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REGISTERED NUMBER: 01848362 (England and Wales)










STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

27 FEBRUARY 2023 TO 25 FEBRUARY 2024

FOR

FUTON LIMITED

FUTON LIMITED (REGISTERED NUMBER: 01848362)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


FUTON LIMITED

COMPANY INFORMATION
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024







DIRECTORS: R P Pearce
J J Harris
P J Willis
D M Kirby
V Pomituns


SECRETARY: P J Willis


REGISTERED OFFICE: Unit A2, Circular Point
Hickman Avenue
Highams Park
London
E4 9JG


REGISTERED NUMBER: 01848362 (England and Wales)


SENIOR STATUTORY
AUDITOR:
Benjamin Herbert


AUDITORS: the dt group
Chartered Accountants & Statutory Auditors
Swatton Barn
Badbury
Swindon
Wiltshire
SN4 0EU


BANKERS: Barclays Bank Plc
1 Churchill Place
London
E14 5HP

FUTON LIMITED (REGISTERED NUMBER: 01848362)

STRATEGIC REPORT
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

The directors present their strategic report for the period 27 February 2023 to 25 February 2024.

REVIEW OF BUSINESS
Futon Limited's principal activity is that of manufacturers, retailers and wholesalers of modern styles of bedding and furniture.

The results for the year and financial position of the company are as shown in the annexed accounts. The key financial highlights are as follows:

52 weeks ended 52 weeks ended 52 weeks ended
25 Feb 2024 26 Feb 2023 27 Feb 2022
£'000 £'000 £'000

Gross profit 9,924 8,902 9,051
Profit before tax 875 1,522 2,861
Dividends paid (689) (629) (1,689)
Retained profit for period (49) 603 629
Shareholders funds 4,144 4,193 3,590


PRINCIPAL RISKS AND UNCERTAINTIES
There are a number of potential risks and uncertainties which could have a material impact on the company's long term performance.

The Board and management team consider the risk implications of all significant business decisions and risks are re-assessed on a regular basis to ensure that any changes in the company's operations, or the external environment, are identified and appropriately managed. The key risks affecting the business are as follows:

Operating Risk - The company's reputation and continued success depends on its ability to provide products to customers safely, efficiently and cost effectively. The company operates under industry standard quality control systems supported by third party testing to ensure that production standards are maintained. Appropriate staff training is undertaken in key areas such as customer care, health and safety and production processes.

Market Risk - The company operates in a specialised market and seeks to maintain a competitive advantage by offering an appropriate product range and providing a high level of customer service from professional and dedicated staff. The company keeps abreast of developments in the market by maintaining good relationships with both its suppliers and customers, together with awareness of current trends in interior design.

Personnel Risk - The company is a privately owned business and places great emphasis on recruiting and training high quality competent staff. The directors consider succession planning issues on a regular basis.

Financial Risk - As a privately owned company, Futon Limited is principally funded from retained profits and is reliant on converting these profits into cash. Financial monitoring, forecasting and planning are continuous processes, with particular emphasis on balancing the maintenance of the gross profit margin with the delivery of a high quality service to customers, combined with carefully managing stock levels. Trading uncertainty from market conditions can always impact the company's financial position and thereby its profitability which in turn impacts the company's cashflow.

GOING CONCERN
The directors have prepared cash flow forecasts for a period extending to at least twelve months from the date of approval of these financial statements. The directors are satisfied that those forecasts, which take account trading performance, provide a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, the company continues to adopt the going concern basis.


FUTON LIMITED (REGISTERED NUMBER: 01848362)

STRATEGIC REPORT
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

DISCLOSURES IN THE REPORT OF THE DIRECTORS
The financial instrument disclosure has been included within the report of the directors.

ON BEHALF OF THE BOARD:





P J Willis - Secretary


24 September 2024

FUTON LIMITED (REGISTERED NUMBER: 01848362)

REPORT OF THE DIRECTORS
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

The directors present their report with the financial statements of the company for the period 27 February 2023 to 25 February 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of manufacturers, retailers and wholesalers of modern styles of bedding and furniture.

DIVIDENDS
The directors recommend that no final dividend be paid.

The total distribution of dividends for the period ended 25 February 2024 will be £689,492.

FUTURE DEVELOPMENTS
Market conditions remain difficult in the retail sector but the directors continue the development of the company's range of products and ecommerce, together with opportunities for additional outlets.

The directors also seek to carefully manage the company's financial resources.

DIRECTORS
The directors shown below have held office during the whole of the period from 27 February 2023 to the date of this report.

R P Pearce
J J Harris
P J Willis
D M Kirby
V Pomituns

FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise bank balances and trade creditors. The main purpose of these instruments are to raise funds for the company's operations and to finance the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to meet liabilities as they fall due in conjunction with working closely with suppliers to ensure the company maintains adequate stock levels.

DIRECTORS' QUALIFYING THIRD PARTY INDEMNITY PROVISION
The company has granted an indemnity to its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such a qualifying third party indemnity provision remains in force as at the date of approving the director's report.

DISCLOSURE IN THE STRATEGIC REPORT
The review of the business review disclosure has been included in the strategic report.


FUTON LIMITED (REGISTERED NUMBER: 01848362)

REPORT OF THE DIRECTORS
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

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

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

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

AUDITORS
The auditors, the dt group, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:



P J Willis - Secretary


24 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FUTON LIMITED

Opinion
We have audited the financial statements of Futon Limited (the 'company') for the period ended 25 February 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 25 February 2024 and of its profit for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FUTON LIMITED


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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FUTON LIMITED


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

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

The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.

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

- We understood how Futon Limited is complying with those frameworks by making enquiries of management, Internal Audit, those responsible for legal and compliance procedures and the company Directors. We corroborated our enquiries through our review of board minutes and papers provided by the Company.

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

- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved journal entry testing, with a focus on large or unusual transactions based on our understanding of the business, and focused testing, as referred to in the key audit matters section above. In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with the requirements of the relevant accounting standards.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FUTON LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Benjamin Herbert (Senior Statutory Auditor)
for and on behalf of the dt group
Chartered Accountants & Statutory Auditors
Swatton Barn
Badbury
Swindon
Wiltshire
SN4 0EU

24 September 2024

FUTON LIMITED (REGISTERED NUMBER: 01848362)

INCOME STATEMENT
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

PERIOD PERIOD
27.2.23 TO 25.2.24 28.2.22 TO 26.2.23
Notes £    £    £    £   

TURNOVER 3 17,421,440 16,611,745

Cost of sales 7,498,659 7,709,640
GROSS PROFIT 9,922,781 8,902,105

Distribution costs 4,790,103 4,493,107
Administrative expenses 4,330,222 2,887,522
9,120,325 7,380,629
OPERATING PROFIT 5 802,456 1,521,476

Interest receivable and similar income 72,587 1,469
875,043 1,522,945

Interest payable and similar expenses 6 - 1,167
PROFIT BEFORE TAXATION 875,043 1,521,778

Tax on profit 7 234,162 290,169
PROFIT FOR THE FINANCIAL
PERIOD

640,881

1,231,609

FUTON LIMITED (REGISTERED NUMBER: 01848362)

OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23
Notes £    £   

PROFIT FOR THE PERIOD 640,881 1,231,609


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD

640,881

1,231,609

FUTON LIMITED (REGISTERED NUMBER: 01848362)

BALANCE SHEET
25 FEBRUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 123,286 153,267

CURRENT ASSETS
Stocks 10 3,791,854 3,853,942
Debtors 11 287,189 410,847
Cash at bank and in hand 2,362,922 2,329,203
6,441,965 6,593,992
CREDITORS
Amounts falling due within one year 12 2,421,301 2,554,698
NET CURRENT ASSETS 4,020,664 4,039,294
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,143,950

4,192,561

CAPITAL AND RESERVES
Called up share capital 16 119,252 119,252
Share premium 17 7,874 7,874
Capital redemption reserve 17 342,250 342,250
Retained earnings 17 3,674,574 3,723,185
SHAREHOLDERS' FUNDS 4,143,950 4,192,561

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2024 and were signed on its behalf by:




J J Harris - Director



P J Willis - Director


FUTON LIMITED (REGISTERED NUMBER: 01848362)

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 28 February 2022 119,252 3,120,975 7,874 342,250 3,590,351

Changes in equity
Dividends - (629,399 ) - - (629,399 )
Total comprehensive income - 1,231,609 - - 1,231,609
Balance at 26 February 2023 119,252 3,723,185 7,874 342,250 4,192,561

Changes in equity
Dividends - (689,492 ) - - (689,492 )
Total comprehensive income - 640,881 - - 640,881
Balance at 25 February 2024 119,252 3,674,574 7,874 342,250 4,143,950

FUTON LIMITED (REGISTERED NUMBER: 01848362)

CASH FLOW STATEMENT
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,113,934 2,203,366
Interest paid - (1,167 )
Tax paid (381,436 ) (456,332 )
Net cash from operating activities 732,498 1,745,867

Cash flows from investing activities
Purchase of tangible fixed assets (24,750 ) (69,041 )
Sale of tangible fixed assets 3,000 11,500
Interest received 72,587 1,469
Net cash from investing activities 50,837 (56,072 )

Cash flows from financing activities
Amount withdrawn by directors (60,124 ) (33,121 )
Equity dividends paid (689,492 ) (629,399 )
Net cash from financing activities (749,616 ) (662,520 )

Increase in cash and cash equivalents 33,719 1,027,275
Cash and cash equivalents at
beginning of period

2

2,329,203

1,301,928

Cash and cash equivalents at end of
period

2

2,362,922

2,329,203

FUTON LIMITED (REGISTERED NUMBER: 01848362)

NOTES TO THE CASH FLOW STATEMENT
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23
£    £   
Profit before taxation 875,043 1,521,778
Depreciation charges 51,731 51,431
Profit on disposal of fixed assets - (6,500 )
Finance costs - 1,167
Finance income (72,587 ) (1,469 )
854,187 1,566,407
Decrease in stocks 62,088 342,411
Decrease in trade and other debtors 123,658 116,979
Increase in trade and other creditors 74,001 177,569
Cash generated from operations 1,113,934 2,203,366

2. CASH AND CASH EQUIVALENTS

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

Period ended 25 February 2024
25.2.24 27.2.23
£    £   
Cash and cash equivalents 2,362,922 2,329,203
Period ended 26 February 2023
26.2.23 28.2.22
£    £   
Cash and cash equivalents 2,329,203 1,301,928


3. ANALYSIS OF CHANGES IN NET FUNDS

At 27.2.23 Cash flow At 25.2.24
£    £    £   
Net cash
Cash at bank and in hand 2,329,203 33,719 2,362,922
2,329,203 33,719 2,362,922
Total 2,329,203 33,719 2,362,922

FUTON LIMITED (REGISTERED NUMBER: 01848362)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

TURNOVER
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Income is recognised upon despatch of goods to the customer.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 10% straight line basis
Fixtures and fittings - 20% straight line basis
Motor vehicles - 25% straight line basis

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

Cost of manufactured goods represents materials, direct labour and attributable production overheads. Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion.

TAXATION
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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


FUTON LIMITED (REGISTERED NUMBER: 01848362)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

2. ACCOUNTING POLICIES - continued
DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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

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

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

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

LEASE RENEWALS
It is the company's policy that any stamp duty that is incurred when entering into new or the renewal of leases are not capitalised. The expense is allocated to the profit and loss account when the costs are incurred.

DILAPIDATION COSTS
It is the company's policy to provide where appropriate for dilapidations in respect of leasehold premises occupied by the company. In respect of properties currently occupied, a specific provision has been made based upon the length of the lease, the square footage of the premises that the company occupies, and historically agreed dilapidation costs.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

The directors consider that a geographical analysis of turnover would be seriously prejudicial to the company's interest in terms of commercial sensitivity, and as such have not included a split of geographical turnover.

4. EMPLOYEES AND DIRECTORS
PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23
£    £   
Wages and salaries 4,250,693 3,195,655
Social security costs 429,009 302,000
Other pension costs 82,860 58,658
4,762,562 3,556,313

FUTON LIMITED (REGISTERED NUMBER: 01848362)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the period was as follows:
PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23

Production and distribution 22 22
Sales 78 74
Administration 18 18
118 114

PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23
£    £   
Directors' remuneration 1,007,726 251,460
Directors' pension contributions to money purchase schemes 25,641 5,642

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23
£    £   
Emoluments etc 372,418 96,112
Pension contributions to money purchase schemes - 1,321

5. OPERATING PROFIT

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

PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23
£    £   
Depreciation - owned assets 51,731 51,430
Profit on disposal of fixed assets - (6,500 )
Auditors' remuneration 18,350 17,800
Auditors' remuneration for non audit work 3,450 3,275
Operating lease rentals - Land and buildings 1,354,063 1,250,536
Operating lease rentals - Plant and machinery 28,466 29,337
Foreign exchange loss / (profit) 13,987 (16,702 )

FUTON LIMITED (REGISTERED NUMBER: 01848362)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

6. INTEREST PAYABLE AND SIMILAR EXPENSES
PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23
£    £   
Other interest - 1,167

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the period was as follows:
PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23
£    £   
Current tax:
UK corporation tax 234,162 291,219
Over provision prior periods - (1,050 )

Tax on profit 234,162 290,169

UK corporation tax has been charged at 24.45% (2023 - 19%).

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

PERIOD PERIOD
27.2.23 28.2.22
TO TO
25.2.24 26.2.23
£    £   
Profit before tax 875,043 1,521,778
Profit multiplied by the standard rate of corporation tax in the UK of
24.456% (2023 - 19%)

214,001

289,138

Effects of:
Expenses not deductible for tax purposes 11,044 2,144
Capital allowances in excess of depreciation - (63 )
Depreciation in excess of capital allowances 9,117 -
Adjustments to tax charge in respect of previous periods - (1,050 )
Total tax charge 234,162 290,169

8. DIVIDENDS

The total distribution of dividends for the period ended 25 February 2024 will be £689,492 (2023 £629,399).

FUTON LIMITED (REGISTERED NUMBER: 01848362)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

9. TANGIBLE FIXED ASSETS
Fixtures
Short and Motor
leasehold fittings vehicles Totals
£    £    £    £   
COST
At 27 February 2023 75,221 119,944 162,812 357,977
Additions - - 24,750 24,750
Disposals - - (11,840 ) (11,840 )
At 25 February 2024 75,221 119,944 175,722 370,887
DEPRECIATION
At 27 February 2023 58,583 70,832 75,295 204,710
Charge for period 6,353 21,721 23,657 51,731
Eliminated on disposal - - (8,840 ) (8,840 )
At 25 February 2024 64,936 92,553 90,112 247,601
NET BOOK VALUE
At 25 February 2024 10,285 27,391 85,610 123,286
At 26 February 2023 16,638 49,112 87,517 153,267

10. STOCKS
2024 2023
£    £   
Raw materials 265,171 255,740
Finished goods 3,526,683 3,598,202
3,791,854 3,853,942

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 115 294
Other debtors 161,021 314,794
Prepayments and accrued income 126,053 95,759
287,189 410,847

FUTON LIMITED (REGISTERED NUMBER: 01848362)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 429,446 479,586
Tax 23,148 170,422
Social security and other taxes 127,824 71,679
VAT 309,569 218,595
Other creditors 594,465 643,447
Net wages 293,335 198,943
Directors' current accounts 8,004 68,128
Accruals and deferred income 635,510 703,898
2,421,301 2,554,698

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 1,161,333 916,300
Between one and five years 2,052,099 1,657,935
In more than five years 53,917 135,583
3,267,349 2,709,818

Hire purchase contracts are secured against the asset to which they relate.

14. SECURED DEBTS

Barclays Bank Plc have a fixed and floating charge on the company's present and future assets in a debenture dated 28 November 2000.

Barclays Bank Plc have issued a guarantee in favour of Mail Order Protection Scheme for £15,000.

FUTON LIMITED (REGISTERED NUMBER: 01848362)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

15. FINANCIAL INSTRUMENTS

The Company's financial instruments may be analysed as follows:

2024 2023
Financial assets £ £

Financial assets measured at fair value through profit or loss - -
Financial assets measured at amortised cost 161,136 315,088
161,136 315,088

2024 2023
Financial liabilities £ £

Financial liabilities measured at fair value through profit or loss - -
Financial liabilities measured at amortised cost 1,762,643 1,680,378
1,762,643 1,680,378

Financial assets measured at amortised cost comprises of trade debtors and other debtors.

Financial liabilities measured at amortised cost comprise of trade creditors, social security and other taxes, and other creditors.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
58,304 A Ordinary £1 58,304 58,304
56,446 B Ordinary £1 56,446 56,446
1,500 C Ordinary £1 1,500 1,500
1,500 D Ordinary £1 1,500 1,500
1,500 E Ordinary £1 1,500 1,500
200 F Ordinary 1p 2 2
119,252 119,252

17. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 27 February 2023 3,723,185 7,874 342,250 4,073,309
Profit for the period 640,881 640,881
Dividends (689,492 ) (689,492 )
At 25 February 2024 3,674,574 7,874 342,250 4,024,698

FUTON LIMITED (REGISTERED NUMBER: 01848362)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 27 FEBRUARY 2023 TO 25 FEBRUARY 2024

18. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. At the period end, the amount outstanding and not yet paid over total £15,592 (2023 £13,559), and is shown in other creditors.

19. RELATED PARTY DISCLOSURES

During the period, the company entered into transactions with the following related parties:

A director provided an interest free loan to the company. At the balance sheet date the amount due to this director was £7,904.

A director provided an interest free loan to the company. At the balance sheet date the amount due to this director was £100.

M J Marketing (An entity owned by close family of one of the company directors)
During the year the company purchased marketing services of £23,065 from M J Marketing. At the balance sheet date, £1,910 was owed to M J Marketing.

During the period, a total of key management personnel compensation of £ 1,153,265 (2023 - £ 279,025 ) was paid.

20. ULTIMATE CONTROLLING PARTY

The company does not consider there is an ultimate controlling party of the company, due to the shareholding structure.

21. POST BALANCE SHEET EVENTS

A new store was opened, which is trading in line with expectations.