Company registration number 05301665 (England and Wales)
UNITED CARPETS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
UNITED CARPETS GROUP LIMITED
COMPANY INFORMATION
Directors
M Ellis
P R Eyre
Company number
05301665
Registered office
Moorhead House
Moorhead Way
Bramley
Rotherham
South Yorkshire
S66 1YY
Auditor
Sumer Auditco Limited
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
Bankers
NatWest Bank Plc
PO Box 4
69 Bridge Street
Worksop
S80 1DJ
Santander UK Plc
1st Floor
Telegraph House
High Street
Sheffield
S1 2AN
Solicitors
Gateley Plc
One Eleven
Edmund Street
Birmingham
B3 2HJ
UNITED CARPETS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 26
UNITED CARPETS GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 1 -

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

Review of the business

The company is an intermediate holding company, holding shares in a number subsidiaries, as detailed in note 14. The company also holds various commercial properties, which are leased to third parties and subsidiary undertakings.

Profit before taxation remains stable at £1.1m (2023: £0.9m) and the company has net assets of £3.6m (2023: £3.3m) which the Directors believe places the company in a strong and stable financial position.

Principal risks and uncertainties

The company makes little use of financial instruments other than an operational bank account and trade receivables and payables.

 

Price risk

 

The company is a parent company and therefore is not exposed to price risk in relation to the cost of stock for resale. The company does monitor trends in the market closely and liaises with related companies and third-party suppliers in relation to fluctuations in the prices and impact on future profitability. 

 

Liquidity risk

 

The company seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

 

Interest rate risk

 

The company finances its operations predominately through retained profits and via group and related company funding arrangements. The company exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.

 

Credit risk

 

The principal credit risk arises from its intercompany loans with its subsidiaries. These are monitored closely and all loans are expected to be repaid.

Key performance indicators

The company has little use for KPI’s, as it does not actively trade, however it does review and monitor its performance against indicators both financial and non-financial. The principal measures include profit before taxation and net assets. Non-financial monitoring is concerned with staff turnover. These are reviewed by the management team and reported to the Board on a monthly basis.

 

 

2024

2023

Profit before tax

£1.1m

£0.9m

Net assets

£3.6m

£3.3m

 

The net assets of the company remain substantial for its size at £3.6m which illustrates the financial strength of the company.

Personnel

The success of the company is dependent on the continued service of its key management personnel and on its ability to attract, motivate, and retain suitably qualified individuals. The company has competitive reward packages for all staff. The company seeks to train and develop all staff to continually improve product knowledge and customer service.

UNITED CARPETS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 2 -

On behalf of the board

P R Eyre
Director
26 June 2025
UNITED CARPETS GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of an investment company, holding shares in subsidiaries and various commercial properties which are leased to third parties and subsidiary undertakings.

Results and dividends

The results for the period are set out on page 8.

Ordinary dividends were paid amounting to £643,914. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

M Ellis
P R Eyre
Future developments

As an intermediate parent company, the future developments of the company are closely linked to the continued success of its trading subsidiaries. The Directors continue to monitor and manage the trading subsidiaries. We continue to roll out our new branding across the network, resulting in the customer's in-store experience matching the visuals outside of the store. Going forward however remains challenging and we are focused on the basics of our operation which are product, price, and our customers. We continue to review and update where necessary customer offerings which we believe continue to make us competitive and relevant and one step ahead of the competition.

 

The company's property rental arrangements with the subsidiaries and third parties are expected to continue.

 

The company has sufficient financial resources in place to execute its strategy to develop for the future.

Auditor

The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible 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:

UNITED CARPETS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 4 -

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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
P R Eyre
Director
26 June 2025
UNITED CARPETS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNITED CARPETS GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of United Carpets Group Limited (the 'company') for the period ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

UNITED CARPETS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNITED CARPETS GROUP LIMITED (CONTINUED)
- 6 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: laws related to employment, health & safety and data protection.

UNITED CARPETS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNITED CARPETS GROUP LIMITED (CONTINUED)
- 7 -

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Nilesh Modhvadia (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
26 June 2025
UNITED CARPETS GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 8 -
Period
Period
ended
ended
30 September
28 September
2024
2023
Notes
£
£
Turnover
3
114,500
114,500
Administrative expenses
(1,445,261)
(1,496,862)
Other operating income
1,978,573
2,030,970
Operating profit
4
647,812
648,608
Interest receivable and similar income
7
389,045
306,989
Interest payable and similar expenses
8
(86,242)
(52,828)
Fair value gains and losses on investment properties
12
149,960
-
0
Profit before taxation
1,100,575
902,769
Tax on profit
9
(151,185)
(136,190)
Profit for the financial period
949,390
766,579

The profit and loss account has been prepared on the basis that all operations are continuing operations.

UNITED CARPETS GROUP LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
As at
As at
30 September 2024
28 September 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
856,702
991,289
Investment property
12
250,000
100,040
Investments
13
200,000
200,000
1,306,702
1,291,329
Current assets
Debtors
15
7,103,608
6,308,226
Cash at bank and in hand
191,135
334,950
7,294,743
6,643,176
Creditors: amounts falling due within one year
16
(4,985,206)
(4,528,680)
Net current assets
2,309,537
2,114,496
Total assets less current liabilities
3,616,239
3,405,825
Creditors: amounts falling due after more than one year
17
-
(93,028)
Provisions for liabilities
Deferred tax liability
20
-
0
2,034
-
(2,034)
Net assets
3,616,239
3,310,763
Capital and reserves
Called up share capital
22
380,000
380,000
Share premium account
23
94,081
94,081
Capital redemption reserve
24
451,920
451,920
Profit and loss reserves
2,690,238
2,384,762
Total equity
3,616,239
3,310,763

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
P R Eyre
Director
Company registration number 05301665 (England and Wales)
UNITED CARPETS GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
380,000
94,081
451,920
1,618,183
2,544,184
Period ended 28 September 2023:
Profit and total comprehensive income
-
-
-
766,579
766,579
Balance at 28 September 2023
380,000
94,081
451,920
2,384,762
3,310,763
Period ended 30 September 2024:
Profit and total comprehensive income
-
-
-
949,390
949,390
Dividends
10
-
-
-
(643,914)
(643,914)
Balance at 30 September 2024
380,000
94,081
451,920
2,690,238
3,616,239
UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information

United Carpets Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Moorhead House, Moorhead Way, Bramley, Rotherham, South Yorkshire, S66 1YY.

1.1
Reporting period

The director decided to extend the accounting reference date to 30 September 2024, to align with other group companies and companies under the control of the ultimate shareholder.

 

The change is for 2 days and therefore comparative amounts presented in the financial statements (including the related notes) are considered comparable.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

 

The financial statements of the company are consolidated in the financial statements of Pre Group Ltd. These consolidated financial statements are available upon request from its registered office, Moorhead House, Moorhead Way, Off Bawtry Road, Rotherham, S66 1YY.

1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Rental income represents rents receivable, net of VAT and other sales related taxes, under operating leases and is recognised on a straight line basis over the lease term. Where rent free periods or similar incentives are granted to tenants, these are amortised over the term of the lease. Contingent rentals are recognised as income in the period in which they are earned.

 

Management fee income and amounts receivable from group companies are both recognised when the services have been provided.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
over 40 years
Motor vehicles
25% p.a. straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases
As lessee

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.16

Leases - accounting by lessor

A lease is an agreement whereby the lessor conveys to the lessee in return for a payment, or series of payments, the right to use an asset for an agreed period of time.

 

All leases granted by the group are sub-leases of property that is leased by the group to third parties.

 

Lease income is recognised over the lease term on a straight-line basis.

UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Freehold and investment property valuations

Properties are valued annually using the yield methodology. This uses market rental value capitalised at a market yield rate. There is an inevitable degree of judgement involved in that each property is unique and value can ultimately only be reliably tested in the market itself. The directors use professional valuations to assist in their assessment which are undertaken on an existing use basis.

 

At the balance sheet date, the net book value of freehold properties was £699,403 (2023: £721,615) and the fair value of the investment properties was £250,000 (2023: £100,040).

 

Refer to notes 11 and 12.

Impairment of non-financial assets

The company assesses the impairment of property, plant and equipment including investment property subject to amortisation or depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important that could trigger an impairment review include the following:

 

 

Total depreciation charged in the period was £134,587 (2023: £134,588).

 

Refer to note 11, showing the tangible fixed assets carrying values impacted by this key accounting estimate.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Rental income
114,500
114,500
2024
2023
£
£
Other revenue
Interest income
389,045
306,989
UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the period is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
20,000
Depreciation of owned tangible fixed assets
12,212
22,212
Depreciation of tangible fixed assets held under finance leases
122,375
112,376
5
Employees

The average monthly number of persons (including directors) employed by the company during the period was:

2024
2023
Number
Number
Administration
10
9

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
690,930
796,507
Social security costs
90,981
108,145
Pension costs
143,953
193,253
925,864
1,097,905
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
185,002
188,656
Company pension contributions to defined contribution schemes
18,821
22,821
203,823
211,477

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
128,681
133,766
Company pension contributions to defined contribution schemes
8,821
8,821
137,502
142,587
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
9,767
-
0
Interest receivable from group and related companies
368,318
300,170
Other interest income
10,960
6,819
Total income
389,045
306,989
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
378,085
300,170
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
14,299
14,608
Other interest
71,943
38,220
86,242
52,828
UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 19 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
175,393
161,950
Deferred tax
Origination and reversal of timing differences
(24,208)
(25,760)
Total tax charge
151,185
136,190

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,100,575
902,769
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
275,144
225,692
Tax effect of expenses that are not deductible in determining taxable profit
(15,825)
22,922
Gains not taxable
(37,490)
-
0
Group relief
(76,197)
(95,824)
Depreciation on assets not qualifying for tax allowances
5,553
5,553
Tax at marginal rate
-
0
(22,153)
Taxation charge for the period
151,185
136,190

Deferred tax has been recognised at a rate of 25%. In October 2022, the government announced an increase in the corporation tax main rate from 19% to 25% for companies with profit over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023.

10
Dividends
2024
2023
£
£
Final paid
643,914
-
0
UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 20 -
11
Tangible fixed assets
Freehold land and buildings
Motor vehicles
Total
£
£
£
Cost
At 29 September 2023 and 30 September 2024
888,205
412,085
1,300,290
Depreciation and impairment
At 29 September 2023
166,590
142,411
309,001
Depreciation charged in the period
22,212
112,375
134,587
At 30 September 2024
188,802
254,786
443,588
Carrying amount
At 30 September 2024
699,403
157,299
856,702
At 28 September 2023
721,615
269,674
991,289

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

 

2024
2023
£
£
Motor vehicles
157,299
269,674
12
Investment property
2024
£
Fair value
At 29 September 2023
100,040
Net gains or losses through fair value adjustments
149,960
At 30 September 2024
250,000

Investment property comprises of 1 property. The fair value of the investment property has been arrived at on the basis of a valuation carried out on 10 February 2025 by Knight Frank LLP, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors believe the valuation dated 10 February 2025 is indicative of the fair value of the properties held as at 30 September 2024.

 

This class of asset has a current value of £250,000 (2023: £100,040) and the directors consider this to be a fair estimate of current market value.

UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
12
Investment property
(Continued)
- 21 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Cost
100,040
100,040
Accumulated depreciation
(21,216)
(18,720)
Carrying amount
78,824
81,320
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
200,000
200,000
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
United Carpets (Franchisor) Limited
1
Carpets and beds retailing and franchising of retail outlets
Ordinary
100.00
United Carpets (Commercial) Limited
1
Trade sales, retailer of beds and carpet resale agents
Ordinary
100.00
United Carpets (Property) Limited
1
Leasing and sub-letting of retail units
Ordinary
100.00
Pay Per Week Carpets and Beds Limited
2
Carpets and beds retailing and franchising of retail outlets
Ordinary
100.00
Online Flooring and Beds Limited
2
Sales agent for United Carpets (Commercial) Limited
Ordinary
100.00
Carpetmania Limited
1
Dormant
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Moorhead House, Moorhead Way, Bramley, Rotherham, South Yorkshire, S66 1YY
2
Horizon House, 2 Whiting Street, Sheffield, S8 9QR
UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 22 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,107
4,245
Amounts owed by group undertakings
5,975,370
4,526,360
Other debtors
1,060,689
1,742,752
Prepayments and accrued income
39,268
34,869
7,081,434
6,308,226
Deferred tax asset (note 20)
22,174
-
0
7,103,608
6,308,226
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
1,000,000
750,000
Obligations under finance leases
19
85,875
116,043
Trade creditors
57,857
16,599
Amounts owed to group undertakings
3,312,242
3,083,695
Corporation tax
237,343
161,950
Other taxation and social security
123,169
143,494
Other creditors
1,448
1,431
Accruals and deferred income
167,272
255,468
4,985,206
4,528,680

Bank loans are secured.

 

Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.

17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
-
0
93,028

Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.

UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 23 -
18
Loans and overdrafts
2024
2023
£
£
Bank loans
1,000,000
750,000
Payable within one year
1,000,000
750,000

The loan is secured by way of a fixed and floating charge over the assets of the company, and an inter-company cross guarantee with the fellow subsidiaries of United Carpets Group Limited. The interest rate on the loan is base rate plus 3.25%. The loan is due for repayment by February 2024.

 

19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
85,875
116,043
In two to five years
-
0
93,028
85,875
209,071

 

Finance lease payments represent rentals payable by the company for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 or 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
-
2,951
21,255
-
Other timing differences
-
(917)
919
-
-
2,034
22,174
-
2024
Movements in the period:
£
Liability at 29 September 2023
2,034
Credit to profit or loss
(24,208)
Asset at 30 September 2024
(22,174)
UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
20
Deferred taxation
(Continued)
- 24 -

The deferred tax liability set out above predominately relates to accelerated capital allowances which are expected to release over the useful economic life of the associated tangible fixed assets. Other short term timing differences such as pension obligations attract corporation tax relief when paid.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
143,953
193,253

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

As at the year-end, contributions due to the schemes in respect of the current reporting period were £1,448 (2023: £1,431).

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £2 each
190,000
19
380,000
380,000

On 29 September 2023, 19 Ordinary shares with a nominal value £20,000 each were sub divided into 190,000 ordinary shares with a nominal value of £2 each.

23
Share premium account

The share premium account represents consideration received for shares issued above their nominal value, net of transaction costs.

24
Capital redemption reserve

The cumulative nominal value associated with the repurchase of the company's own shares.

25
Financial commitments, guarantees and contingent liabilities

The company has entered into an unlimited cross guarantee covering the borrowings of all group companies in favour of Santander UK PLC. At the balance sheet date, the potential added liability for the company under these cross guarantees is £2,140,832 (2023: £2,313,932).

UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 25 -
26
Operating lease commitments

Lessor

The operating leases represent leases of property to third parties. The leases are negotiated over terms of 5 years.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

 

2024
2023
Future amounts receivable under operating leases:
£
£
Within 1 year
10,000
30,000
Years 2-5
-
0
10,000
10,000
40,000
27
Related party transactions

The company has taken advantage of the exemption available in accordance with FRS 102 section 33.1A 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

 

During the year, loans totalling £51,407 (2023: £50,000) were advanced to Elite Lifestyle Parks Limited, a company in which P R Eyre is a director and shareholder. During the year, interest of £44,225 (2023: £35,357) has been charged on these loans. At the year-end, an amount of £609,681 (2023: £558,274) was owed to the company by Elite Lifestyle Parks Limited and is included within other debtors. The loans are unsecured and repayable upon demand.

 

During the year, loans totalling £Nil (2023: £44,338) were advanced to iJump Trampoline Parks Limited, a company in which P R Eyre is a shareholder. At the year-end, an amount of £Nil (2023: £44,338) was owed to the company by iJump Trampoline Parks Limited and is included within other debtors. The loans are non-interest bearing, unsecured and repayable upon demand.

28
Directors' transactions

Dividends totalling £0 (2023 - £342,095) were paid in the period in respect of shares held by the company's directors.

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors loan account
2.50
505,140
440,048
10,960
(505,140)
451,008
505,140
440,048
10,960
(505,140)
451,008

The above loan was fully repaid post period end.

UNITED CARPETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
- 26 -
29
Ultimate controlling party

From 29th September 2023, the immediate and ultimate parent company is Pre Group Ltd, a company registered in England and Wales.

 

United Carpets Group Limited is consolidated within Pre Group Ltd's group financial statements and copies can be obtained on request from the groups registered office, Moorhead House, Moorhead Way, Bramley, Rotherham, England, S66 1YY.

 

The ultimate controlling party is deemed to be P R Eyre by virtue of his majority shareholding in Pre Group Ltd.

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