REGISTERED NUMBER: 03068928 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

DAUNT BOOKS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Profit and Loss Account

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTOR:

A J Daunt

SECRETARY:

K M Daunt

REGISTERED OFFICE:

83 Marylebone High Street

London

W1U 4QW

REGISTERED NUMBER:

03068928 (England and Wales)

AUDITORS:

Sproull & Co.

Chartered Accountants

Statutory Auditors

First Floor, Jebsen House

53-61 High Street

Ruislip

Middlesex

HA4 7BD

The director presents his strategic report of the company and the group for the year ended 31st December 2024.

REVIEW OF BUSINESS

The business has had a good year, benefiting from good publishing and the continued excellence of its booksellers. The bookshops continue to have a strong reputation within their communities, and to have good relations with their suppliers and landlords.

Relevant Key Performance Indicators for the business are:

Key Performance Indicator

2024

2023

Turnover

£17,520,295

£15,730,329

Gross Profit

£8,426,176

£7,143,980

Gross Profit Margin (%)

48.1%

45.4%

Operating Profit

£2,516,762

£2,591,218

Shareholders' Funds

£8,103,611

£6,728,007

PRINCIPAL RISKS AND UNCERTAINTIES

The company continues to be managed prudently by an experienced team. The business depends especially upon the health of high street shopping in London and the absence of major disruption to established shopping behaviours. It depends also on the immediate physical position of its shops which can be impacted by road works, or other such disruption. As with all businesses, cyber-crime is a clear risk, either to impact the operations of company itself, or those of its most important suppliers.

The company remains independently owned by the Daunt family and, separately to Daunt Books, James Daunt continues to be the CEO of the Waterstones and Barnes & Noble bookselling businesses.

ON BEHALF OF THE BOARD:

A J Daunt - Director

24th September 2025

The director presents his report with the financial statements of the company and the group for the year ended 31st December 2024.

DIVIDENDS

An interim dividend of £249,999 per share was paid on 10th June 2024. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31st December 2024 will be £ 499,998 .

DIRECTOR

A J Daunt held office during the whole of the period from 1st January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director 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 he is satisfied that they give a true and fair view of the state of affairs of the company and the group 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;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

Under section 487(2) of the Companies Act 2006, Sproull & Co., Chartered Accountants and Statutory Auditors, are deemed to be reappointed as auditors.

ON BEHALF OF THE BOARD:

A J Daunt - Director

24th September 2025

Opinion

We have audited the financial statements of Daunt Books Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st 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.

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 Auditors' 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's and the 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.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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

-	adequate accounting records have not been kept 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 director's 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 Statement of Director's Responsibilities set out on page three, 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 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 group's and 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 group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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:

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:

-

Through assessing our cumulative acquired knowledge and review of relevant sector information, we gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.

-

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, Financial Reporting Standards and UK taxation legislation.

-

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.

-

We discussed among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud. Furthermore, we communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Based on the above, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. Our work included:

-

Discussions with management and those charged with governance in relation to known or suspected instances of non-compliance with laws and regulations and fraud as well as those policies and procedures designed to detect such instances.

-

Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.

-

Evaluating the appropriateness of accounting policies used, evaluating the reasonableness and testing of significant accounting estimates and assessing whether the judgements made are indicative of a potential bias by management that represented a risk of material misstatement due to fraud.

-

Testing of journal entries back to corroborating evidence.

-

Reviewing the financial statement disclosures and agreeing to supporting documentation where relevant to assess compliance with relevant laws and regulations.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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 concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with the laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Michelle Wickwar (Senior Statutory Auditor)

for and on behalf of Sproull & Co.

Chartered Accountants

Statutory Auditors

First Floor, Jebsen House

53-61 High Street

Ruislip

Middlesex

HA4 7BD

26th September 2025

TURNOVER

4

17,520,295

15,730,329

Cost of sales

9,094,119

8,586,349

GROSS PROFIT

8,426,176

7,143,980

Administrative expenses

6,049,444

4,762,780

2,376,732

2,381,200

Other operating income

140,030

210,018

OPERATING PROFIT

6

2,516,762

2,591,218

Interest receivable and similar income

86,979

53,920

PROFIT BEFORE TAXATION

2,603,741

2,645,138

Tax on profit

7

728,167

659,880

PROFIT FOR THE FINANCIAL YEAR

1,875,574

1,985,258

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,875,574

1,985,258

Profit attributable to:

Owners of the parent

1,875,563

1,985,250

Non-controlling interests

11

8

1,875,574

1,985,258

Total comprehensive income attributable to:

Owners of the parent

1,875,563

1,985,250

Non-controlling interests

11

8

1,875,574

1,985,258

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

1,593,263

1,624,211

Investments

13

-

-

1,593,263

1,624,211

CURRENT ASSETS

Stocks

14

1,271,505

1,347,603

Debtors

15

2,176,935

1,833,801

Cash at bank

5,661,808

4,227,595

9,110,248

7,408,999

CREDITORS

Amounts falling due within one year

16

2,465,328

2,171,738

NET CURRENT ASSETS

6,644,920

5,237,261

TOTAL ASSETS LESS CURRENT LIABILITIES

8,238,183

6,861,472

PROVISIONS FOR LIABILITIES

19

134,572

133,435

NET ASSETS

8,103,611

6,728,037

CAPITAL AND RESERVES

Called up share capital

20

2

2

Retained earnings

8,103,570

6,728,005

SHAREHOLDERS' FUNDS

8,103,572

6,728,007

NON-CONTROLLING INTERESTS

39

30

TOTAL EQUITY

8,103,611

6,728,037

The financial statements were approved by the director and authorised for issue on 24th September 2025 and were signed by:

A J Daunt - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

325,235

325,235

325,235

325,235

CURRENT ASSETS

Cash at bank

701

701

CREDITORS

Amounts falling due within one year

16

323,960

323,960

NET CURRENT LIABILITIES

(323,259

)

(323,259

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,976

1,976

CAPITAL AND RESERVES

Called up share capital

20

2

2

Retained earnings

1,974

1,974

SHAREHOLDERS' FUNDS

1,976

1,976

Company's profit for the financial year

499,998

1,999,992

The financial statements were approved by the director and authorised for issue on 24th September 2025 and were signed by:

A J Daunt - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1st January 2023

2

6,742,747

6,742,749

30

6,742,779

Changes in equity

Dividends

-

(1,999,992

)

(1,999,992

)

(8

)

(2,000,000

)

Total comprehensive income

-

1,985,250

1,985,250

8

1,985,258

Balance at 31st December 2023

2

6,728,005

6,728,007

30

6,728,037

Changes in equity

Dividends

-

(499,998

)

(499,998

)

(2

)

(500,000

)

Total comprehensive income

-

1,875,563

1,875,563

11

1,875,574

Balance at 31st December 2024

2

8,103,570

8,103,572

39

8,103,611

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

2

1,974

1,976

Changes in equity

Total comprehensive income

-

1,999,992

1,999,992

Dividends

-

(1,999,992

)

(1,999,992

)

Balance at 31st December 2023

2

1,974

1,976

Changes in equity

Total comprehensive income

-

499,998

499,998

Dividends

-

(499,998

)

(499,998

)

Balance at 31st December 2024

2

1,974

1,976

Cash flows from operating activities

Cash generated from operations

1

2,640,762

2,054,253

Tax paid

(865,344

)

(82,542

)

Net cash from operating activities

1,775,418

1,971,711

Cash flows from investing activities

Purchase of tangible fixed assets

(68,214

)

(221,771

)

Interest received

86,979

53,920

Net cash from investing activities

18,765

(167,851

)

Cash flows from financing activities

Government grants

140,030

210,018

Loans written off in year

-

(120,000

)

Equity dividends paid

(499,998

)

(1,999,992

)

Dividends paid to minority interests

(2

)

(8

)

Net cash from financing activities

(359,970

)

(1,909,982

)

Increase/(decrease) in cash and cash equivalents

1,434,213

(106,122

)

Cash and cash equivalents at beginning of year

2

4,227,595

4,333,717

Cash and cash equivalents at end of year

2

5,661,808

4,227,595

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

2,603,741

2,645,138

Depreciation charges

99,162

131,001

Government grants

(140,030

)

(210,018

)

Finance income

(86,979

)

(53,920

)

2,475,894

2,512,201

Decrease/(increase) in stocks

76,098

(123,349

)

Increase in trade and other debtors

(343,134

)

(133,636

)

Increase/(decrease) in trade and other creditors

431,904

(200,963

)

Cash generated from operations

2,640,762

2,054,253

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

5,661,808

4,227,595

Year ended 31st December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

4,227,595

4,333,717

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

4,227,595

1,434,213

5,661,808

4,227,595

1,434,213

5,661,808

Total

4,227,595

1,434,213

5,661,808

1.	STATUTORY INFORMATION

Daunt Books Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The group financial statements consolidate the financial statements of Daunt Books Limited and its subsidiary.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill relating to the acquisition of a subsidiary in 1995 has been amortised on a straight line basis over 5 years.

Goodwill relating to the acquisition of a business in 2010 was written off in full in the year of acquisition.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

see below

Improvements to property

-

10% on cost and straight line over the life of the lease

Fixtures and fittings

-

20% on reducing balance

Computer equipment

-

20% on reducing balance

Freehold property is depreciated over its estimated useful economic life after taking the residual value of the assets into consideration. The directors consider the residual value of the company's freehold property to be in excess of the original cost and consequently no depreciation is provided.

The residual value of the company's assets and whether the value has been impaired are considered by the director on an annual basis.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial instruments are classified according to the substance of the financial instrument's contractual obligations, as financial assets, financial liabilities or equity instruments.

Financial instruments are initially measured at transaction price (after deducting transaction costs) and subsequently held at amortised cost.

Taxation

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group contributes to personal pension schemes for employees. The assets of the schemes are held independently of the company by an insurance company. The amount charged to the profit and loss account is the contributions payable in the year.

Government grants

The company recognises income arising from government grants using the performance model.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives after taking into account residual value of the assets into consideration. Land and buildings are shown at cost less any accumulated depreciation and any accumulated impairment losses.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,935,454

2,178,779

Social security costs

305,576

206,450

Other pension costs

283,304

46,247

3,524,334

2,431,476

The average number of employees during the year was as follows:

2024

2023

Directors

1

1

Management and senior staff

15

5

Retail staff

70

76

86

82

2024

2023

£

£

Director's remuneration

-

-

6.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Other operating leases

1,106,499

1,037,436

Depreciation - owned assets

99,162

131,001

Auditors' remuneration

22,356

20,375

Auditors' remuneration for non audit work

1,750

-

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

727,030

615,367

Deferred tax

1,137

44,513

Tax on profit

728,167

659,880