Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-312024-12-31falsetruetruetruetruefalse2024-01-01No description of principal activity4650truefalse 06448915 2024-01-01 2024-12-31 06448915 2023-01-01 2023-12-31 06448915 2024-12-31 06448915 2023-12-31 06448915 2 2024-01-01 2024-12-31 06448915 2 2023-01-01 2023-12-31 06448915 5 2024-01-01 2024-12-31 06448915 5 2023-01-01 2023-12-31 06448915 1 2024-01-01 2024-12-31 06448915 e:CompanySecretary1 2024-01-01 2024-12-31 06448915 e:Director2 2024-01-01 2024-12-31 06448915 e:Director2 2024-12-31 06448915 e:Director5 2024-01-01 2024-12-31 06448915 e:Director5 2024-12-31 06448915 e:Director6 2024-01-01 2024-12-31 06448915 e:Director7 2024-01-01 2024-12-31 06448915 e:Director8 2024-01-01 2024-12-31 06448915 e:RegisteredOffice 2024-01-01 2024-12-31 06448915 d:PlantMachinery 2024-01-01 2024-12-31 06448915 d:PlantMachinery 2024-12-31 06448915 d:PlantMachinery 2023-12-31 06448915 d:PlantMachinery d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 06448915 d:MotorVehicles 2024-01-01 2024-12-31 06448915 d:MotorVehicles 2024-12-31 06448915 d:MotorVehicles 2023-12-31 06448915 d:MotorVehicles d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 06448915 d:FurnitureFittings 2024-01-01 2024-12-31 06448915 d:FurnitureFittings 2024-12-31 06448915 d:FurnitureFittings 2023-12-31 06448915 d:FurnitureFittings d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 06448915 d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 06448915 d:CurrentFinancialInstruments 2024-12-31 06448915 d:CurrentFinancialInstruments 2023-12-31 06448915 d:CurrentFinancialInstruments d:WithinOneYear 2024-12-31 06448915 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 06448915 d:ReportableOperatingSegment1 2024-01-01 2024-12-31 06448915 d:ReportableOperatingSegment1 2023-01-01 2023-12-31 06448915 f:UnitedKingdom 2024-01-01 2024-12-31 06448915 f:UnitedKingdom 2023-01-01 2023-12-31 06448915 d:UKTax 2024-01-01 2024-12-31 06448915 d:UKTax 2023-01-01 2023-12-31 06448915 d:ShareCapital 2024-12-31 06448915 d:ShareCapital 2023-12-31 06448915 d:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 06448915 d:RetainedEarningsAccumulatedLosses 2024-12-31 06448915 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 06448915 d:RetainedEarningsAccumulatedLosses 2023-12-31 06448915 d:RetainedEarningsAccumulatedLosses 2023-01-01 06448915 d:AcceleratedTaxDepreciationDeferredTax 2024-12-31 06448915 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 06448915 d:TaxLossesCarry-forwardsDeferredTax 2024-12-31 06448915 d:TaxLossesCarry-forwardsDeferredTax 2023-12-31 06448915 d:OtherDeferredTax 2024-12-31 06448915 d:OtherDeferredTax 2023-12-31 06448915 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2024-01-01 2024-12-31 06448915 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2024-12-31 06448915 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-12-31 06448915 e:OrdinaryShareClass1 2024-01-01 2024-12-31 06448915 e:OrdinaryShareClass1 2024-12-31 06448915 e:OrdinaryShareClass1 2023-12-31 06448915 e:FRS102 2024-01-01 2024-12-31 06448915 e:Audited 2024-01-01 2024-12-31 06448915 e:FullAccounts 2024-01-01 2024-12-31 06448915 e:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 06448915 d:WithinOneYear 2024-12-31 06448915 d:WithinOneYear 2023-12-31 06448915 d:BetweenOneFiveYears 2024-12-31 06448915 d:BetweenOneFiveYears 2023-12-31 06448915 g:PoundSterling 2024-01-01 2024-12-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 06448915







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024


CORT BUSINESS SERVICES UK LIMITED






































img5617.png                        

 


CORT BUSINESS SERVICES UK LIMITED
 


 
COMPANY INFORMATION


Directors
M. Davis 
S. Reddan 
K. Ebenezer 




Company secretary
S Reddan



Registered number
06448915



Registered office
Unit 28 Barwell Business Park
Leatherhead Road

Chessington

Surrey

KT9 2NY




Independent auditor
Menzies LLP
Chartered Accountants & Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY





 


CORT BUSINESS SERVICES UK LIMITED
 



CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Statement of financial position
10
Notes to the financial statements
11 - 20


 


CORT BUSINESS SERVICES UK LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

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

Principal activities and business review
 
The company’s principal activity is the rental of domestic furniture.
The company achieved a turnover of £5,341,238 (2023 - £5,215,831). This increase was primarily due to an improvement in our residential and dress to sell revenues over the prior year. 
For much of our income we are dependent on the volume of medium to long term staff secondments by international companies to the UK. Political uncertainty in the UK and abroad reduced demand for corporate relocation movements in 2024, although we benefitted from increased revenues in our residential and dress-to-sell channels. We also continue to derive incremental revenues from large scale build to rent sector installations.
We have continued to manage our inventory and purchasing carefully, resulting in an improvement in gross margin to 79.2% (2023 – 74.8%). Whilst distribution costs increased slightly year on year, annual performance was bolstered by other operating income in the form of the final insurance claim receipts. As a result, profit before tax was £616,629 (2023 – loss £442,696). Net assets at the year-end were £4,651,917 (2023 - £4,218,883).
The outlook for 2025 will continue to be dominated by the geo-political and economic uncertainties that have materialised during the first quarter. These will have a short-term impact on some of our markets, but we will be able to maintain an income stream throughout. In addition, we have sufficient cash reserves and the ongoing support from our Holding Company.

Principal risks and uncertainties
 
The management of the business and the execution of the company’s strategy are subject to several key risks:

1) International companies reducing the level of staff secondments to the UK.
2)An increase in the availability of furnished accommodation versus unfurnished accommodation.
3)A systemic reduction in the availability of rental property due to government legislative changes.
4)A change in the HR policy of multinational companies such that shipping furniture is preferred to renting furniture for an unfurnished property, although the importance of sustainability and increased costs of shipping are mitigating against this.
5)The introduction of new competitors into the market.

Key performance indicators
 
The company uses a series of key performance indicators to monitor the performance of the business. These include, but are not limited to, the following:
Financial indicators

2024 2023

a) Profit before tax as a percentage of turnover 11.5% -8.5%

b) Rental Assets as a precentage of turnover 56.5% 68.6%

c) Distribution costs as a percentage of turnover 13.3% 13.0%
Non-Financial indicators: 

2024 2023

a) Staff turnover 8.7% 6.5%

Page 1

 


CORT BUSINESS SERVICES UK LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Future developments
 
We will continue to develop and grow the business through our excellence in service and product.

Section 172 Statement:
 
The directors’ duty under Section 172 is to promote the success of the Company for the benefit of the members as a whole, having regard to the following matters set out in Section 172 (1):

1)Long term consequences of decisions: 
We aim to secure our long-term prospects and viability by pursuing strategies that deliver long-term benefit to our company and supply chain. These are considered in bi-weekly reporting to senior management, monthly meetings ofthe UK management team, and quarterly re-forecasting of our business outlook.

2)Interest of employees: 
The company issues performance, operating or status updates to staff, either in person, writing or via conference call.

3)Need to foster the Company’s business relationships: 
We actively seek to acquire new customers through a range of marketing, brand, or business development initiatives. Our vision is that everything is possible through service, and this drives our customer service philosophy. Our supply of services is dependent on collaboration with a range of third-party suppliers on a long-term basis, and these are actively managed by our procurement team. 

4)Impact on the community & environment: 
Through our business model, the Company seeks to minimise its environmental impact. We invest in durable products manufactured to high-quality standards and maintain the pieces throughout the furniture rental process. Our products are durable enough to be re-used several times within the rental cycle. At the end of their rental life, our furniture is taken to our CORT Furniture retail outlet to be sold to its forever home.

5)High standards of business conduct: 
Our internal and external policies are reviewed by the Directors, and incorporate Anti-Bribery, Modern Slavery andGeneral Data Protection Regulation requirements.

6)Act fairly between members of the Company: 
We are a wholly owned subsidiary of CORT Business Services Corp, a Berkshire Hathaway company. Our monthly management accounts and quarterly forecasts are reviewed by key management personnel, consistent with CORT best practice, and we participate in all required Berkshire Hathaway group compliance and control activities.


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



K. Ebenezer
Director

Date: 18 June 2025

Page 2

 


CORT BUSINESS SERVICES UK LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors' responsibilities statement

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

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


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

make judgements and accounting 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Directors

The directors who served during the year were:

D. Lansford (resigned 28 January 2025)
J. Pederson (resigned 5 January 2024)
M. Davis 
S. Reddan (appointed 28 January 2025) 
K. Ebenezer 

Disclosure of information to auditor

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

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

Post balance sheet events

After the year end, the company entered into two new lease agreements. One of the leases commenced on 6 May 2025 and expires in March 2029, with annual rent payable of £27,000 excluding VAT. The second lease commenced on 14 May 2025, and expires in May 2035, with annual rent payable of £261,810 excluding VAT.

Page 3

 


CORT BUSINESS SERVICES UK LIMITED
 


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


Auditor

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





K. Ebenezer
Director

Date: 18 June 2025

Page 4

 


CORT BUSINESS SERVICES UK LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORT BUSINESS SERVICES UK LIMITED

Opinion


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


In our opinion the financial statements:


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


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 


CORT BUSINESS SERVICES UK LIMITED


 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORT BUSINESS SERVICES UK LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


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


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


CORT BUSINESS SERVICES UK LIMITED


 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORT BUSINESS SERVICES UK LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including;

The Companies Act 2006;
Financial Reporting Standard 102;
UK Employment Legislation;
UK Health and Safety Legislation;
General Data Protection Regulations;
UK Tax Legislation; and
FCA regulation

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included.

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgments made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

The application of inappropriate judgements or estimations to manipulate the Company's financial position;
Posting of unusual journals and complex transactions; 
The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in it's best interests; and
The misappropriation of the Company's fixed assets for personal use or resale either by individuals employed or connected with the entity, or unconnected third parties.
 
Page 7

 


CORT BUSINESS SERVICES UK LIMITED


 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORT BUSINESS SERVICES UK LIMITED (CONTINUED)


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 located 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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Anna Johnston ACA (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants & Statutory Auditor
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

18 June 2025
Page 8

 


CORT BUSINESS SERVICES UK LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
5,341,238
5,215,831

Cost of sales
  
(1,113,481)
(1,315,348)

Gross profit
  
4,227,757
3,900,483

Distribution costs
  
(709,693)
(677,069)

Administrative expenses
  
(3,832,614)
(3,953,128)

Other operating income
  
908,256
323,389

Other operating expenses
  
-
(69,291)

Operating profit/(loss)
 5 
593,706
(475,616)

Interest receivable and similar income
  
22,923
32,920

Profit/(loss) before tax
  
616,629
(442,696)

Tax on profit/(loss)
 10 
(183,595)
115,045

Profit/(loss) after tax
  
433,034
(327,651)

  

Retained earnings at the beginning of the year
  
3,218,883
4,770,588

  
3,218,883
4,770,588

Profit/(loss) for the year
  
433,034
(327,651)

Dividends declared and paid
  
-
(1,224,054)

Retained earnings at the end of the year
  
3,651,917
3,218,883

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of income and retained earnings.

The notes on pages 11 to 20 form part of these financial statements.

Page 9

 


CORT BUSINESS SERVICES UK LIMITED
REGISTERED NUMBER:06448915



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
3,149,270
3,774,462

  
3,149,270
3,774,462

Current assets
  

Debtors: amounts falling due within one year
 14 
595,378
701,837

Cash at bank and in hand
  
2,375,589
1,216,305

  
2,970,967
1,918,142

Creditors: amounts falling due within one year
 15 
(1,193,437)
(1,236,036)

Net current assets
  
 
 
1,777,530
 
 
682,106

Total assets less current liabilities
  
4,926,800
4,456,568

Provisions for liabilities
  

Deferred tax
 16 
(78,883)
(51,685)

Other provisions
 17 
(196,000)
(186,000)

  
 
 
(274,883)
 
 
(237,685)

Net assets
  
4,651,917
4,218,883


Capital and reserves
  

Called up share capital 
 18 
1,000,000
1,000,000

Profit and loss account
 19 
3,651,917
3,218,883

  
4,651,917
4,218,883


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




K. Ebenezer
Director

Date: 18 June 2025

The notes on pages 11 to 20 form part of these financial statements.

Page 10

 


CORT BUSINESS SERVICES UK LIMITED
 


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

1.


General information

Cort Business Services UK Limited is a private company limited by shares incorporated in England and Wales. The
address of the registered office is disclosed on the company information page.
The financial statements are presented in sterling which is the functional currency of the Company and rounded to
the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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

This information is included in the consolidated financial statements of Berkshire Hathaway Inc as at 31 December 2024 and these financial statements may be obtained from 3555 Farnam Street, Omaha, NE 68131.

  
2.3

Revenue recognition

Operating lease income
Income from the operating lease rental of domestic furniture is recognised in the profit and loss account in the period to which it relates.
Finance lease income
Amounts due from lessees in respect of assets held under finance leases are included in debtors at the  amount of the net investment in the lease.
Rental payments under finance leases are apportioned between interest, which is credited to the profit and  loss account as gross earnings, and repayment of capital, which reduces the amount due from the lessee.
Gross earnings from finance leases are allocated to accounting periods to give a constant periodic rate of return on the net cash investment in the lease, using the investment period method of allocation. The initial direct costs incurred in negotiating and arranging finance leases are charged to the profit and loss account in
the period in which they are incurred.
 
Page 11

 


CORT BUSINESS SERVICES UK LIMITED
 


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

2.Accounting policies (continued)

Other
Other turnover amounts comprise the invoiced value of goods and services supplied by the company, excluding value added tax.

  
2.4

Finance leases and hire purchase contracts

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities
at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability
using the effective interest method. Finance charges are allocated to each period so as to produce a constant
rate of interest on the remaining balance of the liability.

 
2.5

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Rental assets
-
Between 2 and 5 years with 0-40% residual value
Motor vehicles
-
Over the term of the lease
Fixtures and fittings
-
15% straight line

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

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

 
2.6

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Page 12

 


CORT BUSINESS SERVICES UK LIMITED
 


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

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

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

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

 
2.9

Current and deferred taxation

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

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

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

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


 
2.10

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.11

Dividends

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

Page 13

 


CORT BUSINESS SERVICES UK LIMITED
 


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

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and    assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Depreciation is the main estimation area.
In making its judgement for depreciation management has considered the benefit accruing over the useful life of   the asset. Impairment reviews are carried out on a timely basis to ensure that the accounting policy adopted reflects a true and fair value of the assets.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Rental and sale of furniture
5,341,238
5,215,831

5,341,238
5,215,831


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
5,341,238
5,215,831

5,341,238
5,215,831



5.


Operating profit/(loss)

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
677,861
796,786

Depreciation
781,760
904,856


6.


Auditor's remuneration

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


2024
2023
£
£

Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements
28,465
22,045

Page 14

 


CORT BUSINESS SERVICES UK LIMITED
 


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

7.


Staff costs

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


2024
2023
£
£

Wages and salaries
2,117,013
2,110,331

Social security costs
197,752
201,182

Cost of defined contribution scheme
62,563
58,708

2,377,328
2,370,221


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


        2024
        2023
            No.
            No.







Distribution staff
22
25



Administration staff
6
6



Management staff
4
4



Sales and marketing staff
14
15

46
50


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
186,983
174,990

Company contributions to defined contribution pension schemes
16,713
14,472

203,696
189,462


During the year retirement benefits were accruing to 1 director (2023 -1) in respect of defined contribution pension schemes.


9.


Interest receivable

2024
2023
£
£


Other interest receivable
22,923
32,920

22,923
32,920

Page 15

 


CORT BUSINESS SERVICES UK LIMITED
 


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

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
156,397
(75,999)


156,397
(75,999)


Total current tax
156,397
(75,999)

Deferred tax


Fixed asset timing differences
27,198
(22,623)

Amounts relating to prior year
-
(16,423)

Total deferred tax
27,198
(39,046)


Taxation on profit/(loss) on ordinary activities
183,595
(115,045)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 -higher than) the standard rate of corporation tax in the UK of 25% (2023 -23.5%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
616,629
(442,696)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -25%)
135,701
(104,033)

Effects of:


Other adjustments resulting in an increase / decrease in the tax charge
20,696
28,034

Deferred tax
27,198
(39,046)

Total tax charge for the year
183,595
(115,045)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 16

 


CORT BUSINESS SERVICES UK LIMITED
 


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

11.


Dividends

2024
2023
£
£


Dividends analysis
-
1,224,054

-
1,224,054


12.


Other items

2024
2023
£
£

Other operating income

908,256

323,389
 
Other operating expenses

-

(69,291)
 
908,256

254,098
 

Other operating income relates to amounts receivable by the Company in connection with an insurance claim.


13.


Tangible fixed assets





Rental assets
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost


At 1 January 2024
5,649,997
226,179
252,957
6,129,133


Additions
544,101
-
27,850
571,951


Disposals
(957,407)
(37,727)
-
(995,134)



At 31 December 2024

5,236,691
188,452
280,807
5,705,950



Depreciation


At 1 January 2024
2,072,105
226,179
56,387
2,354,671


Charge for the year on owned assets
688,011
-
93,749
781,760


Disposals
(542,024)
(37,727)
-
(579,751)



At 31 December 2024

2,218,092
188,452
150,136
2,556,680



Net book value



At 31 December 2024
3,018,599
-
130,671
3,149,270



At 31 December 2023
3,577,892
-
196,570
3,774,462

Page 17

 


CORT BUSINESS SERVICES UK LIMITED
 


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

14.


Debtors

2024
2023
£
£


Trade debtors
267,046
215,055

Other debtors
304
3,332

Prepayments and accrued income
328,028
359,094

Tax recoverable
-
124,356

595,378
701,837



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
175,555
344,204

Corporation tax
86,941
-

Other taxation and social security
255,850
177,097

Other creditors
367,942
413,429

Accruals and deferred income
307,149
301,306

1,193,437
1,236,036



16.


Deferred taxation




2024


£






At beginning of year
(51,685)


Charged to profit or loss
(27,198)



At end of year
(78,883)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(165,572)
(51,685)

Tax losses carried forward
84,189
-

Short term timing differences
2,500
-

(78,883)
(51,685)

Page 18

 


CORT BUSINESS SERVICES UK LIMITED
 


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

17.


Provisions




Dilapidations provision

£





At 1 January 2024
186,000


Charged to profit or loss
10,000



At 31 December 2024
196,000


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000,000 (2023 -1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000


Each ordinary share carries voting rights and there are no restrictions on the distribution of dividends.


19.


Reserves

Profit and loss account
This reserve represents the sum of the Company's retained earnings and accumulated losses.


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately  from those of the Company in an independently administered fund. Contributions totaling £7,072 (2023 - £6,250) were payable to the fund at the reporting date and are included in creditors. 


21.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
600,137
600,137

Later than 1 year and not later than 5 years
884,874
1,286,090

1,485,011
1,886,227

Page 19

 


CORT BUSINESS SERVICES UK LIMITED
 


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

22.


Post balance sheet events

After the year end, the company entered into two new lease agreements. One of the leases commenced on 6 May 2025 and expires in March 2029, with annual rent payable of £27,000 excluding VAT. The second lease commenced on 14 May 2025, and expires in May 2035, with annual rent payable of £261,810 excluding VAT.


23.


Controlling party

The ultimate parent company is considered to be Berkshire Hathaway Inc, a company incorporated in the United States of America and quoted on the New York Stock Exchange. The company's immediate parent is Cort Business
Services Corp, a company incorporated in the United States of America, registered address being 14850 Conference Center Dr #110, Chantilly VA 20151.
Copies of the group accounts of Berkshire Hathaway Inc. may be obtained from 3555 Farnam Street, Omaha, NE 68131.

 
Page 20