Company Registration No. 06961589 (England and Wales)
SOFAS & STUFF LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SOFAS & STUFF LIMITED
COMPANY INFORMATION
Directors
A J Cussins
B M Cussins
J H Cussins
G A Cussins
(Appointed 22 April 2024)
S J Cussins
(Appointed 22 April 2024)
Secretary
E Whitley
Company number
06961589
Registered office
The Dairy
Tripp Hill Farm Buildings
Fittleworth
Pulborough
West Sussex
RH20 1ER
Auditor
PKF Francis Clark
Unit 18 23, Melville Building East
Royal William Yard
Plymouth
Devon
PL1 3GW
SOFAS & STUFF LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 33
SOFAS & STUFF LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Fair review of the business

 

2024 in many respects was an outlier year for Sofas & Stuff, profits wise, coming as it did during the slow down in consumer spending and coinciding with the final year of substantial losses in our recently set up manufacturing division. Delivered sales in the second half were materially less than expected due to 25% of December's expected deliveries being delayed into January 2025, and next year’s financial statements, with the resultant upside for 2025.

As stated in previous financial statements, the business is run for the long term, and the board are confident that 2025 onwards will see a material improvement in bottom line profits, as retail sales again grow, and manufacturing losses become close to negligible.

This year saw the opening of two very important, but different types of store, for the group. The Kings Road flagship store opened in the spring, bringing our unique “Choice not Compromise” offer to central London for the first time. Trade has been brisk and will hit budget in its first year, adding materially to the group’s bottom line in 2025. The second store in Bruton in Somerset, saw the group experimenting with a far smaller store footprint. Make this footprint work and the opportunity to open in locations with large high net worth customers, grows exponentially. As I write, the results are really encouraging, with the store trading 15% above budget.

The board feels confident about the group’s future and its future growth prospects. The one proviso on the horizon being the increasing geopolitical uncertainty, and the move away from a free trade world to one of protectionism. Sofas & Stuff has always sourced mostly, and manufactured, 100% in the UK, thereby lessening the buffeting that such changes bring. How these changes will affect the appetite of our high-end consumer to go on spending, only time will tell, but we feel that this better off consumer is more likely to ignore the world situation, than most other socio demographic groups.

Principal risks and uncertainties

 

The principal risk must be a drop in consumer confidence driven by rapidly rising inflation and increased interest costs. Being at the premium end of the sofa and fabric market may mean that these factors will play out less strongly than for some players where being the cheapest is their only point of difference.

 

Sales may also be affected in the summer months by the desire of our core customer to leave our shores for sunnier climes, as opposed to spending their holiday money on home improvements as has been the case over the last 24 months.

 

Sofas & Stuff is a business built on colleagues offering the very highest level of customer service it is possible to achieve. We are a people business pure and simple, and colleagues, customers and suppliers are what we are all about. As such, I personally would like to thank every one of my 205 colleagues for their endless supply of humour, hard work resilience and sheer talent, over the last 12 months. You are a constant source of inspiration.

Key performance indicators

 

The directors monitor the performance of the group on the following Key Performance Indicators ("KPl's") - sales, profit margins, overall group's profitability and cash generated.

 

Sales - sales have reduced from £25.9m to £25.0m.

 

Gross profit margin has increased from 62.1% to 64.5%

 

Operating profit decreased from £966,337 to £355,537.

 

Bank and cash balances at the year end increased from £1,065,768 to £1,269,340.

 

Net assets have increased from £3,662,350 to £3,883,028.

SOFAS & STUFF LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

On behalf of the board

A J Cussins
Director
26 August 2025
SOFAS & STUFF LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of the production and sale of household furniture.

Results and dividends

The results for the year are set out on page 10.

Dividends paid to minority shareholders of subsidiary companies amounted to £65,000 for the year (2023 £135,000).

 

No dividend was paid to the ordinary shareholders of the company.

Directors

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

A J Cussins
B M Cussins
J H Cussins
G A Cussins
(Appointed 22 April 2024)
S J Cussins
(Appointed 22 April 2024)
Auditor

In accordance with the company's articles, a resolution proposing that PKF Francis Clark be reappointed as auditor of the group will be put at a General Meeting.

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.

Going Concern

The financial statements have been prepared on a going concern basis. The Group has made a profit of £285,678 for the year ended 31 December 2024 (2023: profit of £676,487) and is in a net asset position of £3,883,028 (2023: £3,662,350).

The directors have reviewed the Group's forecast and projections for 2025 including assumptions concerning forecast sales, capital expenditure and expenditure commitments and their impact on cash flows, and have a reasonable expectation that the Group has adequate financial resources to continue its operations for the foreseeable future.

The directors have run various scenarios and stress tests for the coming year, depending on different levels of demand and therefore sales. They conclude that even if there is considerable downside to the 2025 budget, the Group will still have the necessary liquidity to continue trading.

The Directors are closely monitoring the impact of the cost of living crisis on the Group's performance and its ability to continue as a going concern. To date, indicators are that performance be strong and with the measures that management have put in place the Directors judge that the Group will continue to operate as a going concern.

Medium-sized companies exemption

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

SOFAS & STUFF LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
On behalf of the board
A J Cussins
Director
26 August 2025
SOFAS & STUFF LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

SOFAS & STUFF LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOFAS & STUFF LIMITED
- 6 -
Opinion

We have audited the financial statements of Sofas & Stuff Limited (the 'parent company' and its subsidiaries) for the year ended 31 December 2024, which comprise the group profit and loss account, 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 FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

 

In our opinion the financial statements:

 

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 and company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

 

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

 

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

 

SOFAS & STUFF LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOFAS & STUFF LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

• the Strategic Report and Directors' Report has been prepared in accordance with applicable legal requirements.

 

Matters on which we are required to report by exception

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

 

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

 

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 group'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 group or parent company or to cease operations, or have no realistic alternative but to do so.

 

SOFAS & STUFF LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOFAS & STUFF LIMITED
- 8 -
Auditor's responsibilities for the audit of the financial statements

 

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

 

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

 

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the industry/sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the group, reviewed certification identified on the company website and other communications and considered findings from previous audits.

 

The key laws and regulations we identified were; employment legislation, The General Data Protection Regulation (“GDPR”), product standard legislation, compliance testing regulations and health and safety legislation.

 

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006 and taxation legislation.

 

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place.

 

We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue trading and the risk of material misstatement to the financial statements.

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations.

 

Our procedures involved the following:

 

• Enquiries of management regarding their knowledge of any non compliance with laws and regulations that could affect the financial statements;

 

• Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non compliance;

 

• Considering the filings made at Companies House, and any omissions thereon of which there were none identified;

 

• Review of Board minutes.

 

We also evaluated management’s incentives and opportunities for management bias, override of controls and manipulation of the financial statements. The key incentive identified is to manipulate revenue with the goal of mitigating tax liabilities. We determined that the principle risks were related to revenue recognition and management override of controls. To address the risk, we:

SOFAS & STUFF LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOFAS & STUFF LIMITED
- 9 -

Auditor’s responsibilities for the audit of the financial statements (continued)

 

• Undertook sales order sample testing for completeness of income;

 

• Undertook specific cut-off procedures in respect of income around the year end;

 

• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates;

 

• Used data analytics to test journal entries throughout the year for appropriateness.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.

 

Tracy Lewis FCA (Senior Statutory Auditor)
For and on behalf of PKF Francis Clark
27 August 2025
Chartered Accountants
Statutory Auditor
Unit 18 23, Melville Building East
Royal William Yard
Plymouth
Devon
PL1 3GW
SOFAS & STUFF LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
25,043,875
25,959,848
Cost of sales
(8,886,455)
(9,848,403)
Gross profit
16,157,420
16,111,445
Distribution costs
(666,688)
(570,462)
Administrative expenses
(15,135,195)
(14,574,646)
Operating profit
4
355,537
966,337
Interest receivable and similar income
8
19,406
18,893
Interest payable and similar expenses
9
(2,433)
(22,879)
Amounts written off investments
10
-
(52,770)
Profit before taxation
372,510
909,581
Tax on profit
11
(86,832)
(233,094)
Profit for the financial year
285,678
676,487
Profit for the financial year is attributable to:
- Owners of the parent company
232,780
609,804
- Non-controlling interests
52,898
66,683
285,678
676,487
SOFAS & STUFF LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
£
£
Profit for the year
285,678
676,487
Other comprehensive income
-
-
Total comprehensive income for the year
285,678
676,487
Total comprehensive income for the year is attributable to:
- Owners of the parent company
232,780
609,804
- Non-controlling interests
52,898
66,683
285,678
676,487
SOFAS & STUFF LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
4,263,088
4,211,394
Investments
14
52,771
52,771
4,315,859
4,264,165
Current assets
Stocks
16
2,886,156
2,688,502
Debtors
17
2,539,283
2,050,155
Cash at bank and in hand
1,269,340
1,065,768
6,694,779
5,804,425
Creditors: amounts falling due within one year
18
(6,286,040)
(5,564,276)
Net current assets
408,739
240,149
Total assets less current liabilities
4,724,598
4,504,314
Creditors: amounts falling due after more than one year
19
(71,706)
(64,321)
Provisions for liabilities
Deferred tax liability
21
769,864
777,643
(769,864)
(777,643)
Net assets
3,883,028
3,662,350
Capital and reserves
Called up share capital
23
25,781
25,781
Profit and loss reserves
3,829,263
3,606,630
Equity attributable to owners of the parent company
3,855,044
3,632,411
Non-controlling interests
27,984
29,939
3,883,028
3,662,350

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 26 August 2025 and are signed on its behalf by:
26 August 2025
A J Cussins
Director
Company registration number 06961589 (England and Wales)
SOFAS & STUFF LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
4,262,548
4,210,169
Investments
14
63,871
63,871
4,326,419
4,274,040
Current assets
Stocks
16
2,886,156
2,688,502
Debtors
17
2,471,090
2,031,659
Cash at bank and in hand
1,246,834
1,056,502
6,604,080
5,776,663
Creditors: amounts falling due within one year
18
(6,313,803)
(5,610,528)
Net current assets
290,277
166,135
Total assets less current liabilities
4,616,696
4,440,175
Creditors: amounts falling due after more than one year
19
(71,706)
(64,321)
Provisions for liabilities
Deferred tax liability
21
769,864
777,643
(769,864)
(777,643)
Net assets
3,775,126
3,598,211
Capital and reserves
Called up share capital
23
25,781
25,781
Profit and loss reserves
3,749,345
3,572,430
Total equity
3,775,126
3,598,211

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 £176,915 (2023 - £576,214 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 26 August 2025 and are signed on its behalf by:
26 August 2025
A J Cussins
Director
Company registration number 06961589 (England and Wales)
SOFAS & STUFF LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
25,781
4,063,967
4,089,748
31,115
4,120,863
Year ended 31 December 2023:
Profit and total comprehensive income
-
609,804
609,804
66,683
676,487
Dividends
12
-
(1,067,141)
(1,067,141)
(67,859)
(1,135,000)
Balance at 31 December 2023
25,781
3,606,630
3,632,411
29,939
3,662,350
Year ended 31 December 2024:
Profit and total comprehensive income
-
232,780
232,780
52,898
285,678
Dividends
12
-
(10,147)
(10,147)
(54,853)
(65,000)
Balance at 31 December 2024
25,781
3,829,263
3,855,044
27,984
3,883,028
SOFAS & STUFF LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
25,781
3,996,216
4,021,997
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
576,214
576,214
Dividends
12
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
25,781
3,572,430
3,598,211
Year ended 31 December 2024:
Profit and total comprehensive income
-
176,915
176,915
Balance at 31 December 2024
25,781
3,749,345
3,775,126
SOFAS & STUFF LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,288,742
173,176
Interest paid
(2,433)
(22,879)
Income taxes (paid)/refunded
(209,119)
115
Net cash inflow from operating activities
1,077,190
150,412
Investing activities
Purchase of tangible fixed assets
(628,178)
(796,319)
Interest received
19,406
18,893
Net cash used in investing activities
(608,772)
(777,426)
Financing activities
Repayment of bank loans
(68,718)
(166,667)
Payment of finance leases obligations
(129,967)
(114,988)
Dividends paid to equity shareholders
-
(1,000,000)
Dividends paid to non-controlling interests
(65,000)
(135,000)
Net cash used in financing activities
(263,685)
(1,416,655)
Net increase/(decrease) in cash and cash equivalents
204,733
(2,043,669)
Cash and cash equivalents at beginning of year
1,064,607
3,108,276
Cash and cash equivalents at end of year
1,269,340
1,064,607
Relating to:
Cash at bank and in hand
1,269,340
1,065,768
Bank overdrafts included in creditors payable within one year
-
(1,161)
SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
1
Accounting policies
Company information

Sofas & Stuff Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Dairy, Tripp Hill Farm Buildings, Fittleworth, Pulborough, West Sussex, RH20 1ER.

 

The group consists of Sofas & Stuff Limited and all of its subsidiaries.

1.1
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.

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

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Sofas & Stuff 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.

SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Going concern

The financial statements have been prepared on a going concern basis. The Group has made a profit of £285,678 for the year ended 31 December 2024 (2023: profit of £676,487) and is in a net asset position of £3,883,028 as at 31 December 2024 (2023: £ 3,662,350).

The directors have reviewed the Group's forecast and projections for 2025, including assumptions concerning forecast sales, capital expenditure and expenditure commitments and their impact on cash flows, and have a reasonable expectation that the Group has adequate financial resources to continue its operations for the foreseeable future.

The directors have run various scenarios and stress tests for the coming year, depending on different levels of demand and therefore sales. They conclude that even if there is considerable downside to the 2025 budget, the Group will still have the necessary liquidity to continue trading.

The Directors are closely monitoring the impact of the cost of living crisis on the Group's performance and its ability to continue as a going concern. To date, indicators are that performance be strong and with the measures that management have put in place the Directors judge that the Group will continue to operate as a going concern.

1.4
Turnover

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

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.

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:

Leasehold improvements
Over remaining term of the lease
Fixtures and fittings
25% reducing balance
Computer equipment
25% reducing balance
Motor vehicles
25% on cost
Website development
20% 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.

1.6
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.

SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -

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.

1.7
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

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.

SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.10
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.

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 group 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 group after deducting all of its liabilities.

SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
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.

SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

1.15
Leases

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.

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 leased 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 group’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.

 

 

 

 

 

 

 

 

 

 

SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
24,842,110
25,522,750
Europe
201,765
105,161
Rest of the world
-
331,937
25,043,875
25,959,848

All the turnover relates to the production and sale of household furniture.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange differences arising on trading tranactions
2,610
1,890
Depreciation of owned tangible fixed assets
629,010
606,896
Depreciation of tangible fixed assets held under finance leases
73,771
84,887
Operating lease charges
1,947,787
1,787,926
5
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 and company
15,750
15,000
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
203
195
182
169
SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
7,879,700
7,494,441
7,304,606
6,945,015
Social security costs
798,333
794,516
742,167
745,605
Pension costs
146,085
178,096
136,044
170,141
8,824,118
8,467,053
8,182,817
7,860,761
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
811,844
817,073
Company pension contributions to defined contribution schemes
15,919
62,055
827,763
879,128

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
275,521
347,460
Company pension contributions to defined contribution schemes
-
10,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
19,406
16,909
Other interest income
-
1,984
Total income
19,406
18,893
SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
2,433
14,429
Other interest on financial liabilities
-
8,450
Total finance costs
2,433
22,879
10
Amounts written off investments
2024
2023
£
£
Amounts written back to/(written off) current loans
-
(52,770)
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
102,709
217,216
Adjustments in respect of prior periods
(8,098)
-
0
Total current tax
94,611
217,216
Deferred tax
Origination and reversal of timing differences
(7,779)
15,878
Total tax charge
86,832
233,094

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
372,510
909,581
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
93,128
213,752
Tax effect of expenses that are not deductible in determining taxable profit
-
0
13,811
Unutilised tax losses carried forward
(1,841)
7,378
Adjustments in respect of financial assets
(2,864)
(3,034)
Under/(over) provided in prior years
(8,098)
-
0
Tax at marginal rate
63
-
0
Deferred tax adjustment
6,444
1,187
Taxation charge
86,832
233,094
SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim dividend paid of nil (2023 37.79p) per ordinary share
-
1,000,000
13
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
4,376,927
595,098
1,138,408
278,006
6,388,439
Additions
514,085
39,021
103,769
97,600
754,475
At 31 December 2024
4,891,012
634,119
1,242,177
375,606
7,142,914
Depreciation and impairment
At 1 January 2024
1,108,903
276,100
633,304
158,738
2,177,045
Depreciation charged in the year
419,069
82,432
131,779
69,501
702,781
At 31 December 2024
1,527,972
358,532
765,083
228,239
2,879,826
Carrying amount
At 31 December 2024
3,363,040
275,587
477,094
147,367
4,263,088
At 31 December 2023
3,268,024
318,998
505,104
119,268
4,211,394
Company
Leasehold improvements
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
4,376,927
586,576
1,133,630
278,006
6,375,139
Additions
514,085
39,021
103,769
97,600
754,475
At 31 December 2024
4,891,012
625,597
1,237,399
375,606
7,129,614
Depreciation and impairment
At 1 January 2024
1,108,903
268,660
628,669
158,738
2,164,970
Depreciation charged in the year
419,069
81,890
131,636
69,501
702,096
At 31 December 2024
1,527,972
350,550
760,305
228,239
2,867,066
Carrying amount
At 31 December 2024
3,363,040
275,047
477,094
147,367
4,262,548
At 31 December 2023
3,268,024
317,916
504,961
119,268
4,210,169
SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Tangible fixed assets
(Continued)
- 27 -

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
£
£
£
£
Fixtures and fittings
-
0
1,453
-
0
1,453
Motor vehicles
144,594
110,498
144,594
110,498
Computer equipment
39,173
62,698
39,173
62,698
183,767
174,649
183,767
174,649
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
11,100
11,100
Loans
52,771
52,771
52,771
52,771
52,771
52,771
63,871
63,871
Movements in fixed asset investments
Group
Loans
£
Cost or valuation
At 1 January 2024 and 31 December 2024
350,772
Impairment
At 1 January 2024 and 31 December 2024
298,001
Carrying amount
At 31 December 2024
52,771
At 31 December 2023
52,771
SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Loans
Total
£
£
£
Cost or valuation
At 1 January 2024 and 31 December 2024
11,100
350,772
361,872
Impairment
At 1 January 2024 and 31 December 2024
-
298,001
298,001
Carrying amount
At 31 December 2024
11,100
52,771
63,871
At 31 December 2023
11,100
52,771
63,871
SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
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
Sofa Partners (Gloucestershire) Ltd
The Dairy, Tripp Hill Farm Buildings, Fittleworth, RH20 1ER
Ordinary A & B
100.00
Sofa Partners (Hampshire) Limited
As above
Ordinary B
50.00
Sofa Partners (Hertfordshire) Ltd
As above
Ordinary A & B
100.00
Sofa Partners (Kent) Ltd
As above
Ordinary B
50.00
Sofa Partners (Lancashire) Ltd
As above
Ordinary A & B
100.00
Sofa Partners (Lothian) Ltd
As above
Ordinary A & B
100.00
Sofa Partners (Redbrick) Ltd
As above
Ordinary B
50.00
Sofa Partners (Yorkshire) Ltd
As above
Ordinary B
50.00
Sofa Partners Ltd
As above
Ordinary B
50.00

The following subsidiaries are exempt from the Companies Act 2006 requirement relating to audit of their individual accounts by virtue of Section 479A of the Act as Sofas & Stuff Limited has guaranteed the subsidiaries under Section 479C of the Act. The subsidiaries are:

Sofa Partners (Gloucestershire) Ltd (Company number 08291907)

Sofa Partners (Hampshire) Limited (Company number 08836984)

Sofa Partners (Hertfordshire) Limited (Company number 08584372)

Sofa Partners (Kent) Limited (Company number 07757583)

Sofa Partners (Lancashire) Limited (Company number 08821050)

Sofa Partners (Lothian) Limited (Company number 08584401)

Sofa Partners (Redbrick) Limited (Company number 09132656)

Sofa Partners (Yorkshire) Limited (Company number 07536983)

Sofa Partners Limited (Company number 07274034)

 

 

 

16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
538,745
563,001
538,745
563,001
Finished goods and goods for resale
2,347,411
2,125,501
2,347,411
2,125,501
2,886,156
2,688,502
2,886,156
2,688,502
SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Corporation tax recoverable
159,219
146,250
146,250
146,250
Other debtors
1,006,179
938,542
957,126
920,750
Prepayments and accrued income
1,373,885
965,363
1,367,714
964,659
2,539,283
2,050,155
2,471,090
2,031,659
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
-
0
69,879
-
0
68,718
Obligations under finance leases
77,341
88,396
77,341
88,396
Trade creditors
2,522,702
1,896,734
2,518,860
1,891,342
Amounts owed to group undertakings
-
0
-
0
191,255
191,211
Corporation tax payable
115,678
217,217
67,237
175,989
Other taxation and social security
606,798
835,399
511,907
751,663
Other creditors
2,865,550
2,269,092
2,864,883
2,268,207
Accruals and deferred income
97,971
187,559
82,320
175,002
6,286,040
5,564,276
6,313,803
5,610,528
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
71,706
64,321
71,706
64,321
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
-
0
68,718
-
0
68,718
Bank overdrafts
-
0
1,161
-
0
-
0
-
69,879
-
68,718
Payable within one year
-
0
69,879
-
0
68,718

The bank loan is secured by a debenture and was fully repaid in the year.

SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
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
782,582
789,154
Retirement benefit obligations
(12,718)
(11,511)
769,864
777,643
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
782,582
789,154
Retirement benefit obligations
(12,718)
(11,511)
769,864
777,643
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
777,643
777,643
Credit to profit or loss
(7,779)
(7,779)
Liability at 31 December 2024
769,864
769,864

Deferred tax has been calculated at 25%.

 

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
146,085
178,096

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The pension contributions unpaid at the end of the year were £53,754 (2023 - £48,934).

SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
2,578,095
2,578,095
25,781
25,781
24
Operating lease commitments
Lessee

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
1,892,794
1,835,172
1,892,794
1,835,172
Between two and five years
3,786,167
3,965,035
3,786,167
3,965,035
In over five years
3,225,131
1,612,393
3,225,131
1,612,393
8,904,092
7,412,600
8,904,092
7,412,600
Amount charged in the year under non cancellable leases
1,842,094
1,777,904
1,842,094
1,777,904
25
Directors' transactions

A loan was granted to Mr A J Cussins in the year ended 31 December 2021 for £450,000 and remains outstanding at 31 December 2024. The loan is interest free with no fixed repayment date.

A loan was granted to Mrs T Grout of £35,000 during the year. Mrs Grout is a director of Sofa Partners (Hampshire) Limited and remains outstanding at 31 December 2024. The loan is interest free with no fixed repayment date.

26
Controlling party

In the directors opinion the company is ultimately controlled by its directors by virtue of their shareholding in the company.

SOFAS & STUFF LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
285,678
676,487
Adjustments for:
Taxation charged
86,832
233,094
Finance costs
2,433
22,879
Investment income
(19,406)
(18,893)
Depreciation and impairment of tangible fixed assets
702,781
691,783
Other gains and losses
-
52,770
Movements in working capital:
(Increase)/decrease in stocks
(197,654)
194,425
(Increase)/decrease in debtors
(476,159)
235,307
Increase/(decrease) in creditors
904,237
(1,914,676)
Cash generated from operations
1,288,742
173,176
28
Analysis of changes in net funds - group
1 January 2024
Cash flows
New finance leases
31 December 2024
£
£
£
£
Cash at bank and in hand
1,065,768
203,572
-
1,269,340
Bank overdrafts
(1,161)
1,161
-
-
0
1,064,607
204,733
-
1,269,340
Borrowings excluding overdrafts
(68,718)
68,718
-
-
Obligations under finance leases
(152,717)
129,967
(126,297)
(149,047)
843,172
403,418
(126,297)
1,120,293
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