REGISTERED NUMBER: 03975223 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 September 2024

for

JDP Furniture Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

W M Hollis

J D Payne

REGISTERED OFFICE:

Celebrity House

Common Road

Huthwaite

Sutton-In-Ashfield

Nottinghamshire

NG17 2JY

REGISTERED NUMBER:

03975223 (England and Wales)

AUDITORS:

Charnwood Accountants & Business Advisors LLP

Statutory Auditor

The Point

Granite Way

Mountsorrel

Loughborough

Leicestershire

LE12 7TZ

The directors present their strategic report of the company and the group for the year ended 30 September 2024.

The company is a holding company, consolidating the results of the trading subsidiary, Celebrity Motion Furniture Limited, for the year where the principal activity for the Group and the subsidiary is that of a manufacturer of upholstered furniture for sale to the retail trade.

REVIEW OF BUSINESS

The Group's turnover increased by 7.4% during the year to £17.6m (2023 - £16.5m) and gross margins increased to 30.2% (2023 - 27.3%) with demand for motion furniture in particular rising recliners chairs continuing to be strong.

The results were achieved in difficult trading conditions in the post pandemic, which included the continuation of the war in Ukraine, high inflation and interest rates all having an impact on retailer and consumer confidence.

We have maintained strong relationships with our retailers and our suppliers during the year. Celebrity the company has continued to thrive despite the continued impact of economic circumstances on the general economy. We have been very proactive to look at new innovations in our market sector, working closely with retailers to display and present our ranges in the best possible way to work for both parties. Gaining market share in the riser recliner market.

The subsidiary has also contributed towards the settling of the CVA for its parent company JDP Furniture Group and has made payments by way of dividends of £600k in this financial year.

PRINCIPAL RISKS AND UNCERTAINTIES

The process of risk management is applied through a combination of policies, procedures and internal controls. All

policies are subject to board approval and ongoing review by management. Compliance with regulation, legal and

ethical standards are a high priority for the Group to ensure we are able to continue trading. The finance team is

responsible for ensuring that effective internal controls exist to manage the financial risks and that these controls operate effectively for the benefit of the business.

The Group operates in a very price sensitive market. Competitive pressures from UK and overseas manufacturers resulting in a possible loss of business, remains the principal risk for the Group. The Group manages this risk by constantly reappraising its manufacturing and operational costs and by continuing to improve the quality of its products and the speed and reliability of its deliveries and service.

FINANCIAL KEY PERFORMANCE INDICATORS

During the period the Group has reported an increase in turnover by £1,209,613 (2023: £1,479,057) and operating profit has increased by £703,288 (2023: £96,190). Turnover for the Group relates solely to the subsidiary Celebrity Motion Furniture Limited. Further detail in relation to Celebrity Motion Furniture Limited is included in its individual financial statements.

At the balance sheet date the Group has net assets of £1,324,723 (2023 - £198,762).

FINANCIAL INSTRUMENTS

A summary of the Group financial instruments and related disclosures affecting the financial statements are set out in the notes to the accounts. The financial risk management objectives and policies of the entity and its exposure to related risks are covered above.

FUTURE DEVELOPMENTS

The Group will continue to develop its product range and consolidate its position as a leading supplier of upholstered furniture. Investment in equipment, refining internal processes and staff will continue and it is expected that this will lead to an increase in profitability levels and a strong overall financial position going forwards.

ON BEHALF OF THE BOARD:

W M Hollis - Director

3 April 2025

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2024.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

W M Hollis

J D Payne

DISCLOSURE IN THE STRATEGIC REPORT

The Group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Charnwood Accountants & Business Advisors LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

W M Hollis - Director

3 April 2025

Opinion

We have audited the financial statements of JDP Furniture Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2024 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain

sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the

determination of material amounts and disclosures in the Financial Statements, to perform audit procedures to help

identify instances of non-compliance with other laws and regulations that may have a material effect on the Financial

Statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk 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, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs(UK).The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. As such material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment and or collusion.

We obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the Company (and its subsidiary throughout) operate in and how the Company are complying with the legal and regulatory frameworks. Focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, United Kingdom Generally Accepted Accounting Practice, pension legislation and relevant UK tax legislation.

We are not responsible for preventing irregularities. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We identified the laws and regulations applicable to the company through discussions with directors and supervisors of the CVA, and from our commercial knowledge and experience of a manufacturing business;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, supervisors of the CVA and inspecting legal correspondence where applicable;

and

Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

We discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the Financial Statements may be susceptible to fraud, having obtained an understanding of the effectiveness of the control environment.

The engagement partner assessed that the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with applicable laws and regulations.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by evaluating management's incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risk of management override of controls. In assessing the potential risks of material misstatement, we obtained an understanding of the company's operations, including the nature of its income and expenditure together with its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. Also on the company's control environment, including the policies and procedures implemented by the company to ensure compliance with the requirements of the financial reporting framework.

Our audit procedures involved:

The evaluation of the design effectiveness of controls that the company has in place to prevent and detect fraud;

To undertake journal entry testing, with a focus on higher risk journal, such as, posted by senior management, journals with unusual attributes, journals without any descriptions, journals posted by staff not in the approved list of journals posting and closing journals posted during the preparation of the financial statements, which are material and not reoccurring or common postings which fall outside of the auditor's expectations. Together with assessing whether the judgments made in making accounting estimates, set out in Note 2, are indicative of a potential bias, in particular the carrying value of stocks, and investigated the rationale behind significant or unusual transactions identified.

In response to the risk of irregularities and non-compliance with laws and regulations our procedures included, but

were not limited to;

Agreeing financial statement disclosures to underlying supporting documentation;

Enquiring of management as to actual and potential litigation and claims against the parent or subsidiary company;

Enquiring of supervisors of the CVA for JDP Furniture Group Limited;

Completing a review of relevant legal and professional costs within the accounting records for any evidence of

previously un-detected or un-reported instances of non-compliance.

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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Christopher David Hutton FCCA (Senior Statutory Auditor)

for and on behalf of Charnwood Accountants & Business Advisors LLP

Statutory Auditor

The Point

Granite Way

Mountsorrel

Loughborough

Leicestershire

LE12 7TZ

3 April 2025

TURNOVER

3

17,634,417

16,424,804

Cost of sales

12,313,731

11,940,886

GROSS PROFIT

5,320,686

4,483,918

Distribution costs

1,915,569

1,811,588

Administrative expenses

2,223,767

2,194,268

4,139,336

4,005,856

OPERATING PROFIT

5

1,181,350

478,062

Interest receivable and similar income

985

1,088

PROFIT BEFORE TAXATION

1,182,335

479,150

Tax on profit

6

56,373

(137,944

)

PROFIT FOR THE FINANCIAL YEAR

1,125,962

617,094

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,125,962

617,094

Profit attributable to:

Owners of the parent

1,125,962

617,094

Total comprehensive income attributable to:

Owners of the parent

1,125,962

617,094

FIXED ASSETS

Tangible assets

8

64,613

93,285

Investments

9

-

-

64,613

93,285

CURRENT ASSETS

Stocks

10

2,068,389

2,053,508

Debtors

11

2,947,365

2,388,464

Cash at bank and in hand

149,997

158,690

5,165,751

4,600,662

CREDITORS

Amounts falling due within one year

12

3,008,641

3,040,317

NET CURRENT ASSETS

2,157,110

1,560,345

TOTAL ASSETS LESS CURRENT LIABILITIES

2,221,723

1,653,630

CREDITORS

Amounts falling due after more than one year

13

897,000

1,454,868

NET ASSETS

1,324,723

198,762

CAPITAL AND RESERVES

Called up share capital

18

800,006

800,006

Retained earnings

19

524,717

(601,244

)

SHAREHOLDERS' FUNDS

1,324,723

198,762

The financial statements were approved by the Board of Directors and authorised for issue on 3 April 2025 and were signed on its behalf by:

W M Hollis - Director

FIXED ASSETS

Tangible assets

8

-

-

Investments

9

1

1

1

1

CURRENT ASSETS

Debtors

11

150,000

5,037

Cash at bank

130,915

26,098

280,915

31,135

CREDITORS

Amounts falling due within one year

12

683,282

1,636,107

NET CURRENT LIABILITIES

(402,367

)

(1,604,972

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(402,366

)

(1,604,971

)

CREDITORS

Amounts falling due after more than one year

13

1,853,194

1,454,868

NET LIABILITIES

(2,255,560

)

(3,059,839

)

CAPITAL AND RESERVES

Called up share capital

18

800,006

800,006

Retained earnings

19

(3,055,566

)

(3,859,845

)

SHAREHOLDERS' FUNDS

(2,255,560

)

(3,059,839

)

Company's profit for the financial year

804,279

159,971

The financial statements were approved by the Board of Directors and authorised for issue on 3 April 2025 and were signed on its behalf by:

W M Hollis - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2022

800,006

(1,218,338

)

(418,332

)

Changes in equity

Total comprehensive income

-

617,094

617,094

Balance at 30 September 2023

800,006

(601,244

)

198,762

Changes in equity

Total comprehensive income

-

1,125,962

1,125,962

Balance at 30 September 2024

800,006

524,718

1,324,724

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2022

800,006

(4,019,816

)

(3,219,810

)

Changes in equity

Total comprehensive income

-

159,971

159,971

Balance at 30 September 2023

800,006

(3,859,845

)

(3,059,839

)

Changes in equity

Total comprehensive income

-

804,279

804,279

Balance at 30 September 2024

800,006

(3,055,566

)

(2,255,560

)

Cash flows from operating activities

Cash generated from operations

1

120,772

955,863

Tax paid

-

32,468

Net cash from operating activities

120,772

988,331

Cash flows from investing activities

Purchase of tangible fixed assets

(48,125

)

(2,793

)

Interest received

985

1,088

Net cash from investing activities

(47,140

)

(1,705

)

Cash flows from financing activities

Movements on invoice discounting

(82,325

)

(946,464

)

Net cash from financing activities

(82,325

)

(946,464

)

(Decrease)/increase in cash and cash equivalents

(8,693

)

40,162

Cash and cash equivalents at beginning of year

2

158,690

118,528

Cash and cash equivalents at end of year

2

149,997

158,690

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.9.24

30.9.23

£

£

Profit before taxation

1,182,335

479,150

Depreciation charges

76,797

98,299

Finance income

(985

)

(1,088

)

1,258,147

576,361

Increase in stocks

(14,881

)

(47,062

)

(Increase)/decrease in trade and other debtors

(615,274

)

369,383

(Decrease)/increase in trade and other creditors

(507,220

)

57,181

Cash generated from operations

120,772

955,863

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

149,997

158,690

Year ended 30 September 2023

30.9.23

1.10.22

£

£

Cash and cash equivalents

158,690

118,528

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.23

Cash flow

At 30.9.24

£

£

£

Net cash

Cash at bank and in hand

158,690

(8,693

)

149,997

158,690

(8,693

)

149,997

Debt

Debts falling due within 1 year

(758,261

)

82,325

(675,936

)

Debts falling due after 1 year

(1,454,868

)

557,868

(897,000

)

(2,213,129

)

640,193

(1,572,936

)

Total

(2,054,439

)

631,500

(1,422,939

)

1.	STATUTORY INFORMATION

JDP Furniture Group Limited 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 General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

JDP Furniture Group Limited (the 'company') is a private company and its subsidiary undertakings (the 'group') are limited liability companies incorporated and domiciled in the United Kingdom. All group companies are limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The nature of the company's operations and its principal activities are set out in the Strategic Report.

The financial statements are prepared in Sterling (£), which is the functional currency of the company. The financial statements are for the period of 52 weeks ending 29 September 2024 (2023: 52 weeks ending 01 October 2023).

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" and the Companies Act 2006 and under the provision of The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The financial statements have been prepared on a going concern basis under the historical cost convention.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed the notes below.

These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

On 2 April 2020, JDP Furniture Group Limited and its trading subsidiary companies entered into administration in an attempt to preserve the group and secure the future of the companies. The administration ended on 17 August 2022.

On 22 June 2022, JDP Furniture Group Limited entered into a Company Voluntary Arrangement (CVA) with its creditors to rescue the company as a going concern.

Under the CVA, the company will make monthly contributions to the Supervisors of the CVA. It will

run for up to 5 years with minimum contributions of £2,925,000 to be paid starting from the date of entering the CVA in June 2022. The amount of monthly contributions increases over the 5 year period to enable the company to work within its cash flow constraints. If it were the case of the company is unable to meet the conditions of the CVA, including but not only the cash contributions, then at the discretion of the Supervisors an amount of time may be given to remedy the breach. Where the breach has not remedied, the Supervisors will then decide whether to terminate the agreement, vary the agreement or petition for the winding up of the company.

As a result, at the time of approving these financial statements, the group has CVA liabilities

outstanding of £1,935,000 included within other creditors. JDP Furniture Group Limited has been compliant with the CVA repayments required in the year.

At the balance sheet date, the group has net assets of £1,324,723 and the company has net liabilities of £2,255,560. The company is reliant on the ongoing trading position of its remaining trading subsidiary, Celebrity Motion Furniture Limited, which has continued to trade profitably since the period end.

In conclusion, at the time of signing these financial statements, the directors have considered the

company's ability to meet its liabilities as they fall due and have concluded that, as a result of the

trading prospects of the company's trading subsidiary, Celebrity Motion Furniture Limited, the

company will continue to trade for a period of 12 months from the date of signing these financial

statements.

On that basis, the directors have prepared these financial statements on a going concern basis.

Basis of consolidation

The consolidated financial statements incorporate the assets, liabilities and results of the Company and its

subsidiary undertakings controlled by the group up to 30 September each year.

Subsidiary undertakings are fully consolidated from the date on which control is transferred to the Group.

Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The consolidated financial statements incorporate the results of business combinations using the equity accounting method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit & loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

The financial statements of all subsidiary undertakings are prepared to the same reporting date as the Company. All subsidiary undertakings have been consolidated.

The principal subsidiary undertakings of the Company at 30 September each year are detailed in the notes to the Company balance sheet. Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are

eliminated on consolidation.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group's accounting policies, which are described in the accounting policies below,

management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 periods if the revision affects both current and future periods.

Judgements

In preparing these financial statements, the directors have made the following key judgements that have a

significant effect on the amounts recognised in the financial statements as described below.

- Determine whether there are indicators of impairment of the Group's tangible and intangible assets along with residual values and asset lives. The residual value is the net realisable value of an asset at the end of its useful economic life. The Group has made an assessment of the residual values that are appropriate for the business and reviews this assessment annually.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

a) Establishing useful economic lives for depreciation purposes of property, plant and equipment

Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant portion of the

total assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The director and senior management team regularly review these asset useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful economic lives is included in the tangible fixed asset accounting policy.

b) Stock provisioning

At each reporting date judgement is used by management to establish the net realisable value of stock. Provisions are established for net realisable value where appropriate and are made are based on facts available at the time. The level of provision required is reviewed on an on-going basis.

In arriving at an estimate for the net realisable value of stock, judgement is required in assessing their likely

value on realisation taking into account market and technological changes associated with the demand for the product line.

c) Warranty provisions

We provide maintenance on our products during the warranty period, usually for up to five years. Costs of

warranty include the cost of material, labour and related overhead necessary to repair a product during the

warranty period. We accrue for these estimated costs of warranty upon recognition of the sale of the product. The costs are estimated based on actual historical expenses incurred, and are reviewed periodically. Actual warranty costs are recognised against the provision for warranty. The actual warranty costs may differ from estimated warranty costs, and we adjust our provision for warranty accordingly. The director and management are aware that future warranty costs may exceed these estimates, which if an adverse variance could result in an increase of cost of sales.

d) Other provisions

A provision is recognised when the group has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably measured.

Whether a present obligation is probable or not requires judgement. The nature and type of risks for these

provisions differ and directors judgement is applied regarding the nature and extent of obligations in

deciding if an outflow of resources is probable or not.

Revenue recognition

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

Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to customers during the year.

Revenue is recognised when the significant risks and rewards of the goods or services provided have transferred to the buyer, the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the company.

Revenue is measured at the fair value of the consideration receivable from the sale of goods and services to third parties. Revenue may include duties which the company pays as principal, but excludes amounts collected on behalf of other parties, such as value added tax or other sales taxes.

Revenue of the company comprises the following key streams:

Sale of goods

Sales of goods are recognised on sale to the customer, which is considered the point of delivery. Delivery occurs when the goods have been shipped to the location specified by the customer, the risks of obsolescence or loss have been transferred to the customer, the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed or the company has objective evidence that all criteria for acceptance have been satisfied.

Dividend income - company only

Dividend income is recognised when the right to receive payment is established.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

10% on cost

Plant and machinery

-

15% on cost

Fixtures and fittings

-

25% on cost, 20% on cost and 15% on cost

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.

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

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each

reporting period. The effect of any change is accounted for prospectively.

At each balance sheet date, the company reviews the carrying amounts of its tangible fixed assets to

determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Any impairment loss is recognised as an expense in the profit and loss account immediately.

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.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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 and includes expenditure incurred in acquiring stock, production or conversion costs, and other costs incurred in bringing them to their existing location and condition. Stocks are recognised as an expense in the period in which the related revenue is recognised.

Cost for raw materials and consumables are at the purchase cost to the company. Cost for Work in progress and finished goods includes all direct expenditure. The cost of work in progress and finished goods includes

production overheads and the attributable proportion of indirect overheads based on the normal level of activity.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price, in the ordinary course of business, less costs to complete and sell. The impairment provision is determined primarily by future demand forecasts. The write down is measured as the difference between the calculated cost of the stock and market based upon assumptions about future demand and charged to the provision for stock, which is a component of cost of sales. Any impairment loss is recognised as an expense in the profit and loss account immediately.