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Registration number: 02714841

Chairs Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

Chairs Limited

Contents

Strategic Report

1 to 5

Directors' Report

6

Statement of Directors' Responsibilities

7

Independent Auditor's Report

8 to 11

Profit and Loss Account and Statement of Retained Earnings

12

Balance Sheet

13

Notes to the Financial Statements

14 to 26

 

Chairs Limited

Strategic Report for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is during the period remains the sale of high-quality furniture and electrical accessories.

Customers range from small to medium size companies and the hospitality industry.

There have not been any significant changes in the company’s principal activities in the year under review.

Fair review of the business

The company’s vision is to grow the business by increasing our market in the UK and in Europe. The company is recognised as a key player and as a market leader with a focus on maintaining a well-run and cost-conscious business to provide products which meet the needs of our customers.

The company is continuing to increase geographical coverage and capabilities within our chosen market sectors, while remaining agile enough to embrace fresh opportunities. The company continues to actively engage with the existing supply chain to explore mutual benefits and synergies, as well as forging new supplier relationships.

The company aims to maximise the benefit from significant ongoing investment in both systems and employee training, through improved working practices and efficiencies.

The company has invested in reducing our carbon footprint by installing additional solar panels, which has significantly reduced our energy consumption and will continue to invest in this area.

Strategic Review
In 2024 the company saw turnover decrease by 14.7%. The gross profit margin increased from 31.73% to 37.7%.

The balance sheet on page 13 of the financial statements shows that the company’s net asset position at the year-end decreased by 14.3% to £30,584,438 (2023 - £35,698,939) and has cash reserves of £12,907,585.

As shown in the company’s profit and loss account on page 12, the net profit/(loss) before tax for the year is (£93,452) (2023- £5,285,822).

 

Chairs Limited

Strategic Report for the Year Ended 30 September 2024

Principal risks and uncertainties

The company maintains a balanced portfolio of suppliers in a range of countries within Europe and the Far East. Currency risk on imported supplies is managed by a combination of forward exchange contracts, coupled with purchase and sale agreements, which are matched wherever possible.

The customer base continues to expand with a corresponding reduction in vulnerability to any specific customer. The company continually reviews its product offering in order to take advantage of changes in the market.

The company aims to profitably increase its customer base and market share. In 2024 the company is continuing the emphasis on improving our customer service.

The company is cash generative and continues to trade profitably.

Competitive pressure in the UK is a continuing risk which the company manages by focusing on customer needs and continually refining the product offering to maintain leading coverage and pricing.

Procedures are constantly updated to ensure the sales order process and delivery channels operate as efficiently as possible. Achieving the best customer outcomes remains a key aspect of the business strategy.

Operational Risk
Operational risk is closely monitored by all directors in order to identify and mitigate such risks with maximal expediency.

Financial Risk
The monitoring and management of the liquidity risk is supported by the regular production and review of comprehensive management information reports.

Going concern
The current economic conditions present increased risks for all businesses. In response to such uncertain conditions, the directors have carefully considered these risks and the extent to which they might affect the preparation of the financial statements on a going concern basis.
 

 

Chairs Limited

Strategic Report for the Year Ended 30 September 2024

Non-financial and sustainability information

Environmental report

Emissions and energy consumption

Summary of greenhouse gas emissions and energy consumption for the year ended 30 September 2024:

Name and description

Unit of measurement

2024

2023

Combustion of gas for its own use

tCO2e

140

124

Consumption of fuel for the purpose of transport

tCO2e

1,137

1,303

Purchase of electricity for its own use

tCO2e

-

74

Consumption of electricity in a transmission and distribution system for which the company does not own or control

tCO2e

-

7

Total gross emissions

tCO2e

1,278

1,508

Consumption of gas for its own use

kWh

767,881

678,791

Consumption of fuel for the purpose of transport

kWh

335,289

281,196

Purchase of electricity for its own use

kWh

-

357,523

Energy consumption used to calculate above emissions

kWh

1,103,170

1,317,510

Intensity Metric

(£) Annual turnover

50,000,000

58,585,017

Solar Generation feed back

kWh

-

-

Carbon offsets

tCO2e

266,668

266,668

       

Carbon intensity metric ratio per (£) Annual turnover (AT)

tCO2e/(£) Annual turnover

0.00003

0.00003

Emissions and energy consumption methodologies
The company have followed the 2019 HM Government Environmental Reporting Guidelines and have used the 2022 UK Government's Conversion Factors for Company Reporting. Client has used an operational approach to define their boundary.

The primary source for energy consumption is invoices and supplier interval data. Where invoices are not in line with the financial year, a pro rata calculation has been used to estimate the usage for the reporting period.

The electricity and gas data has been recorded over a 12-month period from October 2023 till September 2024. The data was collated directly from monthly invoices and HH data generated by suppliers. The reporting spreadsheet provides a breakdown of monthly and annual consumption for each meter in KWh. Electricity meter has been locked into 100% renewable contract with EDF energy.

Solar generation and Export (though not mandatory) have been recorded for this year and is outlined in the location-based figures for Solar. Client uses solar on top of imported electric and exports excess generation back to grid.

Transport data was provided by the company and data was generatedover the course of the mentioned supply period. Transport has been outlined according to mileage per vehicle for reporting period. Transport includes HGV, vans and cars as stated in transport tab within evidence pack.

Our carbon offsets are non-kyoto compliant and have been recorded using invoices for the supply period of Oct 2023- Sept 2024.

The total gross emissions from the supply period October 2023 until September 2024 is 1,681 tCO2e (2022 - 1,681 tCO2e). We have bought carbon offsets of 266,668 tC02e (2022 - 266,668 tC02e) to compensate for this.
 

 

Chairs Limited

Strategic Report for the Year Ended 30 September 2024

Energy efficiency measures
The company has installed over 2,000 solar panels, and continue to use the solar panels for their generation of electricity.

The company continue to offset their Carbon emissions through a company called “Eden Reforestation Projects”. The client has created 4000 workdays for local people nurturing and planting the trees.

For every order they plant 10 trees, at the end of September 2024 they have planted approximately 1,152,265 trees in collaboration with the Eden Reforestation Project these are mangrove trees which have been planted in Madagascar. There is also a section in the “Green” section of the Chairs Ltd website.

Carbon offsets are non-Kyoto compliant, please see below details:

• provide the name of the supplier - Eden Reforestation Projects

• a hyperlink to the project documentation: https://edenprojects.org/.

• details of who developed the quantification methodology - Dr Stephen Fitch, he developed a unique methodology: give jobs to local people by hiring them to plant and care for trees. https://edenprojects.org/partners/

• how the project was validated and verified: Audited by SGS International and established as a “Print ReLeaf Certified Reforestation Partner. Certificate number SGS-PRX/FP_0574DC70D10a/STDv2.0INT,
 

Section 172(1) statement

This statement sets out how the directors of Chairs Limited have fulfilled their duty to comply with the requirements of Section 172 of the Companies Act 2006.

The strategy set out by the Board is intended to strengthen our position as a leading importer of captivating furniture and homewares, while keeping safety and social responsibility fundamental to our business approach. The Board conducts board meetings to assess and monitor the progress against its strategic decisions. Factors which are continually being considered against strategy include the promotion of the company, its stakeholders, employees, and the strengthening of suppler and customer relationships.

Chairs Limited try to make all decisions with our key stakeholders’ best interests in mind, in particular: employees, customers, suppliers, the environment and shareholders.

Engagement with employees

The employees of Chairs Limited are fundamental to our success and are the only way we can continually meet our strategic ambitions for growth and development, our success is tied to the finding, training and retaining of our great staff, we are committed to being responsible employees, through pay and benefits, continual improvements in health and safety within the workplace, and ongoing training. We are constantly looking to drive employee engagement, this helped by the fact the directors are available to all staff most days.

 

Chairs Limited

Strategic Report for the Year Ended 30 September 2024

Engagement with suppliers, customers and other relationships

Our Customers
All our business strategy is reliant on our customers, without them and the relationships we have with them, we wouldn’t have a business. As such, we are constantly trying to build stronger relationships with our customers and support them wherever we possibly can, we try to give them the best product on the market to buy at competitive rates and try to make ourselves as easy and streamlined as possible to buy from, to make this process as seamless as possible. We are working on a new platform for our website which should make things easier still, with additional features on the website that are currently not available.

Our Suppliers
Suppliers are regularly reviewed for performance, with the directors having oversight and heavy involvement in this process. We have a large network of suppliers from all over the world with some extremely long-standing relationships. We continually drive to have new and exciting products to bring to market, and the directors have huge involvement with all things relating to suppliers, from sourcing products, pricing and reviewing, right through to discontinuation, we are committed to safety standards, and the prevention of modern slavery through continual review.

The Environment
Decisions taken by the directors for the company are done so very much with their environmental impact in mind, we are a company really trying to make an impact on reducing our carbon footprint, we are currently working with a company called Greenly to measure, reduce and offset our emissions, with the aim of trying to become a carbon neutral company, hopefully within the next 3 years.

Approved by the Board on 24 February 2025 and signed on its behalf by:

.........................................
D Bovingdon
Director

   
     
 

Chairs Limited

Directors' Report for the Year Ended 30 September 2024

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

Directors of the company

The directors who held office during the year were as follows:

D W Bovingdon

D Bovingdon

F Bovingdon-Bryant

C Bovingdon

D Bovingdon

Financial instruments

Objectives and policies

The management objectives for Chairs Limited for the year starting 01 October 2024 are to increase turnover by a minimum of 5%, with the aim of achieving an increase from the 2024 turnover of £49,952,239 to £55,000,000. Gross margin for 2024 was 37.7%, we aim to, at minimum maintain 37.7%, although we are striving to improve upon it.

Overheads for the year starting 01 October 2024 should be in line with the previous year, we do not foresee our overheads increasing, and wherever possible will be implementing sensible measures to reduce overheads.

Our objectives are to retain sufficient liquid funds to enable it to meet its day-to-day requirements, minimise the company's exposure to fluctuating interest rates, and manage the future cash flows expected to arise from the company's trading activities.

Price risk, credit risk, liquidity risk and cash flow risk

The company makes use of operational UK bank accounts and foreign exchange contracts, if required, and hedges its exchange risk by purchasing forward contracts. Its exposure to price risk, credit risk, liquidity risk and cash flow risk is minimised by retaining sufficient liquid funds to enable it to meet its day to day requirements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Future developments

The company's overriding objective is to increase its market share by differentiating itself from its competitors while continuing to maintain our excellent availability levels (90% and above). We have a further expansion of our showrooms planned.

Approved by the Board on 24 February 2025 and signed on its behalf by:

.........................................
D Bovingdon
Director

   
     
 

Chairs Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 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 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Chairs Limited

Independent Auditor's Report to the Members of Chairs Limited

Opinion

We have audited the financial statements of Chairs Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, and 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 company's affairs as at 30 September 2024 and of its loss 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 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Chairs Limited

Independent Auditor's Report to the Members of Chairs Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

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, 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 Statement of Directors' Responsibilities [set out on page 7], 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 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.

 

Chairs Limited

Independent Auditor's Report to the Members of Chairs Limited

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.

In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.

Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the closing stock valuation and misappropriation of funds through the bank accounts.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

We then performed audit procedures after consideration of the above risks which included the following:

obtaining a detailed understanding of the methodology adopted by management and any key assumptions underpinning the calculation of stock;

performing a detailed review of bank transactions throughout the year and performing additional procedures to validate transactions on a sample basis;

enquiring of management concerning actual and potential litigation and claims;

reviewing correspondence with HMRC, and the company’s legal advisors;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

reading minutes of meetings of those charged with governance; and;

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.

There are inherent limitations in our audit procedures described above. 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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

 

Chairs Limited

Independent Auditor's Report to the Members of Chairs Limited

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.

......................................
Mark Wilcock FCA (Senior Statutory Auditor)
For and on behalf of Watson Buckle Limited,
Statutory Auditors & Chartered Accountants
Bradford

24 February 2025

 

Chairs Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

49,952,239

58,585,018

Cost of sales

 

(31,120,746)

(39,995,206)

Gross profit

 

18,831,493

18,589,812

Distribution costs

 

(2,873,213)

(3,067,350)

Administrative expenses

 

(16,594,596)

(10,409,659)

Other operating income

164,680

115,715

Operating (loss)/profit

4

(471,636)

5,228,518

Other interest receivable and similar income

378,474

58,699

Interest payable and similar charges

5

(290)

(1,395)

 

378,184

57,304

(Loss)/profit before tax

 

(93,452)

5,285,822

Taxation

9

(21,049)

(1,194,658)

(Loss)/profit for the financial year

 

(114,501)

4,091,164

Retained earnings brought forward

 

35,698,839

35,607,675

Dividends paid

 

(5,000,000)

(4,000,000)

Retained earnings carried forward

 

30,584,338

35,698,839

 

Chairs Limited

(Registration number: 02714841)
Balance Sheet as at 30 September 2024

Note

2024

2023

   

£

£

£

£

Fixed assets

   

 

Tangible assets

10

 

5,080,965

 

5,044,984

Current assets

   

 

Stocks

11

21,410,924

 

21,340,873

 

Debtors

12

5,957,418

 

4,184,218

 

Cash at bank and in hand

 

12,907,585

 

11,799,894

 

 

40,275,927

 

37,324,985

 

Creditors: Amounts falling due within one year

13

(13,850,454)

 

(5,770,030)

 

Net current assets

   

26,425,473

 

31,554,955

Total assets less current liabilities

   

31,506,438

 

36,599,939

Provisions for liabilities

15

 

(922,000)

 

(901,000)

Net assets

   

30,584,438

 

35,698,939

Capital and reserves

   

 

Called up share capital

17

100

 

100

 

Profit and loss account

18

30,584,338

 

35,698,839

 

Total equity

   

30,584,438

 

35,698,939

Approved and authorised by the Board on 24 February 2025 and signed on its behalf by:
 

.........................................
D Bovingdon
Director

   
     
 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Metcalf Drive
Altham Industrial Estate
Altham
Accrington
BB5 5TU

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were 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.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company's functional and presentation currency is pound sterling.

Summary of disclosure exemptions

The company has taken advantage of the exemptions available under FRS 102, Section 33 Related party disclosures and UK Statutory Instruments, 1 Sch.72 from disclosing transactions and balances with fellow group undertakings that are wholly owned.

Name of parent of group

These financial statements are consolidated in the financial statements of Simonstone Estate Limited.

The financial statements of Simonstone Estate Limited may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount is £5,080,965 (2023 - £5,044,984).

Stock provision
The company makes an estimate of the recoverability of the cost of stock. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. The carrying amount is £21,410,294 (2023 - £21,340,873).

Impairment of debtors
The company makes an estimate of the recoverable value of trade debtors and other debtors. When assessing the impairment of trade debtors and other debtors, management considers factors which include the current credit rating of the debtor, the ageing profile of debtors and historical experience. The carrying amount is £4,504,204 (2023 - £2,565,559).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax.

The company recognises revenue when the significant risks and rewards of ownership have been transferred to the buyer; the company retains no continuing involvement or control over the goods; the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

The current corporation 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 taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Short leasehold improvements - other

25% reducing balance and 5% straight line basis

Plant and machinery

25% reducing balance basis

Motor vehicles

25% reducing balance basis

Short leasehold improvement - solar panels

6.67% straight line basis

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Provisions for liabilities

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Leases

Leases in which substantially all the risks and rewards of ownership are transferred to the company are classified as finance leases. All other leases are classified as operating leases.

Assets held under finance leases are recognised at commencement of the lease at the fair value of the leased asset or, if lower, the present value of minimum lease payments using the interest rate implicit in the lease. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Assets held under finance leases are included in tangible fixed assets and depreciated and assessed for impairment losses in the same way as owned assets.

Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis.

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Financial instruments

Financial assets
Basic financial assets, including trade and other receivables, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss and any subsequent reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
 

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

3

Turnover

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

44,125,279

51,134,660

Europe

4,650,714

5,796,326

Rest of world

1,176,246

1,654,032

49,952,239

58,585,018

4

Operating (loss)/profit

Arrived at after charging/(crediting)

2024
 £

2023
 £

Depreciation expense

1,256,528

1,254,655

Loss/(profit) on disposal of fixed assets

5,532

(97,775)

(Profit)/loss on foreign currency

1,120,488

190,946

5

Interest payable and similar expenses

2024
£

2023
£

Interest expense on other finance liabilities

290

1,395

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

10,891,328

6,476,785

Social security costs

1,314,707

682,231

Pension costs, defined contribution scheme

160,939

318,763

Redundancy costs

69,015

-

12,435,989

7,477,779

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

80

90

Administration and support

65

71

Sales, marketing and distribution

30

33

175

194

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

5,269,377

227,529

Contributions paid to money purchase schemes

30,000

180,000

5,299,377

407,529

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

5

5

In respect of the highest paid director:

2024
£

2023
£

Remuneration

5,090,071

31,395

Company contributions to money purchase pension schemes

-

60,000

8

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

26,100

25,350

Other fees to auditors

Audit-related assurance services

1,500

1,250

Taxation compliance services

400

400

All other non-audit services

43,360

59,712

45,260

61,362


 

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

9

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

-

847,800

UK corporation tax adjustment to prior periods

49

(10,142)

49

837,658

Deferred taxation

Arising from origination and reversal of timing differences

21,000

357,000

Tax expense in the profit and loss account

21,049

1,194,658

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

(Loss)/profit before tax

(93,452)

5,285,822

Corporation tax at standard rate

(23,363)

1,321,456

Effect from corporation and deferred tax recognised at different rates

-

(115,256)

Effect of expense not deductible in determining taxable profit (tax loss)

36,254

28,031

Decrease from effect of enhanced tax incentives

-

(40,431)

Previous year corporation tax under/(over) provision

49

(10,142)

Tax increase arising from group relief

8,109

-

Effect of other deferred tax timing differences

-

11,000

Total tax charge

21,049

1,194,658

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Accelerated capital allowances

978,000

Other timing differences

(56,000)

922,000

2023

Liability
£

Accelerated capital allowances

937,000

Other timing differences

(36,000)

901,000

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £158,000 (2023 - £235,000). This relates to the reversal of timing differences on accelerated capital allowances

10

Tangible assets

Short leasehold improvements - other
£

Plant and machinery
 £

Motor vehicles
 £

Short leasehold improvements - solar panels
£

Total
£

Cost or valuation

At 1 October 2023

3,844,509

3,862,583

5,680,281

690,820

14,078,193

Additions

128,998

136,071

746,505

331,466

1,343,040

Disposals

-

(7,472)

(512,080)

-

(519,552)

At 30 September 2024

3,973,507

3,991,182

5,914,706

1,022,286

14,901,681

Depreciation

At 1 October 2023

2,966,184

3,054,126

2,787,555

225,344

9,033,209

Charge for the year

160,593

236,123

798,222

61,590

1,256,528

Eliminated on disposal

-

(7,130)

(461,891)

-

(469,021)

At 30 September 2024

3,126,777

3,283,119

3,123,886

286,934

9,820,716

Carrying amount

At 30 September 2024

846,730

708,063

2,790,820

735,352

5,080,965

At 30 September 2023

878,325

808,457

2,892,726

465,476

5,044,984

Restriction on title and pledged as security

Tangible assets with a carrying amount of £5,080,965 (2023 - £5,044,984) have been pledged as security for liabilities.

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

11

Stocks

2024
 £

2023
 £

Finished goods

21,410,924

21,340,873

Impairment of stocks

The amount of impairment credit/(charge) included in profit or loss is £340,598 (2023 - £(339,969)).

The carrying amount of stocks pledged as security for liabilities amounted to £21,410,924 (2023 - £21,340,873).

12

Debtors

Current

2024
£

2023
£

Trade debtors

3,097,173

2,464,992

Amounts owed by related parties

-

3,448

Other debtors

1,407,031

100,567

Prepayments and accrued income

1,453,214

1,615,211

 

5,957,418

4,184,218

13

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

14

4,087

6,078

Trade creditors

 

4,157,769

2,566,118

Amounts due to group undertakings

 

447,479

-

Social security and other taxes

 

1,631,903

2,565,273

Outstanding defined contribution pension costs

 

22,998

24,841

Other creditors

 

979,494

-

Accruals

 

6,606,724

607,720

 

13,850,454

5,770,030

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

14

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Other borrowings

4,087

6,078

Other borrowings

Included in other borrowings are borrowings with a carrying amount of £1,529 (2023 - £6,078) which are secured by a fixed and floating charge over all assets of the company.

15

Deferred tax and other provisions

Deferred tax
£

At 1 October 2023

901,000

Increase (decrease) in existing provisions

21,000

At 30 September 2024

922,000

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £160,939 (2023 - £318,763).

17

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
All shares rank pari passu for income, capital and voting rights.

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

18

Reserves

Share capital

Represents the nominal value of issued shares.

Profit and loss account

Includes all current and prior periods profits and losses.

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

2,365,818

2,388,271

Later than one year and not later than five years

9,288,006

2,603,823

Later than five years

7,022,842

1,520,342

18,676,666

6,512,436

The amount of non-cancellable operating lease payments recognised as an expense during the year was £2,430,241 (2023 - £2,757,090).

20

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £90,714 (2023 - £609,750).

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

21

Related party transactions

Transactions with directors

2024

At 1 October 2023
£

Advances to director
£

Repayments by director
£

At 30 September 2024
£

Directors' loans

29,938

1,354,101

(1,381,809)

2,230

         
       

 

2023

At 1 October 2022
£

Advances to director
£

Repayments by director
£

At 30 September 2023
£

Directors' loans

16,368

979,974

(966,404)

29,938

         
       

 

Other transactions with directors

During the year £290 (2023 - £1,395) of interest was paid to the directors on the directors' loan accounts, at a rate of 4% above the Bank of England base rate.

Summary of transactions with other related parties

Chairs Limited Directors' Pension Scheme
 During the year the company made pension contributions to the Chairs Limited Directors' Pension Scheme of £30,000 (2023 - £180,000).
 

Income and receivables from related parties

2024

Key management
£

Sale of goods

13,367

2023

Key management
£

Sale of goods

32,691

Expenditure with and payables to related parties

2024

Key management
£

Amounts payable to related party

4,087

2023

Key management
£

Amounts payable to related party

6,078

22

Financial instruments

Categorisation of financial instruments

 

Chairs Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

2024
 £

2023
 £

Financial assets measured at fair value through profit or loss

-

30,025

Financial liabilities measured at fair value through profit or loss

979,494

-

Financial assets measured at fair value

Derivatives
The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency transactions. At 30 September 2024, the outstanding contracts all mature within nineteen months of the year end (2023 - fifteen months). The foreign currency forward contracts are not traded in active markets and have been fair valued using observable forward exchange rates.

The fair value is £(979,494) (2023 - £30,025) and the change in value included in profit or loss is £(1,009,519) (2023 - £(598,349)).

23

Parent and ultimate parent undertaking

The company's immediate and ultimate parent is Simonstone Estate Limited, incorporated in England and Wales.

The address of Simonstone Estate Limited's registered office is Metcalf Drive, Altham Industrial Estate, Altham, Accrington, BB5 5TU.

 The ultimate controlling party is D W Bovingdon.