Imperial Furniture Group Limited
Annual report and financial statements
For the year ended 31 December 2024
Imperial Furniture Group Limited
Company information
Director
Mrs L J Bennett
Secretary
Mrs L J Bennett
Company number
05673910
Registered office
The Exchange
5 Bank Street
Bury
United Kingdom
BL9 0DN
Auditor
DJH Audit Limited
The Exchange
5 Bank Street
Bury
Lancashire
BL9 0DN
Imperial Furniture Group Limited
Contents
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 27
Imperial Furniture Group Limited
Strategic report
For the year ended 31 December 2024
- 1 -
The director presents the strategic report for the year ended 31 December 2024.
Review of the business
The results for the year and financial position of the group are shown in the annexed financial statements.
2024 has proven to be a turbulent year due to the cost of living crisis but the company has managed to remain stable throughout the period. The group has seen a drop in turnover to £16.2 million (2023: £16.9 million). In the year to 31 December 2024 the group’s gross profit margin was 35.4% (2023: 36.1%).
The group has managed to invest in new machinery within the year with additions of £588k.
Despite another challenging year there has been a strong cash balance and stability achieved during the 12 month period, with a cash balance of £2.9 million at 31 December 2024.
The Manchester showroom remains a very strong asset to the business and enables major contracts to be won.
As a group we are proud to be part of the ISO, FIRA and FFC certifications. These are an excellent asset to the group.
Principal risks and uncertainties
The group maintains its responsible approach to financial risk management and has maintained credit insurance cover to further ensure business stability.
The group operates within a highly competitive market and faces competition from within the United Kingdom and overseas. The group manages this risk by researching and developing new and innovative product ranges.
As legislation continues to increase minimum wages and pension contributions, the group will notice increasing staff costs which will potentially impact on profit margins. The director will continue to manage staff levels and review the margin effect.
During 2025 the group expects to face pressure due to rising costs and wages. Working capital management will be key to the ongoing stability of the business. The group has good controls and systems in place, which are constantly reviewed to effectively manage this risk.
Key performance indicators
The directors believe the key performance indicators of the group are as follows:
i) Monthly sales data - compared to forecasts and prior year results
ii) Net profit - compared with budgeted results
Future developments
The group will continue to invest in training for the workforce, maintaining a strong relationship with both our customers and suppliers and continuing to improve and update the buildings we work from. This will provide a foundation to grow and expand the business organically.
The group will develop and expand ranges to keep the group at the forefront of our industry.
Mrs L J Bennett
Director
14 July 2025
Imperial Furniture Group Limited
Director's report
For the year ended 31 December 2024
- 2 -
The director presents her annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the group in the year under review was that of the manufacture and sale of office furniture.
The principal activity of the company in the year under review was that of a holding company to its subsidiary.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £800,000. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mrs L J Bennett
Mr J Bennett
(Deceased 6 February 2025)
Auditor
DJH Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.
Statement of director's responsibilities
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Imperial Furniture Group Limited
Director's report (continued)
For the year ended 31 December 2024
- 3 -
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mrs L J Bennett
Director
14 July 2025
Imperial Furniture Group Limited
Independent auditor's report
To the members of Imperial Furniture Group Limited
- 4 -
Opinion
We have audited the financial statements of Imperial Furniture Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group's and the parent company's affairs as at 31 December 2024 and of the group's 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent 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 director 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 director is 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.
Imperial Furniture Group Limited
Independent auditor's report (continued)
To the members of Imperial Furniture Group Limited
- 5 -
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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has 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.
Imperial Furniture Group Limited
Independent auditor's report (continued)
To the members of Imperial Furniture Group Limited
- 6 -
As part of our planning process:
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any material known, suspected or alleged fraud. The company did not inform us of any material known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety at Work Act 1974 and National Minimum Wage act 1998.
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries, in particular those that were material or unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation, as identified at planning above.
- Performing a physical verification of key assets.
- 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. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.
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 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.
Kate Hughes (Senior Statutory Auditor)
For and on behalf of
14 July 2025
DJH Audit Limited
Accountants
Statutory Auditor
The Exchange
5 Bank Street
Bury
Lancashire
BL9 0DN
Imperial Furniture Group Limited
Group statement of comprehensive income
For the year ended 31 December 2024
- 7 -
2024
2023
Notes
£
£
Turnover
5
16,245,921
16,859,080
Cost of sales
(10,502,018)
(10,768,651)
Gross profit
5,743,903
6,090,429
Distribution costs
(6,773)
(7,415)
Administrative expenses
(4,810,611)
(4,648,909)
Operating profit
6
926,519
1,434,105
Interest receivable and similar income
9
96,030
61,409
Interest payable and similar expenses
10
(16,741)
(36,298)
Profit before taxation
1,005,808
1,459,216
Tax on profit
11
(328,494)
(371,738)
Profit for the financial year
677,314
1,087,478
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Imperial Furniture Group Limited
Group balance sheet
As at 31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,039,652
1,618,634
Current assets
Stocks
16
725,439
730,633
Debtors
17
4,676,867
4,269,037
Cash at bank and in hand
2,886,230
3,565,744
8,288,536
8,565,414
Creditors: amounts falling due within one year
18
(2,367,385)
(2,624,067)
Net current assets
5,921,151
5,941,347
Total assets less current liabilities
7,960,803
7,559,981
Creditors: amounts falling due after more than one year
19
(510,161)
(152,224)
Provisions for liabilities
Deferred tax liability
21
490,084
324,513
(490,084)
(324,513)
Net assets
6,960,558
7,083,244
Capital and reserves
Called up share capital
23
500
500
Revaluation reserve
238,795
238,795
Other reserves
(400)
(400)
Profit and loss reserves
6,721,663
6,844,349
Total equity
6,960,558
7,083,244
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 14 July 2025 and are signed on its behalf by:
14 July 2025
Mrs L J Bennett
Director
Company registration number 05673910 (England and Wales)
Imperial Furniture Group Limited
Company balance sheet
As at 31 December 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
500
500
Current assets
Debtors
17
708
708
Cash at bank and in hand
1
1
709
709
Creditors: amounts falling due within one year
18
(27)
(27)
Net current assets
682
682
Net assets
1,182
1,182
Capital and reserves
Called up share capital
23
500
500
Profit and loss reserves
682
682
Total equity
1,182
1,182
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £800,000 (2023 - £800,000 profit).
The financial statements were approved by the board of directors and authorised for issue on 14 July 2025 and are signed on its behalf by:
14 July 2025
Mrs L J Bennett
Director
Company registration number 05673910 (England and Wales)
Imperial Furniture Group Limited
Group statement of changes in equity
For the year ended 31 December 2024
- 10 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
500
238,795
(400)
6,556,871
6,795,766
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
1,087,478
1,087,478
Dividends
12
-
-
-
(800,000)
(800,000)
Balance at 31 December 2023
500
238,795
(400)
6,844,349
7,083,244
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
677,314
677,314
Dividends
12
-
-
-
(800,000)
(800,000)
Balance at 31 December 2024
500
238,795
(400)
6,721,663
6,960,558
Imperial Furniture Group Limited
Company statement of changes in equity
For the year ended 31 December 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
500
682
1,182
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
800,000
800,000
Dividends
12
-
(800,000)
(800,000)
Balance at 31 December 2023
500
682
1,182
Year ended 31 December 2024:
Profit and total comprehensive income
-
800,000
800,000
Dividends
12
-
(800,000)
(800,000)
Balance at 31 December 2024
500
682
1,182
Imperial Furniture Group Limited
Group statement of cash flows
For the year ended 31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
1
755,149
2,038,889
Interest paid
(16,741)
(36,298)
Income taxes paid
(387,112)
(575,892)
Net cash inflow from operating activities
351,296
1,426,699
Investing activities
Purchase of tangible fixed assets
(588,156)
(12,974)
Proceeds from disposal of tangible fixed assets
34,759
-
Amounts withdrawn by director
(236,569)
(173,161)
Interest received
96,030
61,409
Net cash used in investing activities
(693,936)
(124,726)
Financing activities
Payment of finance leases obligations
463,126
(93,971)
Dividends paid to equity shareholders
(800,000)
(800,000)
Net cash used in financing activities
(336,874)
(893,971)
Net (decrease)/increase in cash and cash equivalents
(679,514)
408,002
Cash and cash equivalents at beginning of year
3,565,744
3,157,742
Cash and cash equivalents at end of year
2,886,230
3,565,744
Imperial Furniture Group Limited
Group statement of cash flows (continued)
For the year ended 31 December 2024
- 13 -
1
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
677,314
1,087,478
Adjustments for:
Taxation charged
328,494
371,738
Finance costs
16,741
36,298
Investment income
(96,030)
(61,409)
(Gain)/loss on disposal of tangible fixed assets
(34,759)
291
Depreciation and impairment of tangible fixed assets
167,138
210,479
Movements in working capital:
Decrease/(increase) in stocks
5,194
(3,047)
(Increase)/decrease in debtors
(91,431)
291,682
(Decrease)/increase in creditors
(217,512)
105,379
Cash generated from operations
755,149
2,038,889
2
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
3,565,744
(679,514)
2,886,230
Obligations under finance leases
(204,415)
(463,126)
(667,541)
3,361,329
(1,142,640)
2,218,689
3
Accounting policies
Company information
Imperial Furniture Group Limited is a private company, limited by shares, registered in England and Wales. Its registered number is 05673910 and its registered office address is The Exchange, 5 Bank Street, Bury, BL9 0DN.
The group consists of Imperial Furniture Group Limited and all of its subsidiaries.
3.1
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. The principal accounting policies adopted are set out below.
Imperial Furniture Group Limited
Notes to the group financial statements
For the year ended 31 December 2024
3
Accounting policies
(Continued)
- 14 -
3.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Imperial Furniture Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
3.3
Going concern
The group had net assets of £6,960,558 at the year end (2023 - £7,083,244) and has continued to generate profits post year end. Forecasts show that the group will continue to trade profitably and will have adequate cash reserves to meet liabilities as and when they fall due. The directors believe that the group can manage risks at these challenging times and therefore continue to adopt a going concern basis of accounting in preparing these financial statements.
3.4
Turnover
Turnover comprises the aggregate of the fair value of the sales of goods, net of value-added tax, rebates and discounts. Turnover is recognised when a right to consideration has been obtained through performance under each contract. Consideration accrues as contract activity progresses by reference to the value of work performed. Turnover is not recognised where the right to receive payment is contingent on events outside the control of the company.
Unbilled turnover is included in debtors as 'Amounts recoverable on contracts'.
3.5
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
Land - not provided. Property - straight line over 20 years
Improvements to property
15% on reducing balance
Plant and equipment
15% on reducing balance, 10% on reducing balance, and over the period of the lease
Fixtures and fittings
15% on reducing balance
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 recognised in the profit and loss account.
The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
3
Accounting policies
(Continued)
- 15 -
3.6
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
3.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to the statement of comprehensive income as incurred.
3.8
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.
3.9
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
3
Accounting policies
(Continued)
- 16 -
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.
3.10
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 group’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 if, and only if, there is 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.
3.11
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.
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
3
Accounting policies
(Continued)
- 17 -
3.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
3.13
Leases
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.
3.14
Hire purchase obligations
Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to the statement of comprehensive income over the relevant period. The capital element of the future payments is treated as a liability.
All other leases are treated as operating leases. The annual rentals are charged to the statement of comprehensive income in the period in which they become payable.
3.15
Equity dividends are recognised when they become legally payable and are no longer at the discretion of the company.
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
- 18 -
4
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and
rewards of ownership have transferred to the company as lessee.
Determining the useful economic life of an asset is considered a key judgement in calculating an appropriate depreciation
charge.
Estimating the anticipated residual value of an asset is considered a key estimation in calculating an appropriate depreciation charge.
5
Turnover and other revenue
The turnover and profit before taxation are attributable to the one principal activity of the company, and arose entirely within the UK.
2024
2023
£
£
Other revenue
Interest income
96,030
61,409
6
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
153,645
120,529
Depreciation of tangible fixed assets held under finance leases
13,493
89,950
(Profit)/loss on disposal of tangible fixed assets
(34,759)
291
Hire of plant and machinery
32,219
38,076
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
- 19 -
7
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group
16,275
15,500
8
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
2024
2023
Number
Number
Production and warehousing
79
86
Directors
2
3
Administration
27
24
Design and marketing
3
3
Total
111
116
Their aggregate remuneration comprised:
Group
2024
2023
£
£
Wages and salaries
3,591,969
3,436,316
Social security costs
360,464
317,425
Pension costs
146,545
135,001
4,098,978
3,888,742
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
80,819
61,409
Other interest income
15,211
-
Total income
96,030
61,409
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
9
Interest receivable and similar income
(Continued)
- 20 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
80,819
61,409
10
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
16,741
22,791
Other interest
-
13,507
Total finance costs
16,741
36,298
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
162,980
387,486
Adjustments in respect of prior periods
(57)
19,002
Total current tax
162,923
406,488
Deferred tax
Origination and reversal of timing differences
165,571
(34,750)
Total tax charge
328,494
371,738
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
11
Taxation
(Continued)
- 21 -
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
1,005,808
1,459,216
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
251,452
364,804
Tax effect of expenses that are not deductible in determining taxable profit
(224)
9,875
Adjustments in respect of prior years
(57)
19,002
Effect of change in corporation tax rate
-
(24,373)
Depreciation on assets not qualifying for tax allowances
77,323
2,430
Taxation charge
328,494
371,738
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
800,000
800,000
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
- 22 -
13
Tangible fixed assets
Group
Freehold land and buildings
Improve- ments to property
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 January 2024
790,000
282,537
3,251,451
150,295
4,474,283
Additions
588,156
588,156
Disposals
(319,000)
(319,000)
At 31 December 2024
790,000
282,537
3,520,607
150,295
4,743,439
Depreciation and impairment
At 1 January 2024
316,000
138,367
2,314,794
86,488
2,855,649
Depreciation charged in the year
31,600
21,626
106,562
7,350
167,138
Eliminated in respect of disposals
(319,000)
(319,000)
At 31 December 2024
347,600
159,993
2,102,356
93,838
2,703,787
Carrying amount
At 31 December 2024
442,400
122,544
1,418,251
56,457
2,039,652
At 31 December 2023
474,000
144,170
936,657
63,807
1,618,634
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
588,161
147,488
588,161
147,488
-
-
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
500
500
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
14
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
500
Carrying amount
At 31 December 2024
500
At 31 December 2023
500
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Imperial Office Furniture Ltd
The Exchange, 5 Bank Street, Bury, BL9 0DN, United Kingdom
Holding
100.00
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
725,439
730,633
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,316,813
2,090,833
Gross amounts owed by contract customers
232,198
419,539
S455 tax recoverable
353,277
273,447
Amounts owed by group undertakings
-
-
708
708
Other debtors
1,727,781
1,465,197
Prepayments and accrued income
46,798
20,021
4,676,867
4,269,037
708
708
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
- 24 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Hire purchase
20
157,380
52,191
Trade creditors
1,831,939
1,885,932
Corporation tax payable
64,874
209,233
Other taxation and social security
283,128
369,587
-
-
Other creditors
16,564
15,874
27
27
Accruals and deferred income
13,500
91,250
2,367,385
2,624,067
27
27
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Hire purchase
20
510,161
152,224
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
157,597
52,191
In two to five years
509,944
152,224
667,541
204,415
-
-
Hire purchase contracts are secured on the assets concerned.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
490,084
324,513
The company has no deferred tax assets or liabilities.
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
21
Deferred taxation
(Continued)
- 25 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
324,513
-
Charge to profit or loss
165,571
-
Liability at 31 December 2024
490,084
-
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
146,545
135,001
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.
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
500
500
500
500
24
Reserves
The following describes the nature and purpose of each reserve within equity:
Retained earnings - All other net gains and losses and transactions with owners not recognised elsewhere.
Other Reserves - Gains and losses on revaluation of assets now held at deemed cost following transition to FRS 102. Amounts included in other reserves are not distributable.
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
- 26 -
25
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
282,407
229,920
-
-
Between two and five years
751,681
144,412
-
-
In over five years
95,349
-
-
-
1,129,437
374,332
-
-
26
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
2024
2023
£
£
Group
Barry Bennett Ltd
65,525
62,505
Bennett Workplace Solutions Ltd
38,995
24,924
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Barry Bennett Ltd
1,844
5,970
Bennett Workplace Solutions Ltd
4,976
3,130
Imperial Furniture Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
- 27 -
27
Directors' transactions
Dividends totalling £800,000 (2023 - £800,000) were paid in the year in respect of shares held by the company's directors.
This balance is unsecured, interest free and repayable upon demand.
The maximum overdrawn balance during the year was £1,748,812 (2023 - £1,685,992).
During the year advances were made to J Bennett and L J Bennett amounting to £1,036,542 (2023: £973,187), in respect of personal expenditure but £800,00 was repaid through the declaration of dividends.
No individual transactions are considered to be material in the current year.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
J Bennett and L J Bennett
-
1,427,122
1,036,542
(800,000)
1,663,664
1,427,122
1,036,542
(800,000)
1,663,664
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