Registration number:
ESSEX FURNITURE OUTLETS LTD
for the Year Ended 30 April 2024
ESSEX FURNITURE OUTLETS LTD
Contents
Company Information |
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Director's Report |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
ESSEX FURNITURE OUTLETS LTD
Company Information
Director |
Mr I Bellis |
Registered office |
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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:
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Rebranding our transactional website to align with store branding, expanding coverage and unifying the brand. |
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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. |
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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:
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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. |
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Expanding into complementary online marketplaces to attract new customers and increase brand exposure. |
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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
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Mr I Bellis
Director
ESSEX FURNITURE OUTLETS LTD
(Registration number: 08980266)
Balance Sheet as at 30 April 2024
Note |
2024 |
2023 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
103 |
103 |
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Retained earnings |
1,256,080 |
1,433,731 |
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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:
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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
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ESSEX FURNITURE OUTLETS LTD
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
England
These financial statements were authorised for issue by the
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
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
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.
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Tangible assets |
Furniture, fittings and equipment |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 May 2023 |
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Additions |
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At 30 April 2024 |
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Depreciation |
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At 1 May 2023 |
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Charge for the year |
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At 30 April 2024 |
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Carrying amount |
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At 30 April 2024 |
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At 30 April 2023 |
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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
Stocks |
2024 |
2023 |
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Other inventories |
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Debtors |
Current |
2024 |
2023 |
Trade debtors |
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- |
Prepayments |
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Other debtors |
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ESSEX FURNITURE OUTLETS LTD
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024
Creditors |
Creditors: amounts falling due within one year
Note |
2024 |
2023 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
Note |
2024 |
2023 |
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Due after one year |
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Loans and borrowings |
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Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
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No. |
£ |
No. |
£ |
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103 |
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103 |
Loans and borrowings |
Non-current loans and borrowings
2024 |
2023 |
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Bank borrowings |
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Current loans and borrowings
2024 |
2023 |
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Bank borrowings |
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- |
Bank overdrafts |
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ESSEX FURNITURE OUTLETS LTD
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024
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 £
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 |
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Remuneration |
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