Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-312024-12-31truetrue54truetruetruetrue2024-01-01falseThe principal activity of the Company is that of the distribution of curtains and furniture fabric to the wholesale retail trade.59falsefalse 02084887 2024-01-01 2024-12-31 02084887 2023-01-01 2023-12-31 02084887 2024-12-31 02084887 2023-12-31 02084887 2023-01-01 02084887 c:CompanySecretary1 2024-01-01 2024-12-31 02084887 c:Director2 2024-01-01 2024-12-31 02084887 c:Director3 2024-01-01 2024-12-31 02084887 c:RegisteredOffice 2024-01-01 2024-12-31 02084887 d:Buildings d:LongLeaseholdAssets 2024-01-01 2024-12-31 02084887 d:Buildings d:LongLeaseholdAssets 2024-12-31 02084887 d:Buildings d:LongLeaseholdAssets 2023-12-31 02084887 d:MotorVehicles 2024-01-01 2024-12-31 02084887 d:MotorVehicles 2024-12-31 02084887 d:MotorVehicles 2023-12-31 02084887 d:MotorVehicles d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 02084887 d:FurnitureFittings 2024-01-01 2024-12-31 02084887 d:FurnitureFittings 2024-12-31 02084887 d:FurnitureFittings 2023-12-31 02084887 d:FurnitureFittings d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 02084887 d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 02084887 d:CurrentFinancialInstruments 2024-12-31 02084887 d:CurrentFinancialInstruments 2023-12-31 02084887 d:CurrentFinancialInstruments d:WithinOneYear 2024-12-31 02084887 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 02084887 e:UnitedKingdom 2024-01-01 2024-12-31 02084887 e:UnitedKingdom 2023-01-01 2023-12-31 02084887 d:UKTax 2024-01-01 2024-12-31 02084887 d:UKTax 2023-01-01 2023-12-31 02084887 d:ShareCapital 2024-01-01 2024-12-31 02084887 d:ShareCapital 2024-12-31 02084887 d:ShareCapital 2023-01-01 2023-12-31 02084887 d:ShareCapital 2023-12-31 02084887 d:ShareCapital 2023-01-01 02084887 d:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 02084887 d:RetainedEarningsAccumulatedLosses 2024-12-31 02084887 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02084887 d:RetainedEarningsAccumulatedLosses 2023-12-31 02084887 d:RetainedEarningsAccumulatedLosses 2023-01-01 02084887 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-12-31 02084887 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 02084887 d:FinancialAssetsAmortisedCost 2024-12-31 02084887 d:FinancialAssetsAmortisedCost 2023-12-31 02084887 d:FinancialLiabilitiesAmortisedCost 2024-12-31 02084887 d:FinancialLiabilitiesAmortisedCost 2023-12-31 02084887 c:FRS102 2024-01-01 2024-12-31 02084887 c:Audited 2024-01-01 2024-12-31 02084887 c:FullAccounts 2024-01-01 2024-12-31 02084887 c:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 02084887 d:WithinOneYear 2024-12-31 02084887 d:WithinOneYear 2023-12-31 02084887 d:BetweenOneFiveYears 2024-12-31 02084887 d:BetweenOneFiveYears 2023-12-31 02084887 d:MoreThanFiveYears 2024-12-31 02084887 d:MoreThanFiveYears 2023-12-31 02084887 d:AcceleratedTaxDepreciationDeferredTax 2024-12-31 02084887 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 02084887 d:TaxLossesCarry-forwardsDeferredTax 2024-12-31 02084887 d:TaxLossesCarry-forwardsDeferredTax 2023-12-31 02084887 2 2024-01-01 2024-12-31 02084887 f:PoundSterling 2024-01-01 2024-12-31 iso4217:GBP xbrli:pure

Registered number: 02084887









KVADRAT LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
KVADRAT LIMITED
 
 
COMPANY INFORMATION


Directors
M Davies 
R Berryman 




Company secretary
A Byriel



Registered number
02084887



Registered office
Suite 4
7th Floor

50 Broadway

London

SW1H 0DB




Trading Address
10 Shepherdess Walk
London

N1 7LB






Independent auditor
Nortons Assurance Limited
Statutory Auditor

2nd Floor

NOW Building

Thames Valley Park

Reading

Berkshire

RG6 1RB





 
KVADRAT LIMITED
 

CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditor's Report
4 - 7
Profit and Loss Account
8
Balance Sheet
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 24

 
KVADRAT LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The Directors present their strategic report for the year ended 31 December 2024.

Business review
 
The results of the Company for the year show a profit for the year of £491,965. We expect a growth in topline sales in 2025 with this mainly coming from increased sales in the acoustic sector. Sales of upholstery are improving and should be back on target for 2025.

Principal risks and uncertainties
 
The principal risks and uncertainties of the Company relate to the UK economy and the reliance on the demand for premium office space. The company is expanding into different sectors (hospitality and residential) in an attempt to mitigate the risk associated with being heavily reliant on one sector. 
The Company's success is dependent on the Parent Company, maintaining, developing and executing on its competitive advantage in producing high performance products with a sustainable story. The company see 2024 being a stable year but can see 2025 pipeline being positive so need to build internal systems to be able to support growth in 2025. 
Cashflow risk
The Company operates on an intercompany royalty revenue model and is therefore fully funded by the other group entities. 
Credit risk
There a few major clients who run over there credit limit and this is being reviewed and brought back into agreed payment terms to reduce risk
Liquidity risk
The Company has minimal liquidity risk and cash flows are managed on a daily basis.
Foreign exchange risk
This is managed by the group parent company.
Competition risk
Continual development of R&D to develop new products. 

Financial key performance indicators
 
The company is planning to see growth of 4% in 2025. 


This report was approved by the board and signed on its behalf.



................................................
R Berryman
Director

Date: 19 March 2025
Page 1

 
KVADRAT LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £491,965 (2023 - £508,533).

The dividend paid through the year was £400,000.

Directors

The directors who served during the year were:

M Davies 
R Berryman 

Future developments

To expand the business in different sectors 

Matters covered in the Strategic Report

Certain Laws and Regulations require that specific information should be included in the Directors’ report, the following is incorporated into this Directors’ report by reference: 
• Principal activities (Strategic report page 1)
• Review of business and future developments (Strategic report page 1)
• Risk management and principal risks (Strategic report page 1)
• Financial key performance indicators (Strategic report page 1)

Page 2

 
KVADRAT LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, Nortons Assurance Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
R Berryman
Director

Date: 19 March 2025
Page 3

 
KVADRAT LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KVADRAT LIMITED
 

Opinion


We have audited the financial statements of Kvadrat Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
KVADRAT LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KVADRAT LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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.
Page 5

 
KVADRAT LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KVADRAT LIMITED (CONTINUED)


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:

The objectives of our audit, in respect to fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. 
Our approach was as follows: 
 
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework including the Companies Act 2006 and the relevant tax compliance regulations in the UK.
 
We understood how the Company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures.
 
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by discussing with management to understand where it considered there was a susceptibility to fraud. We considered the controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud and error.
 
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved journal entry testing, with a focus on journals indicating large or unusual transactions based on our understanding of the business, enquiries of Company management and focused testing. In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with the requirements of the relevant accounting standards and UK legislation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Page 6

 
KVADRAT LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KVADRAT LIMITED (CONTINUED)


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 2006Our 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.





Anthony Campbell (Senior Statutory Auditor)
  
for and on behalf of
Nortons Assurance Limited
 
Statutory Auditor
  
2nd Floor
NOW Building
Thames Valley Park
Reading
Berkshire
RG6 1RB

20 March 2025
Page 7

 
KVADRAT LIMITED
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

  

Turnover
 4 
30,011,753
30,014,810

Cost of sales
  
(23,072,704)
(23,351,194)

Gross profit
  
6,939,049
6,663,616

Administrative expenses
  
(6,259,153)
(5,952,698)

Operating profit
 5 
679,896
710,918

Interest receivable and similar income
 9 
21,671
21,347

Interest payable and similar expenses
 10 
(12,794)
(3,219)

Profit before tax
  
688,773
729,046

Tax on profit
 11 
(196,808)
(220,513)

Profit for the financial year
  
491,965
508,533

There are no items of other comprehensive income for 2024 or 2023 other than the profit for the yearAs a result, no separate Statement of Comprehensive Income has been presented.

The notes on pages 11 to 24 form part of these financial statements.
Page 8

 
KVADRAT LIMITED
REGISTERED NUMBER: 02084887

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
22,916
53,727

Current assets
  

Stocks
 14 
107,836
176,747

Debtors: amounts falling due within one year
 15 
4,643,108
4,460,523

Cash at bank and in hand
 16 
1,566,787
855,061

  
6,317,731
5,492,331

Creditors: amounts falling due within one year
 17 
(4,235,437)
(3,532,813)

Net current assets
  
 
 
2,082,294
 
 
1,959,518

Total assets less current liabilities
  
2,105,210
2,013,245

  

Net assets
  
2,105,210
2,013,245


Capital and reserves
  

Called up share capital 
 20 
100,000
100,000

Profit and loss account
 21 
2,005,210
1,913,245

  
2,105,210
2,013,245


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
R Berryman
Director

Date: 19 March 2025

The notes on pages 11 to 24 form part of these financial statements.
Page 9

 
KVADRAT LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
100,000
1,854,712
1,954,712


Comprehensive income for the year

Profit for the year
-
508,533
508,533
Total comprehensive income for the year
-
508,533
508,533


Contributions by and distributions to owners

Dividends paid
-
(450,000)
(450,000)



At 1 January 2024
100,000
1,913,245
2,013,245


Comprehensive income for the year

Profit for the year
-
491,965
491,965
Total comprehensive income for the year
-
491,965
491,965


Contributions by and distributions to owners

Dividends paid
-
(400,000)
(400,000)


Total transactions with owners
-
(400,000)
(400,000)


At 31 December 2024
100,000
2,005,210
2,105,210


The notes on pages 11 to 24 form part of these financial statements.
Page 10

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Kvadrat Limited (the "Company") is a company incorporated in the United Kingdom under the Companies Act.
The Company is a private company limited by shares and is registered in England and Wales. The address of the Company's registered office is Suite 4, 7th Floor 50 Broadway, London, United Kingdom, SW1H 0DB. The principal address of business is 10 - 12 Shepherdess Walk, London, N1 7LB.
The principal activity of the Company is that of the distribution of curtains and furniture fabric to the wholesale retail trade.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Kvadrat A/S as at 31 December 2022 and these financial statements may be obtained from Lundbergsvej 10, 8400 Ebeltoft, Denmark.

 
2.3

Going concern

The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. This expectation is based on the arrangement with Kvadrat AS the Company's parent, to provide financial support to the Company to enable it to settle its debts as they fall due for a period of not less than a year from the date of the approval of the financial statements.

Page 11

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP, rounded to the nearest whole £.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 12

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Page 13

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Leasehold improvements
-
5
years
Motor vehicles
-
2
years
Fixtures and fittings
-
5
years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

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

Page 14

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.





 
Page 15

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the directors are required to make judgments,  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 if the revision affects only that period, or in the period of the revision and future period if the revision affects both current and future periods.


4.


Turnover

2024
2023
£
£

United Kingdom
30,011,753
30,014,810


Page 16

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
24,226
964

Other operating lease rentals
667,466
684,143


6.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
14,750
13,900


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
3,458,841
3,413,739

Social insurance costs
426,585
429,800

Cost of defined contribution scheme
233,892
270,540

4,119,318
4,114,079


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Customer Services
14
23



Operations
3
4



Finance
4
4



Directors
2
2



Project Management and Support
18
14



Sales
13
12

54
59

Page 17

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
640,186
536,198

Company contributions to defined contribution pension schemes
28,642
30,550

668,828
566,748


The highest paid director received remuneration of £322,428 (2023 - £270,434).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £14,321 (2023 - £16,229).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
21,671
21,347


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
12,794
3,219

Page 18

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
234,279
236,273

Adjustments in respect of previous periods
-
10,493


234,279
246,766


Total current tax
234,279
246,766

Deferred tax


Origination and reversal of timing differences
(37,471)
(26,253)

Total deferred tax
(37,471)
(26,253)


Tax on profit
196,808
220,513

 


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
688,773
729,046


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
172,193
171,472

Effects of:


Capital allowances for year in excess of depreciation
6,626
6,201

Permanent timing differences
22,739
35,125

Bad debts
32,720
23,475

Prior year under provision
-
10,493

Other deferred tax movement
(37,470)
(26,253)

Total tax charge for the year
196,808
220,513

Page 19

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023
£
£


Dividends Paid
400,000
450,000


13.


Tangible fixed assets





Long-term leasehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2024
713,782
31,995
98,064
843,841


Disposals
(561,762)
-
-
(561,762)



At 31 December 2024

152,020
31,995
98,064
282,079



Depreciation


At 1 January 2024
670,699
31,995
87,420
790,114


Charge for the year on owned assets
26,553
-
4,258
30,811


Disposals
(561,762)
-
-
(561,762)



At 31 December 2024

135,490
31,995
91,678
259,163



Net book value



At 31 December 2024
16,530
-
6,386
22,916



At 31 December 2023
43,083
-
10,644
53,727

Page 20

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Stocks

2024
2023
£
£

Finished goods and goods for resale
107,836
176,747



15.


Debtors

2024
2023
£
£


Trade debtors
4,059,163
3,977,514

Amounts owed by group undertakings
155,169
29,566

Other debtors
125,238
125,204

Prepayments and accrued income
98,355
129,135

Tax recoverable
162,677
194,069

Deferred taxation
42,506
5,035

4,643,108
4,460,523



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,566,787
855,061

Less: bank overdrafts
(167,237)
-

1,399,550
855,061


Page 21

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
167,237
-

Trade creditors
234,600
497,762

Amounts owed to group undertakings
2,242,317
2,388,294

Other taxation and social security
526,852
175,662

Other creditors
886,122
393,382

Accruals and deferred income
178,309
77,713

4,235,437
3,532,813



18.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,566,787
855,061

Financial assets that are debt instruments measured at amortised cost
4,339,570
4,132,284

5,906,357
4,987,345


Financial liabilities


Financial liabilities measured at amortised cost
(3,708,585)
(3,357,151)


Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.


Financial assets that are debt instruments measured at amortised cost comprise of trade debtors, other debtors and amounts owed by group undertakings.


Financial liabilities measured at amortised cost comprise trade creditors, other creditors, accruals and amounts owed to group undertakings.
Page 22

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Deferred taxation




2024
2023


£

£






At beginning of year
5,035
(21,218)


Charged to profit or loss
37,471
26,253



At end of year
42,506
5,035

The deferred tax asset is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(88)
(6,800)

Other
42,594
11,835

42,506
5,035


20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100,000 (2023 - 100,000) Allotted, issued and fully paid shares of £1.00 each
100,000
100,000



21.


Reserves

Profit and loss account

The profit and loss account total of £2,052,223 (2023 - £1,913,245) includes all current and prior period retained profits and losses.


22.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund.  The pension cost charge represents contributions payable by the Company  to the fund and amounted to £233,892 (2023 - £270,540). Contributions totalling £27,094 (2023 - £25,358) were payable to the fund at the balance sheet date and are included in creditors.

Page 23

 
KVADRAT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
279,035
432,147

Later than 1 year and not later than 5 years
532,142
626,254

Later than 5 years
80,325
73,497

891,502
1,131,898


24.


Ultimate controlling party

The immediate parent and ultimate parent company is Kvadrat Holdings A/S, a company incorporated in Denmark, which is the smallest and largest group for which consolidated accounts are drawn up.
Consolidated accounts are held at its principal place of business, Kvadrat Holdings A/SLundbergsvej 10, DK-8400 Ebeltoft, Denmark.  

 
Page 24