Company registration number 08424072 (England and Wales)
UK TRADE FURNISHINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
UK TRADE FURNISHINGS LIMITED
COMPANY INFORMATION
Directors
C Christie
D Christie
Company number
08424072
Registered office
1 Canal Place
Leeds
West Yorkshire
LS12 2DU
Auditor
Parsons Accountants Ltd
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
UK TRADE FURNISHINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
UK TRADE FURNISHINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 29 February 2024.

Review of the business

The business continues its strong performance, achieving a turnover of £21.5m (2023 - £22.8m).

 

The Directors have continued to focus business strategy around the development and strengthening of the Luxury Flooring online brand by offering a balanced product catalogue of solid and engineered wood, laminate, and vinyl flooring, whilst providing a first class customer experience both through the website and our dedicated telephone sales team.

 

During the year the business focused on improving its customer service through process and policies, made experienced additions to its senior management team, and continued to invest in its digital offering including improvements to its website functionality.

 

Whilst online customer direct sales continued to be the principal activity of the business, the Directors continue to seek and maintain a competitive edge by introducing quality new products, refining their product offering and reacting to customer trends.

 

Throughout the year the Company continued to focus on its environmental responsibility through marketing initiatives including the successful plant a tree campaign and reducing its plastic use. Management have reviewed and communicated the business’ carbon footprint and through offsetting carbon neutral status was achieved on Scope 1 and Scope 2 once again.

 

The company also partnered with a dedicated charity partner and have undertaken a number of fundraising initiatives to raise money for worthwhile causes.

Principal risks and uncertainties

The Company’s activities expose it to financial risks including credit risk, cash flow and liquidity risk.

Cash flow forecasts are prepared and reviewed regularly to ensure the company can meet its financial commitments.

The Company used a mixture of secured and unsecured facilities to support its working capital requirements during the year.

UK Trade Furnishings sources products from a global market. Global economic uncertainty, rising interest rates, fluctuating currency movements and logistical challenges therefore present a risk to the business activities.

The board has reviewed the future impact of rising interest rates and are satisfied that based on the trading of the business in recent months that the business has sufficient resources to support its continued trading. As an online retailer the company has a low fixed cost base making it adaptable to changing market conditions.

Currency risks - are managed through forward contracts and continued review of product margins.

Price risk - is managed by maintaining and developing a range of suppliers across different locations providing options for different sourcing as required.

Credit risk - is managed by ensuring the majority of orders are paid in full before delivery. Where this is not the case, all customer debts are insured and subject to verified credit levels.

Liquidity risk – the Company manages its cash and borrowings based on forecasting and within the facilities provided by existing lenders.

Cash flow risk – Cash flow forecasts are prepared and reviewed on a regular basis to ensure the Company can meet its financial commitments.

UK TRADE FURNISHINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Key performance indicators

Management use a range of performance measures to monitor and manage the business.

Key financial performance measures include cash flow, turnover, gross profit margin and overhead percentage. These KPIs are regularly reviewed at board and management meetings to monitor the performance of the business.

Turnover     

£21,476,713 (2023 - £22,786,105 down £1,309,392)    

Gross profit    

£7,670,102 (2023 - £6,959,974, up £710,128)

Gross profit margin

35.7% (2023 - 30.5%, up 5.2%)

Operating profit    

£1,125,749 (2023 - £726,805, up £398,944)

Operating profit margin

5.2% (2023 - 3.2%, up 2.0%)

Other performance indicators

Key non-financial performance measures include website visits, samples orders and sales conversion rates however it is not deemed commercially appropriate to disclose these.

On behalf of the board

C Christie
Director
14 November 2024
UK TRADE FURNISHINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 29 February 2024.

Principal activities

The principal activity of the company continued to be that of online sales of flooring and accessories.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £280,000. 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:

C Christie
D Christie
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Research and development

As a predominantly e-commerce business the Company utilises both colleagues and subcontractors in increasing the functionality of the main Company website and improving the customer experience in line with the wider strategy.

Post reporting date events

There were no significant events affecting the Company since the year end.

Future developments

The directors remain confident that their strategy will continue to deliver growth and profitability. The Company remains focused on delivering the highest levels of service and quality to its customers whilst ensuring continued improvements in processes and investment in the team. Since the year end there has been significant investment in key IT development pieces improving the customer journey as well as new hires of experienced sales staff.

 

UK TRADE FURNISHINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -
Statement of directors' responsibilities

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.

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.

Going concern

The financial statements have been prepared on a going concern basis.

Robust cash flow reporting, strong internal controls and accurate timely management information enables the company to be reactive to changes within the market ensuring sales are generated at an acceptable margin to the Directors.

The current strong margins and low fixed cost base will give us flexibility in the market as the current global economic uncertainty continues.

The Company has the continued support and regular communication with its bankers and other providers of funds and the directors believe that the company is in a good position to manage its business risk successfully through the utilisation of existing borrowing and trade finance facilities.

The Directors consider that the going concern basis of accounting remains appropriate.

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
C Christie
Director
14 November 2024
UK TRADE FURNISHINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UK TRADE FURNISHINGS LIMITED
- 5 -
Qualified opinion

We have audited the financial statements of UK Trade Furnishings Limited (the 'company') for the year ended 29 February 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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, except for the possible effects on the corresponding figures of the matter described in the basis for qualified opinion section of our report, the financial statements:

 

Basis for qualified opinion

We were not appointed as auditor of the company until after 28 February 2022 and thus did not observe the counting of physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means as to the quantities and condition of inventory of £7,004,829 held at 28 February 2022 by using other audit procedures. Consequently, we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 28 February 2023. Our audit opinion on the financial statements for the year ended 28 February 2023 was modified accordingly. Our opinion on the current period’s financial statements is also modified because of the possible effect of this matter on the comparability of the current period’s figures and the corresponding figures.

 

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 qualified opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

UK TRADE FURNISHINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UK TRADE FURNISHINGS LIMITED
- 6 -

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.

 

As described in the basis for qualified opinion section of our audit report, we were unable to satisfy ourselves concerning the quantities and condition of inventory at 28 February 2022. We have concluded that where the other information refers to that inventory balance, related balances such as cost of sales or related metrics such as gross profit percentage, it may be materially misstated for the same reason.

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

Except for the matter described in the basis for qualified opinion section of our report, 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.

 

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

 

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 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.

UK TRADE FURNISHINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UK TRADE FURNISHINGS LIMITED
- 7 -
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:

The extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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

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

 

 

UK TRADE FURNISHINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UK TRADE FURNISHINGS LIMITED
- 8 -

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Richard Walker
Senior Statutory Auditor
For and on behalf of Parsons Accountants Ltd
14 November 2024
Chartered Accountants
Statutory Auditor
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
UK TRADE FURNISHINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
21,476,713
22,786,105
Cost of sales
(13,806,611)
(15,826,131)
Gross profit
7,670,102
6,959,974
Distribution costs
(3,223,264)
(3,247,863)
Administrative expenses
(3,321,089)
(2,985,306)
Operating profit
5
1,125,749
726,805
Interest receivable and similar income
8
27,118
348
Interest payable and similar expenses
9
(110,850)
(85,304)
Fair value gains and losses on foreign exchange contracts
(202,598)
-
0
Profit before taxation
839,419
641,849
Tax on profit
10
(199,795)
(114,614)
Profit for the financial year
639,624
527,235

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

UK TRADE FURNISHINGS LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 10 -
29 February 2024
28 February 2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
106,680
154,364
Tangible assets
13
573,305
450,111
679,985
604,475
Current assets
Stocks
14
5,092,791
6,037,820
Debtors
15
1,051,435
356,302
Cash at bank and in hand
1,326,136
321,562
7,470,362
6,715,684
Creditors: amounts falling due within one year
16
(5,389,682)
(4,813,670)
Net current assets
2,080,680
1,902,014
Total assets less current liabilities
2,760,665
2,506,489
Creditors: amounts falling due after more than one year
17
(508,097)
(601,400)
Provisions for liabilities
Deferred tax liability
20
138,319
150,464
(138,319)
(150,464)
Net assets
2,114,249
1,754,625
Capital and reserves
Called up share capital
22
200
200
Profit and loss reserves
2,114,049
1,754,425
Total equity
2,114,249
1,754,625

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 14 November 2024 and are signed on its behalf by:
C Christie
Director
Company registration number 08424072 (England and Wales)
UK TRADE FURNISHINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
200
1,552,190
1,552,390
Year ended 28 February 2023:
Profit and total comprehensive income
-
527,235
527,235
Dividends
11
-
(325,000)
(325,000)
Balance at 28 February 2023
200
1,754,425
1,754,625
Year ended 29 February 2024:
Profit and total comprehensive income
-
639,624
639,624
Dividends
11
-
(280,000)
(280,000)
Balance at 29 February 2024
200
2,114,049
2,114,249
UK TRADE FURNISHINGS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,842,474
759,613
Interest paid
(110,850)
(85,304)
Income taxes paid
(70,003)
(38,840)
Net cash inflow from operating activities
1,661,621
635,469
Investing activities
Purchase of intangible assets
(133)
(98,245)
Purchase of tangible fixed assets
(252,031)
(189,601)
Proceeds from disposal of tangible fixed assets
24,207
1,932
Interest received
27,118
348
Net cash used in investing activities
(200,839)
(285,566)
Financing activities
Repayment of bank loans
(166,667)
(166,667)
Payment of finance leases obligations
(9,541)
28,385
Dividends paid
(280,000)
(325,000)
Net cash used in financing activities
(456,208)
(463,282)
Net increase/(decrease) in cash and cash equivalents
1,004,574
(113,379)
Cash and cash equivalents at beginning of year
321,562
434,941
Cash and cash equivalents at end of year
1,326,136
321,562
UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 13 -
1
Accounting policies
Company information

UK Trade Furnishings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Canal Place, Leeds, West Yorkshire, LS12 2DU.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis.true

Robust cash flow reporting, strong internal controls and accurate timely management information enables the company to be reactive to changes within the market ensuring sales are generated at an acceptable margin to the Directors.

The current strong margins and low fixed cost base will give us flexibility in the market as the current cost of living crisis continues.

The Company has the continued support and regular communication with its bankers and other providers of funds and the Directors believe that the company is in a good position to manage its business risk successfully through the utilisation of existing borrowing and trade finance facilities.

The Directors consider that the going concern basis of accounting remains appropriate.

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 despatch 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.

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

1.4
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.

UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -

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:

Software
5%, 25% and 33% straight line
1.5
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:

Plant and machinery
15% reducing balance
Fixtures and fittings
15% reducing balance and 15% straight line
Computer equipment
5%, 25% and 33% straight line
Motor vehicles
25% reducing balance

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.

1.6
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.

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.

The stock balance includes stock on water when it has deemed that the rights and responsibilities of the stock during transit have been transferred to the Company.

1.7
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.

1.8
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.

UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
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.

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.

UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
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.

1.9
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.

1.10
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.

UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -

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.

1.11
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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 value 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.

 

The judgements and estimates with the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

 

(i) Assessing indicators of impairment

 

In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit rating, previous experience of recoverability and where applicable the ability of the asset to be operated as planned.

 

(ii) Determining residual values and useful economic lives of tangible fixed assets

 

The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectation about future use and thus requires estimates and assumptions to be applied. The actual lives of these assets can vary depending on a wide variety of factors including technological innovation, product life cycles and maintenance programmes to plant and machinery.

 

Judgement is also applied when determining the residual values for fixed assets. When determining the residual value the directors have assessed the amount that the company would currently obtain for the disposal of the asset if it were already of the condition expected at the end of its useful life. Where possible this is done with reference to external market prices.

 

(iii) Determining the future demand of stock items to calculate a stock provision

 

The Company has access to historic sales data per stock line and estimates future demand for stock lines using a variety of internal and external sources of information including any seasonality in the historic sales data, market trends, the ability to sell the product through other channels and changes to the market caused by macroeconomic conditions. With this information the company can identify stock lines where the predicted demand is low when compared to the stockholding and contemplate these stock lines when calculating the stock provision. The Company adjusts its considerations for new product lines where there is no historic sales data.

 

UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 18 -
3
Turnover and other revenue

The whole of the turnover is attributable to the principal activity of the company.

2024
2023
£
£
Turnover analysed by class of business
Flooring sales
21,476,713
22,786,105
2024
2023
£
£
Turnover analysed by geographical market
UK sales
21,476,713
22,786,105
2024
2023
£
£
Other revenue
Interest income
27,118
348
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
18,825
17,975

The Company is of medium size and thus claimed the exemption from disclosing in these financial statements the non-audit fees payable to the auditor.

5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
3,578
(39,514)
Depreciation of owned tangible fixed assets
88,840
69,526
Depreciation of tangible fixed assets held under finance leases
49,491
33,847
Loss on disposal of tangible fixed assets
17,543
7,656
Amortisation of intangible assets
47,817
31,884
Operating lease charges
208,196
221,751
UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 19 -
6
Employees

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

2024
2023
Number
Number
Directors
2
2
Sales, finance and administration
41
46
Warehouse and logistics
14
15
Total
57
63

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,979,877
1,953,007
Social security costs
194,573
196,666
Pension costs
34,627
33,707
2,209,077
2,183,380
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
18,200
18,157
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
27,118
348
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
27,118
348
UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 20 -
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
6,497
3,077
Other interest
104,353
82,227
110,850
85,304
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
218,492
51,829
Adjustments in respect of prior periods
(6,552)
-
0
Total current tax
211,940
51,829
Deferred tax
Origination and reversal of timing differences
(12,145)
62,785
Total tax charge
199,795
114,614

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
839,419
641,849
Expected tax charge based on the standard rate of corporation tax in the UK of 24.50% (2023: 19.00%)
205,658
121,951
Tax effect of expenses that are not deductible in determining taxable profit
5,081
1,668
Under/(over) provided in prior years
(6,552)
(33,336)
Fixed asset timing differences
(4,228)
(1,177)
Other timing differences leading to a decrease in tax
(2,930)
(2,180)
Adjustment in respect of the closing rate of deferred tax rate
2,766
27,688
Taxation charge for the year
199,795
114,614

The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate applies but with a marginal relief applying as profits increase.

UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 21 -
11
Dividends
2024
2023
£
£
Final paid
280,000
325,000
12
Intangible fixed assets
Software
£
Cost
At 1 March 2023
231,307
Additions
133
At 29 February 2024
231,440
Amortisation and impairment
At 1 March 2023
76,943
Amortisation charged for the year
47,817
At 29 February 2024
124,760
Carrying amount
At 29 February 2024
106,680
At 28 February 2023
154,364
13
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2023
76,755
163,674
132,682
296,354
669,465
Additions
708
16,515
25,561
260,492
303,276
Disposals
-
0
-
0
(14,395)
(54,200)
(68,595)
At 29 February 2024
77,463
180,189
143,848
502,646
904,146
Depreciation and impairment
At 1 March 2023
20,486
57,014
61,013
80,841
219,354
Depreciation charged in the year
8,441
22,407
32,156
75,327
138,331
Eliminated in respect of disposals
-
0
-
0
(11,739)
(15,105)
(26,844)
At 29 February 2024
28,927
79,421
81,430
141,063
330,841
Carrying amount
At 29 February 2024
48,536
100,768
62,418
361,583
573,305
At 28 February 2023
56,269
106,660
71,669
215,513
450,111
UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
13
Tangible fixed assets
(Continued)
- 22 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
198,327
151,033
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
5,092,791
6,037,820
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
63,211
13,459
Amounts owed by related parties
3,599
8,486
Other debtors
381,571
81,043
Prepayments and accrued income
603,054
253,314
1,051,435
356,302
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
166,667
166,667
Obligations under finance leases
19
64,672
41,124
Trade creditors
2,298,730
1,500,792
Amounts owed to undertakings in which the company has a participating interest
14,574
-
0
Corporation tax
211,941
70,004
Other taxation and social security
509,700
663,381
Derivative financial instruments
202,598
-
0
Other creditors
362,838
1,194,551
Accruals and deferred income
1,557,962
1,177,151
5,389,682
4,813,670
UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
16
Creditors: amounts falling due within one year
(Continued)
- 23 -

The bank loan provided by Santander UK PLC is secured by a debenture by way of first legal mortgage on all properties, fixtures and fittings, first fixed charges in respect of insurance policies, benefits from hedging instruments, rental income and all plant and machinery, investments, intellectual property, book debts and goodwill. There is a first floating charge over all other property, assets and rights, both present and future dated 15 March 2021.

 

The bank loan provided by Santander UK PLC is also secured on a joint and several personal guarantee from the directors in respect of the obligations of the borrower to Santander limited to £200,000, plus interest and costs.

 

Amounts due under finance leases represent hire purchase agreements for certain items of motor vehicles. The amounts held under finance leases are secured on the assets to which they relate.

17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
347,222
513,889
Obligations under finance leases
19
105,667
87,511
Accruals and deferred income
55,208
-
0
508,097
601,400

The bank loan provided by Santander UK PLC is secured by a debenture by way of first legal mortgage on all properties, fixtures and fittings, first fixed charges in respect of insurance policies, benefits from hedging instruments, rental income and all plant and machinery, investments, intellectual property, book debts and goodwill. There is a first floating charge over all other property, assets and rights, both present and future dated 15 March 2021.

 

The bank loan provided by Santander UK PLC is also secured on a joint and several personal guarantee from the directors in respect of the obligations of the borrower to Santander limited to £200,000, plus interest and costs.

 

Amounts due under finance leases represent hire purchase agreements for certain items of motor vehicles. The amounts held under finance leases are secured on the assets to which they relate.

18
Loans and overdrafts
2024
2023
£
£
Bank loans
513,889
680,556
Payable within one year
166,667
166,667
Payable after one year
347,222
513,889

 

 

UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 24 -
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
64,672
41,124
In two to five years
105,667
87,511
170,339
128,635

Finance lease payments represent rentals payable by the company for certain items of motor vehicles. The average lease term is four years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
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
138,974
151,119
Retirement benefit obligations
(655)
(655)
138,319
150,464
2024
Movements in the year:
£
Liability at 1 March 2023
150,464
Credit to profit or loss
(12,145)
Liability at 29 February 2024
138,319

The deferred tax liability is expected to reverse over the useful lives of the assets to which the accelerated capital allowances relate.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,627
33,707

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. There were contributions payable to the fund at the date of the Statement of Financial Position of £6,995 (2023 - £6,097).

UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 25 -
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200

Each ordinary share is entitled to one vote, with residual interest, equal rights to dividends and no option to redeem.

23
Financial commitments, guarantees and contingent liabilities

As at the year end, the Company had committed to open forward contract currency contracts totalling 17,074,472 (2023 - 25,033,028) Chinese Yuan with maturity dates ranging from June 2024 to April 2025.

 

As at the year end, the Company had committed to open forward contract currency contracts totalling USD 2,408,139 (2023 - 10,347,279) with maturity dates ranging from May 2024 to June 2025.

24
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
253,568
250,739
Between two and five years
103,838
347,156
357,406
597,895
25
Capital commitments

As at 29 February 2024 the company had contracted to enter in to a hire purchase agreement amounting to £nil (2023: £57,290).

26
Events after the reporting date

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

UK TRADE FURNISHINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 26 -
27
Related party transactions

During the year the company made payments totalling £3,538 (2023 - £2,899) on behalf of companies which are related parties by virtue of common directorships. £23,000 (2022 - £nil) was expensed in the year for royalties paid to these parties. At the reporting date there was £10,975 owed to the related party. In the prior year the company was owed £8,486 by the related parties.

 

During the year the company paid £53,168 (2023 - £51,290) in respect of employment services to other

related parties.

 

During the year the company paid £236,084 (2023 - £218,524) in respect of key management compensation in addition to the directors' remuneration separately disclosed.

 

The company operates directors loan accounts on behalf of the directors. At the year-end the directors owed £254,726 (2023 - £20,385) to the Company. During the year there were times when the directors loan accounts were overdrawn. The maximum level of indebtedness of the directors to the company in the year was £254,726.

 

During the year, dividends were declared to directors totalling £280,000 (2023 - £325,000).

 

28
Analysis of changes in net funds/(debt)
1 March 2023
Cash flows
New finance leases
29 February 2024
£
£
£
£
Cash at bank and in hand
321,562
1,004,574
-
1,326,136
Borrowings excluding overdrafts
(680,556)
166,667
-
(513,889)
Obligations under finance leases
(128,635)
9,541
(51,245)
(170,339)
(487,629)
1,180,782
(51,245)
641,908
29
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
639,624
527,235
Adjustments for:
Taxation charged
199,795
114,614
Finance costs
110,850
85,304
Investment income
(27,118)
(348)
Loss on disposal of tangible fixed assets
17,543
7,656
Amortisation and impairment of intangible assets
47,817
31,884
Depreciation and impairment of tangible fixed assets
138,332
103,373
Movements in working capital:
Decrease in stocks
945,029
967,009
(Increase)/decrease in debtors
(695,133)
21,730
Increase/(decrease) in creditors
465,735
(1,098,844)
Cash generated from operations
1,842,474
759,613
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