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REGISTERED NUMBER: 02945685 (England and Wales)















Unaudited financial statements for the year ended 31st July 2024

For

Kaizen Furniture Makers Limited

Kaizen Furniture Makers Limited (Registered number: 02945685)

Contents of the financial statements
For The Year Ended 31st July 2024










Page

Balance sheet 1

Notes to the financial statements 3


Kaizen Furniture Makers Limited (Registered number: 02945685)

Balance sheet
31st July 2024

2024 2023
Notes £    £    £    £   
Fixed assets
Tangible assets 4 199,011 205,136

Current assets
Stocks 54,020 48,380
Debtors 5 1,171,181 709,735
Cash in hand 572,189 602,336
1,797,390 1,360,451
Creditors
Amounts falling due within one year 6 873,572 722,651
Net current assets 923,818 637,800
Total assets less current liabilities 1,122,829 842,936

Creditors
Amounts falling due after more than one year 7 (13,964 ) (81,878 )

Provisions for liabilities (33,945 ) (31,395 )
Net assets 1,074,920 729,663

Capital and reserves
Called up share capital 102 102
Profit and loss account 1,074,818 729,561
1,074,920 729,663

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

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

The directors acknowledge their 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.

Kaizen Furniture Makers Limited (Registered number: 02945685)

Balance sheet - continued
31st July 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 Board of Directors and authorised for issue on 20th March 2025 and were signed on its behalf by:





A Wubben - Director


Kaizen Furniture Makers Limited (Registered number: 02945685)

Notes to the financial statements
For The Year Ended 31st July 2024


1. Statutory information

Kaizen Furniture Makers Limited is a private company, limited by shares, registered in England and Wales. The company registration number is 02945685 and the registered office is The Mint Shed, Great Myles Farm, Ongar Road ,Ongar, Essex, CM15 0LB.

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.

Accounting estimates and judgements
In the preparation of these financial statements the directors have made certain judgements and estimates that impact the measurement of various assets and liabilities , and the value of transactions recorded in the financial statements.

Typically FRS 102 requires management to estimate the total expected costs on a long term contract and form valuations on the stage of contract completion in order to determine both the turnover and profit to be recognised in an accounting period. These estimates and judgements are reviewed and benchmarked against independent certification of the valuation of completed works, the progress of work against contractual timelines and total costs incurred as a percentage of total estimated costs of completion.

Management regularly review and evaluate the estimates being made to ensure they are consistent and appropriate.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts
and value added taxes. Turnover includes revenue earned from the sale of goods and from the
rendering of services. Turnover from the sale of goods is recognised when the significant risks
and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering
of services is recognised by reference to the stage of completion of the contract. The stage of
completion of a contract is measured by comparing the costs incurred for work performed to date
to the total estimated contract costs.

Kaizen Furniture Makers Limited (Registered number: 02945685)

Notes to the financial statements - continued
For The Year Ended 31st July 2024


2. Accounting policies - continued

Tangible fixed assets
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated
impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land,
at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its
expected useful life, as follows:

Leasehold ImprovementsOver the lease term
Assets held under finance leases6.67%-33.33% straight line
Computer equipment33.33% straight line
Fixtures, fittings and equipment20% reducing balance


Debtors
Short and long term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts.

Amounts recoverable on long term contracts represent the gross billed amount for work performed to date, inclusive of any contract retentions withheld. They are measured at cost plus profit recognised to date, less any progress billings and any provision for foreseeable losses.

Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans
and other financial liabilities are initially recognised at transaction price net of any transaction costs
and subsequently measured at amortised cost determined using the effective interest method.

Included in creditors are loans and finance made available through the Coronavirus Business Interruption Loan scheme ("CBILS").This scheme was a government initiative to support all small and medium-sized businesses adversely affected by the Coronavirus pandemic, and provides the lender with a guarantee for 80% of qualifying loans.

Stocks -wip on long term contracts
WIP on long term contracts relates to recoverable costs incurred in respect of future activity on a contract, and includes costs such as materials .


Kaizen Furniture Makers Limited (Registered number: 02945685)

Notes to the financial statements - continued
For The Year Ended 31st July 2024


2. Accounting policies - continued
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past
periods. A current tax asset is recognised in respect of a tax loss that can be carried back to
recover tax paid in a previous period.

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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.

The carrying amount of deferred tax assets is reviewed and assessed each reporting period and adjusted where necessary to the reflect the extent of asset recovery against future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities arenot discounted.

Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation
at the reporting date as a result of a past event, it is probable that economic benefit will be
transferred to settle the obligation and the amount of the obligation can be estimated reliably.

Onerous contract provisions are recognised when there are unavoidable costs of meeting the
obligations specified by a contract and those costs exceed the economic benefits expected to
be received under it. These unavoidable costs reflect either the net cost of exiting from the
contract, or the cost of fulfilling it.

Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date
of the transaction. At the end of each reporting period foreign currency monetary items are
translated at the closing rate of exchange. Non-monetary items that are measured at historical
cost are translated at the rate ruling at the date of the transaction. All differences are charged to
profit or loss.

Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership. All other leases are classified as operating leases.

The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments.

Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on
the remaining balance of the liability.

Leased assets are depreciated in accordance with the
company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be
obtained at the end of the lease term, the asset is depreciated over the lower of the lease term
and its useful life. Operating lease payments are recognised as an expense on a straight line basis
over the lease term.

Kaizen Furniture Makers Limited (Registered number: 02945685)

Notes to the financial statements - continued
For The Year Ended 31st July 2024


2. Accounting policies - continued

Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.

Equity settled share based payments
The company operate an approved enterprise management incentive (EMI) scheme that allows key employees to acquire shares in the Company .The fair value of the employee services, received in exchange for the grant of shares, is measured at the grant date and is recognised as an expense with a corresponding increase in equity. The charge is calculated by the actual market value of the shares at grant of option, or where possible the underlying fair market value at the reporting date, and is expensed to the income statement over the vesting period of the option.

3. Employees and directors

The average number of employees during the year was 36 (2023 - 36 ) .

4. Tangible fixed assets
Fixtures
Leasehold and Computer
improvements fittings equipment Totals
£    £    £    £   
Cost
At 1st August 2023 99,674 523,945 90,607 714,226
Additions 7,798 6,000 47,267 61,065
At 31st July 2024 107,472 529,945 137,874 775,291
Depreciation
At 1st August 2023 85,594 370,776 52,720 509,090
Charge for year 6,932 30,036 30,222 67,190
At 31st July 2024 92,526 400,812 82,942 576,280
Net book value
At 31st July 2024 14,946 129,133 54,932 199,011
At 31st July 2023 14,080 153,169 37,887 205,136

5. Debtors
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors 329,537 397,518
Corporation Tax 76,143 59,751
Other debtors 73,806 29,497
Amounts recoverable on long
term contracts 591,821 29,927
1,071,307 516,693

Kaizen Furniture Makers Limited (Registered number: 02945685)

Notes to the financial statements - continued
For The Year Ended 31st July 2024


5. Debtors - continued
2024 2023
£    £   
Amounts falling due after more than one year:
Amounts recoverable on long
term contracts 99,874 193,042
99,874 193,042

Aggregate amounts 1,171,181 709,735

6. Creditors: amounts falling due within one year
2024 2023
£    £   
Trade creditors 175,306 210,533
Obligations under finance
leases/hire purchase contracts 7,117 20,481
Other tax and social security 37,497 35,165
Other creditors 158,618 114,771
Other loans payable 60,797 57,784
Advance payments on long
term contracts 434,237 283,917
873,572 722,651

7. Creditors: amounts falling due after more than one year
2024 2023
£    £   
Obligations under finance
lease/hire purchase contracts - 7,117
Other loans Payable 13,964 74,761
13,964 81,878

8. Pension commitments

The company makes pension contributions to a defined contribution pension scheme on behalf of the directors and employees. Under these arrangements , the company made defined contributions totalling £135,272 (2023: £55,011). The assets of the scheme are held separately from those of the company and are independently administered.

Kaizen Furniture Makers Limited (Registered number: 02945685)

Notes to the financial statements - continued
For The Year Ended 31st July 2024


9. Finance lease obligations

Included within Creditors falling due within and after one year (note 7 and 8) are obligations under finance leases/hire purchase contracts that are wholly repayable within five years.


2024 2023
£    £   
Obligations under Finance Leases and Hire Purchase contracts
7,117 27,598
Amounts falling due;
Within one year 7,117 20,481
Within two to five years - 7,117
7,117 27,598

10. Borrowings

Included within Creditors falling due within and after one year (note 7 and 8) are other loans that are wholly repayable within five years

20242023
£   £   
Loans wholly repayable within five years

Corona virus business interruption loan (5% Apr - 60 month term)73,522129,126
Other Loan (3.8% interest- 60 month term)1,2393,419
74,761132,545

Within one year59,68857,784
Within two to five years15,07374,761
74,761132,545

11. Operating lease commitments


20242023
£   £   
Total future minimum payments under non-cancellable operating
leases393,845431,486
Amounts falling due;
Within one year96,59581,140
Within two to five years294,966345,270
After five years 2,284-
393,845431,486

Kaizen Furniture Makers Limited (Registered number: 02945685)

Notes to the financial statements - continued
For The Year Ended 31st July 2024


12. Controlling party

The company is controlled by the directors, Mr W F Schilling and Mr A A Wubben.

13. Approved enterprise management incentive (emi ) scheme

An Approved EMI Scheme was introduced on 29/06/2019 to encourage key employees to take a long term interest in the company's future. The share options were offered on the basis that the individual remains in employment of the company for 5 years from the grant date of the shares.The share options issued can only be exercised and their value realised in an exit event ie. a management buyout or trade sale of the business.

On 28/02/2021 and 30/06/2022 the Company issued further tranches of EMI Share options through the scheme to further incentivise key employees, those attaching the same conditions as the 29/06/2019 scheme offering.

During the year ended 31 July 2024, the company recognised a cumulative expense of £21,613 (2023: £11,962) in respect of the employee services received since the grant date .