Hanover Flooring Limited

Registered number

03120403

Report and Financial Statements

30 March 2024

Hanover Flooring Limited
Report and accounts
Contents




Page

Company information	1
Directors' report	2
Statement of directors' responsibilities	3
Strategic report	4
Independent auditor's report	6
Income statement	9
Statement of financial position	10
Statement of changes in equity	11
Notes to the financial statements	12

Hanover Flooring Limited

Company Information

Directors

B Karim

Auditors

Adam & Co Acountancy Ltd

Chartered Certified Accountants

First Floor

1 Edmund Street

Bradford

West Yorkshire

BD5 0BH

Business address

Unit 1A & B

Airedale Business Park

Keighley

West Yorkshire

BD21 4BY

Registered office

c/o Walkers Accountants Ltd

Aireside House, Royd Ings Avenue

Royd Ings Avenue

West Yorkshire

BD21 4BZ

Registered number

03120403

Hanover Flooring Limited
Registered number:		03120403
Directors' Report

The directors present their report and financial statements for the period ended 30 March 2024.

Principal activities
The principal activity of the company during the period was that of the distribution of carpets.

Directors
The following persons served as directors during the period:

	B Karim
	G B Wilding (resigned on 28 June 2024)

Disclosure in the strategic report
The company is required by the Companies Act 2006 to prepare a Strategic Report that includes
a fair review of the company's business during the year and its future developments, of the position
of the company and a description of the principal risks and uncertainties faced by the company.


Disclosure of information to auditors

Each person who was a director at the time this report was approved confirms that:
●	so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
●	he 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 company's auditor is aware of that information.



This report was approved by the board on 26 April 2025 and signed on its behalf.



Batash Karim
Director

Hanover Flooring Limited
Statement of Directors' Responsibilities
for the period from 2 April 2023 to 30 March 2024

The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 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 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 and then apply them consistently;
●	make judgements and estimates that are reasonable and prudent;
●	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
●	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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Hanover Flooring Limited
Strategic Report

Business review
The company's principle activity contrinued to be that of The principal activity of the company during the period was that of the distribution of carpets. The company has performed well against a backdrop of a highly competitive but uncertain UK market for the 12 months ending 30 March 2024.


Gross Margin has fallen by 12 percentage point impacted by the war in Ukraine and inflation
which the company was unable to pass onto their customers.
Due to the factors highlighted above impacting revenue and margin in the period, the Company
reported a loss after tax of £3,739,846 compared to a loss after tax of £3,103,967 in the prior year.
The company focuses on supplying high quality products backed up by a quality service.

Principle risk and uncertainties
The directors of the Company identifies and monitors principal risks and uncertainties on an ongoing basis. These include: Inflation The issues surrounding inflation have the capacity to impact companies' earnings by interrupting supply chains, workforce sustainability, demand and rising interest costs. The Company is well positioned to manage this risk and uncertainty. Nonetheless, in the event of lower demand for a period the Company is well placed to manage this with a motivated sales force and a resilient balance sheet. Competition The Company operates in mature and highly competitive markets, resulting in pressure on pricing and margins. Management regularly review competitor activity to devise strategies to protect the Company’s position as far as possible. Economic conditions The operating and financial performance of the Company is influenced by specific economic conditions within the geographic areas within which it operates, in particular the UK. The Company remains focused on driving efficiency improvements to adapt to the current market conditions. Key input prices Material adverse changes in energy prices and in certain raw material prices could affect the Company’s profitability. Key prices are monitored and appropriate action taken if deemed necessary. Other operational risks In common with many businesses, sustainability of the Company’s performance is subject to a number of operational risks, including major incidents that may interrupt planned production, cyber security breaches and the recruitment and retention of key employees. These risks are monitored by the defectors and appropriate mitigating actions taken. Credit Risk The company's main financial assets are trade and other receivables. Credit risk is primarily targeted at trade receivables. Prior to giving credit terms all new customers have to pay in cash, once a relationship is established credit terms are agreed. Credit terms and payment history are reviewed constantly, and action taken early to minimise risk of non-payment. The amounts presented in the accounts are net of any provision for doubtful debts and expected credit losses. The risk is spread widely over many customers.
Liquidity Risk
Liquidity risk arises from the company's management of working capital. It is the risk that the company will
encounter difficulty in meeting its financial obligations as they fall due. To achieve this, the company constantly
monitors its cash position to ensure its obligations can be met within its agreed bank facilities. The directors
monitor the cash position. At the period end date, they believe that the company will have sufficient liquid
resources to meet its obligations under all reasonably expected circumstances.
Currency Risk
The company has little foreign currency income and as many purchases as possible are made in sterling.
However, this is not always possible, therefore the Company does purchase goods in Euros and US Dollars.
There is exposure to fluctuation in those currencies.
The Company generally buys the currencies at the spot rate but constantly review this policy and would, if it
found it beneficial, cover with forward exchange contracts.
Future Developments
The company continues to invest in products to ensure that its ranges meet the needs and demands
of our customers. The company remains well invested in modern plant and equipment.
Environment
The company recognises the importance of its environmental responsibilities, monitors its impact on
the environment, and designs and implements policies to reduce any damage that might be caused
by the company's activities.
Employees
Details of the number of employees and related cost can be found in note 4.
Applications for employment by disabled persons are always fully considered, bearing in mind the
aptitudes of the applicant concerned.
In the event of members of staff becoming disabled every effort is made to ensure that their
employment with the company continues and that appropriate training is arranged. It is the policy
of the company that the training, career development and promotion of the disabled person should,
as far as possible, be identical to that of other employees.
The company operates policies and practices to keep employees informed on matters relevant
to them as employees through regular meetings and newsletters. Employee representatives are
consulted regularly on a wide range of matters affecting their interests.


This report was approved by the board on 26 April 2025 and signed on its behalf.
Batash Karim
Director

Hanover Flooring Limited
Independent auditor's report
to the member of Hanover Flooring Limited

Opinion

We have audited the financial statements of Hanover Flooring Limited (the 'company') for the period ended 30 March 2024 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, including 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 the 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 30 March 2024 and of its loss for the period then ended;
●	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
●	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 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. However, this is the company's first audited financial statements and the corresponding (2023) period was not audited.

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.

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 report. 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. 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.

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 strategic report and the directors’ report for the financial period 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, 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.

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.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We designed 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: * Review of systems and procedures in place * Sampling records and *Analytical review. We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures response to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing the risks or material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations we considered the following; • The nature of the company, the environment in which it operates and the control procedures implemented by management/directors; and • Our enquiries of management about their identification and assessment of the risks of irregularities. Based on our understanding of the company and the sector we identified that the principal risks of non compliance with laws and regulations related to, but were not limited to; • Regulations and legislation pertinent to the company’s operations; We considered the extent to which non-compliance might have a material impact on the financial statements. We also considered those laws and regulations which have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and Taxation Act. We evaluated management and directors’ incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of management override of controls), and determined that the principal risks were related to; • Posting inappropriate journal entries. Audit response to the risks entified; Our procedures to respond to the risks identified included the following; • Gaining an understanding of the legal and regulatory framework applicable to the company and the sector in which it operates; • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; • Enquiring of management concerning actual and potential litigation and claims; • Reading minutes of meetings of those charged with governance; • In addressing the risk of fraud as a result of management override of controls, testing the appropriateness of journal entries and other adjustments; evaluating rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.


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 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.


Shahbaz Munir
(Senior Statutory Auditor)		First Floor
for and on behalf of		1 Edmund Street
Adam & Co Acountancy Ltd		Bradford
Statutory Auditor		West Yorkshire
26 April 2025		BD5 0BH

Hanover Flooring Limited
Income Statement
for the period from 2 April 2023 to 30 March 2024


Notes		2024		2023
£			£

Turnover	2	20,202,255		18,905,077

Cost of sales		(16,342,601)		(13,094,484)

Gross profit		3,859,654		5,810,593

Administrative expenses		(7,318,404)		(7,978,405)
Other operating income		16,475		-

Operating loss	3	(3,442,275)		(2,167,812)

Loss on the disposal of assets/ investments		(39,482)		(23,285)

Interest payable	6	(635,422)		(457,973)

Loss on ordinary activities before taxation		(4,117,179)		(2,649,070)

Tax on loss on ordinary activities	7	186,736		(454,897)

Loss for the period		(3,930,443)		(3,103,967)

Hanover Flooring Limited
Statement of Financial Position
as at 30 March 2024

Notes			2024			2023
£				£
Fixed assets
Intangible assets	8		3,151,279			4,284,613
Tangible assets	9		3,890,696			4,445,940
			7,041,975			8,730,553

Current assets
Stocks	10	6,641,010			6,109,615
Debtors	11	5,140,487			6,284,234
Cash at bank and in hand		299,471			799,616
		12,080,968			13,193,465

Creditors: amounts falling due within one year	12	(11,047,635)			(10,639,820)

Net current assets			1,033,333			2,553,645

Total assets less current liabilities			8,075,308			11,284,198

Creditors: amounts falling due after more than one year	13		(13,873,244)			(12,684,362)

Provisions for liabilities
Deferred taxation	15		(525,284)			(992,613)

Net liabilities			(6,323,220)			(2,392,777)

Capital and reserves
Called up share capital	16		1			1
Profit and loss account	17		(6,323,221)			(2,392,778)

Total equity			(6,323,220)			(2,392,777)




Batash Karim
Director
Approved by the board on 26 April 2025

Hanover Flooring Limited
Statement of Changes in Equity
for the period from 2 April 2023 to 30 March 2024

Share		Share		Other		Profit		Total
capital		premium		reserves		and loss
account
£		£		£		£		£

At 2 April 2022	1		-		-		711,189		711,190

Loss for the financial year							(3,103,967)		(3,103,967)


At 1 April 2023	1		-		-		(2,392,778)		(2,392,777)



At 2 April 2023	1		-		-		(2,392,778)		(2,392,777)

Loss for the period							(3,930,443)		(3,930,443)


At 30 March 2024	1		-		-		(6,323,221)		(6,323,220)

Hanover Flooring Limited
Notes to the Accounts
for the period from 2 April 2023 to 30 March 2024

1	Summary of significant accounting policies

	Basis of preparation
	The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
	The company's ultimate parent undertaking, Victoria PLC includes the company in its consolidated
	financial statements.
	The consolidated financial statements are prepared in accordance with UK- adopted international
	accounting standards and are available to the public and made be obtained from the company's
	registered address.

	The company has taken advantage of the following disclosure exemptions in preparing these
	financial statements, as permitted by FRS 102 , "Reduced Disclosure Frame Work
	for smaller companies and subsidiaries.

	* the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in
	accounting estimates and errors.
	* the requirements of IAS 7 Statement of Cash Flows.
	* the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures.
	* the requirements in IAS 24 Related Party Disclosures to disclose related party transactions
	entered into between two or more members of a group.

	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.

	Intangible fixed assets
	Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
	Customer relationships and trade names
	Intangible assets acquired in a business combination and recognised separately from goodwill
	are initially recognised at their fair value at the acquisition date, which is regarded as their costs.
	Subsequent to the initial recognition, intangible assets acquired in a business combination are
	reported at cost less accumulated amortisation and accumulated impairment losses, on the
	same basis as the tangible assets that are acquired separately.

	Amortisation is charged to the income statement on a straight-line basis over the estimated
	useful lives of intangible assets.

	The estimated useful economic life of customer relationships is 6 years. Trade names is 5years.

	Tangible fixed assets

	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative 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:

	Leaseholds			over the terms of the lease
	Plant and machinery			over 10-15 years
	Computer equipment and samples			over 3 years

	Motor vehicles			over 5 years

	Investments and financial assets

	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. Unless otherwise indicated, the carrying amount of the Company's financial assets are a reasonable approximation of their fair values. The company derecognises a financial assets only when the contractual rights to the cash flow from the assets expire; or it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Assets held at amortised cost . These assets are non-derivative financial assets with a fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables) and deposits held at banks but may incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to the acquisition or issue and subsequently carried at amortised cost as reduced by appropriate allowances for estimated unrecoverable amounts. The effect of discounting on these financial instruments is not considered material. The Company makes use of a simplified approach to accounting for trade and other receivables and records the loss allowance as lifetime expected credit losses. These expected shortfalls in contractual cash flows, considering the potential for default at any point during the lifetime of the financial instrument. The Company uses its historical experience, external indicators and forward-looking information to calculate expected credit loss using a provision matrix. The Company oversees impairment of trade receivables on a collective basis as they possess shared credit risk characteristics and they have been grouped on the number of days overdue. Assets held at amortised cost in the company includes loans issued to other group companies. They are initially recognised at fair value less transaction costs that are directly attributable and subsequently at amortised cost reduced by appropriate allowance for credit losses. For loans with other group companies that are repayable on demand, expected credit losses are based on the assumption that repayment of the loan is demanded at the reporting date in accordance with IFRS 9. For other loans with group companies where the credit risk is deemed to be low a 12-month expected credit loss is recognised in accordance with IFRS 9.

	Financial liabilities
	The company classifies its financial liabilities into two categories depending on the purpose for
	which the liability was incurred.
	Unless otherwise indicated, the carrying amounts of the Company's financial liabilities are a
	reasonable approximation of their fair values.
	The Company derecognises financial liabilities when, and only when, the Company's obligations
	are discharged, cancelled or they expire.
	Financial liabilities measured at amortised cost. These liabilities include the following items:
	* Trade payables and other short term monetary liabilities, which are initially recognised at
	fair value and subsequently carried at amortised cost.
	* Bank borrowing and amounts due to parent company are initially recognised at fair value bet
	of any transaction costs directly attributable to the issue of the instrument. Such interest bearing
	liabilities are subsequently measured at amortised cost. Interest is recognised as a
	finance expense in the income statement.

	Stocks
	Stocks are measured at the lower of cost and estimated selling price less costs to complete
	complete and sell. Cost is determined using the first in first out method. The carrying amount of
	stock sold is recognised as an expense in the period in which the related revenue is recognised.




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

	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. 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 are not 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.

	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.


	Pensions
	Contributions to defined contribution plans are expensed in the period to which they relate.
	The assets of the scheme are held separately from those of the company in independently
	administered funds.
	During the year £3,672 (2023: £nil) has been charged to the profit and loss account
	in respect of pension contributions. Contributions totalling £882 (2023: £nil) were
	payable to the fund at the reporting date and are included in creditors.

	Cash and cash equivalents
	Cash comprises cash on hand and demand deposits which is presented as cash at bank
	and in hand in the statement of financial position.

	Acquisition Accounting
	Acquisitions are accounted for using the acquisition method as at the acquisition date, which is
	the date on which control is transferred to the company.
	The consideration transferred for the acquisition of the business is the fair value of the assets
	transferred, the liabilities incurred and the equity interest issued by the company.
	The consideration transferred includes the fair value of any asset or liability resulting from a
	contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent
	liabilities in the business acquisition are measured at their fair values at their acquisition date.
	Goodwill is measures at the acquisition date as fair value of the consideration transferred
	less net recognised amount of the identifiable assets acquired and liabilities assumed.
	Cost related to the acquisition, other than those associated with the issue of debt or equity
	are expensed as incurred.
	If the contingent consideration is classified as equity, it is not remeasured and settlement
	is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent
	consideration are recognised in the profit and loss.

	Acquisition related performance plan charges
	The acquisition of the trade and assets of Hanover Flooring Limited included an element of
	consideration, known as an earn-out, that is contingent on the financial performance of the
	business meeting pre-determined targets over a specified period. As the earn-out is also
	contingent on the continued employment of the seller following the acquisition,
	this is them treated as a remuneration cost, accrued over the earn-out period into an
	acquisition-related performance plan liability.

	Going concern
	The directors have, at the time of approving the financial statements, a reasonable expectation
	that the Company has adequate resources to continue in operational existence for the
	foreseeable future.
	In reaching that their conclusion, the directors have consider their current trading information
	and their cashflow projections. The company expects to maintain a significant liquid balance as
	demonstrated by the financial statements at the year end.The company therefore continues
	to adopt the going concern basis in preparing it financial statements.


2	Analysis of turnover					2024		2023
£							£

	Sale of goods					20,202,255		18,905,077

	By geographical market:
	UK					20,202,255		18,905,077


3	Operating loss is stated after:					2024		2023
£							£

	Depreciation of owned fixed assets					359,577		639,917
	Amortisation of goodwill					311,606		825,256
	Accountancy and audit fees					84,874		93,567
	Cost of sales					16,342,601		13,094,484


4	Directors' emoluments					2024		2023
£							£
	Directors' pension contributions					229		-
	Directors' remuneration and provisions					4,266,652		4,266,652


5	Staff costs					2024		2023
£							£

	Wages and salaries (including directors)					4,648,809		4,513,018
	Social security costs					37,704		25,590
	Other pension costs					3,671		-
						4,690,184		4,538,608


	Average number of employees during the year					Number	Number

	Management 2024: 1 (2023: 1) and Sales 2024: 20 (2023: 17)					21		18
	Average number of persons employed by the company					21		18


6	Interest payable					2024		2023
£							£

	Bank interest					14,631		(4,670)
	Interest payable on right of use liabilities and intercompany loans					620,791		462,643
						635,422		457,973


7	Taxation					2024		2023
£							£
	Analysis of charge in period
	Current tax:
	Current period charge					280,262		619,249
	Adjustments in respect of prior periods					331		182,154

						280,593		801,403

	Deferred tax:
	Current period charge					(260,178)		(276,058)
	Adjustments in respect of prior periods					(207,151)		(70,448)
						(467,329)		(346,506)

	Tax on (loss)/profit on ordinary activities					(186,736)		454,897


	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
						2024		2023
£							£
	Loss on ordinary activities before tax					(4,117,179)		(2,649,070)

	Standard rate of corporation tax in the UK					25%		19%

£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					(1,029,295)		(503,323)

	Effects of:
	Expenses not deductible for tax purposes					1,049,379		912,960
	Effect of tax rate changes on deferred tax amounts					-		(66,254)
	Adjustments in respect of prior periods					(206,820)		111,706
	Income not taxable							(192)
	Current tax charge for period					(186,736)		454,897




8	Intangible fixed assets							£
	Goodwill etc:

	Cost
	At 2 April 2023							6,750,000
	At 30 March 2024							6,750,000

	Amortisation
	At 2 April 2023							2,465,387
	Provided during the period							1,133,334
	At 30 March 2024							3,598,721

	Carrying amount
	At 30 March 2024							3,151,279
	At 1 April 2023							4,284,613

	Goodwill is being written off in equal annual instalments over its estimated economic life.



9	Tangible fixed assets
		Leases: Right of use fixed assets		Plant and machinery		Motor Vehicles
£			£		£
	Cost or valuation
	At 2 April 2023	4,198,213		899,761		97,313
	Additions	-		32,143		27,000
	Revaluation	-		-		-
	Transfers from investment property	-		-		-
	Disposals	(267,488)		-		(70,646)
	At 30 March 2024	3,930,725		931,904		53,667

	Depreciation
	At 2 April 2023	610,663		138,992		30,803
	Charge for the period	236,289		70,066		13,866
	Revaluation	-		-		-
	Transfers from investment property	-		-		-
	On disposals	-		-		(25,072)
	At 30 March 2024	846,952		209,058		19,597

	Carrying amount
	At 30 March 2024	3,083,773		722,846		34,070
	At 1 April 2023	3,587,550		760,769		66,510

		Computer equipment and samples						Total
£			£
	Cost or valuation
	At 2 April 2023	74,267						5,269,554
	Additions	59,953						119,096
	Disposals	-						(338,134)
	At 30 March 2024	134,220						5,050,516

	Depreciation
	At 2 April 2023	43,156						823,614
	Charge for the period	41,057						361,278
	On disposals	-						(25,072)
	At 30 March 2024	84,213						1,159,820

	Carrying amount
	At 30 March 2024	50,007						3,890,696
	At 1 April 2023	31,111						4,445,940



10	Stocks					2024		2023
£							£

	Raw materials & finished goods					6,641,010		6,109,615


11	Debtors					2024		2023
£							£

	Trade debtors					4,390,277		6,055,735
	VAT					76,920		-
	Other debtors					550,038		93,698
	Prepayments and accrued income					123,252		134,801
						5,140,487		6,284,234


12	Creditors: amounts falling due within one year					2024		2023
£							£

	Obligations under finance lease and hire purchase contracts					273,663		721,270
	Trade creditors					1,590,451		1,740,591
	Amounts owed to group undertakings					445,754		801,403
	Corporation tax					1,220,939		-
	Other taxes and social security costs					5,522		482,045
	Deferred consideration					2,676,023		2,676,023
	Acquisition related performance plan liability					4,166,666		4,166,666
	Accrued expenses					668,151		48,412
	Other creditors					466		3,410
						11,047,635		10,639,820


13	Creditors: amounts falling due after one year					2024		2023
£							£

	Obligations under finance lease and hire purchase contracts					3,624,366		3,889,863
	Amounts owed to group undertakings					9,093,302		5,065,498
	Other taxes and social security costs					1,155,576		3,729,001
						13,873,244		12,684,362


14	Obligations under finance leases and hire purchase					2024		2023
	contracts					£	£

	Amounts payable:
	Within one year					273,663		721,270
	Within two to five years					3,624,366		3,889,863
						3,898,029		4,611,133



15	Provisions for liabilities					2024		2023
£							£

	Deferred taxation					525,284		992,613

						2024		2023
£							£

	At 2 April					992,613		1,339,119
	Credited to the profit and loss account					(260,178)		(276,057)
	Credited to other comprehensive income					(207,151)		(70,449)

	At 30 March					525,284		992,613
	The closing balance comprises:
	Temporary timing differences					£	£
	Intangible fixed assets					787,820		1,071,153
	Tangible fixed assets					49,040		28,995
	Other short-term timing differences					(311,576)		(107,535)

						525,284		992,613


16	Share capital	Nominal		2024		2024		2023
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		1		1		1



17	Reserves: Profit and loss account					2024		2023
£							£

	At 2 April					(2,392,778)		711,189
	Loss for the period					(3,930,443)		(3,103,967)

	At 30 March					(6,323,221)		(2,392,778)


18	Related party transactions

	During the period Victoria PLC was the related party and parent of Hanover Flooring Limited. Victoria PLC declares related parties on it's consolidated accounts.


19	Controlling party

	Victoria PLC is regarded by the directors as being the company's ultimate parent company. The group in which the results of the company are consolidated is headed by the ultimate parent company. The consolidated accounts of Victoria PLC are available from Worcester Six Business Park, Worcester, WR4 0AN.


20	Presentation currency

	The financial statements are presented in Sterling.


21	Events after the reporting period and legal nature of company

	The company was for the current year and prior year period under the control of Victoria Plc, on the 28 June 2024 Victoria Plc disposed to it investment and as a result of this disposal the company is no longer under the control of Victoria Plc. Hanover Flooring Limited is a private company limited by shares and incorporated in England.


22	Principal place of business

	The address of the company's principal place of business and registered office is:

	Unit 1A & B
	Airedale Business Park
	Keighley
	West Yorkshire
	BD21 4BY


23	Reconciliations on adoption of FRS 102

	Profit and loss for the year ended 1 April 2023					£

	Loss under former UK GAAP					(3,103,967)

	Loss under FRS 102					(3,103,967)

	Balance sheet at 1 April 2023					£

	Equity under former UK GAAP					(2,392,777)

	Equity under FRS 102					(2,392,777)