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Registered number:
FOR THE PERIOD ENDED 31 DECEMBER 2024
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HYPNOS LIMITED
COMPANY INFORMATION
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HYPNOS LIMITED
CONTENTS
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HYPNOS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
The directors present the strategic report for the 18 month period ended 31 December 2024.
Company overview Keen & Toms Holdings Limited is the parent company of several entities (“the Group”) that collectively trade under the name Hypnos. Established in Buckinghamshire in 1904, the fifth-generation family-run business manufactures handcrafted, pocket spring beds and upholstery using natural and responsibly sourced materials. The Group supplies retail and hospitality clients in the UK and internationally, and has held a Royal Warrant since 1929. As a pioneer in sustainable and ethical bed making, Hypnos is focused on delivering comfort with integrity for the well-being of people and the planet. Hypnos is a proud partner of the Eden Project, holder of the Planet Mark and has been certified Carbon Neutral by Planet Mark since 2011. Business review and future developments Building a secure foundation for future growth 2024 was a significant year in the Group’s history, marking the 120th anniversary as well as the completion of a two-year change programme to place the business in the strongest possible position for its next centenary. Initiated in 2022, Project Rightsize involved a comprehensive strategic review to refocus the business and develop capabilities to form a robust platform for long-term success. The Group invested £1.7M to achieve its strategic goals. Key outcomes of the change programme including:
∙New Board and leadership structure, aligned to company objectives.
∙Closure of the loss-leading venture into two-man furniture delivery services, including the exit of three operating sites.
∙Consolidation of Group buildings from six sites to one wholly owned facility, and headcount reduction from 519 to circa 290.
∙Refocused sales, finance and operations functions and processes, enhancing efficiency, productivity, service, and financial position.
∙Investment of circa £1m in new ERP infrastructure development to integrate workflows, enable consolidated data and improve reporting.
∙Appointment of a new transport and logistics partner, generating cost savings and supporting the Group’s CO2 reduction ambitions,
∙Along with international licencing and manufacturing partners.
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HYPNOS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
Even during this period of significant change and against a backdrop of macroeconomic uncertainty, the business continued to launch innovative new products and maintained strong commercial relationships with retail and hospitality key accounts, as well as with independent retailers.
The Group’s unwavering commitment to excellence, sustainability, and the finest British craftsmanship was recognised with the granting of a Royal Warrant by His Majesty King Charles III, adding to a proud history of supplying the Royal Households for almost a century. The successful delivery of the change programme, coupled with the strength of the underlying business, is testament to the dedication of the Group’s skilled and committed people and the effectiveness of its empowered, ambitious, and engaged culture. Looking ahead with confidence Trading in the first 8 months of the 2025 financial year has been robust, with operating profits exceeding those recorded over the preceding 18 months. The strong positive cash generation supporting is clear evidence of the business’s resilience and growth potential, which are supported by the new 5-year facility agreed in April 2025. With firm foundations in place, the Board is confident that the Group is well positioned to achieve its strategic ambitions and deliver long-term, sustainable success. With the strategic changes in the group, Hypnos Limited became the groups main operating business, manufacturing and purchasing goods for the rest of the group, supplying finished goods and services to both its own customers, and intercompany for Hypnos Contract Beds Limited. Hypnos Limited’s main focus remains the supply of consumer goods to the Retail market. Principal risks and uncertainties The Board has overall responsibility for the management of risk and the identification of principal risks that may affect achievement of the company’s strategic objectives. Risk management is an integral part of decision-making, with risks and mitigations evaluated regularly. The principal risks identified by the company are outlined below. The company’s primary financial instruments are trade creditors, cash at bank, overdrafts and inter-company balances. These arise directly from the company’s trading activities and management have implemented procedures to monitor and control the liquidity and credit risks relating to the company’s financial affairs. Through Project Rightsize, the company’s utilised its cash and cash equivalents to execute the accelerated change programme, funding short- term impact costs strategically over the reporting period. Credit risk The company has a confidential invoice discounting facility, a specific credit insurance policy to cover credit risk, and a policy to actively review client credit scores. Bad debts remain low, and credit control processes are reviewed regularly to ensure they are appropriate for the company’s risk appetite.
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HYPNOS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
The company operates a detailed cash flow forecasting process and proactively seeks appropriate funding to support its ambitions. As the company has significantly reduced its fixed costs this risk here is considered to be as minimal.
Price risk The company is not significantly exposed to fluctuations in commodity prices, and the diversity of its supplier base would help minimise any potential impact. Foreign exchange risk The company does not use derivative financial instruments and instead relies on a natural hedge between receivables and payables in foreign currencies.
The directors use a variety of KPIs to assess company performance. The major measures are operational profitability, stock-turn ratio and revenue growth.
Statement by the directors in performance of their statutory duties in accordance with s172(1) of the Companies Act 2006 In accordance with section 172 of the Companies Act 2006, each director acts in a way they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. The Board ensures that all decisions are taken for the long term, and collectively and individually aims to always uphold the highest standard of conduct. Similarly, the Board acknowledges that the business can only grow and prosper over the long term if it understands and respects the views and needs of the company’s shareholders, customers, employees, suppliers and other stakeholders to whom it is accountable, as well as the environment in which the business operates. The CEO, together with the Group Managing Director, sets the agenda for each Board meeting to ensure that requirements of section 172 are always met and considered through a combination of the following:
∙Board papers ensure that stakeholder factors are addressed, where relevant.
∙Health & Safety performance is always the first item on the agenda. Other standing agenda points include updates on operational and financial performance against objectives, including progress against budget and cash position.
∙At the time of undertaking the annual budgeting exercise, the Board considers the strategic direction of the business and how this fulfils the Group’s long-term objectives.
∙The Board recognises that its strategic decisions can have long-term implications for the business and its stakeholders, and these implications are assessed as a core part of the decision-making process.
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HYPNOS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
Attraction and retention of skilled people are core to the success of the Group. Employee engagement is extremely important to the Board, and there are several workforce engagement mechanisms in place:
∙Employees are kept informed of performance, strategy and short-term outlook through regular news briefings and updates from members of the Board, including Town Hall presentations by the Group Managing Director to the whole company.
∙Employee engagement surveys are undertaken, with results and proposed action plans shared with the Board.
∙The Workplace Council, made up of employees and hosted by a Board member, meets monthly provides a valuable source of insights and ideas.
∙Pay rates and benefit structures are reviewed regularly to ensure every colleague receives fair pay.
∙Employee-related topics including staff welfare, workplace morale, succession planning and promoting diverse recruitment are regular agenda items at monthly main Board meetings.
∙The group operates a Valuing Diversity and Dignity at Work Policy.
Having regard to the need to foster the company’s business relationships with suppliers, customers and others
Suppliers The Board recognises the importance of fostering long-term, collaborative relationships with key suppliers to support the Group’s growth, innovation and sustainability, while balancing value for shareholders to ensure mutual benefit. The Group is proud to have pioneered new certifications and standards in the industry and supply chain including the Responsible Wool Standard (RWS), which focuses on improved land management and animal welfare for British farms and farmers, and the Red Tractor assured farm standards. Hypnos has supported the Woolkeepers® initiative since 2019 to achieve these standards whilst providing British farmers a fair price for their wool. 2024 saw the RWS standard standard applied to 60 UK farms. The Group Managing Director and other members of the senior management team (SMT) work with suppliers on projects including New Product Development, implementing new standards, and sharing experience from key initiatives. Third party guidance is introduced as needed, for example from Planet Mark, to aid continuous development programmes to benefit product, service and sustainability goals. This work is reported on and reviewed at Board and SMT meetings. Customers Customer obsession is one of the Group’s core values, alongside sustainable innovation, responsibility, and integrity. Customer and consumer sentiment is reflected in sales performance, which is reviewed regularly by the Board. Senior management also provides updates to the Board on their perceptions of customer sentiment and the market outlook. Customer interests are considered in strategic decision-making across key areas, including product portfolio changes, brand image and reputation, maintaining an innovative approach to sustainability, development of IT systems to facilitate doing business with the Group, and investment in marketing.
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HYPNOS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
Credit facility providers and credit reference agencies
Alongside the Group Managing Director, the Group Finance Director is responsible for managing the relationships with banks and credit rating agencies, and for the Group’s cash, debt management and financing activities. The Group Finance Director provides regular reports to the Board on these activities, including plans to ensure appropriate access to debt capital and monitoring the headroom of credit facilities. Having regard to the impact of the company’s operations on the community and the environment Operating sustainably and responsibly is at the heart of the Group’s values and operations, evidenced by ISO 14001 certification and a proactive approach to reducing emissions. More information can be found in the Streamlined Energy and Carbon Report. The Group’s 6-year relationship with the Eden Project has influenced multiple areas of the business including sourcing, and linking to local conservation and community. In addition to encouraging colleagues’ fundraising and volunteering initiatives, each year the Group supports selected national and local charity partners with monetary donations, volunteering and driving awareness. Beneficiaries have included Chiltern Rangers, The Furniture Makers’ Company benevolent fund, Pace Centre, and Youth Concern.
Energy efficiency actions
During the reporting period, the Group implemented several initiatives with the objective of reducing energy and carbon emissions. These included:
∙Closure of Castle Donnington site and transfer of operations to Princes Risborough site. According to the ESOS assessment, this is expected to save 632,876 kWh of electricity and biomass energy yearly.
∙Replacement of remaining fluorescent lighting with LED lamps and adding light sensors. This change is expected to save 25,085 kWh of electricity annually.
∙Transition of the heavy delivery fleet to Hydrotreated Vegetable Oil (HVO) or electric saving up to 60%+ of related carbon annually.
∙Introduction of a Car Scheme Policy, mandating the use of electric and hybrid vehicles as company cars to reduce emissions from fleet and business travel where feasible.
Energy efficiency actions approach
The Group places great importance on managing its environmental impact and reducing emissions. The business has been carbon-neutral since 2011, in compliance with PAS 2060 guidance, and holds ISO 14001 certification. 2024 saw the Group integrate responsibility for sustainability and the environment not into a single role but across its leadership structure, from the Board to the Senior Management Team, to achieve goals across the entire operation and up stream with partners and via supplier selection. The company’s’ core objective is to drive continuous improvement across its operations and to lead the industry in quality, sustainability, and integrity. Recent consolidation of its operations has streamlined processes and accelerated its net zero agenda. Product innovation Over recent years, the product portfolio has been enhanced to prioritise sustainability. This includes increased use of natural, organic, and plant-based fibres. All Hypnos mattresses are foam-free, and are moving to glue-free pocket spring systems utilising alternative bonding techniques that are fully recyclable. The Group is also launching a plant-based Hospitality mattress collection created in collaboration with the Eden Project.
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HYPNOS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
Waste management
The Group operates under a strict ‘zero waste to landfill’ policy. Product stewardship The company enables a recycling mattress take-back scheme for retailers and sits customers.
This report was approved by the board on 30 September 2025 and signed on its behalf.
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HYPNOS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the period ended 31 December 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the 18 month period, after taxation, amounted to £160,802 (53 week period ending 1 July 2023 - £321,408).
The company did not declare dividends in the period (53 week period ending 1 July 2023 - £Nil).
The directors who served during the period were:
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HYPNOS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
The SECR covering the company has been published in the financial statements of the immediate parent undertaking, Keen and Toms Holdings Limited.
The company has chosen, in accordance with section 414C of the Companies Act 2006, to set out the following information which would otherwise be required to be contained in the director's report within strategic report:
i) Business review and future developments; and ii) Likely financial risk management objective and policies; and key performance indicators.
Hypnos is a people business, with the majority of our workforce employed to hand make Hypnos beds and
mattresses. As such, employee engagement is extremely important to the Board and there are a number of workforce engagement mechanisms in place across the company:
∙Employees are kept informed of performance, strategy and short term outlook through regular news briefs
and updates from members of the board.
∙Employee engagement surveys are undertaken covering the vast majority of the workforce.
∙Employee welfare projects are identified and implemented.
∙Workforce feedback forums have been setup to identify key projects which the board can support to support
a positive employee culture
∙Pay rates and benefit structures have been revised to ensure every colleague receives fair pay.
Subsequent to the year end, the company refinanced its existing borrowing facilities. The refinancing replaced the previous loan agreement with new facilities on improved terms. This event occurred after the year end and does not affect the amounts recognised in the financial statements.
There are no other subsequent events that require disclosure or adjustments to the financial statements.
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HYPNOS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006.
This report was approved by the board and signed on its behalf.
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HYPNOS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPNOS LIMITED
We have audited the financial statements of Hypnos Limited (the 'Company') for the period ended 31 December 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, 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).
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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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HYPNOS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPNOS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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HYPNOS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPNOS LIMITED (CONTINUED)
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 an Auditors' 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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows: I.Companies Act 2006. II.FRS 102. III.Tax legislation. IV.Employment legislation. V.Health and safety legislation.
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HYPNOS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPNOS LIMITED (CONTINUED)
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
∙Making enquiries of management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
∙Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
∙Reviewing the financial statements and testing the disclosures against supporting documentation;
∙Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
∙Inspecting and testing journal entries to identify unusual or unexpected transactions;
∙Assessing whether judgement and assumptions made in determining significant accounting estimates, were indicative of management bias; and
∙Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.
The areas that we identified as being susceptible to misstatement through fraud were:
∙Management bias in the estimates and judgements made;
∙Management override of controls; and
∙Posting of unusual journals or transactions.
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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' report.
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HYPNOS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPNOS LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Brook Business Centre
Cowley Mill Road
Middlesex
UB8 2FX
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HYPNOS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
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HYPNOS LIMITED
REGISTERED NUMBER: 00213405
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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HYPNOS LIMITED
REGISTERED NUMBER: 00213405
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 36 form part of these financial statements.
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HYPNOS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 1 JULY 2023
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Hypnos Limited is a company limited by shares, incorporated in England and Wales. The address of the registered office is 1 Longwick Road, Princes Risborough, Buckinghamshire, HP27 9RT.
The company specialises in manufacturing beds and furniture.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The company maintains its accounting records on a weekly basis. However, the Company has elected to extend the year end to 31 December 2024 therefore forming an 18 month period.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Keen & Toms Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Longwick Road, Princes Risborough, Buckinghamshire, HP27 9RT.
The directors note that the company is trading adequately and has sufficient working capital and other finance available to continue trading for a period of not less than 12 months from the date of signing of financial statements. As such, the directors believe that there are no significant uncertainties in their assessment of whether the business is a going concern and therefore have prepared the accounts on a going concern basis.
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company has contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company adjusts the transaction prices of these contracts for the time value of money. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Debt instruments (other than those wholly repayable or receivable within one year), including loans
and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, and loans to and from related parties. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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.
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed 10 years.
Development expenditure is amortised over 5 years once the asset is ready for use.
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of comprehensive income in the period that the Company becomes aware of the obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 25
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 26
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 27
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 28
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
There are no factors currently that may affect future tax charges.
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 30
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 31
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 32
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 33
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 34
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
21.Share capital (continued)
Capital redemption reserve
Other reserves
Profit and loss account
There is an unlimited cross guarantee originally dated 26 August 2008 and updated due to new subsidiaries between the company, Keen & Toms Partnership Limited, Hypnos Contract Beds Limited, Keen & Toms Holdings Limited, The Furniture Recycling Company Limited, The Sheen Bed Company Limited, Keen & Able Limited and Imperial Sleep Limited over any overdraft or invoice discounting borrowings from their bankers of the respective companies. The company entered into a debenture with its bankers on 13 August 2008 providing security over all assets of the company. The total amount of borrowings in the group is £5,041,358 (1 July 2023 - £4,095,624).
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £505,014 (53 week period ended 1 July 2023 - £345,378). Contributions totalling £128,705 (1 July 2023 - £88,674) were payable to the fund at the period end and are included in creditors.
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HYPNOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
There are no other subsequent events that require disclosure or adjustments to the financial statements.
The immediate parent company is Keen & Toms Partnership Limited and the ultimate parent company is Keen & Toms Holdings Limited, both of which are companies registered in England and Wales and registered office at Longwick Road, Princes Risborough, Buckinghamshire, HP27 9RT. In the view of the directors, there is no ultimate controlling party.
Consolidated accounts for Keen & Toms Holdings Limited are available at Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ. This is the only company in the group which prepares consolidated accounts.
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