Company registration number 05566209 (England and Wales)
CONCEPT LIVING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
CONCEPT LIVING LIMITED
COMPANY INFORMATION
Directors
M A O Baumgart
T D Powell
Secretary
G J Treadwell
Company number
05566209
Registered office
The Paddock
Bethesda Street
Upper Basildon
Berkshire
RG8 8NU
Auditor
Glazers
843 Finchley Road
London
NW11 8NA
Business address
Unit 10, Muir Head Quay
Fresh Wharf Estate
Highbridge Road
Barking
IG11 7BG
CONCEPT LIVING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
CONCEPT LIVING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
The principal activity of the company is that of the sale of high-end furniture operating through the BoConcept Brand.
The company is one of the leading worldwide franchisees of BoConcept A/S, a renowned Danish furniture manufacturer. BoConcept specialises in contemporary design, exclusively available through its franchise network, and is globally recognised as a leader in the affordable premium segment.
The company operates ten retail locations, including a concession in Harrods and three concessions within Fenwick department stores. In addition to its retail operations, the company has developed a strong Trade and Commercial Contracts division.
Due to the nature of commercial contracts, the Trade and Contract division experiences a time lag between winning contracts and the recognition of related turnover.
Review of the business
The company is pleased to report a strong financial performance, with turnover maintained at high levels year-on-year. £18,896,411 (2023), £21,182,823 (2024) increase of 12% and a significant increase in pre-tax profit, rising from £189,944 to £971,343.
Despite broader macroeconomic challenges, this growth underscores the company’s operational resilience and ability to execute its strategy effectively.
Principal risks and uncertainties
The company believes that delivering market leading and exclusive design furniture, a well-recognised Danish high quality with a positioning in the affordable premium segment, together with a high level of customer service gives it more resilience to any turbulence in the UK market and will continue to ensure customer loyalty and development of the BoConcept brand.
Strategic Risk
The International geopolitical climate, combined with the UK Government’s new taxes on business and individuals, is contributing to an increasingly fragile economy. We anticipate that this uncertainty will persist for some time.
The Board regularly reviews and adapts to evolving circumstances. With over 20 years of operational experience, it has learned that challenging times often present opportunities to gain market share. Continued investment during such periods ensures the company remains well positioned to thrive once conditions improve.
The Board firmly believes that the company’s positioning in the affordable luxury segment, supported by strong global brand recognition and European manufacturing, offers a strategic advantage. This enables the delivery of high quality, exclusive designs with short lead times, helping to secure a privileged position within the market.
Financial Risk
The company maintains a robust relationship with financial stakeholders. Frequent cash flow forecasting and performance reviews are undertaken to ensure informed business decisions and financial sustainability.
Operational Risk
Ongoing capital investment underpins store expansion and the growth of the Trade and Contract division. The company recognises that its people are instrumental to success, and continued investment in training and retention remains a key priority.
Health and Safety and Compliance Risk
A designated Board member oversees compliance, ensuring adherence to all legal and internal standards. Staff training programmes are in place to mitigate risk, and stable employment levels have been a significant achievement.
CONCEPT LIVING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Economy and market conditions
Despite challenges such as labour shortages and supply chain disruptions, the company has maintained strong trading performance. Customer experience remains well managed through proactive operational planning.
BoConcept A/S Brand expectation
Store expansion continues in line with the company’s strategic growth plan. BoConcept A/S is a member of the United Nations Global Compact and, together with the company, shares a commitment to ethical operations and sustainability, including ongoing efforts to reduce environmental impact.
Outlook
The company remains confident in its future prospects. Despite macroeconomic uncertainty, the long-term outlook for the home furnishings market is positive, with the home expected to retain high importance for consumers. The company is well-positioned to respond to challenges and adapt as needed to continue its growth trajectory.
The Company's Key Stakeholders
Customers
The company prioritises delivering high-quality, customisable contemporary furniture, supported by market-leading lead times, an inspirational free interior design service, and exceptional customer care.
People
Our employees are central to the company’s success. Investment in training and retention ensures a motivated and skilled workforce.
Suppliers
The company maintains a long-standing and strategic partnership with BoConcept A/S, governed by long-term contracts. Both parties collaborate closely to strengthen the BoConcept brand globally.
Development and performance
The results for the year and the financial position at the year end were considered satisfactory by the directors who expect continued growth in the foreseeable future.
T D Powell
Director
25 July 2025
CONCEPT LIVING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company continued to be that of the retail of high-end furniture.
Results and dividends
The results for the year are set out on page 9.
The company's results are consolidated within the accounts of the parent company Concept Living Holdings Limited, a strategic report for the group is included within these consolidated accounts.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M A O Baumgart
T D Powell
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.
Foreign currency risk
The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Auditor
The auditor, Glazers, 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.
CONCEPT LIVING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
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 then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; 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.
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
T D Powell
Director
25 July 2025
CONCEPT LIVING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CONCEPT LIVING LIMITED
- 5 -
Opinion
We have audited the financial statements of Concept Living Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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:
give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CONCEPT LIVING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CONCEPT LIVING 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
1) Enquiries of management concerning the company's policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
2) The company's remuneration policies, key drivers for remuneration and bonus levels; and
3) Discussions among the engagement team regarding how and when fraud might occur in the financial statements and any potential indicators of fraud.
CONCEPT LIVING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CONCEPT LIVING LIMITED (CONTINUED)
- 7 -
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and United Kingdom Generally Accepted Accounting Practice.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or avoid a material penalty.
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.
In addition to the above, our procedures to respond to risks identified included the following:
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Enquiring of management concerning actual and potential litigation and claims;
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 reviewing correspondence with relevant tax authorities; and
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgments 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.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Directors and other management are responsible for such internal control as the Directors and other management of the Company determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, 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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
CONCEPT LIVING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CONCEPT LIVING LIMITED (CONTINUED)
- 8 -
Philippe Herszaft ACA (Senior Statutory Auditor)
For and on behalf of Glazers, Statutory Auditor
Chartered Accountants
843 Finchley Road
London
NW11 8NA
25 July 2025
CONCEPT LIVING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
21,182,823
18,896,411
Cost of sales
(12,905,750)
(12,215,386)
Gross profit
8,277,073
6,681,025
Administrative expenses
(8,111,405)
(7,271,347)
Other operating income
814,757
792,155
Operating profit
4
980,425
201,833
Interest receivable and similar income
7
16,240
17,946
Interest payable and similar expenses
8
(25,322)
(29,835)
Profit before taxation
971,343
189,944
Tax on profit
9
(204,356)
(92,835)
Profit for the financial year
766,987
97,109
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CONCEPT LIVING LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,516,475
1,423,122
Investments
12
533,444
533,444
2,049,919
1,956,566
Current assets
Stocks
15
1,616,649
1,467,026
Debtors
16
3,308,435
2,524,788
Cash at bank and in hand
1,748,534
1,120,504
6,673,618
5,112,318
Creditors: amounts falling due within one year
17
(6,675,001)
(6,238,524)
Net current liabilities
(1,383)
(1,126,206)
Total assets less current liabilities
2,048,536
830,360
Creditors: amounts falling due after more than one year
18
(450,000)
(32,825)
Provisions for liabilities
Deferred tax liability
20
182,680
148,666
(182,680)
(148,666)
Net assets
1,415,856
648,869
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
1,415,756
648,769
Total equity
1,415,856
648,869
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 25 July 2025 and are signed on its behalf by:
T D Powell
Director
Company registration number 05566209 (England and Wales)
CONCEPT LIVING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
100
1,031,660
1,031,760
Year ended 31 October 2023:
Profit and total comprehensive income
-
97,109
97,109
Dividends
10
-
(480,000)
(480,000)
Balance at 31 October 2023
100
648,769
648,869
Year ended 31 October 2024:
Profit and total comprehensive income
-
766,987
766,987
Balance at 31 October 2024
100
1,415,756
1,415,856
CONCEPT LIVING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
568,446
91,621
Interest paid
(25,322)
(29,835)
Income taxes paid
(84,698)
(421,802)
Net cash inflow/(outflow) from operating activities
458,426
(360,016)
Investing activities
Purchase of tangible fixed assets
(352,966)
(489,270)
Proceeds from disposal of tangible fixed assets
2,443
Repayment of loans
(165,000)
Interest received
16,240
17,946
Net cash used in investing activities
(334,283)
(636,324)
Financing activities
Repayment of bank loans
503,887
(146,081)
Dividends paid
(480,000)
Net cash generated from/(used in) financing activities
503,887
(626,081)
Net increase/(decrease) in cash and cash equivalents
628,030
(1,622,421)
Cash and cash equivalents at beginning of year
1,120,504
2,742,925
Cash and cash equivalents at end of year
1,748,534
1,120,504
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
1
Accounting policies
Company information
Concept Living Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Paddock, Bethesda Street, Upper Basildon, Berkshire, RG8 8NU.
1.1
Basis of preparation
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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Concept Living Limited is a wholly owned subsidiary of Concept Living Holdings Limied and the results of Concept Living Limited are included in that company's consolidated financial statements which are available from Companies House.
1.2
Business combinations
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
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.
1.4
Turnover
Turnover represents the ticket price (excluding value added tax) of furniture delivered to third parties. Turnover comprises retail sales wholly in the UK to external customers.
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
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:
Land and buildings Leasehold
15% per annum reducing balance method/15% per annum straight line method depending upon the nature of the asset
Fixtures, fittings & equipment and computers
15% per annum reducing balance method/straight line over 3 years depending upon the nature of the asset
Motor vehicles
25% per annum reducing balance method
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
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.
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
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.
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
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.
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.
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. 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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
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.
1.14
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.
1.15
Leases
As lessee
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Furniture sales
21,182,823
18,896,411
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
21,182,823
18,896,411
2024
2023
£
£
Other revenue
Interest income
16,240
17,946
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
840
106
Fees payable to the company's auditor for the audit of the company's financial statements
22,950
21,450
Depreciation of tangible fixed assets
257,170
214,548
Operating lease charges
1,140,631
1,346,253
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Office and Administration
14
13
Sales
57
52
Warehouse
32
34
Total
103
99
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
5
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,298,922
2,825,813
Social security costs
422,914
368,175
3,721,836
3,193,988
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
219,641
217,334
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
157,000
157,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
16,240
17,946
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
16,240
17,946
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
25,322
19,605
Other finance costs:
Other interest
10,230
25,322
29,835
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
153,112
Adjustments in respect of prior periods
17,230
Total current tax
170,342
Deferred tax
Origination and reversal of timing differences
34,014
92,835
Total tax charge
204,356
92,835
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
971,343
189,944
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
242,836
47,486
Tax effect of expenses that are not deductible in determining taxable profit
20,628
11,352
Unutilised tax losses carried forward
9,126
Adjustments in respect of prior years
17,230
Group relief
(80,152)
Permanent capital allowances in excess of depreciation
(94,492)
(121,670)
Depreciation on assets not qualifying for tax allowances
64,292
53,706
Deferred tax
34,014
92,835
Taxation charge for the year
204,356
92,835
10
Dividends
2024
2023
£
£
Interim paid
480,000
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
11
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment and computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2023
1,336,498
1,782,895
46,659
3,166,052
Additions
47,089
305,877
352,966
Disposals
(3,813)
(3,813)
At 31 October 2024
1,383,587
2,088,772
42,846
3,515,205
Depreciation and impairment
At 1 November 2023
646,925
1,060,057
35,948
1,742,930
Depreciation charged in the year
64,793
189,700
2,677
257,170
Eliminated in respect of disposals
(1,370)
(1,370)
At 31 October 2024
711,718
1,249,757
37,255
1,998,730
Carrying amount
At 31 October 2024
671,869
839,015
5,591
1,516,475
At 31 October 2023
689,573
722,838
10,711
1,423,122
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
533,444
533,444
13
Subsidiaries
Details of the company's subsidiaries at 31 October 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Tottenham Court Road Ltd
The Paddock, Bethesda Street, Upper Basildon, Berkshire, RG8 8NU
Ordinary shares
100.00
Loft Living Limited
The Paddock, Bethesda Street, Upper Basildon, Berkshire, RG8 8NU
Ordinary shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
13
Subsidiaries
(Continued)
- 23 -
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Tottenham Court Road Ltd
1,283,975
20,323
Loft Living Limited
14
Security
Barclays Bank PLC and Metro Bank PLC have a fixed and floating charge over all the assets of the company. This charge was taken in support of the loan facilities within the group as a result of the cross guarantees in place within the group.
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,616,649
1,467,026
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
838,344
184,914
Corporation tax recoverable
140,063
140,063
Amounts owed by group undertakings
871,068
850,628
Other debtors
936,577
780,956
Prepayments and accrued income
502,983
548,827
3,289,035
2,505,388
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
19,400
19,400
Total debtors
3,308,435
2,524,788
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
155,602
68,890
Trade creditors
1,205,339
769,162
Amounts owed to group undertakings
1,464,045
1,109,850
Corporation tax
153,112
67,468
Other taxation and social security
621,980
600,666
Other creditors
15,442
13,539
Accruals and deferred income
3,059,481
3,608,949
6,675,001
6,238,524
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
450,000
32,825
19
Loans and overdrafts
2024
2023
£
£
Bank loans
605,602
101,715
Payable within one year
155,602
68,890
Payable after one year
450,000
32,825
Bank loans are repayable between 1 to 2 years with a interest rate of 4.75%.
20
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
182,680
148,666
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
20
Deferred taxation
(Continued)
- 25 -
2024
Movements in the year:
£
Liability at 1 November 2023
148,666
Charge to profit or loss
34,014
Liability at 31 October 2024
182,680
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
The company has one class of ordinary shares which carry equal rights to dividends and voting.
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
219,641
217,334
Other information
The directors have provided personal guarantees in respect of the company's bank borrowings.
23
Directors' transactions
Dividends totalling £0 (2023 - £480,000) were paid in the year in respect of shares held by the company's directors.
At the year end there was £415,000 (2023 - £415,000) owed from the directors to the company. The loan is repayable on demand.
24
Ultimate controlling party
The parent company of Concept Living Limited is Concept Living Holdings Limited and its registered office is; The Paddocks, Bethesda Street, Berkshire, RG8 8NU.
CONCEPT LIVING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
24
Ultimate controlling party
(Continued)
- 26 -
The following are the parents of the largest and smallest groups in which this company's results are consolidated:
Largest group
Concept Living Holdings Limited
Smallest group
Concept Living Holdings Limited
25
Cash generated from operations
2024
2023
£
£
Profit after taxation
766,987
97,109
Adjustments for:
Taxation charged
204,356
92,835
Finance costs
25,322
29,835
Investment income
(16,240)
(17,946)
Depreciation and impairment of tangible fixed assets
257,170
214,548
Movements in working capital:
Increase in stocks
(149,623)
(89,453)
Increase in debtors
(783,647)
(248,361)
Increase in creditors
264,121
13,054
Cash generated from operations
568,446
91,621
26
Analysis of changes in net funds
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
1,120,504
628,030
1,748,534
Borrowings excluding overdrafts
(101,715)
(503,887)
(605,602)
1,018,789
124,143
1,142,932
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