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Registration number: 08980266

ESSEX FURNITURE OUTLETS LTD

Unaudited Filleted Financial Statements

for the Year Ended 30 April 2024

 

ESSEX FURNITURE OUTLETS LTD

Contents

Company Information

1

Director's Report

2 to 3

Balance Sheet

4

Notes to the Unaudited Financial Statements

5 to 12

 

ESSEX FURNITURE OUTLETS LTD

Company Information

Director

Mr I Bellis

Registered office

Suite 3, First Floor
Phoenix House
Chritopher Martin Road
Basildon
Essex
SS14 3EZ

 

ESSEX FURNITURE OUTLETS LTD

Director's Report for the Year Ended 30 April 2024

The director presents his report and the financial statements for the year ended 30 April 2024

Director of the company

The director who held office during the year was as follows:

Mr I Bellis

Principal activity

The principal activity of the company is retail outlet

Business Performance:

The company's turnover increased year-over-year by £1.6 million, an 18.5% rise. However, profits before tax decreased from £1.2 million to £0.21 million due to a fire in our main warehouse in December 2023. While the insurer has accepted liability for the claim, no funds have been released as of year-end.

Sales were trending at +28% compared to the prior year before the fire. Reduced stock availability significantly impacted sales during January and the final quarter, leading to net sales between the fire and year-end being down by £0.1 million compared to the previous year. Potential net sales impact against the trend was up to £800,000.

The business quickly stabilized by securing alternative warehouse space within a mile of the previous location on a one-year lease while the original site is being rebuilt. We aim to move back in January 2025 to a purpose-built facility.

One-off costs due to the fire included a stock write-off of £350,000, increased working costs of £67,000, and other expenses totalling £38,000.

Strategic Investments:

Throughout the year, the company made substantial investments in its future:

Rebranding our transactional website to align with store branding, expanding coverage and unifying the brand.

Committing to a 10-year lease on a 27,781-square-foot retail outlet in Colchester, Essex, set to open in early May 2024. The store is expected to grow gradually in its first year with minimal impact on the rest of the store estate.

Rolling out a new in-store POS system across all stores in October 2023, which has improved reporting and will integrate with a new stock system in the future.

Future Developments:

The company plans further expansion over the next few years, including:

Continuously seeking new retail opportunities with the goal of opening two flagship-sized stores per year, provided the space and locations are optimal for the business.

Expanding into complementary online marketplaces to attract new customers and increase brand exposure.

Committing to improving business systems, with plans to implement a new stock system during 2024/25.

 

ESSEX FURNITURE OUTLETS LTD

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Conclusion:

Essex Furniture Outlet experienced a challenging year. The company demonstrated its resilience by continuing to operate its full estate after the fire and its agility by mitigating stock risks. It remains well-positioned for continued growth and has made a good start to the trading year 2024/25.

Approved and authorised by the director on 21 January 2024

.............................................
Mr I Bellis
Director

 

ESSEX FURNITURE OUTLETS LTD

(Registration number: 08980266)
Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

191,480

53,201

Current assets

 

Stocks

5

1,039,406

1,407,319

Debtors

6

282,458

199,447

Cash at bank and in hand

 

690,759

644,553

 

2,012,623

2,251,319

Creditors: Amounts falling due within one year

7

(937,647)

(841,811)

Net current assets

 

1,074,976

1,409,508

Total assets less current liabilities

 

1,266,456

1,462,709

Creditors: Amounts falling due after more than one year

7

(10,273)

(28,875)

Net assets

 

1,256,183

1,433,834

Capital and reserves

 

Called up share capital

8

103

103

Retained earnings

1,256,080

1,433,731

Shareholders' funds

 

1,256,183

1,433,834

For the financial year ending 30 April 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 21 January 2025
 

.........................................
Mr I Bellis
Director

 

ESSEX FURNITURE OUTLETS LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Suite 3, First Floor
Phoenix House
Chritopher Martin Road
Basildon
Essex
SS14 3EZ
England

These financial statements were authorised for issue by the director on 21 January 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration
received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following
criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
 the Company has transferred the significant risks and rewards of ownership to the buyer;
 the Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
 the amount of revenue can be measured reliably;
 it is probable that the Company will receive the consideration due under the transaction; and
 the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

ESSEX FURNITURE OUTLETS LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any
accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing
the asset to the location and condition necessary for it to be capable of operating in the manner intended by
management.

Depreciation

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful
lives, on a reducing balance basis.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if
appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are
recognised in the Statement of Income and Retained Earnings.

Asset class

Depreciation method and rate

Plant and machinery

25% reducing balance

Furniture and fittings

25% reducing balance

Office equipment

25% reducing balance

Motor Vehicles

25% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

ESSEX FURNITURE OUTLETS LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

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

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised
when paid. Final equity dividends are recognised when approved by the shareholders at an annual general
meeting.

 

ESSEX FURNITURE OUTLETS LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The Company only enters into basic financial instrument transactions that result in the recognition of financial
assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties,
loans to related parties and investments in non-puttable ordinary shares.

 

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 105 (2023 - 105).

4

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 May 2023

36,984

82,186

119,170

Additions

151,549

50,554

202,103

At 30 April 2024

188,533

132,740

321,273

Depreciation

At 1 May 2023

22,313

43,656

65,969

Charge for the year

41,555

22,269

63,824

At 30 April 2024

63,868

65,925

129,793

Carrying amount

At 30 April 2024

124,665

66,815

191,480

At 30 April 2023

14,671

38,530

53,201

Included within the net book value of land and buildings above is £Nil (2023 - £Nil) in respect of long leasehold land and buildings.
 

 

ESSEX FURNITURE OUTLETS LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

5

Stocks

2024
£

2023
£

Other inventories

1,039,406

1,407,319

6

Debtors

Current

2024
£

2023
£

Trade debtors

934

-

Prepayments

40,330

161,933

Other debtors

241,194

37,514

 

282,458

199,447

 

ESSEX FURNITURE OUTLETS LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

7

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

9

10,562

2

Trade creditors

 

129,754

300,672

Taxation and social security

 

608,805

486,965

Accruals and deferred income

 

52,797

3,165

Other creditors

 

135,729

51,007

 

937,647

841,811

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

9

10,273

28,875

8

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

103

103

103

103

       

9

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

10,273

28,875

Current loans and borrowings

2024
£

2023
£

Bank borrowings

10,560

-

Bank overdrafts

2

2

10,562

2

 

ESSEX FURNITURE OUTLETS LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £3,045,012 (2023 - £Nil).

11

Related party transactions

 

ESSEX FURNITURE OUTLETS LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

Director's remuneration

The director's remuneration for the year was as follows:

2024
£

2023
£

Remuneration

13,650

17,452