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REGISTERED NUMBER: 07717440 (England and Wales)















Report of the Director and

Unaudited Financial Statements for the Year Ended 31 March 2024

for

The Sofa Library Ltd

The Sofa Library Ltd (Registered number: 07717440)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Report of the Director 2

Balance Sheet 3

Notes to the Financial Statements 5


The Sofa Library Ltd

Company Information
for the Year Ended 31 March 2024







DIRECTOR: M J Gill





REGISTERED OFFICE: 122 Winchcombe Street
Cheltenham
GL5 2NW





REGISTERED NUMBER: 07717440 (England and Wales)





ACCOUNTANTS: Crossley and Co.
122 Winchcombe Street
Cheltenham
Gloucestershire
GL52 2NW

The Sofa Library Ltd (Registered number: 07717440)

Report of the Director
for the Year Ended 31 March 2024

The director presents his report with the financial statements of the company for the year ended 31 March 2024.

REVIEW OF BUSINESS
The gross profit margin has successfully been lifted in the past year with the introduction of further own manufactured ranges.

The company has expanded into a new building in Brighton which has undergone substantial renovation and commenced trade on 1st December 2023. Substantial staffing and other overheads were incurred in preparation for the opening of the store and have been expended in the reporting period.

This expansion is confidently expected to substantially increase current turnover within the 12 months to the end of the FYI and the company is on target at the date of the signing of the accounts. The new shop remains the only high end furniture outlet in the city of Brighton.

DIRECTOR
M J Gill held office during the whole of the period from 1 April 2023 to the date of this report.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:





M J Gill - Director


19 March 2025

The Sofa Library Ltd (Registered number: 07717440)

Balance Sheet
31 March 2024

31.3.24 31.3.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 461,938 420,156

CURRENT ASSETS
Stocks 5 615,235 397,488
Debtors 6 874,274 289,650
Cash at bank 25,199 14,249
1,514,708 701,387
CREDITORS
Amounts falling due within one year 7 426,532 215,101
NET CURRENT ASSETS 1,088,176 486,286
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,550,114

906,442

CREDITORS
Amounts falling due after more than one year 8 1,037,921 460,375
NET ASSETS 512,193 446,067

CAPITAL AND RESERVES
Called up share capital 10 105,000 105,000
Retained earnings 11 407,193 341,067
SHAREHOLDERS' FUNDS 512,193 446,067

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The Sofa Library Ltd (Registered number: 07717440)

Balance Sheet - continued
31 March 2024


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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 19 March 2025 and were signed by:





M J Gill - Director


The Sofa Library Ltd (Registered number: 07717440)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

The Sofa Library Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Plant and machinery - 10% on reducing balance
Fixtures and fittings - 10% on reducing balance
Motor vehicles - 25% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

The Sofa Library Ltd (Registered number: 07717440)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2023 - 10 ) .

4. TANGIBLE FIXED ASSETS
Fixtures
Long Plant and and Motor
leasehold machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 April 2023 89,891 142,054 387,187 9,750 628,882
Additions - - 69,015 - 69,015
At 31 March 2024 89,891 142,054 456,202 9,750 697,897
DEPRECIATION
At 1 April 2023 - 57,116 146,589 5,021 208,726
Charge for year - 8,493 17,558 1,182 27,233
At 31 March 2024 - 65,609 164,147 6,203 235,959
NET BOOK VALUE
At 31 March 2024 89,891 76,445 292,055 3,547 461,938
At 31 March 2023 89,891 84,938 240,598 4,729 420,156

5. STOCKS
31.3.24 31.3.23
£    £   
Stocks 615,235 397,488

6. DEBTORS
31.3.24 31.3.23
£    £   
Amounts falling due within one year:
Amounts recoverable on contract 125,516 113,426
Prepayments 23,908 176,224
149,424 289,650

The Sofa Library Ltd (Registered number: 07717440)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

6. DEBTORS - continued
31.3.24 31.3.23
£    £   
Amounts falling due after more than one year:
Other debtors 724,850 -

Aggregate amounts 874,274 289,650

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.24 31.3.23
£    £   
Trade creditors 351,479 172,422
Tax 16,035 11,856
Social security and other taxes 30,148 10,369
VAT 25,370 17,669
Accrued expenses 3,500 2,785
426,532 215,101

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.3.24 31.3.23
£    £   
Bank loans (see note 9) 214,978 43,967
Hire purchase contracts - 5,220
Other creditors 89,327 140,327
Directors' loan accounts 733,616 270,861
1,037,921 460,375

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 214,978 43,967

9. LOANS

An analysis of the maturity of loans is given below:

31.3.24 31.3.23
£    £   
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 214,978 43,967

The Sofa Library Ltd (Registered number: 07717440)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

10. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.3.24 31.3.23
value: £    £   
105,000 Ordinary 1 105,000 105,000

11. RESERVES
Retained
earnings
£   

At 1 April 2023 341,067
Profit for the year 66,126
At 31 March 2024 407,193

12. RELATED PARTY DISCLOSURES

The renovation of the new store at substantial cost has been accomplished principally through the introduction of Directors Loans, along with other bank finance.

These costs have been expended on the Brighton store under an arrangement with the landlord, who is currently pursuing a claim against previous tenants. The claim is to remedy a breach of lease in respect of the condition of the building upon surrender. These arrangements were effected to secure the building. A claim has both been acknowledged and the grounds for the claim accepted.

A successful claim is anticipated in the calendar year of 2025 whereupon repayment will be made to The Sofa Library Ltd.

13. LEGAL EXPENSES

Legal expenses incurred in the year were in connection with a employee claim against the company. This concluded in April 2024 with an entirely successful defence. No costs award was granted unfortunately as is the norm in such cases but these costs can be considered as extraordinary to business activity.