Company registration number 01908943 (England and Wales)
DAVID LINLEY & CO LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
DAVID LINLEY & CO LIMITED
CONTENTS
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 14
DAVID LINLEY & CO LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr K S Blumenthal
Mr R S Southwell
Mr D C M Huat
Company number
01908943
Registered office
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
Accountants
TC Group
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
DAVID LINLEY & CO LIMITED
BALANCE SHEET
- 2 -
30 June 2024
25 June 2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
266,772
293,439
Tangible assets
4
3,590,807
3,718,615
Investments
5
100
100
3,857,679
4,012,154
Current assets
Stocks
1,678,560
2,245,498
Debtors
6
2,243,921
2,975,260
Cash at bank and in hand
277,634
168,325
4,200,115
5,389,083
Creditors: amounts falling due within one year
7
(6,172,183)
(6,635,803)
Net current liabilities
(1,972,068)
(1,246,720)
Total assets less current liabilities
1,885,611
2,765,434
Provisions for liabilities
(123,017)
(137,368)
Net assets
1,762,594
2,628,066
Capital and reserves
Called up share capital
8
550,000
550,000
Revaluation reserve
9
1,855,733
1,855,733
Profit and loss reserves
10
(643,139)
222,333
Total equity
1,762,594
2,628,066
DAVID LINLEY & CO LIMITED
BALANCE SHEET (CONTINUED)
- 3 -
For the financial period ended 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
Mr K S Blumenthal
Director
Company registration number 01908943 (England and Wales)
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024
- 4 -
1
Accounting policies
Company information
David Linley & Co Limited (01908943) is a private company limited by shares incorporated in England and Wales. The registered office is The Courtyard, Shoreham Road, Upper Beeding, Steyning, West Sussex, BN44 3TN. The place of business is 60 Pimlico Rd, Belgravia, London SW1W 8LP.
1.1
Reporting period
The company has prepared financial statements to 30 June 2024 to align with the retail calendar. The result is that the comparative amounts presented in these financial statements are not entirely comparable.
1.2
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 long leasehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 5 -
1.3
Going concern
These financial statements are prepared on the going concern basis. The directors have considered the company's financial position and future prospects and expect that the company will continue in operational existence for the foreseeable future.
In forming their opinion, the board have had regard for the profit and loss, cash flow and balance sheet in conjunction with prospect assessment, leading indicators, projections, indebtedness, receivables, macroeconomic factors, key strategic imperatives and shareholder support.
Enduring geopolitical instability coupled with a more onerous non-domicile tax environment have characterised a landscape that is still recovering from the varied ills of the pandemic, Brexit, abolition of VAT free shopping inter alia – not overly conducive to trade and rather hostile to the LINLEY demographic.
Fortunately there are cohorts who are either unwilling to delay gratification and/or are spending again after exercising restraint. The affluence of our foreign customers in particular have helped to offset the domestic conditions, most notably within our fitted channel but also to an extent in retail. Where our products represent investment in the home and are enduring in nature, enthusiasm is more palpable. Gifting with purpose (personal and corporate led) is also back on the agenda and supporting the retail and bespoke channels. As has always been the case, exquisite and functional product allied to intrinsically valuable services remain abiding principles and key to prevailing whatever the headwinds.
Cost pressure throughout the supply chain has been egregious and overhead inflation has been equally caustic within personnel, IT and in particular within property where lease renewals have led to a recalibration of the status quo. Value for money is vigorously sought even in the luxury domain and counter-accommodations to mitigate against these cost pressures are an ongoing campaign.
The company has now fulfilled its long standing bank debt repayment obligations. Debt servicing funds have since been redirected to pare down non-bank debt and fortify the balance sheet.
As always, the board remains mindful of the ongoing support of shareholders in the event that conditions necessitate further support or reliance.
Having regard for all the forgoing, the directors consider that the company will have sufficient cash to meet its debts as they fall due for the foreseeable future.
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 6 -
1.4
Turnover
Turnover is the amount derived from ordinary activities, and stated after trade discounts, other sales taxes and net of Value Added Tax.
Other income, including investment income, is recognised on an accruals basis.
Retail Sales
Turnover and cost of sales from the retail part of the business are recognised at the later of the point of sale or delivery.
Bespoke Projects
The company offers a bespoke service in which furniture, upholstery, fitted cabinetry and kitchens are
individually designed to meet a customer's own requirements.
For bespoke project, revenue and associated costs of sales are recognised at key milestones. Prior to this, deferred income (payments on account, deposits etc) and associated work-in-progress are held on the balance sheet.
Interior Design
The company is contracted by customers to undertake interior design of private and commercial properties on projects ranging from single rooms to entire residences.
For interior design work, revenue and associated costs of sales are recognised at key milestones. Prior to this, deferred income (payments on account, deposits etc) and associated work-in-progress are held on the balance sheet.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 15 years for cost of investment and 4 years for associated acquisition costs.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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.
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 7 -
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:
Long leasehold
Not depreciated - see below
Fixtures and fittings
15% on reducing balance
Computer equipment
25% on cost
Motor vehicles
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Long leasehold property is held at fair value. A formal independent valuation is carried out every 5 years. Details of the most recent valuation can be found in the notes to these accounts. The directors review the valuation for impairment annually.
The directors review other tangible fixed assets for impairment on an annual basis.
1.7
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks and work in progress 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.
1.9
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.
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 8 -
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 9 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 10 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2023
Number
Number
Total
36
44
3
Intangible fixed assets
Goodwill
£
Cost
At 26 June 2023 and 30 June 2024
461,035
Amortisation and impairment
At 26 June 2023
167,596
Amortisation charged for the period
26,667
At 30 June 2024
194,263
Carrying amount
At 30 June 2024
266,772
At 25 June 2023
293,439
Goodwill above arose on acquisition of 100% of the issued share capital of Keech Green Limited, a company incorporated in England & Wales.
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 11 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 26 June 2023
4,000,000
2,766,871
6,766,871
Additions
12,188
12,188
Disposals
(69,642)
(69,642)
At 30 June 2024
4,000,000
2,709,417
6,709,417
Depreciation and impairment
At 26 June 2023
850,000
2,198,256
3,048,256
Depreciation charged in the period
125,125
125,125
Eliminated in respect of disposals
(54,771)
(54,771)
At 30 June 2024
850,000
2,268,610
3,118,610
Carrying amount
At 30 June 2024
3,150,000
440,807
3,590,807
At 25 June 2023
3,150,000
568,615
3,718,615
The long leasehold property was valued on a market value basis on 31 August 2020 by Cushman & Wakefield at £3,150,000 and revalued in the 28 June 2020 financial statements.
The valuation was carried out in accordance with the Practice Statements of the Royal Institution of Chartered Surveyors' (RICS) Appraisal and Valuation Standards.
The directors are of the opinion that the valuation continues to be relevant at 30 June 2024.
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
100
100
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 12 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
94,604
124,011
Other debtors
2,149,317
2,851,249
2,243,921
2,975,260
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
1,430,000
1,850,000
Trade creditors
1,033,234
1,193,283
Taxation and social security
887,210
870,204
Other creditors
2,821,739
2,722,316
6,172,183
6,635,803
8
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
550,000 Ordinary of £1 each
550,000
550,000
550,000
550,000
Each £1 Ordinary share carries equal voting rights and has no restrictions on the distribution of dividends and the repayment of capital.
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 13 -
9
Fair value reserve
The fair value reserve represents the surplus created when company assets are revalued. The transfer from the retained earnings reserve to the fair value reserve is in respect of deferred tax movement on leasehold property.
10
Profit and loss reserves
Retained earnings are earnings retained by the company to be reinvested in its core business, or to pay debt.
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
3,951,000
4,159,000
DAVID LINLEY & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 14 -
12
Related party transactions
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose certain related party transactions with wholly owned subsidiaries within the group.
13
Parent company
Overture Investments Limited (registered in Guernsey, number 53242) is regarded by the directors as being the company's ultimate parent company.
The largest group of which the company is a member for which group accounts are drawn up is controlled by David Linley Holdings Limited, a company incorporated in England & Wales (registered number - 02185529). The shareholders of David Linley Holdings Limited have the power to amend the financial statements after issue.
M Razak, who has a controlling interest in Overture Investments Limited, is regarded by the directors as the ultimate controlling party.
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