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REGISTERED NUMBER: 06770930 (England and Wales)










STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

ALPHA DESIGNS UPHOLSTERY LIMITED

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 7

Income Statement 11

Other Comprehensive Income 12

Statement of Financial Position 13

Statement of Changes in Equity 14

Statement of Cash Flows 15

Notes to the Statement of Cash Flows 16

Notes to the Financial Statements 17


ALPHA DESIGNS UPHOLSTERY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Miss C A Floate
Mr C H Xydhias





SECRETARY: Mr C H Xydhias





REGISTERED OFFICE: Unit 1 Stag Industrial Estate
Oxford Street
Bilston
West Midlands
WV14 7HZ





REGISTERED NUMBER: 06770930 (England and Wales)





AUDITORS: AGK Partners
Chartered Accountants & Statutory Auditors
1 Kings Avenue
London
N21 3NA

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

REVIEW OF BUSINESS
The turnover of the year under review was £18,773,572 compared with £22,055,078 in the previous year. Decrease in turnover was due to market conditions and general weakness in the economy.

FUTURE DEVELOPMENTS
In the coming year, the directors will continue to invest in design and manufacturing technology, through R&D, marketing and staff training to gain a competitive advantage over competitors and reduce costs.

KEY PERFORMANCE INDICATORS
The Directors consider the following as key performance indicators:

2023 2022
£ £
Turnover 18,773,572 22,055,078
Gross Profit 2,580,199 2,618,982
Gross Margin 13.74% 11.87%
Profit before tax 60,119 427,164
Net Assets 1,362,212 1,403,325

ON BEHALF OF THE BOARD:





Mr C H Xydhias - Director


15 November 2024

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of furniture manufacturer.

DIVIDENDS
An interim dividend of 920 per share was paid on 31 December 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 92,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Miss C A Floate
Mr C H Xydhias


ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
a. Though the UK is slowly recovering from COVID -19 pandemic and the Government lifted all COVID restrictions, the Coronavirus ( COVID-19 ) pandemic continues to have a significant impact on the global economy. The Company continues to evaluate the long term impact of COVID-19 on its business operations, as there remain uncertainties at this time. The Company has a resilient business model in place and is focusing on several measures for preservation of cash flows and cost optimization including availing of various government relief schemes. The directors have determined there is no material impact on the financial statements and will continue to assess the situation. The directors will proactively respond to the situation and take further actions that are in the best interest of all stakeholders. It will continue to be well supported through this crisis period by its shareholders and investors.

The Ongoing Russia - Ukraine conflict
b. This ongoing Russia - Ukraine conflict has resulted in going concern becoming a significant risk. The United States and Europe have avoided direct military conflict with Russia amid its conflict with Ukraine. They have however used a set of financial sanctions to limit Russia's access to financial resources. The impact of the sanctions may result in difficulties for the company to operate. Neither the Company nor the owners are currently on the sanctions list at the time of this report, however this may change as the situation changes.

c. Financial risk management objectives and policies of the company including the policy for hedging each major type of forecasted transaction for which hedge accounting is used; and

d. The exposure of the company to price risk, credit risk, liquidity risk and cash flow risk; unless such information is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company.

Financial risk factors
The Company is exposed to the following risks from its use of financial instruments:
(i) Credit risk
(ii) Liquidity risk
(iii) Market risk
The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

(i) Credit risk
Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date.

(ii) Liquidity risk
Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability but can also increase the risk of losses. The Company has procedures with the object of minimising such losses as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

(iii) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company's income or the value of its holdings of financial instruments.

Interest rate risk
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates.

Borrowings issues at variable rates expose the Company to cash flow interest rate risk. The Company's management monitors the interest rate fluctuations on a continuous basis and acts accordingly.

Sensitivity analysis
Any increase/(decrease) in interest rates will have a small effect on results and equity of the Company, because all financial instruments are fixed rate or pegged to LIBOR/EURIBOR with fixed margin. Strengthening or weakening against the relevant currency, there would be an equal and opposite impact on the profit/loss and other equity. This analysis assumes that all other variables, in particular interest rates, remain constant.

Currency risk

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates and liabilities are denominated in a currency that is not the Company's functional currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the American Dollar, the Euro and Singapore dollar. The Company's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

Employees
It is the policy of the Company's to encourage and develop all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the Company and adequate opportunities for internal promotion are created. The Board is committed to a systematic training policy and has a comprehensive training and development potential to a maximum level of attainment. In this way, staff will make their best possible contribution to the organisation's success. The Company supports the principle of equal opportunities in employment and opposes all forms of unlawful or unfair discrimination on the grounds of race, age, nationality, religion, ethnic or national origin, sexual orientation, gender or gender reassignment, marital status or disability. It is also the policy of the Company, where possible, to give sympathetic consideration to disabled persons in their application for employment with the Company and to protect the interests of existing members of the staff who are disabled.

The company has made the necessary provision for allowing employees to work remotely and be connected to the company intranet.

Environmental Policy
The Board acknowledges that environmental protection is one of the Company's business responsibilities. It aims for a continuous improvement in the Company's environmental performance and to comply with all relevant regulations. Also the Board does not consider that this line of business has a large adverse impact upon the environment. As a result the company does not manage its business by reference to any environmental key performance indicators. The company seeks to maintain a high proportion of its records electronically and of the paper it does use, over 80% of its paper consumption is recycled through the use of recycling bags.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, AGK Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr C H Xydhias - Director


15 November 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALPHA DESIGNS UPHOLSTERY LIMITED

Opinion
We have audited the financial statements of Alpha Designs Upholstery Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for 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
ALPHA DESIGNS UPHOLSTERY 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
ALPHA DESIGNS UPHOLSTERY 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including
fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognize non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our commercial knowledge and experience of the industry;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries
of management and inspecting legal correspondence; and identified laws and regulations were communicated
within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative
of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed
procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALPHA DESIGNS UPHOLSTERY 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.




Alekos Christofi (Senior Statutory Auditor)
for and on behalf of AGK Partners
Chartered Accountants & Statutory Auditors
1 Kings Avenue
London
N21 3NA

15 November 2024

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

REVENUE 3 18,773,572 22,055,078

Cost of sales 16,193,373 19,436,096
GROSS PROFIT 2,580,199 2,618,982

Administrative expenses 2,512,841 2,195,190
67,358 423,792

Other operating income 14,743 20,797
OPERATING PROFIT 5 82,101 444,589

Interest receivable and similar income 1,074 -
83,175 444,589

Interest payable and similar expenses 6 23,056 17,425
PROFIT BEFORE TAXATION 60,119 427,164

Tax on profit 7 9,232 138,656
PROFIT FOR THE FINANCIAL YEAR 50,887 288,508

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 50,887 288,508


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

50,887

288,508

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 15,397 -
Property, plant and equipment 10 1,103,944 1,024,907
1,119,341 1,024,907

CURRENT ASSETS
Inventories 11 2,007,291 2,013,278
Debtors 12 4,445,306 3,667,764
Cash at bank and in hand 169,360 371,134
6,621,957 6,052,176
CREDITORS
Amounts falling due within one year 13 5,866,495 5,154,265
NET CURRENT ASSETS 755,462 897,911
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,874,803

1,922,818

CREDITORS
Amounts falling due after more than one year 14 (261,832 ) (276,687 )

PROVISIONS FOR LIABILITIES 18 (250,759 ) (242,806 )
NET ASSETS 1,362,212 1,403,325

CAPITAL AND RESERVES
Called up share capital 19 100 100
Retained earnings 20 1,362,112 1,403,225
SHAREHOLDERS' FUNDS 1,362,212 1,403,325

The financial statements were approved by the Board of Directors and authorised for issue on 15 November 2024 and were signed on its behalf by:




Mr C H Xydhias - Director



Miss C A Floate - Director


ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 100 1,162,717 1,162,817

Changes in equity
Dividends - (48,000 ) (48,000 )
Total comprehensive income - 288,508 288,508
Balance at 31 December 2022 100 1,403,225 1,403,325

Changes in equity
Dividends - (92,000 ) (92,000 )
Total comprehensive income - 50,887 50,887
Balance at 31 December 2023 100 1,362,112 1,362,212

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 360,622 495,033
Interest paid (6,086 ) (10,841 )
Interest element of hire purchase payments
paid

(16,970

)

(6,584

)
Tax paid (16,424 ) 218
Net cash from operating activities 321,142 477,826

Cash flows from investing activities
Purchase of intangible fixed assets (20,530 ) -
Purchase of tangible fixed assets (380,941 ) (186,349 )
Interest received 1,074 -
Net cash from investing activities (400,397 ) (186,349 )

Cash flows from financing activities
New loans in year 71,225 -
Capital repayments in year (30,660 ) 21,280
Amount withdrawn by directors (71,084 ) (198,246 )
Equity dividends paid (92,000 ) (48,000 )
Net cash from financing activities (122,519 ) (224,966 )

(Decrease)/increase in cash and cash equivalents (201,774 ) 66,511
Cash and cash equivalents at beginning of
year

2

371,134

304,623

Cash and cash equivalents at end of year 2 169,360 371,134

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023 2022
£    £   
Profit before taxation 60,119 427,164
Depreciation charges 307,040 236,743
Government grants - (17,350 )
Finance costs 23,056 17,425
Finance income (1,074 ) -
389,141 663,982
Decrease/(increase) in inventories 5,987 (423,228 )
Increase in trade and other debtors (706,458 ) (223,395 )
Increase in trade and other creditors 671,952 477,674
Cash generated from operations 360,622 495,033

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 169,360 371,134
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 371,134 304,623


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 371,134 (201,774 ) 169,360
371,134 (201,774 ) 169,360
Debt
Finance leases (36,362 ) 30,660 (5,702 )
Debts falling due within 1 year (99,300 ) (69,248 ) (168,548 )
Debts falling due after 1 year (258,333 ) (1,979 ) (260,312 )
(393,995 ) (40,567 ) (434,562 )
Total (22,861 ) (242,341 ) (265,202 )

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Alpha Designs Upholstery 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.

Significant judgements and estimates
In the application of the company's accounting policies, the director is 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 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.

Revenue
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax.

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 costs incurred or to be incurred in respect of the transaction can be measured reliably

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Computer software - 25% on reducing balance

Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the assets capable of operating as intended.

The carrying value of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Short leasehold land and buildings- 20% on straight line
Plant and machinery - 25% on reducing balance
Fixtures and fittings- 15% on reducing balance
Motor vehicles - 25% on reducing balance

Inventories
Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of inventory sold is recognised as an expense in the period in which the related revenue is recognised.


ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 year 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 statement of financial position 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.

Hire purchase and leasing commitments
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability.

The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.

Rentals paid under operating leases are charged to income on a straight line basis over the lease term

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.

Cash and cash equivalent
Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand, short term deposits with an original maturity date of one month. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

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.

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.

Going Concern
At the time approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have confirmed that they would provide financial support to the company to enable it to meet its financial obligations as they fall due. The going concern basis of accounting in preparing the financial statements of the company is therefore considered appropriate by the directors.

Going concern consideration
The Company tested the financial impact on the following areas of financial statements that can be affected:
- Breach of trade contracts,
- Revenue,
- Administrative expenses,
- Current and non-current assets fair value measurements,
- Trade and other receivables and payables.


Subsequent events
There have not been any significant events since the balance sheet date. There were no essential either adjusting events or non-adjusting events in the period of time elapsing between the balance sheet date and the date on which these financial statements are prepared. The directors and parent company have also confirmed that the business will continue to be a going concern for the foreseeable future and they will support the company.

The Ongoing Russia - Ukraine conflict
This ongoing Russia - Ukraine conflict has resulted in going concern becoming a significant risk. The United States and Europe have avoided direct military conflict with Russia amid its conflict with Ukraine. They have however used a set of financial sanctions to limit Russia's access to financial resources. The impact of the sanctions may result in difficulties for the company to operate. Neither the Company nor the owners are currently on the sanctions list at the time of this report, however this may change as the situation changes.

Government grants
Government grants are recognized when it is reasonable to expect that the grants will be received and that all related conditions are met, usually on submission of a valid claim for payment. Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. Grant of a revenue nature are credited to profit and loss so as to match them with the expenditure to which they related.

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. REVENUE

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

An analysis of revenue by class of business is given below:

2023 2022
£    £   
Wholesale furniture sales 18,773,572 22,055,078
18,773,572 22,055,078

An analysis of revenue by geographical market is given below:

2023 2022
£    £   
United Kingdom 18,773,572 22,055,078
18,773,572 22,055,078

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 5,775,887 6,185,132
Social security costs 512,076 564,460
Other pension costs 132,240 136,813
6,420,203 6,886,405

The average number of employees during the year was as follows:
2023 2022

Employees 203 218

2023 2022
£    £   
Directors' remuneration 24,000 24,000

5. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 46,497 63,837
Other operating leases 303,540 290,477
Depreciation - owned assets 291,934 236,744
Depreciation - assets on hire purchase contracts 9,970 -
Computer software amortisation 5,133 -
Auditors' remuneration 6,250 6,000
Foreign exchange differences (14,743 ) (3,447 )
Accountancy fees 19,002 23,279

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest - bank 6,086 10,841
Hire purchase 16,970 6,584
23,056 17,425

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 1,279 95,376

Deferred tax 7,953 43,280
Tax on profit 9,232 138,656

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 60,119 427,164
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

11,423

81,161

Effects of:
Expenses not deductible for tax purposes 1,473 2,359
Capital allowances in excess of depreciation (11,617 ) -
Depreciation in excess of capital allowances - 11,856
Deferred tax 7,953 43,280
Total tax charge 9,232 138,656

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of 1 each
Interim 92,000 48,000

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
Additions 20,530
At 31 December 2023 20,530
AMORTISATION
Amortisation for year 5,133
At 31 December 2023 5,133
NET BOOK VALUE
At 31 December 2023 15,397

10. PROPERTY, PLANT AND EQUIPMENT
Short
leasehold Fixtures
land and Plant and and Motor
buildings machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 72,081 1,075,894 455,108 113,333 1,716,416
Additions 53,094 325,245 2,602 - 380,941
At 31 December 2023 125,175 1,401,139 457,710 113,333 2,097,357
DEPRECIATION
At 1 January 2023 45,156 486,266 119,300 40,787 691,509
Charge for year 14,170 219,095 50,503 18,136 301,904
At 31 December 2023 59,326 705,361 169,803 58,923 993,413
NET BOOK VALUE
At 31 December 2023 65,849 695,778 287,907 54,410 1,103,944
At 31 December 2022 26,925 589,628 335,808 72,546 1,024,907

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 January 2023
and 31 December 2023 39,878
DEPRECIATION
Charge for year 9,970
At 31 December 2023 9,970
NET BOOK VALUE
At 31 December 2023 29,908
At 31 December 2022 39,878

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. INVENTORIES
2023 2022
£    £   
Stocks 2,007,291 2,013,278

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,058,608 2,882,716
Other debtors 1,138,595 651,902
Directors' current accounts 71,084 -
Prepayments 177,019 133,146
4,445,306 3,667,764

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 168,548 99,300
Hire purchase contracts (see note 16) 4,182 18,008
Trade creditors 4,273,462 3,903,809
Corporation tax 96,873 112,018
Social security and other taxes 553,292 299,882
VAT 726,355 634,022
Other creditors 15,013 10,783
Accrued expenses 28,770 76,443
5,866,495 5,154,265

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 15) 260,312 258,333
Hire purchase contracts (see note 16) 1,520 18,354
261,832 276,687

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 168,548 99,300

Amounts falling due between two and five years:
Bank loans - 2-5 years 260,312 258,333

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

16. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£    £   
Net obligations repayable:
Within one year 4,182 18,008
Between one and five years 1,520 18,354
5,702 36,362

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loan 428,860 357,633

The loan is secured by way of a negative pledge, fixed charge and floating charge over all the property or undertaking of the company.

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 250,759 242,806

Deferred
tax
£   
Balance at 1 January 2023 242,806
Provided during year 7,953
Balance at 31 December 2023 250,759

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary 1 100 100

20. RESERVES
Retained
earnings
£   

At 1 January 2023 1,403,225
Profit for the year 50,887
Dividends (92,000 )
At 31 December 2023 1,362,112

ALPHA DESIGNS UPHOLSTERY LIMITED (REGISTERED NUMBER: 06770930)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

21. RELATED PARTY DISCLOSURES

Included in trade debtors, is an amount totalling £2,330,777 (2022: £2,226,390) due from a connected company with common directors.

Included in trade creditors, is an amount totalling £590,641 (2022: £180,804) due from a connected company with common directors.

During the period, the company made sales amounting to £12,393,949 (2022: £13,911,315) to related party and purchases amounting to £474,837 (2022: £285,482) from related party. These transactions took place at arm's length.

Included in the other debtors due within a year is an amount of £71,084 (2022: (£3,681)) from the directors of the company. Interest at the rate of 2.25% has been charged on the overdrawn balance. The loan was repaid on 6 April 2024.

Related party debtor and creditor balances are interest free and repayable on demand.

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are the directors of the company.