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REGISTERED NUMBER: 00419883 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 April 2024

for

The Downland Bedding Company Limited

The Downland Bedding Company Limited (Registered number: 00419883)






Contents of the Financial Statements
for the Year Ended 30 April 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


The Downland Bedding Company Limited

Company Information
for the Year Ended 30 April 2024







DIRECTORS: M R Smith
G R Smith
F G Smith





REGISTERED OFFICE: 23 Blackstock Street
Liverpool
L3 6ER





REGISTERED NUMBER: 00419883 (England and Wales)





AUDITORS: Haines Watts
Statutory Auditor
3rd Floor Pacific Chambers
11-13 Victoria Street
Liverpool
Merseyside
L2 5QQ

The Downland Bedding Company Limited (Registered number: 00419883)

Strategic Report
for the Year Ended 30 April 2024

The directors present their strategic report for the year ended 30 April 2024.

REVIEW OF BUSINESS
The company's product range includes traded goods, pillows and duvets. The key performance indicators are product turnover and profit margins. As expected 2023-24 saw a return to profit and whilst the directors anticipate that the business environment will remain competitive, it is expected that 2024-25 will continue to return a profit.

30/04/2024 30/04/2023 %
£    £    Change
Turnover 18,888 19,404 -2.66%
Gross Profit 3,832 2,884 32.87%
Gross Profit % 20.3% 14.9%
Net Profit Before Tax 331 (314)

This is in line with the directors' expectations.

There has been continued investment in the company's manufacturing and distribution facilities, processes and management structure.

The company produces timely, reliable and robust reporting information which is reviewed regularly by the directors and shared with the senior management team.

The company faces a number of risks and uncertainties and the directors believe that those that are key to the business are in respect of competition from other UK manufacturers and meeting customer expectations for quality, delivery performance and availability.

PRINCIPAL RISKS AND UNCERTAINTIES
Interest rate risk
The company finances its operations through a mixture of retained profits and bank borrowings. Bank borrowings are in the form of a secured overdraft facility with variable interest rates. Use of bank borrowing is closely managed to minimise interest rate costs.

Liquidity risk
The company manages liquidity risk by the careful monitoring of working capital with daily, weekly and monthly forecasts, with particular emphasis on inventory management, purchasing strategies and credit days. Short term flexibility is, as stated above, managed within the existing bank borrowing facility.

Foreign currency risk
The company buys much of its stock from overseas markets and manages its risk to fluctuating exchange rates by using forward exchange rate contracts, primarily in US dollars and the Chinese yuan. The company's policy is to cover much of its exposure to customer and supplier contractual obligations by fixing the rate for when foreign currency will be required with a layered approach to covering exposure.


The Downland Bedding Company Limited (Registered number: 00419883)

Strategic Report
for the Year Ended 30 April 2024

RESEARCH & DEVELOPMENT
The company has a continuous programme of research and development to drive production innovation, develop manufacturing techniques and processes and to improve performance ensuring we remain a market leader and remain compliant with the latest technologies and legislation.

ON BEHALF OF THE BOARD:





F G Smith - Director


29 January 2025

The Downland Bedding Company Limited (Registered number: 00419883)

Report of the Directors
for the Year Ended 30 April 2024

The directors present their report with the financial statements of the company for the year ended 30 April 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacture and sales of pillows, duvets and bedding items along with the importation of textile related products.

DIVIDENDS
No dividends will be distributed for the year ended 30 April 2024.

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

M R Smith
G R Smith
F G Smith

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, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





F G Smith - Director


29 January 2025

Report of the Independent Auditors to the Members of
The Downland Bedding Company Limited

Opinion
We have audited the financial statements of The Downland Bedding Company Limited (the 'company') for the year ended 30 April 2024 which comprise the Statement of 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 30 April 2024 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
The Downland Bedding Company 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 four, 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.

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:

- identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
- Reviewing financial statements disclosures and testing to supporting documentation to assess compliance with applicable law and regulations;
- Challenging assumptions and judgements made by management in its significant accounting estimates in particular;
- Depreciation - we carried out a review and recalculation of depreciation to assess its appropriateness for inclusion within the financial statements;
- Accruals & Prepayments - we reviewed a sample of accruals and prepayments in the year to determine that these were applied correctly;
- Tax Provisions - we carried out a review of the tax computations and ensured it was applied correctly;
- Stock Provision - we carried out a review of the stock provision to assess its appropriateness for inclusion within the financial statements;
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

Our audit did not identify any significant matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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
The Downland Bedding Company 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.




Michael Forshaw FCA (Senior Statutory Auditor)
for and on behalf of Haines Watts
Statutory Auditor
3rd Floor Pacific Chambers
11-13 Victoria Street
Liverpool
Merseyside
L2 5QQ

29 January 2025

The Downland Bedding Company Limited (Registered number: 00419883)

Statement of Comprehensive Income
for the Year Ended 30 April 2024

30.4.24 30.4.23
Notes £ £ £ £

TURNOVER 3 18,888,420 19,403,814

Cost of sales 15,056,842 16,519,468
GROSS PROFIT 3,831,578 2,884,346

Distribution costs 1,718,573 1,617,060
Administrative expenses 1,667,648 1,499,513
3,386,221 3,116,573
OPERATING PROFIT/(LOSS) 5 445,357 (232,227 )

Interest receivable and similar income 393 91
445,750 (232,136 )

Interest payable and similar expenses 6 114,539 81,564
PROFIT/(LOSS) BEFORE TAXATION 331,211 (313,700 )

Tax on profit/(loss) 7 (82,991 ) (80,550 )
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

414,202

(233,150

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

414,202

(233,150

)

The Downland Bedding Company Limited (Registered number: 00419883)

Balance Sheet
30 April 2024

30.4.24 30.4.23
Notes £ £ £ £
FIXED ASSETS
Tangible assets 8 2,305,004 2,686,858
Investments 9 41,415 41,415
2,346,419 2,728,273

CURRENT ASSETS
Stocks 10 2,419,790 3,530,300
Debtors 11 2,866,227 3,394,316
Cash at bank and in hand 618,456 23,393
5,904,473 6,948,009
CREDITORS
Amounts falling due within one year 12 3,970,403 5,412,058
NET CURRENT ASSETS 1,934,070 1,535,951
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,280,489

4,264,224

CREDITORS
Amounts falling due after more than one
year

13

(446,898

)

(761,844

)

PROVISIONS FOR LIABILITIES 17 (194,599 ) (277,590 )
NET ASSETS 3,638,992 3,224,790

CAPITAL AND RESERVES
Called up share capital 18 3,100 3,100
Capital redemption reserve 19 1,900 1,900
Retained earnings 19 3,633,992 3,219,790
SHAREHOLDERS' FUNDS 3,638,992 3,224,790

The financial statements were approved by the Board of Directors and authorised for issue on 29 January 2025 and were signed on its behalf by:





F G Smith - Director


The Downland Bedding Company Limited (Registered number: 00419883)

Statement of Changes in Equity
for the Year Ended 30 April 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£ £ £ £
Balance at 1 May 2022 3,100 3,452,940 1,900 3,457,940

Changes in equity
Total comprehensive income - (233,150 ) - (233,150 )
Balance at 30 April 2023 3,100 3,219,790 1,900 3,224,790

Changes in equity
Total comprehensive income - 414,202 - 414,202
Balance at 30 April 2024 3,100 3,633,992 1,900 3,638,992

The Downland Bedding Company Limited (Registered number: 00419883)

Cash Flow Statement
for the Year Ended 30 April 2024

30.4.24 30.4.23
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 1,171,984 810,766
Interest paid (114,539 ) (81,564 )
Tax paid 611 -
Net cash from operating activities 1,058,056 729,202

Cash flows from investing activities
Purchase of tangible fixed assets (115,786 ) (507,399 )
Sale of tangible fixed assets 350 10,200
Interest received 393 91
Net cash from investing activities (115,043 ) (497,108 )

Cash flows from financing activities
Loan repayments in year (187,549 ) (401,423 )
Capital repayments in year (158,592 ) (158,591 )
Amount introduced by directors 13,810 10,089
Amount withdrawn by directors (15,619 ) (20,437 )
Net cash from financing activities (347,950 ) (570,362 )

Increase/(decrease) in cash and cash equivalents 595,063 (338,268 )
Cash and cash equivalents at beginning of
year

2

23,393

361,661

Cash and cash equivalents at end of year 2 618,456 23,393

The Downland Bedding Company Limited (Registered number: 00419883)

Notes to the Cash Flow Statement
for the Year Ended 30 April 2024

1. RECONCILIATION OF PROFIT/(LOSS) FOR THE FINANCIAL YEAR TO CASH GENERATED
FROM OPERATIONS

30.4.24 30.4.23
£ £
Profit/(loss) for the financial year 414,202 (233,150 )
Depreciation charges 497,640 467,625
Profit on disposal of fixed assets (350 ) (10,200 )
Finance costs 114,539 81,564
Finance income (393 ) (91 )
Taxation (82,991 ) (80,550 )
942,647 225,198
Decrease/(increase) in stocks 1,110,510 (184,973 )
Decrease/(increase) in trade and other debtors 529,898 (439,272 )
(Decrease)/increase in trade and other creditors (1,411,071 ) 1,209,813
Cash generated from operations 1,171,984 810,766

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:

Year ended 30 April 2024
30.4.24 1.5.23
£ £
Cash and cash equivalents 618,456 23,393
Year ended 30 April 2023
30.4.23 1.5.22
£ £
Cash and cash equivalents 23,393 361,661


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.5.23 Cash flow At 30.4.24
£ £ £
Net cash
Cash at bank and in hand 23,393 595,063 618,456
23,393 595,063 618,456
Debt
Finance leases (449,346 ) 158,592 (290,754 )
Debts falling due within 1 year (718,241 ) 31,195 (687,046 )
Debts falling due after 1 year (306,003 ) 156,354 (149,649 )
(1,473,590 ) 346,141 (1,127,449 )
Total (1,450,197 ) 941,204 (508,993 )

The Downland Bedding Company Limited (Registered number: 00419883)

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

1. STATUTORY INFORMATION

The Downland Bedding Company 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.

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.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying 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 considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

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

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold land and buildings 2% - 15% p.a. on cost
Plant and equipment 15% - 25% p.a. on cost
Motor vehicles 25% p.a. on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is credited or charged to the profit or loss.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over it's estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.


The Downland Bedding Company Limited (Registered number: 00419883)

Notes to the Financial Statements - continued
for the Year Ended 30 April 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 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 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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates two defined contribution pension schemes for its Directors and Employees. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank, other short term liquid investments with original maturities of three months or less, and bank over drafts. Bank overdrafts are shown within borrowings in current liabilities.

Debtors
Short term debtors are measured at transaction price, less any impairment.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

The Downland Bedding Company Limited (Registered number: 00419883)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 "Basic Financial instruments" and Section 12 "Other Financial Issues" of FRS 102 to all of it's financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Recognition of financial assets
Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Derecognition of financial assets
Financial assets are derecognised when the contractual rights to the cash flows from the asset expire or are settled, or substantially all the risks and rewards of the ownership of the asset are transferred to another party or despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Recognition of financial liabilities
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

The Downland Bedding Company Limited (Registered number: 00419883)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

3. TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

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

30.4.24 30.4.23
£ £
Sale of goods 18,888,420 19,403,814
18,888,420 19,403,814

4. EMPLOYEES AND DIRECTORS
30.4.24 30.4.23
£ £
Wages and salaries 4,867,296 4,669,673
Social security costs 435,916 427,324
Other pension costs 252,990 157,913
5,556,202 5,254,910

The average number of employees during the year was as follows:
30.4.24 30.4.23

Manufacturing 117 120
Sales 6 4
Administration & Support 28 26
151 150

30.4.24 30.4.23
£ £
Directors' remuneration 172,575 178,218

5. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging/(crediting):

30.4.24 30.4.23
£ £
Depreciation - owned assets 306,276 276,260
Depreciation - assets on hire purchase contracts 191,364 191,364
Profit on disposal of fixed assets (350 ) (10,200 )
Auditors remuneration 15,000 15,000

The Downland Bedding Company Limited (Registered number: 00419883)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

6. INTEREST PAYABLE AND SIMILAR EXPENSES
30.4.24 30.4.23
£ £
Interest payable 112,285 77,182
Currency Revaluation 2,254 4,382
114,539 81,564

7. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
30.4.24 30.4.23
£ £
Deferred tax (82,991 ) (80,550 )
Tax on profit/(loss) (82,991 ) (80,550 )

8. TANGIBLE FIXED ASSETS
Freehold Plant and Motor
property machinery vehicles Totals
£ £ £ £
COST
At 1 May 2023 1,885,843 3,848,819 53,305 5,787,967
Additions 47,172 63,573 5,041 115,786
Disposals - (157,172 ) - (157,172 )
At 30 April 2024 1,933,015 3,755,220 58,346 5,746,581
DEPRECIATION
At 1 May 2023 349,655 2,716,430 35,024 3,101,109
Charge for year 97,955 389,208 10,477 497,640
Eliminated on disposal - (157,172 ) - (157,172 )
At 30 April 2024 447,610 2,948,466 45,501 3,441,577
NET BOOK VALUE
At 30 April 2024 1,485,405 806,754 12,845 2,305,004
At 30 April 2023 1,536,188 1,132,389 18,281 2,686,858

The Downland Bedding Company Limited (Registered number: 00419883)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

8. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£
COST
At 1 May 2023
and 30 April 2024 1,154,526
DEPRECIATION
At 1 May 2023 854,514
Charge for year 191,364
At 30 April 2024 1,045,878
NET BOOK VALUE
At 30 April 2024 108,648
At 30 April 2023 300,012

9. FIXED ASSET INVESTMENTS
Unlisted
investments
£
COST
At 1 May 2023
and 30 April 2024 41,415
NET BOOK VALUE
At 30 April 2024 41,415
At 30 April 2023 41,415

The company's investments at the Balance Sheet date in the share capital of companies include the following:

The Scott Feather Company Limited
Registered office: 23 Blackstock Street, Liverpool, L3 6ER
Nature of business: Dormant company
%
Class of shares: holding
Ordinary 100.00

10. STOCKS
30.4.24 30.4.23
£ £
Stocks 2,419,790 3,530,300

The Downland Bedding Company Limited (Registered number: 00419883)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

11. DEBTORS
30.4.24 30.4.23
£ £
Amounts falling due within one year:
Trade debtors 2,645,185 3,164,829
Other debtors 6,400 6,085
Directors' current accounts 77,259 75,450
Prepayments and accrued income 116,111 128,282
2,844,955 3,374,646

Amounts falling due after more than one year:
Other debtors 21,272 19,670

Aggregate amounts 2,866,227 3,394,316

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.4.24 30.4.23
£ £
Bank loans and overdrafts (see note 14) 687,046 718,241
Hire purchase contracts (see note 15) 158,593 158,593
Trade creditors 1,936,324 3,537,307
Tax 610 -
Social security and other taxes 102,230 124,175
VAT 559,894 466,745
Other creditors 96,177 82,594
Amounts due to shareholders 150,000 150,000
Directors' current accounts 615 614
Accrued expenses 278,914 173,789
3,970,403 5,412,058

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.4.24 30.4.23
£ £
Bank loans (see note 14) 149,649 306,003
Hire purchase contracts (see note 15) 132,161 290,753
Amounts owed to group undertakings 165,088 165,088
446,898 761,844

14. LOANS

An analysis of the maturity of loans is given below:

30.4.24 30.4.23
£ £
Amounts falling due within one year or on demand:
Bank loans 687,046 718,241

The Downland Bedding Company Limited (Registered number: 00419883)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

14. LOANS - continued
30.4.24 30.4.23
£ £
Amounts falling due between one and two years:
Bank loans - 1-2 years 79,334 185,959

Amounts falling due between two and five years:
Bank loans - 2-5 years 70,315 120,044

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
30.4.24 30.4.23
£ £
Net obligations repayable:
Within one year 158,593 158,593
Between one and five years 132,161 290,753
290,754 449,346

Non-cancellable
operating leases
30.4.24 30.4.23
£ £
Within one year 56,837 34,859
Between one and five years 189,018 30,413
In more than five years 34,763 -
280,618 65,272

16. SECURED DEBTS

Bank borrowings of £836,695 are secured by way of legal charges as follows.

Fixed Charge over book and other debts, goodwill, uncalled capital and intellectual property and a Floating Charge over all other assets dated 10 April 1995.

First Legal Charge dated 03 April 2006 over Freehold Property known as 23 Blackstock Street, Liverpool, L3 6ER.

Debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future dated 28 July. 2011

First Legal Charge dated 02 March 2015 over Freehold Property known as 29-33 (odd) Blackstock Street, Liverpool, L3 6EP.

First Legal Charge dated 22 December 2020 over Freehold Property known as 25-27, Blackstock Street, Liverpool, L3 6ER.

Liabilities under hire purchase contracts of £290,754 are secured against the assets to which they relate.

The Downland Bedding Company Limited (Registered number: 00419883)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

17. PROVISIONS FOR LIABILITIES
30.4.24 30.4.23
£ £
Deferred tax 194,599 277,590

Deferred tax
£
Balance at 1 May 2023 277,590
Movement in year (82,991 )
Balance at 30 April 2024 194,599

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.4.24 30.4.23
value: £ £
3,100 Ordinary £1 3,100 3,100

19. RESERVES
Capital
Retained redemption
earnings reserve Totals
£ £ £

At 1 May 2023 3,219,790 1,900 3,221,690
Profit for the year 414,202 414,202
At 30 April 2024 3,633,992 1,900 3,635,892

20. PENSION COMMITMENTS

The company operates defined contribution schemes for its directors and employees. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the funds and amounted to £252,990 (2023: £157,913). Premiums totalling £8,186 (2023: £10,758) were unpaid at the balance sheet date.

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 April 2024 and 30 April 2023:

30.4.24 30.4.23
£ £
F G Smith
Balance outstanding at start of year 75,450 64,488
Amounts advanced 15,619 20,437
Amounts repaid (13,810 ) (9,475 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 77,259 75,450

The Downland Bedding Company Limited (Registered number: 00419883)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

22. RELATED PARTY DISCLOSURES

At the year ended 30 April 2024 an amount of £3,995 (2023: £3,995) was owed to Marchioness Limited, a company under common control of the Directors by virtue of their shareholdings in Marchioness Limited.

At the year ended 30 April 2024 an amount of £161,093 (2023: £161,093) was owed to The Scott Feather Company Limited, a majority owned subsidiary of The Downland Bedding Company Limited.

At the year ended 30 April 2024 an amount of £150,000 (2023: £150,000) was owed to shareholders.

23. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is considered to be F Smith, by reference to his direct shareholding in the company.