Company registration number 11674637 (England and Wales)
Cocoon Sleep Limited
Annual Report and Financial Statements
for the year ended 31 May 2024
Cocoon Sleep Limited
Company Information
Director
Mr S R Adams
Company number
11674637
Registered office
Unit 7, Alexandra Centre
Rail Mill Way
Parkgate
Rotherham
South Yorkshire
S62 6JE
Auditor
B M Howarth Ltd
Townend House
8 Springwell Court
Leeds
West Yorkshire
LS12 1AL
Cocoon Sleep Limited
Contents
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group statement of financial position
8
Company statement of financial position
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 23
Cocoon Sleep Limited
Strategic Report
for the year ended 31 May 2024
- 1 -

The director presents the strategic report for the year ended 31 May 2024.

Principal activities

The principal activity of the company continued to be that of retailing Beds, Mattresses and Bedding, online and through a number of strategically located omni channel retail stores.

Business review

As shown in the company's statement of income and retained earnings, turnover growth has increased over the last 5 years by 28.0%, and the gross margin has remained strong at 46.1% (2023: 45.6%).

 

Year ending

31 May 2020

31 May 2021

31 May 2022

31 May 2023

31 May 2024

Revenue

£17.1m

£37.4m

£28.8m

£23.5m

£21.9m

 

 During the year the company has:

ESG
The company remains focused on delivering on our environmental goals, the commitment to zero landfill mattress recycling is steadfast, and have exceeded our recycling target 40% of all eligible orders to include a mattress recycle. 

The company continues its support for the National Bed Federation’s Pledge For Our Planet and is an active participant in their retail sustainability forum.
Additionally, the company continues to support various charitable initiatives, volunteering days for employees, sustainable packaging and uniforms, whilst working with local suppliers where feasible.

Financial risks and uncertainties

Financial risks affecting the company include the risk of reduced liquidity, finance cost risk and exchange rate risk.  These risks are managed on a daily basis by controlling the cash flow including the purchase of stock and other services in relation to future orders. All debts are rigorously chased as they fall due. Competitive pressure is also a continuing risk for the company. The company manages the risk by maintaining a strong reputation with its customers and suppliers, reacting efficiently to meet their demands and supplying quality products and services.

Payment of creditors

The company's policy is to pay creditors in line with each of the supplier's credit terms.

Future developments 

The prospects for the year to 31 May 2025 are good and are above company targets. The store expansion plan will cautiously continue and improvements to the e-commerce website are consistently being deployed. The company continues to operate a strong order book and the director is looking forward to another successful and profitable year.

There have been no significant events since the balance sheet date that materially affect the company.

 

On behalf of the board

Mr S R Adams
Director
27 February 2025
Cocoon Sleep Limited
Director's Report
for the year ended 31 May 2024
- 2 -

The director presents his annual report and financial statements for the year ended 31 May 2024.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £18,000. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr S R Adams
Auditor

The auditor, B M Howarth Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Cocoon Sleep Limited
Director's Report (continued)
for the year ended 31 May 2024
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr S R Adams
Director
27 February 2025
Cocoon Sleep Limited
Independent auditor's report
to the members of Cocoon Sleep Limited
- 4 -
Opinion

We have audited the financial statements of Cocoon Sleep Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's 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 group's and parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

Cocoon Sleep Limited
Independent auditor's report (continued)
to the members of Cocoon Sleep Limited
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

Based on our understanding of the group and the sector in which it operates, our audit work considers the risk of material misstatement on the financial statements as a result of non-compliance with laws and regulations, this includes fraud. These laws and regulations include, but are not limited to, those that relate to the form and content of the financial statements, such as the group accounting policies, the financial reporting framework and the UK Companies Act 2006.

 

We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks related to management bias in accounting estimates and understatement or overstatement of revenue. Our audit procedures included, but were not limited to:

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

 

There are inherent limitations in audit procedures, the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

Cocoon Sleep Limited
Independent auditor's report (continued)
to the members of Cocoon Sleep Limited
- 6 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

James Bell (Senior Statutory Auditor)
For and on behalf of B M Howarth Ltd
Chartered Accountants
Statutory Auditor
Townend House
8 Springwell Court
Leeds
West Yorkshire
LS12 1AL
27 February 2025
Cocoon Sleep Limited
Group Statement of Comprehensive Income
for the year ended 31 May 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
21,913,464
23,551,950
Cost of sales
(11,810,277)
(12,819,974)
Gross profit
10,103,187
10,731,976
Distribution costs
(2,229,105)
(2,385,362)
Administrative expenses
(8,574,210)
(8,560,742)
Operating loss
3
(700,128)
(214,128)
Other interest receivable
47,190
3,038
Interest payable
6
(12,823)
(2,221)
Loss before taxation
(665,761)
(213,311)
Tax on loss
7
(14,478)
(99,314)
Loss for the financial year
(680,239)
(312,625)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Cocoon Sleep Limited
Group Statement Of Financial Position
as at 31 May 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
8
3,379,690
4,042,650
Other intangible assets
8
16,651
-
0
Total intangible assets
3,396,341
4,042,650
Tangible assets
9
1,303,742
870,994
4,700,083
4,913,644
Current assets
Stocks
12
2,674,779
2,652,948
Debtors
13
896,525
1,095,548
Cash at bank and in hand
1,392,807
3,071,568
4,964,111
6,820,064
Creditors: amounts falling due within one year
14
(2,826,618)
(4,262,521)
Net current assets
2,137,493
2,557,543
Total assets less current liabilities
6,837,576
7,471,187
Creditors: amounts falling due after more than one year
15
-
(8,298)
Provisions for liabilities
Deferred tax liability
17
149,234
76,308
(149,234)
(76,308)
Net assets
6,688,342
7,386,581
Capital and reserves
Called up share capital
19
100
100
Share premium account
2,999,999
2,999,999
Profit and loss reserves
3,688,243
4,386,482
Total equity
6,688,342
7,386,581

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 27 February 2025
27 February 2025
Mr S R Adams
Director
Company registration number 11674637 (England and Wales)
Cocoon Sleep Limited
Company Statement Of Financial Position
as at 31 May 2024
31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
10
10,586,596
10,586,596
Current assets
Debtors
13
98
100
Cash at bank and in hand
13,453
13,460
13,551
13,560
Creditors: amounts falling due within one year
14
(3,050,349)
(3,020,763)
Net current liabilities
(3,036,798)
(3,007,203)
Net assets
7,549,798
7,579,393
Capital and reserves
Called up share capital
19
100
100
Share premium account
2,999,999
2,999,999
Profit and loss reserves
4,549,699
4,579,294
Total equity
7,549,798
7,579,393

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £11,595 (2023 - £396,189 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 27 February 2025
27 February 2025
Mr S R Adams
Director
Company registration number 11674637 (England and Wales)
Cocoon Sleep Limited
Group Statement Of Changes In Equity
for the year ended 31 May 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
100
2,999,999
4,714,107
7,714,206
Year ended 31 May 2023:
Loss and total comprehensive income
-
-
(312,625)
(312,625)
Issue of share capital
19
5
-
0
-
5
Dividends
-
-
(15,000)
(15,000)
Reduction of shares
19
(5)
-
-
(5)
Balance at 31 May 2023
100
2,999,999
4,386,482
7,386,581
Year ended 31 May 2024:
Loss and total comprehensive income
-
-
(680,239)
(680,239)
Dividends
-
-
(18,000)
(18,000)
Balance at 31 May 2024
100
2,999,999
3,688,243
6,688,342
Cocoon Sleep Limited
Company Statement of Changes in Equity
for the year ended 31 May 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
100
2,999,999
4,198,104
7,198,203
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
396,190
396,190
Issue of share capital
19
5
-
0
-
5
Dividends
-
-
(15,000)
(15,000)
Reduction of shares
19
(5)
-
-
(5)
Balance at 31 May 2023
100
2,999,999
4,579,294
7,579,393
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
(11,595)
(11,595)
Dividends
-
-
(18,000)
(18,000)
Balance at 31 May 2024
100
2,999,999
4,549,699
7,549,798
Cocoon Sleep Limited
Group Statement of Cash Flows
for the year ended 31 May 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
21
(115,109)
353,308
Interest paid
(12,823)
(2,221)
Income taxes paid
-
0
(84,532)
Net cash (outflow)/inflow from operating activities
(127,932)
266,555
Investing activities
Purchase of intangible assets
(18,456)
-
Purchase of tangible fixed assets
(560,094)
(191,212)
Proceeds from disposal of tangible fixed assets
-
13,250
Interest received
47,190
3,038
Net cash used in investing activities
(531,360)
(174,924)
Financing activities
Repayment of borrowings
(990,995)
(438,136)
Repayment of bank loans
-
(90,749)
Payment of finance leases obligations
(10,474)
(16,159)
Dividends paid to equity shareholders
(18,000)
(15,000)
Net cash used in financing activities
(1,019,469)
(560,044)
Net decrease in cash and cash equivalents
(1,678,761)
(468,413)
Cash and cash equivalents at beginning of year
3,071,568
3,539,981
Cash and cash equivalents at end of year
1,392,807
3,071,568
Cocoon Sleep Limited
Notes to the financial statements
for the year ended 31 May 2024
- 13 -
1
Accounting policies
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries are accounted for at cost less impairment.

The consolidated group financial statements consist of the financial statements of the parent company Cocoon Sleep Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover is recognised at the fair value of the consideration receivable for goods provided in the normal course of business, and is shown net of VAT.

 

Turnover is recognised on allocation of stock to customer order.

Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years. No amortisation is applied to goodwill in the year of acquisition.

Cocoon Sleep Limited
Notes to the financial statements (continued)
for the year ended 31 May 2024
1
Accounting policies
(continued)
- 14 -
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
10% straight line
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold properties
Over the life of the lease
Plant and equipment
25% on written down value
Fixtures, fittings and equipment
25% on written down value
Motor vehicles
25% on written down value

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 recognised in the income statement.

Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Stocks

Stocks are stated at the lower of cost and net realisable value.

Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Cocoon Sleep Limited
Notes to the financial statements (continued)
for the year ended 31 May 2024
1
Accounting policies
(continued)
- 15 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences. Such liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
47,190
3,038

The group's turnover is derived from it's principal activities undertaking in the United Kingdom.

3
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
122,702
64,624
Depreciation of tangible fixed assets held under finance leases
4,644
10,148
Profit on disposal of tangible fixed assets
-
(13,250)
Amortisation of intangible assets
664,765
662,960
Operating lease charges
52,783
63,090
Cocoon Sleep Limited
Notes to the financial statements (continued)
for the year ended 31 May 2024
- 16 -
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,000
3,000
Audit of the financial statements of the company's subsidiaries
12,000
12,000
15,000
15,000
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Office and administration
18
19
1
1
Warehouse and distribution
47
44
-
-
Website and marketing
15
12
-
-
Total
80
75
1
1

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,128,796
2,952,842
-
0
-
0
Pension costs
84,169
63,397
-
0
-
0
3,212,965
3,016,239
-
0
-
0
6
Interest payable
2024
2023
£
£
Interest on bank overdrafts and loans
11,562
960
Interest on finance leases and hire purchase contracts
1,261
1,261
Total finance costs
12,823
2,221
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(58,448)
58,448
Cocoon Sleep Limited
Notes to the financial statements (continued)
for the year ended 31 May 2024
7
Taxation
2024
2023
£
£
(continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
72,926
40,866
Total tax charge
14,478
99,314

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(665,761)
(213,311)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2023: 20.00%)
(126,495)
(42,662)
Tax effect of expenses that are not deductible in determining taxable profit
(370)
3,454
Unutilised tax losses carried forward
14,211
-
0
Effect of change in corporation tax rate
-
8
Permanent capital allowances in excess of depreciation
4,100
5,922
Amortisation on assets not qualifying for tax allowances
125,962
132,592
Tax at marginal rate
(2,930)
-
0
Taxation charge
14,478
99,314
8
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 June 2023
6,629,603
-
0
6,629,603
Additions
-
0
18,456
18,456
At 31 May 2024
6,629,603
18,456
6,648,059
Amortisation and impairment
At 1 June 2023
2,586,953
-
0
2,586,953
Amortisation charged for the year
662,960
1,805
664,765
At 31 May 2024
3,249,913
1,805
3,251,718
Cocoon Sleep Limited
Notes to the financial statements (continued)
for the year ended 31 May 2024
8
Intangible fixed assets
(continued)
- 18 -
Carrying amount
At 31 May 2024
3,379,690
16,651
3,396,341
At 31 May 2023
4,042,650
-
0
4,042,650
The company had no intangible fixed assets at 31 May 2024 or 31 May 2023.
9
Tangible fixed assets
Group
Leasehold properties
Plant and equipment
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
575,163
126,911
182,172
154,191
1,038,437
Additions
70,505
11,558
478,031
-
0
560,094
At 31 May 2024
645,668
138,469
660,203
154,191
1,598,531
Depreciation and impairment
At 1 June 2023
9,399
57,723
82,103
18,218
167,443
Depreciation charged in the year
4,261
18,527
70,564
33,994
127,346
At 31 May 2024
13,660
76,250
152,667
52,212
294,789
Carrying amount
At 31 May 2024
632,008
62,219
507,536
101,979
1,303,742
At 31 May 2023
565,764
69,188
100,069
135,973
870,994
The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
18,574
34,132
-
0
-
0
Cocoon Sleep Limited
Notes to the financial statements (continued)
for the year ended 31 May 2024
- 19 -
10
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
10,586,596
10,586,596
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 June 2023 and 31 May 2024
10,586,596
Carrying amount
At 31 May 2024
10,586,596
At 31 May 2023
10,586,596
11
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

Name of undertaking
Nature of business
Class of
shares held
% Held
Mattressonline.co.uk Limited
Retail of mattresses
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1.
Unit 7, Alexandra Centre, Rail Mill Way, Park gate, Rotherham, S62 6JE
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Mattressonline.co.uk Limited
6,345,450
(5,684)
12
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
2,674,779
2,652,948
-
0
-
0
Cocoon Sleep Limited
Notes to the financial statements (continued)
for the year ended 31 May 2024
- 20 -
13
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
299,126
466,929
-
0
-
0
Corporation tax recoverable
211,601
153,153
-
0
-
0
Other debtors
3,833
1,781
-
0
-
0
Prepayments and accrued income
381,965
473,685
98
100
896,525
1,095,548
98
100
14
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under hire purchase
8,299
10,475
-
0
-
0
Other borrowings
16
990,993
1,981,988
3,047,286
3,017,700
Trade creditors
1,264,388
1,379,849
-
0
-
0
Other taxation and social security
310,806
535,107
-
-
Other creditors
9,550
37,045
3,063
3,063
Accruals and deferred income
242,582
318,057
-
0
-
0
2,826,618
4,262,521
3,050,349
3,020,763
15
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
-
0
8,298
-
0
-
0
16
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Loans from group undertakings
-
0
-
0
2,056,293
1,035,712
Other loans
990,993
1,981,988
990,993
1,981,988
990,993
1,981,988
3,047,286
3,017,700
Payable within one year
990,993
1,981,988
3,047,286
3,017,700

The long-term loans are secured by fixed charges over the assets of the group.

Cocoon Sleep Limited
Notes to the financial statements (continued)
for the year ended 31 May 2024
- 21 -
17
Deferred taxation

The following are the major deferred tax liabilities recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
167,934
76,308
Tax losses
(18,700)
-
149,234
76,308
The company has no deferred tax assets or liabilities.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss
84,169
63,397

The scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

19
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
9,500
9,500
95
95
C shares of 1p each
500
500
5
5
10,000
10,000
100
100
Cocoon Sleep Limited
Notes to the financial statements (continued)
for the year ended 31 May 2024
- 22 -
20
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
503,300
503,300
-
-
Between two and five years
583,649
1,032,949
-
-
In over five years
44,500
98,500
-
-
1,131,449
1,634,749
-
-
21
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Loss for the year after tax
(680,239)
(312,625)
Adjustments for:
Taxation charged
14,478
99,314
Finance costs
12,823
2,221
Investment income
(47,190)
(3,038)
Gain on disposal of tangible fixed assets
-
(13,250)
Amortisation and impairment of intangible assets
664,765
662,960
Depreciation and impairment of tangible fixed assets
127,346
74,772
Movements in working capital:
(Increase)/decrease in stocks
(21,831)
62,969
Decrease/(increase) in debtors
257,471
(302,624)
(Decrease)/increase in creditors
(442,732)
82,609
Cash (absorbed by)/generated from operations
(115,109)
353,308
22
Analysis of changes in net funds - group
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
3,071,568
(1,678,761)
1,392,807
Borrowings excluding overdrafts
(1,981,988)
990,995
(990,993)
Obligations under finance leases
(18,773)
10,474
(8,299)
1,070,807
(677,292)
393,515
Cocoon Sleep Limited
Notes to the financial statements (continued)
for the year ended 31 May 2024
- 23 -
23
Company information

Cocoon Sleep Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 7, Alexandra Centre, Rail Mill Way, Parkgate, Rotherham, South Yorkshire, S62 6JE.

 

The group consists of Cocoon Sleep Limited and all of its subsidiaries.

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