forward
120,420
27,835
Group relief
(26,799)
-
0
Permanent capital allowances in excess of depreciation
(98,269)
(55,040)
Deferred tax movement
9,473
155,279
Temporary timing differences
203
(8,315)
Taxation charge
9,710
155,279
COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
11
DIVIDENDS
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
225,700
235,700
12
INTANGIBLE FIXED ASSETS
GROUP
Goodwill
Franchise
Total
£
£
£
COST
At 1 April 2023
357,070
40,000
397,070
Disposals
(357,070)
(40,000)
(397,070)
At 31 March 2024
-
0
-
0
-
0
AMORTISATION AND IMPAIRMENT
At 1 April 2023
193,421
22,321
215,742
Amortisation charged for the year
6,289
17,679
23,968
Disposals
(199,710)
(40,000)
(239,710)
At 31 March 2024
-
0
-
0
-
0
CARRYING AMOUNT
At 31 March 2024
-
0
-
0
-
0
At 31 March 2023
163,649
17,679
181,328
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
13
TANGIBLE FIXED ASSETS
GROUP
Freehold land
Improvements
Fixtures and
Motor
and buildings
to property
fittings
vehicles
Total
£
£
£
£
£
COST OR VALUATION
At 1 April 2023
3,800,000
671,912
3,219,795
261,256
7,952,963
Additions
-
0
418,298
27,939
89,580
535,817
Disposals
-
0
-
0
(123,989)
(83,466)
(207,455)
At 31 March 2024
3,800,000
1,090,210
3,123,745
267,370
8,281,325
DEPRECIATION AND IMPAIRMENT
At 1 April 2023
-
0
96,914
2,630,101
184,041
2,911,056
Depreciation charged in the year
-
0
35,717
93,151
30,336
159,204
Eliminated in respect of disposals
-
0
-
0
(65,764)
(74,039)
(139,803)
At 31 March 2024
-
0
132,631
2,657,488
140,338
2,930,457
CARRYING AMOUNT
At 31 March 2024
3,800,000
957,579
466,257
127,032
5,350,868
At 31 March 2023
3,800,000
574,998
589,694
77,215
5,041,907
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.

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:

2024
2023
£
£
GROUP
Cost - freehold land and buildings
2,034,290
2,034,290
14
FIXED ASSET INVESTMENTS
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
4,157,685
4,274,800
Unlisted investments
38,099
39,076
-
0
-
0
38,099
39,076
4,157,685
4,274,800
COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
FIXED ASSET INVESTMENTS
(Continued)
- 26 -
MOVEMENTS IN FIXED ASSET INVESTMENTS
GROUP
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
MOVEMENTS IN FIXED ASSET INVESTMENTS
COMPANY
Shares in subsidiaries
£
COST OR VALUATION
At 1 April 2023
4,274,800
Additions
100
Disposals
(117,215)
At 31 March 2024
4,157,685
CARRYING AMOUNT
At 31 March 2024
4,157,685
At 31 March 2023
4,274,800
15
SUBSIDIARIES

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Cookes Furniture Limited
28 Goosemoor Lane, Erdington, Birmingham, B23 5PN
Ordinary
100.00
Cookes Storage Service Limited
28 Goosemoor Lane, Erdington, Birmingham, B23 5PN
Ordinary
100.00
Cookes Bathrooms Limited
28 Goosemoor Lane, Erdington, Birmingham, B23 5PN
Ordinary
100.00

On 1 June 2023 the entire share capital of the subsidiary companies, DB Bathrooms Limited & R & M Aldridge Limited, was sold to RR Bathrooms Limited.

COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
16
STOCKS
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
1,907,189
1,945,597
-
0
-
0
17
DEBTORS
Group
Company
2024
2023
2024
2023
AMOUNTS FALLING DUE WITHIN ONE YEAR:
£
£
£
£
Trade debtors
86,086
90,469
-
0
-
0
Amounts owed by group undertakings
-
-
302,008
-
Other debtors
76,590
420,033
6,000
344,874
Prepayments and accrued income
186,318
325,234
-
0
-
0
348,994
835,736
308,008
344,874
Deferred tax asset (note 22)
-
0
3,073
-
0
-
0
348,994
838,809
308,008
344,874
AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR:
Other debtors
5,000
-
0
5,000
-
0
TOTAL DEBTORS
353,994
838,809
313,008
344,874
18
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
129,081
124,836
-
0
-
0
Obligations under finance leases
21
28,290
-
0
-
0
-
0
Payments received on account
785,668
1,017,678
-
0
-
0
Trade creditors
626,830
891,479
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
203,900
Other taxation and social security
284,422
303,605
-
-
Other creditors
129,043
189,668
126,443
71,395
Accruals and deferred income
331,688
577,394
-
0
-
0
2,315,022
3,104,660
126,443
275,295
COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
19
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
345,551
482,128
-
0
-
0
Obligations under finance leases
21
40,340
-
0
-
0
-
0
385,891
482,128
-
-
20
LOANS AND OVERDRAFTS
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
474,632
606,964
-
0
-
0
Payable within one year
129,081
124,836
-
0
-
0
Payable after one year
345,551
482,128
-
0
-
0

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.

The group has three bank loans. The first bank loan of £350,953 (2023: £431,867) is repayable in instalments 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 instalments by December 2024. Interest is charged at 3.9% per annum.

 

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

21
FINANCE LEASE OBLIGATIONS
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
28,290
-
0
-
0
-
0
In two to five years
40,340
-
0
-
0
-
0
68,630
-
-
-

Finance lease payments represent rentals payable by the company or group 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.

COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
22
DEFERRED TAXATION

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
GROUP
£
£
£
£
Accelerated capital allowances
133,777
-
-
(251,336)
Tax losses
(127,140)
-
-
254,409
6,637
-
-
3,073
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
COMPANY
£
£
£
£
Revaluations
910,760
662,002
-
-
Group
Company
2024
2024
MOVEMENTS IN THE YEAR:
£
£
Liability/(Asset) at 1 April 2023
(3,073)
662,002
Charge to profit or loss
9,710
248,758
Liability at 31 March 2024
6,637
910,760
23
RETIREMENT BENEFIT SCHEMES
2024
2023
DEFINED CONTRIBUTION SCHEMES
£
£
Charge to profit or loss in respect of defined contribution schemes
320,006
258,285

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
SHARE CAPITAL
GROUP AND COMPANY
2024
2023
2024
2023
ORDINARY SHARE CAPITAL
Number
Number
£
£
ISSUED AND FULLY PAID
Ordinary of £1 each
14,205
14,205
14,205
14,205
A Ordinary of £1 each
300
300
300
300
B Ordinary of £1 each
40
40
40
40
14,545
14,545
14,545
14,545
COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
25
OPERATING LEASE COMMITMENTS
LESSEE

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
601,190
638,940
-
-
Between two and five years
2,259,780
2,469,970
-
-
In over five years
1,678,000
2,238,875
-
-
4,538,970
5,347,785
-
-
LESSOR

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
49,640
49,640
-
-
Between two and five years
37,230
86,870
-
-
86,870
136,510
-
-
26
CAPITAL COMMITMENTS

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
16,125
-
-
-
27
RELATED PARTY TRANSACTIONS
REMUNERATION OF KEY MANAGEMENT PERSONNEL

The directors do not consider there to be any key management personnel other than the directors themselves.

OTHER INFORMATION
COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
27
RELATED PARTY TRANSACTIONS
(Continued)
- 31 -

The group 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 Cookes Furniture Limited incurred property rental charges of £451,000 (2023: £335,000) from the Cookes Furniture (Holdings) Limited Executive 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 group directors are also trustees, being the E R Cooke Family Settlement of £3,399 (2023: £3,399), Quay Trust £3,526 (2023: £nil) and the Moor Hall Trust of £6,510 (2023: £6,510). No interest is charged on these amounts.

28
DIRECTORS' TRANSACTIONS
DESCRIPTION
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
G A Cooke - Loan advance
-
275,075
(275,075)
-
J A Davies - Loan advance
-
69,799
(69,799)
-
344,874
(344,874)
-

 

29
CONTROLLING PARTY

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

30
CASH (ABSORBED BY)/GENERATED FROM GROUP OPERATIONS
2024
2023
£
£
(Loss)/profit for the year after tax
(57,816)
382,290
ADJUSTMENTS FOR:
Taxation charged
9,710
155,279
Finance costs
41,799
21,345
Investment income
(1,154)
(1,016)
Loss on disposal of tangible fixed assets
7,350
23,466
Amortisation and impairment of intangible assets
23,968
39,707
Depreciation and impairment of tangible fixed assets
159,204
143,847
Gain on sale of subsidiaries
(64,941)
-
Other gains and losses
977
977
MOVEMENTS IN WORKING CAPITAL:
Decrease/(increase) in stocks
2,943
(107,506)
Decrease/(increase) in debtors
67,560
(68,470)
Decrease in creditors
(548,136)
(370,078)
CASH (ABSORBED BY)/GENERATED FROM OPERATIONS
(358,536)
219,841
COOKES FURNITURE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
31
CASH ABSORBED BY OPERATIONS - COMPANY
2024
2023
£
£
(Loss)/profit for the year after tax
(23,096)
240,106
ADJUSTMENTS FOR:
Taxation charged
248,758
-
0
Investment income
(225,700)
(236,036)
MOVEMENTS IN WORKING CAPITAL:
Increase in debtors
(313,008)
-
Decrease in creditors
(148,852)
(39,945)
CASH ABSORBED BY OPERATIONS
(461,898)
(35,875)
32
ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) - GROUP
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
854,977
(766,187)
-
88,790
Borrowings excluding overdrafts
(606,964)
132,332
-
(474,632)
Obligations under finance leases
-
16,240
(84,870)
(68,630)
248,013
(617,615)
(84,870)
(454,472)
33
ANALYSIS OF CHANGES IN NET FUNDS - COMPANY
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
78
91
169
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