Company registration number 02982102 (England and Wales)
PENTHOUSE CARPETS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PENTHOUSE CARPETS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
SCY Yu
JR Gamble
SA Jackson
M Muschamp
Secretary
SCY Yu
Company number
02982102
Registered office
Buckley Carpet Mill
Buckley Road
Rochdale
Lancashire
OL12 9DU
Auditor
BK Plus Audit Limited
Sterling House
501 Middleton Road
Chadderton
Oldham
Lancashire
OL9 9LY
PENTHOUSE CARPETS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
PENTHOUSE CARPETS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Principal activities

The principal activity of the company continues to be that of a holding company and the group continued to be that of carpet manufacturing.

Review of the business

The harsh trading environment of the previous year has continued into this financial year, consumers remain reluctant to spend on non-essential household goods such as flooring products, and with the domestic housing market not improving the demand for soft flooring remains in a decline. It is without doubt that the industry is suffering from economic volatility; many independent retailers faced financial struggles as evidence in the number of store closures in this financial year compared to the previous year, and contrast it with number of new stores opening. Therefore, it is no surprise that the group’s turnover fell by 5%. Nevertheless, the company remains in good financial health. The directors are pleased to report an operating profit of £87,094 (2023 - profit of £326,025).

 

At the year end, the group had shareholders' funds of £10,087,199 (2023 - £10,001,523), including distributable reserves of £5,035,787 (2023 - £4,904,621). The group's current assets exceeded its current liabilities by £5,861,264 (2023 - £5,837,516).

Principal risks and uncertainties

The board maintains a policy of continuous identification and review but recognises that a number of risks and uncertainties lies beyond its control.

 

The key risks and uncertainties which could affect the company's business include cost and availability of raw materials, competition, IT failure, general economic conditions, legislative and regulatory risks, and current cost living crisis. The company recognises that there will be other unknown risks.

 

 

Key performance indicators

 

 

 

2024

2023

Sales growth/(decline)

(4.9)%

(13.8)%

Operating margin

 

0.6%

2.2%

 

 

 

 

 

 

Future development

The company, in partnership with its suppliers, will continue to offer a modern, fashionable, and appealing product to our customers. Development of designs and colours, as well as rejuvenating existing product is under continuous review. The policy of communication, developing and fostering close relationships with our customers has not changed, and is vital to the company’s trading success.

Matters of strategic importance

The strategic focus is to continue to place the company in a competitive, secure and stable position; maintain and improve services for our customers; maintain stock levels to meet demand; improve the distribution of products; maintain the depth and breadth of our point-of-sales displays; and careful management of the company’s liquidity in the face of an uncertain economic climate.

 

The identifiable constraints to trade for the business is the intensely competitive floorcovering market, the uncertain economy and the changing cost of raw materials, energy, transportation, general operating overheads. As ever it is important for the organisation to remain flexible and able to adapt to any adverse market conditions. The directors do not believe the trading environment will change, nevertheless, the company has immense confidence in its products, personnel, and customer service.

 

PENTHOUSE CARPETS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

On behalf of the board

SCY Yu
Director
12 February 2025
PENTHOUSE CARPETS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

SCY Yu
JR Gamble
SA Jackson
M Muschamp
Changes in presentation of the financial statements

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

Auditor

The auditor, BK Plus Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 group and company, and of the profit or loss of the group 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 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. They are 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. It has done so in respect of the review of the business, future developments, principal risks and uncertainties and key performance indicators.

PENTHOUSE CARPETS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
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.

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
SCY Yu
Director
12 February 2025
PENTHOUSE CARPETS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PENTHOUSE CARPETS HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Penthouse Carpets Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, 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 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 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

PENTHOUSE CARPETS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENTHOUSE CARPETS HOLDINGS LIMITED
- 6 -
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 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 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 directors either intend to liquidate the parent 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.

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.

Based on our understanding of the group and company, we identified that the principal risks of non-compliance related to those laws and regulations that have a direct impact on the financial statements such as the Companies Act2006 and FRS 102. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates. Appropriate audit procedures were therefore performed to address those risks including testing journal entries and challenging assumptions and judgements made by management in their significant accounting estimates. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 or intentional misrepresentations, or through collusion.

 

PENTHOUSE CARPETS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENTHOUSE CARPETS HOLDINGS LIMITED
- 7 -

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 

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.

Dominic Huxley ACA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor
Chartered Accountants
Sterling House
501 Middleton Road
Chadderton
Oldham
Lancashire
OL9 9LY
12 February 2025
PENTHOUSE CARPETS HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
14,220,054
14,950,668
Cost of sales
(10,966,164)
(11,468,134)
Gross profit
3,253,890
3,482,534
Distribution costs
(2,219,004)
(2,208,225)
Administrative expenses
(954,592)
(955,084)
Other operating income
6,800
6,800
Operating profit
4
87,094
326,025
Interest receivable and similar income
7
43,891
21,709
Interest payable and similar expenses
8
(1,278)
(1,440)
Profit before taxation
129,707
346,294
Tax on profit
9
(44,031)
(256,827)
Profit for the financial year
24
85,676
89,467
Profit for the financial year is all attributable to the owners of the parent company.
PENTHOUSE CARPETS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
£
£
Profit for the year
85,676
89,467
Other comprehensive income
Revaluation of tangible fixed assets
-
0
1,877,500
Cash flow hedges gain arising in the year
-
0
-
0
Tax relating to other comprehensive income
-
0
(469,375)
Other comprehensive income for the year
-
0
1,408,125
Total comprehensive income for the year
85,676
1,497,592
Total comprehensive income for the year is all attributable to the owners of the parent company.
PENTHOUSE CARPETS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,282,762
5,199,816
Current assets
Stocks
14
4,497,238
4,791,239
Debtors
15
1,568,430
1,780,035
Cash at bank and in hand
1,926,523
1,383,697
7,992,191
7,954,971
Creditors: amounts falling due within one year
16
(2,130,927)
(2,117,455)
Net current assets
5,861,264
5,837,516
Total assets less current liabilities
11,144,026
11,037,332
Creditors: amounts falling due after more than one year
17
(9,333)
(16,133)
Provisions for liabilities
Deferred tax liability
19
1,047,494
1,019,676
(1,047,494)
(1,019,676)
Net assets
10,087,199
10,001,523
Capital and reserves
Called up share capital
23
176,067
176,067
Revaluation reserve
24
2,547,939
2,593,429
Capital redemption reserve
24
1,264,777
1,264,777
Other reserves
24
1,062,629
1,062,629
Profit and loss reserves
24
5,035,787
4,904,621
Total equity
10,087,199
10,001,523

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

The financial statements were approved by the board of directors and authorised for issue on 12 February 2025 and are signed on its behalf by:
12 February 2025
SCY Yu
Director
Company registration number 02982102 (England and Wales)
PENTHOUSE CARPETS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
3,210,000
3,210,000
Current assets
Debtors
15
118,325
118,325
Creditors: amounts falling due within one year
16
(10,000)
(10,000)
Net current assets
108,325
108,325
Net assets
3,318,325
3,318,325
Capital and reserves
Called up share capital
23
176,067
176,067
Capital redemption reserve
24
1,264,777
1,264,777
Other reserves
24
1,791,579
1,791,579
Profit and loss reserves
24
85,902
85,902
Total equity
3,318,325
3,318,325

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £15,089 profit).

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 12 February 2025 and are signed on its behalf by:
12 February 2025
SCY Yu
Director
Company registration number 02982102 (England and Wales)
PENTHOUSE CARPETS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 July 2022
176,067
1,316,702
1,264,777
1,062,629
4,698,845
8,519,020
Year ended 30 June 2023:
Profit for the year
-
-
-
-
89,467
89,467
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,877,500
-
-
-
1,877,500
Tax relating to other comprehensive income
-
(469,375)
-
-
-
0
(469,375)
Total comprehensive income
-
1,408,125
-
-
89,467
1,497,592
Dividends
10
-
-
-
-
(15,089)
(15,089)
Transfers
-
(131,398)
-
-
131,398
-
Balance at 30 June 2023
176,067
2,593,429
1,264,777
1,062,629
4,904,621
10,001,523
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
-
85,676
85,676
Transfers
-
(45,490)
-
-
45,490
-
Balance at 30 June 2024
176,067
2,547,939
1,264,777
1,062,629
5,035,787
10,087,199
PENTHOUSE CARPETS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
176,067
1,264,777
1,791,579
85,902
3,318,325
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
-
15,089
15,089
Dividends
10
-
-
-
(15,089)
(15,089)
Balance at 30 June 2023
176,067
1,264,777
1,791,579
85,902
3,318,325
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
-
-
0
Balance at 30 June 2024
176,067
1,264,777
1,791,579
85,902
3,318,325
PENTHOUSE CARPETS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
943,371
(108,828)
Interest paid
(1,278)
(1,440)
Income taxes paid
(90,744)
(69,800)
Net cash inflow/(outflow) from operating activities
851,349
(180,068)
Investing activities
Purchase of tangible fixed assets
(366,457)
(154,202)
Proceeds from disposal of tangible fixed assets
37,625
34,625
Interest received
43,891
21,709
Net cash used in investing activities
(284,941)
(97,868)
Financing activities
Payment of finance leases obligations
(23,582)
(28,299)
Dividends paid to equity shareholders
-
0
(15,089)
Net cash used in financing activities
(23,582)
(43,388)
Net increase/(decrease) in cash and cash equivalents
542,826
(321,324)
Cash and cash equivalents at beginning of year
1,383,697
1,705,021
Cash and cash equivalents at end of year
1,926,523
1,383,697
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
1
Accounting policies
Company information

Penthouse Carpets Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Buckley Carpet Mill, Buckley Road, Rochdale, OL12 9DU.

 

The group consists of Penthouse Carpets Holdings Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

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. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Penthouse Carpets Holdings 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 30 June 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

The company is controlled by a discretionary Employee Benefit Trust which hold shares for the benefit of employees. Shares are distributed solely at the discretion of the trustees. The company does not have de-facto control of the Trust, and accordingly the provisions of FRS102 do not apply and the financial statements of the Trust is not consolidated in the group financial statements.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Turnover 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 turnover 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.

1.6
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 land and buildings
40 years straight line
Plant and equipment
10 years straight line
Fixtures and fittings
3-6 years straight line
Motor vehicles
3 years straight line
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -

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 profit and loss account.

1.7
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, associates and jointly controlled entities 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.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition, as follows:

 

Raw materials – purchase cost on a first-in, first-out basis

Work in progress and finished goods – cost of direct materials and labour plus attributable overheads based on a normal level of activity.

 

Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its 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.

1.10
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.

1.11
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 balance sheet 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.

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.

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 group 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.

PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
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 group 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 group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
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 if, and only if, there is 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.

1.14
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.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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.

1.15
Retirement benefits

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

1.16
Share-based payments

The group issues equity-settled share options to all eligible employees of its subsidiary undertakings. Equity settled share-based payment transactions are measured at fair value at the date of grant. The fair value is expensed on a straight-line basis over the vesting period, with a corresponding increase in equity. This is based upon the company's estimate of the shares or share options that will eventually vest which takes into account all vesting conditions and non-market performance conditions, with adjustments being made where new information indicates the number of shares or share options expected to vest differs from previous estimates.

 

Fair value is determined using an appropriate pricing model. All market conditions and non-vesting conditions are taken into account when estimating the fair value of the shares or share options. As long as all other vesting conditions are satisfied, no adjustment is made irrespective of whether market or non-vesting conditions are met.

1.17
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.

PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

 

Government grants are recognised using the accrual model.

 

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

 

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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. 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.

In the opinion of the directors no significant judgements have been made by management in preparing these financial statements in applying the accounting policies. Management have had to make estimates relating to stock and debtor provisioning based on information available to them.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
14,220,054
14,950,668
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
14,031,398
14,793,213
Overseas
188,656
157,455
14,220,054
14,950,668
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Turnover and other revenue
(Continued)
- 22 -
2024
2023
£
£
Other revenue
Interest income
43,891
21,709
Grants received
6,800
6,800
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(6,800)
(6,800)
Fees payable to the group's auditor for the audit of the group's financial statements
11,650
11,450
Depreciation of owned tangible fixed assets
283,511
231,565
Profit on disposal of tangible fixed assets
(37,625)
(33,009)
Operating lease charges
66,012
62,316
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
Production staff
39
43
-
-
Distribution staff
10
12
-
-
Administrative staff
24
24
-
-
Total
73
79
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,449,675
2,503,204
-
0
-
0
Social security costs
238,074
252,529
-
-
Pension costs
173,294
152,648
-
0
-
0
2,861,043
2,908,381
-
0
-
0
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
293,263
316,888
Company pension contributions to defined contribution schemes
79,936
56,116
373,199
373,004
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
104,930
105,007
Company pension contributions to defined contribution schemes
48,055
37,481

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
43,891
21,709
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
77
-
Interest on finance leases and hire purchase contracts
1,201
1,440
Total finance costs
1,278
1,440
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
16,213
90,745
Adjustments in respect of prior periods
-
0
(858)
Total current tax
16,213
89,887
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
2024
2023
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
27,818
166,940
Total tax charge
44,031
256,827

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
129,707
346,294
Expected tax charge based on the standard rate of corporation tax in the UK of 21.52% (2023: 20.50%)
27,913
70,976
Tax effect of expenses that are not deductible in determining taxable profit
31,281
76,936
Adjustments in respect of prior years
-
0
(858)
Effect of change in corporation tax rate
-
121,062
Other
(15,163)
(11,289)
Taxation charge
44,031
256,827

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
469,375
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
-
15,089
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
11
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 July 2023
4,450,000
3,436,228
947,754
448,092
9,282,074
Additions
-
0
266,478
4,753
95,226
366,457
Disposals
-
0
-
0
-
0
(132,583)
(132,583)
At 30 June 2024
4,450,000
3,702,706
952,507
410,735
9,515,948
Depreciation and impairment
At 1 July 2023
-
0
2,861,196
947,377
273,685
4,082,258
Depreciation charged in the year
89,000
97,169
509
96,833
283,511
Eliminated in respect of disposals
-
0
-
0
-
0
(132,583)
(132,583)
At 30 June 2024
89,000
2,958,365
947,886
237,935
4,233,186
Carrying amount
At 30 June 2024
4,361,000
744,341
4,621
172,800
5,282,762
At 30 June 2023
4,450,000
575,032
377
174,407
5,199,816
The company had no tangible fixed assets at 30 June 2024 or 30 June 2023.

A revaluation of the long leasehold property was carried out on 26 January 2023 by Barton Property Consultancy Ltd, Chartered Surveyors on an open market basis.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2024
2023
£
£
Group
Cost
1,802,901
1,802,901
Accumulated depreciation
(839,152)
(810,806)
Carrying value
963,749
992,095
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
3,210,000
3,210,000
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
3,210,000
Carrying amount
At 30 June 2024
3,210,000
At 30 June 2023
3,210,000
13
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Penthouse Carpets Limited
England & Wales
£ Ordinary
100.00
Penthouse Carpets Limited
England & Wales
$ Ordinary
100.00
Mayfield Carpets Limited
England & Wales
£ Ordinary
100.00
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
979,654
1,061,953
-
-
Work in progress
101,397
120,055
-
-
Finished goods and goods for resale
3,416,187
3,609,231
-
0
-
0
4,497,238
4,791,239
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,272,565
1,388,912
-
0
-
0
Amounts owed by group undertakings
-
-
118,325
118,325
Prepayments and accrued income
295,865
391,123
-
0
-
0
1,568,430
1,780,035
118,325
118,325
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
-
0
23,582
-
0
-
0
Trade creditors
1,294,851
1,118,128
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
10,000
10,000
Corporation tax payable
16,214
90,745
-
0
-
0
Other taxation and social security
313,561
251,966
-
-
Government grants
20
6,800
6,800
-
0
-
0
Accruals and deferred income
499,501
626,234
-
0
-
0
2,130,927
2,117,455
10,000
10,000
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Government grants
20
9,333
16,133
-
0
-
0
18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
23,582
-
0
-
0

Obligations due under hire purchase agreements are secured on the assets to which they relate.

19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
201,794
158,751
Revaluations
849,313
864,476
Retirement benefit obligations
(3,613)
(3,551)
1,047,494
1,019,676
The company has no deferred tax assets or liabilities.
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
19
Deferred taxation
(Continued)
- 28 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
1,019,676
-
Charge to profit or loss
27,818
-
Liability at 30 June 2024
1,047,494
-
20
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
16,133
22,933
-
-

Deferred income is included in the financial statements as follows:

Current liabilities
6,800
6,800
-
0
-
0
Non-current liabilities
9,333
16,133
-
0
-
0
16,133
22,933
-
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
173,294
152,648

A defined contribution pension 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.

PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
22
Share-based payment transactions

The parent company has an approved share option scheme in which all the subsidiary company's employees are eligible to participate. The scheme is to reward employees with a stake in the long term success of the group.

 

Options are exercisable at a price equal to the estimated fair value of the Company's shares on the date of grant. The vesting period is 10 years. If any options remain unexercised on the tenth anniversary of the date of the grant then the options expire. Generally, options are forfeited if the employee leaves the group before the option vest and the options aren't exercised.

 

Details of the number and weighted average exercise prices (WAEP) of share options during the year are as follows:

 

Group
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 July 2023
9,076,627
9,489,579
0.01
0.02
Granted
782,573
830,282
0.02
0.03
Forfeited
(652,532)
(374,046)
0.02
0.03
Exercised
-
(603,133)
-
0.01
Expired
(116,082)
(266,055)
0.02
0.01
Outstanding at 30 June 2024
9,090,586
9,076,627
0.02
0.02
Exercisable at 30 June 2024
-
-
-
-

In the year ended 30 June 2024, options were granted on 28 March 2024. The estimated fair value of the options granted was £nil.

 

The fair values were calculated using the observable market data specific to the company.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
17,606,638
17,606,638
176,066
176,066
Special Rights Deferred shares of £1 each
1
1
1
1
17,606,639
17,606,639
176,067
176,067
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
23
Share capital
(Continued)
- 30 -

On a return of assets on liquidation or capital reduction or otherwise, the holder of the Special Share shall, subject to the rights of the holders of the Ordinary Shares, be entitled to be paid out of the surplus assets of the company remaining after payment of the liabilities an amount equal to £1.

 

The holder of the Special Share shall be entitled to a non-cumulative fixed dividend of 0.0001p but only if the amount distributed on all other classes of share in that financial year exceeds £10,000,000.

 

The holder of the Special Share shall be entitled to receive notice of, and to attend at, general meetings of the company, but shall not in respect of his holding of the Special Share be entitled to vote upon any resolution unless the resolution is one which directly or indirectly varies, modifies, alters or abrogates any of the rights, privileges, limitations or restrictions, as defined, attaching to the Special Share.

24
Reserves
Share premium

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Revaluation reserve

Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.

Equity reserve

Profit and loss account - This reserve records retained earnings and accumulated losses.

Capital redemption reserve

Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company.

Other reserves, including the fair value reserve

Company - This reserve is a non-distributable merger reserve created by the exercise of merger relief for the amount in excess of the nominal value of ordinary shares issued in connection with acquisitions.

 

Group - This reserve is a non-distributable capital reserve arising on consolidation.

 

25
Operating lease commitments

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
52,368
54,251
-
-
Between two and five years
159,748
180,879
-
-
In over five years
18,950
52,070
-
-
231,066
287,200
-
-
PENTHOUSE CARPETS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
-
90,000
-
-
27
Controlling party

The Penthouse Carpets Holdings Limited Employee Benefit Trust is the ultimate controlling party.

28
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit after taxation
85,676
89,467
Adjustments for:
Taxation charged
44,031
256,827
Finance costs
1,278
1,440
Investment income
(43,891)
(21,709)
Gain on disposal of tangible fixed assets
(37,625)
(33,009)
Depreciation and impairment of tangible fixed assets
283,511
231,565
Movements in working capital:
Decrease/(increase) in stocks
294,001
(264,159)
Decrease in debtors
211,605
95,366
Increase/(decrease) in creditors
111,585
(464,616)
Decrease in deferred income
(6,800)
-
Cash generated from/(absorbed by) operations
943,371
(108,828)
29
Analysis of changes in net funds - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
1,383,697
542,826
1,926,523
Obligations under finance leases
(23,582)
23,582
-
1,360,115
566,408
1,926,523
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