Company registration number 03319732 (England and Wales)
COMFORTEX LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
COMFORTEX LIMITED
COMPANY INFORMATION
Directors
R Beckwith
D Stone
N Beckwith
J Anderson
Secretary
D Stone and E Beckwith
Company number
03319732
Registered office
Anchor Works
Rochdale Road
Oldham
Lancashire
OL1 2HP
Senior Statutory Auditor
C McDowell FCCA
Auditor
Chadwick & Company (Manchester) Limited
Chartered Accountants
Statutory Auditors
Capital House
272 Manchester Road
Droylsden
Manchester
M43 6PW
Business address
Anchor Works
Rochdale Road
Oldham
Lancashire
OL1 2HP
Bankers
National Westminster Bank plc
10 Yorkshire Street
Oldham
Lancashire
OL1 1QT
COMFORTEX LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 24
COMFORTEX LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

The directors are satisfied with the balanced business portfolio and trading position of the company for the reporting period despite difficult economic conditions. The business operates a prudent approach to risk management which has protected our stakeholders. The directors are optimistic the company is now in a strong position to grow, given the quality of it's product range.

Principal risks and uncertainties

The company's strategy is to concentrate on profitability of the established business portfolio in order to reduce the effects of economic pressures. The directors have developed the management team with a view to the future of the business. The company enjoys established customer and supplier partnerships in all trading areas to mitigate risk to the business.

 

Interest rate risk

The company currently has borrowings under finance agreements and a bank loan, where interest is charged at a fixed rate over the life of the agreement.

 

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

 

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. The company does not use foreign exchange forward contracts. To minimise exchange fluctuations the company trades in Euros and other currencies with their customers and suppliers.

 

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis using credit limits to minimise its exposure to external credit risk. The company uses external measures to manage its credit risk and has introduced a self-funded insurance policy.

Development and performance

The company will emphasise its commitment to quality assurance standards and the benefits of testing in all areas. The company is continuing to invest in new processes and sustainable technology to enable its customers to operate at the forefront of their industries. We are committed to environmental and sustainable development with our partners.

Key performance indicators

The company maintained liquidity, despite difficult trading conditions, as demonstrated by the current ratio of 0.98 (2023 - 0.99).

On behalf of the board

R Beckwith
Director
10 February 2025
COMFORTEX LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The directors present their report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be the manufacture and distribution of specialist foam and fibre products for the upholstery, mattress and healthcare industries.
Results and dividends

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

The directors do not recommend the payment of an ordinary dividend.

Interim dividends were paid amounting to £288,000.

Directors

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

R Beckwith
D Stone
K T Dawson
(Deceased 8 January 2025)
N Beckwith
J M Deluce
(Resigned 16 August 2023)
J Anderson
Market value of land and buildings

In the opinion of the directors the market value of land and buildings is in line with the figure in the financial statements and is a fair representation of its value.

Research and development

The company continues to develop new and innovative products. As a consequence, the company is committed to a programme of expenditure on research and development projects.

Auditor

In accordance with the company's articles, a resolution proposing that Chadwick & Company (Manchester) Limited be reappointed as auditor of the company will be put at a General Meeting.

COMFORTEX LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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:

 

 

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 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 company’s auditor 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 company’s auditor is aware of that information.

Strategic Report

Details of the company's future developments and risk exposure are included in the Strategic Report.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
R Beckwith
N Beckwith
Director
Director
10 February 2025
COMFORTEX LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COMFORTEX LIMITED
- 4 -
Opinion

We have audited the financial statements of Comfortex Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet, the 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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.

 

 

 

 

COMFORTEX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COMFORTEX LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 directors' 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 directors

As explained more fully in the directors' responsibilities statement, 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 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 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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We considered and updated our knowledge of the company's specific industry and its regulatory environment, and reviewed the company's documentation surrounding the policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. Based on this understanding, we identified and assessed the risks of material misstatement in the financial statements and designed and performed audit procedures in response to those risks.

We identified the key laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, the most significant of these are the UK Companies Act 2006, Health and Safety At Work Act 1984, Employment Law and Furniture & Fittings (Fire Safety) Regulations. We also gained knowledge of the legal and regulatory frameworks which do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

COMFORTEX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COMFORTEX LIMITED
- 6 -
Audit response to risks identified

The audit engagement team were made aware of the potential opportunities and incentives that may exist within the company for fraudulent activity and how and where fraud might occur or be concealed within the financial statements.

We considered and updated our knowledge of the company's specific industry and its regulatory environment, and reviewed the company's documentation surrounding the policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. Based on this understanding, we identified and assessed the risks of material misstatement in the financial statements and designed and performed audit procedures in response to those risks.

In addition to the above, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Cathryn McDowell FCCA  Senior Statutory Auditor
For and on behalf of Chadwick & Company (Manchester) Limited
Chartered Accountants
Statutory Auditor
Capital House
272 Manchester Road
Droylsden
Manchester
M43 6PW
11 February 2025
COMFORTEX LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
8,639,616
12,161,731
Cost of sales
(6,502,542)
(9,518,652)
Gross profit
2,137,074
2,643,079
Administrative expenses
(1,866,720)
(2,107,696)
Operating profit
4
270,354
535,383
Interest receivable and similar income
7
24,883
16,796
Interest payable and similar expenses
8
(26,188)
(32,907)
Profit before taxation
269,049
519,272
Tax on profit
9
(36,513)
(107,996)
Profit for the financial year
232,536
411,276
Retained earnings brought forward
1,534,309
1,411,033
Dividends
10
(288,000)
(288,000)
Retained earnings carried forward
1,478,845
1,534,309

The Statement of Income and Retained Earnings has been prepared on the basis that all operations are continuing operations.

COMFORTEX LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
9,896
16,146
Tangible assets
12
2,148,631
2,308,686
2,158,527
2,324,832
Current assets
Stocks
13
368,262
393,300
Debtors
14
1,097,156
1,048,930
Cash at bank and in hand
516,699
954,181
1,982,117
2,396,411
Creditors: amounts falling due within one year
15
(2,014,598)
(2,420,979)
Net current liabilities
(32,481)
(24,568)
Total assets less current liabilities
2,126,046
2,300,264
Creditors: amounts falling due after more than one year
16
(209,558)
(303,887)
Provisions for liabilities
Deferred tax liability
19
262,219
286,644
(262,219)
(286,644)
Net assets
1,654,269
1,709,733
Capital and reserves
Called up share capital
21
94,050
94,050
Share premium account
22
81,324
81,324
Capital redemption reserve
22
50
50
Profit and loss reserves
22
1,478,845
1,534,309
Total equity
1,654,269
1,709,733

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

The financial statements were approved by the board of directors and authorised for issue on 10 February 2025 and are signed on its behalf by:
R Beckwith
N Beckwith
Director
Director
Company registration number 03319732 (England and Wales)
COMFORTEX LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(35,536)
369,186
Interest paid
(26,188)
(32,907)
Income taxes paid
-
0
(34,085)
Net cash (outflow)/inflow from operating activities
(61,724)
302,194
Investing activities
Purchase of tangible fixed assets
(172,680)
(510,322)
Proceeds from disposal of tangible fixed assets
108,029
23,471
Purchase of investments
-
0
(166,667)
Impairment loss of investments
-
0
291,667
Repayment of loans
40,000
-
0
Interest received
24,883
16,796
Net cash generated from/(used in) investing activities
232
(345,055)
Financing activities
Repayment of bank loans
(80,000)
(80,000)
Payment of finance leases obligations
(22,713)
(172,986)
Dividends paid
(288,000)
(288,000)
Net cash used in financing activities
(390,713)
(540,986)
Net decrease in cash and cash equivalents
(452,205)
(583,847)
Cash and cash equivalents at beginning of year
834,760
1,418,607
Cash and cash equivalents at end of year
382,555
834,760
Relating to:
Cash at bank and in hand
516,699
954,181
Bank overdrafts included in creditors payable within one year
(134,144)
(119,421)
COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
1
Accounting policies
1.1
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.

1.2
Going concern

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

1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
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:

Website
4 years straight line
1.5
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:

Freehold building
2% straight line
Plant and machinery
10% straight line
Fixtures, fittings & equipment
10% straight line
Motor vehicles
25% straight line

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 profit or loss.

COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 11 -
1.6
Stocks

Stock is valued at the lower of cost and net realisable value. In determining the cost of raw materials, consumables and goods purchased for resale, the weighted average purchase price is used.

For work in progress and finished goods manufactured by the company, cost is taken as production cost, which includes an appropriate proportion of attributable overheads.

1.7
Cash and cash equivalents

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

1.8
Financial instruments

The company 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 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Ordinary shares are classified as equity. There are two classes of Ordinary shares - Ordinary shares and 'A' Ordinary shares. Preference shares are also classified as equity. There are six classes of Preference Shares - 'C', 'D', 'E', 'F', 'H' and 'I'. All the preference shares are non voting shares. There are no restrictions on the distribution of dividends or the repayment of capital.

COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 company’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 and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.15
Company information

Comfortex Limited is a company limited by shares incorporated in England and Wales. The registered office is Anchor Works, Rochdale Road, Oldham, Lancashire, OL1 2HP.

2
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 relating to depreciation, prepayments, accruals and stock provisions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sales generated under the company's principal activity
8,639,616
12,161,731
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
7,765,685
11,458,466
Europe
177,408
286,393
Rest of the world
696,523
416,872
8,639,616
12,161,731
2024
2023
£
£
Other revenue
Interest income
24,883
16,796
COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
33,111
(55,144)
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
22,000
Depreciation of owned tangible fixed assets
223,258
239,311
Depreciation of tangible fixed assets held under finance leases
68,738
68,264
(Profit)/loss on disposal of tangible fixed assets
(67,290)
33,608
Amortisation of intangible assets
6,250
5,729
Operating lease charges
21,368
23,112
5
Employees

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

2024
2023
Number
Number
Production
52
66
Administration
22
22
Total
74
88

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,057,843
2,443,833
Pension costs
236,573
283,167
2,294,416
2,727,000

Included in wages and salaries are amounts paid to agency workers totalling £2,293 (2023 - £34,050). Agency workers are not included in the average monthly number of persons employed by the company during the year.

6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
50,766
71,047
Company pension contributions to defined contribution schemes
50,000
50,000
100,766
121,047
COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Directors' remuneration
(Continued)
- 16 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Remuneration for qualifying services includes benefits in kind.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
24,883
16,796
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
24,883
16,796
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
7,088
9,688
Other finance costs:
Interest on finance leases and hire purchase contracts
19,100
23,219
26,188
32,907
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
60,938
-
0
Deferred tax
Origination and reversal of timing differences
(24,425)
107,996
Total tax charge
36,513
107,996
COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 17 -

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

2024
2023
£
£
Profit before taxation
269,049
519,272
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.32%)
67,262
105,516
Tax effect of expenses that are not deductible in determining taxable profit
2,368
1,260
Unutilised tax losses carried forward
(20,530)
-
0
Permanent capital allowances in excess of depreciation
44,402
(23,504)
Other non-reversing timing differences
(3,242)
-
0
Deferred taxation
(24,425)
107,996
Provisions
(12,500)
(83,272)
Profit on sale of fixed asstes
(16,822)
-
0
Taxation charge for the year
36,513
107,996
10
Dividends
2024
2023
£
£
Interim paid
288,000
288,000
11
Intangible fixed assets
Website
£
Cost
At 1 July 2023 and 30 June 2024
25,000
Amortisation and impairment
At 1 July 2023
8,854
Amortisation charged for the year
6,250
At 30 June 2024
15,104
Carrying amount
At 30 June 2024
9,896
At 30 June 2023
16,146
COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
12
Tangible fixed assets
Freehold building
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
1,415,103
2,884,782
582,106
501,664
5,383,655
Additions
-
0
40,302
-
0
132,378
172,680
Disposals
-
0
(206,880)
-
0
(142,290)
(349,170)
At 30 June 2024
1,415,103
2,718,204
582,106
491,752
5,207,165
Depreciation and impairment
At 1 July 2023
356,282
1,885,300
502,564
330,823
3,074,969
Depreciation charged in the year
21,902
187,810
16,769
65,515
291,996
Eliminated in respect of disposals
-
0
(183,612)
-
0
(124,819)
(308,431)
At 30 June 2024
378,184
1,889,498
519,333
271,519
3,058,534
Carrying amount
At 30 June 2024
1,036,919
828,706
62,773
220,233
2,148,631
At 30 June 2023
1,058,821
999,482
79,542
170,841
2,308,686

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

2024
2023
£
£
Plant and machinery
342,966
360,983
Motor vehicles
81,906
40,798
424,872
401,781
13
Stocks
2024
2023
£
£
Raw materials and consumables
329,244
346,309
Finished goods and goods for resale
39,018
46,991
368,262
393,300

Included in the above is a provision for impairment of £197,079 (2023 - £235,156) in relation to obsolete and slow moving stock.

COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
593,443
582,461
Other debtors
252,682
244,364
Prepayments and accrued income
251,031
222,105
1,097,156
1,048,930

Included in trade debtors is a provision for bad debts of £67,754 (2023 - £104,129).

15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
214,144
199,421
Obligations under finance leases
18
88,745
97,129
Trade creditors
993,097
1,306,180
Corporation tax
60,938
-
0
Other taxation and social security
160,885
233,438
Other creditors
9,959
11,687
Accruals and deferred income
486,830
573,124
2,014,598
2,420,979
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
73,334
153,334
Obligations under finance leases
18
136,224
150,553
209,558
303,887
17
Loans and overdrafts
2024
2023
£
£
Bank loans
153,334
233,334
Bank overdrafts
134,144
119,421
287,478
352,755
Payable within one year
214,144
199,421
Payable after one year
73,334
153,334
COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
17
Loans and overdrafts
(Continued)
- 20 -

The bank loan is a CBIL secured by a first legal mortgage over the property and a fixed and floating charge over the other assets of the company. Interest is paid at a rate equivalent to 3.62% per annum above the bank's base rate. This rate will vary from time to time.

18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
88,745
97,129
In two to five years
136,224
150,553
224,969
247,682

Finance lease payments represent rentals payable by the company for certain items of tangible fixed assets. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is four years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.

19
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
262,219
286,644
2024
Movements in the year:
£
Liability at 1 July 2023
286,644
Credit to profit or loss
(24,425)
Liability at 30 June 2024
262,219
COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
236,573
283,167

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £27,200 (2023 - £48,824) were payable to the fund at the year end and are included in accruals and deferred income.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
'A' ordinary shares of £1 each
18,750
18,750
18,750
18,750
Ordinary shares of £1 each
75,000
75,000
75,000
75,000
93,750
93,750
93,750
93,750
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
C to I Preference shares of £1 each
300
300
300
300
Preference shares classified as equity
300
300
Total equity share capital
94,050
94,050
22
Reserves
Share premium

Share premium account includes any premiums received on issue of share capital.

Capital redemption reserve

Capital redemption reserve is a non-distributable reserve and represents paid up share capital.

Own shares

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss reserves

Profit and loss reserves includes all current and prior period retained profit and losses.

COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
23
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for certain items of machinery. Leases are negotiated for an average term of three years with rentals fixed for this period with an option to extend for a further period at the prevailing market rate.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, expiring as shown:

2024
2023
£
£
Within one year
10,152
16,606
Between two and five years
13,122
10,511
23,274
27,117
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
38,136
20,851
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
78,820
80,490
Other information

Comfortex Limited, in the ordinary course of business, bought and sold goods and services amounting to £66,525 (2023 - £69,940) and £1,655,212 (2023 - £1,905,552) respectively, from other subsidiary companies of Huntleigh Technology Limited. At the balance sheet date these companies owed Comfortex Limited £407,219 (2023 - £412,402) and Comfortex Limited owed these companies £16,920 (2023 - £12,753). These balances are payable under their normal trade terms.

 

In addition, Brook & Wilde Sleep Limited, a company controlled by R Beckwith, Director, were sold goods, on an arms length basis, amounting to £528,155. At the balance sheet date Comfortex Limited was owed £83,936 by the company.

COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
26
Directors' transactions

The loan advanced to N Beckwith in January 2021, was repaid in April 2024 in full. Interest was recognised per the terms of the agreement at the end of the loan term.

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
N Beckwith - Director's loan
7.50
40,000
(40,000)
-
40,000
(40,000)
-

Dividends totalling £288,000 (2023 - £288,000) were paid in the year to the company's directors and their close family.

27
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
232,536
411,276
Adjustments for:
Taxation charged
36,513
107,996
Finance costs
26,188
32,907
Investment income
(24,883)
(16,796)
(Gain)/loss on disposal of tangible fixed assets
(67,290)
33,608
Amortisation and impairment of intangible assets
6,250
5,729
Depreciation and impairment of tangible fixed assets
291,996
307,575
Movements in working capital:
Decrease in stocks
25,038
430,829
Increase in debtors
(88,226)
(57,674)
Decrease in creditors
(473,658)
(886,264)
Cash (absorbed by)/generated from operations
(35,536)
369,186
COMFORTEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
28
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
954,181
(437,482)
516,699
Bank overdrafts
(119,421)
(14,723)
(134,144)
834,760
(452,205)
382,555
Borrowings excluding overdrafts
(233,334)
80,000
(153,334)
Obligations under finance leases
(247,682)
22,713
(224,969)
353,744
(349,492)
4,252
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