REGISTERED NUMBER: 04410197 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

George Smith Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

B J Norris

R Pond

SECRETARY:

S Thompson

REGISTERED OFFICE:

587-589

Kings Road

London

SW6 2EH

REGISTERED NUMBER:

04410197 (England and Wales)

AUDITORS:

Douglas Shaw Limited, Statutory Auditor

7 Brenkley Way

Blezard Business Park

Seaton Burn

Tyne and Wear

NE13 6DS

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

REVIEW OF BUSINESS

In the year under review, the company achieved a sales volume increase of 7% compared to the

previous year. This resulted in a turnover of £8.055m, up from £7.508m in 2023. However, due to

deeper discounts applied to several major products realised during the year, together with a

reversal of positive production variances seen in 2023, profit before tax fell to 2.4% (2023 : 5.6%).

Despite this, our ongoing objectives focus or retaining and growing our existing customer base

whilst improving profit margins and maximising internal efficiencies. We are also fully committed

to expanding our retail and export segments to further drive growth and support the other areas

of the business.

KEY PERFORMANCE INDICATORS

The company uses a number of performance measures to monitor and manage the business

effectively. The most significant of these are the key performance indicators.

The key performance indicators for the year ended 31 December 2024, with comparatives for the

year ended 31 December 2023 are as follows :

2024

2023

Turnover £

8,055

7,508

Gross Profit £

3,562

3,489

Gross Margin %

44

46

Profit Before Tax £

194

422

EBITDA £

208

484

Stock Days

121

105

Turnover and other associated metrics as described above.

Overall stock levels during the year were higher than those seen in 2023 due to the various major

projects already mentioned above, together with a significant increase in general stock levels

seen at the end of 2023 and maintained during 2024, combined with the introduction of a new

George Smith fabric line.

In addition to core financial indicators the company also monitors :

Lead times on client orders,

Quotes and associated conversion levels,

Staff retention,

Staff efficiency,

Management of overheads.

PRINCIPAL RISKS AND UNCERTAINTIES

The market for high end upholstered furniture has been extremely competitive over the past year

and is expected to remain so for the foreseeable future.

The company has no significant credit risk.

The company is exposed to movements in both the Euro to Sterling and US Dollar to Sterling

exchange rates. This net exposure is constantly monitored, and appropriate corrective action

taken.

The company regularly monitors cashflow, with forward projections sent to the board of directors

on a weekly basis.

Going forward, 2025 has seen a significant rise in employment taxes as well as the introduction

of tariffs on shipments from the UK to the USA. The company will seek to mitigate the effects of

these as much as possible.

ON BEHALF OF THE BOARD:

B J Norris - Director

15 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the design, manufacture and retail of high quality upholstered furniture and related products.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

B J Norris

R Pond

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director 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 company's auditors are aware of that information.

AUDITORS

The auditors, Douglas Shaw Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B J Norris - Director

15 September 2025

Opinion

We have audited the financial statements of George Smith Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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 considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Graham Douglas (Senior Statutory Auditor)

for and on behalf of Douglas Shaw Limited, Statutory Auditor

7 Brenkley Way

Blezard Business Park

Seaton Burn

Tyne and Wear

NE13 6DS

29 September 2025

TURNOVER

3

8,054,701

7,507,624

Cost of sales

4,492,587

4,018,589

GROSS PROFIT

3,562,114

3,489,035

Distribution costs

447,764

424,472

Administrative expenses

2,995,524

2,674,482

3,443,288

3,098,954

118,826

390,081

Other operating income

1,009

336

OPERATING PROFIT

5

119,835

390,417

Interest receivable and similar income

75,277

31,470

195,112

421,887

Interest payable and similar expenses

6

1,415

-

PROFIT BEFORE TAXATION

193,697

421,887

Tax on profit

7

57,664

108,087

PROFIT FOR THE FINANCIAL YEAR

136,033

313,800

PROFIT FOR THE YEAR

136,033

313,800

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

136,033

Prior year adjustment

41,255

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

355,055

FIXED ASSETS

Intangible assets

8

1

1

Tangible assets

9

562,634

458,667

562,635

458,668

CURRENT ASSETS

Stocks

10

1,283,538

1,234,208

Debtors

11

1,288,505

1,282,689

Cash at bank and in hand

2,466,604

2,589,311

5,038,647

5,106,208

CREDITORS

Amounts falling due within one year

12

1,993,812

2,123,940

NET CURRENT ASSETS

3,044,835

2,982,268

TOTAL ASSETS LESS CURRENT LIABILITIES

3,607,470

3,440,936

CREDITORS

Amounts falling due after more than one year

13

(150,000

)

(150,000

)

PROVISIONS FOR LIABILITIES

14

(127,389

)

(96,888

)

NET ASSETS

3,330,081

3,194,048

CAPITAL AND RESERVES

Called up share capital

15

4

4

Share premium

16

3,318,076

3,318,076

Retained earnings

16

12,001

(124,032

)

SHAREHOLDERS' FUNDS

3,330,081

3,194,048

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2025 and were signed on its behalf by:

B J Norris - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

4

(479,087

)

3,318,076

2,838,993

Prior year adjustment

-

41,255

-

41,255

As restated

4

(437,832

)

3,318,076

2,880,248

Changes in equity

Total comprehensive income

-

313,800

-

313,800

Balance at 31 December 2023

4

(124,032

)

3,318,076

3,194,048

Changes in equity

Total comprehensive income

-

136,033

-

136,033

Balance at 31 December 2024

4

12,001

3,318,076

3,330,081

Cash flows from operating activities

Cash generated from operations

1

192,943

180,875

Finance costs paid

(1,415

)

-

Tax paid

(84,634

)

(8,416

)

Net cash from operating activities

106,894

172,459

Cash flows from investing activities

Purchase of tangible fixed assets

(192,486

)

(190,729

)

Sale of tangible fixed assets

-

3,750

Loan advanced to related party

(112,392

)

(32,774

)

Interest received

75,277

31,470

Net cash from investing activities

(229,601

)

(188,283

)

Decrease in cash and cash equivalents

(122,707

)

(15,824

)

Cash and cash equivalents at beginning of year

2

2,589,311

2,605,135

Cash and cash equivalents at end of year

2

2,466,604

2,589,311

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

31.12.24

31.12.23

£

£

Profit before taxation

193,697

421,887

Depreciation charges

88,519

93,239

Profit on disposal of fixed assets

-

(3,750

)

Finance costs

1,415

-

Finance income

(75,277

)

(31,470

)

208,354

479,906

Increase in stocks

(49,330

)

(322,659

)

Decrease/(increase) in trade and other debtors

106,576

(89,870

)

(Decrease)/increase in trade and other creditors

(72,657

)

113,498

Cash generated from operations

192,943

180,875

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 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

2,466,604

2,589,311

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,589,311

2,605,135

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

2,589,311

(122,707

)

2,466,604

2,589,311

(122,707

)

2,466,604

Total

2,589,311

(122,707

)

2,466,604

1.	STATUTORY INFORMATION

George Smith 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 Company 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.

The directors believe that the company is experiencing good levels of sales and profitability, and that it is well placed to manage its business risks successfully. Accordingly they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover represents the amounts receivable in the ordinary course of business from the provision of goods and services to customers. Turnover is measured at the fair value of the right to consideration net of discounts and value added tax. The company recognises revenue at the point of despatch of goods or provision of services.

Sales order deposits represent amounts received upon orders being made and are held within creditors.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2002, is being amortised evenly over its estimated useful life of fifteen years.

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.

Improvements to property

-

Over the term of the lease

Plant and machinery

-

10% on cost

Motor vehicles

-

33% on cost and 25% on cost

Computer equipment

-

25% on cost and 10% on cost

Tangible fixed assets are initially recognised at cost and are reviewed annually for impairment.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, 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 impairment. Any impairment is recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets, obtained under hire purchase contracts and finance leases, are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

31.12.24

31.12.23

£

£

Furniture retail

8,054,701

7,507,624

8,054,701

7,507,624

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£

£

United Kingdom

5,182,134

4,290,047

Europe

616,650

885,802

United States of America

2,186,883

2,287,042

Asia

1,193

24,135

Rest of World

67,841

20,598

8,054,701

7,507,624

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

1,725,380

1,471,744

Social security costs

182,364

156,962

Other pension costs

82,943

61,284

1,990,687

1,689,990

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

31.12.24

31.12.23

Production

78

77

Administration

24

23

Sales

11

11

113

111

31.12.24

31.12.23

£

£

Directors' remuneration

8,800

8,800

Directors' pension contributions to money purchase schemes

23,800

8,800

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Hire of plant and machinery

8,217

5,913

Other operating leases

173,628

174,041

Depreciation - owned assets

88,519

93,239

Profit on disposal of fixed assets

-

(3,750

)

Auditors' remuneration

19,000

19,500

Foreign exchange differences

41,050

86,549

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Other Interest

1,415

-