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

In the financial year ending 31 December 2024, we experienced robust growth. Our turnover increased by £3.6 million (6.2%) to £60.9 million, and our Gross Margin improved from 38.6% to 40.2%. This resulted in a Gross Profit of £24.5 million, an increase of £2.4 million over the previous year.

While this growth is promising, our Operating Profit decreased from £2.0 million to £1.8 million This was a result of a strategic decision to invest significantly in our retail teams and infrastructure. These proactive investments are crucial for improving the customer experience and building a scalable operating model that will support our long-term growth.

During the year we opened a new store in Solihull and a new furniture and lifestyle brand LIVHOME in Aintree. Part of long-established furniture design and manufacturing company HSL, LIVHOME is a new concept that promises to disrupt the industry, making it easy for consumers to find great-quality furniture that balances comfort and functionality with modern styling.

The directors are pleased with the performance delivered during the year, and are optimistic about prospects for 2025 and beyond.

The group faces a number of risks in both the day-to-day operation of its business, and in implementing its strategic plans. The board regularly reviews these risks and implements process improvements and mitigating actions, wherever possible, to manage risk.

Risks that could potentially have the most significant impact on the group are outlined below, together with mitigating actions taken. Other risks which are either not currently known or not considered material could also impact upon the group’s reported performance or net assets.

Business strategy

The company’s success depends upon the design and implementation of a successful strategy. The strategy for the group of which the company is a member is discussed at board meetings, including meetings specifically held to undertake longer term horizon-scanning and strategic planning.

Longer-term development is also addressed at regular operational meetings which include the extensive involvement of directors and HSL’s family board, the company’s senior management team and other colleagues.

Each department’s objectives are closely aligned with the group’s strategy, and performance against those objectives is regularly reviewed throughout the year. Colleague incentive schemes are based upon the wider HSL group’s performance, to align all colleagues with delivering the company and group’s strategic and operational plans.

Economic conditions

The UK furniture industry in 2024 operated within a challenging economic climate marked by persistent inflation and elevated interest rates.

The wider furniture industry can be considered to represent items of higher-value discretionary spend. However, the company designs and manufactures products focused on consumers with a need for specialist furniture which improves comfort, posture, and wellbeing informed by long-standing partnerships with Occupational Therapists.

This offers protection against such negative economic conditions and, furthermore, should drive the fastest pace of recovery as market conditions improve.

Supply chain

The company’s success is dependent upon a reliable, high quality supply chain. As with many other businesses at this time, the company is exposed to risks of supply chain disruption and inflation in the purchase price of furniture and bought-in services.

A significant proportion of the products sold by the company are purchased from other group companies.

Furthermore, the vast majority of deliveries are completed by the company’s in-house logistics operation.

As well as ensuring a consistently high-quality product and service for customers, these strategies help to defend against cost increases and lead time extensions.

To ensure continuity of supply the company continuously reviews future order expectations and works in close partnership with its suppliers to ensure that appropriate stock levels are held in or close to the UK to mitigate the risk of supply chain delays.

The company closely reviews all external sources of supply and maintains flexible supply arrangements wherever possible, to maintain competitiveness and ensure consistently high-quality standards.

Key performance indicators used by the directors to monitor the group include the following:

In addition, the directors use a number of other financial and operational key performance indicators which they consider are effective in monitoring the performance of the company. These include footfall, order and profitability data by channel and by location, and customer satisfaction indices.

The directors of High Seat Limited consider that, in both the individual and collective decision making which took place during the year ended 31 December 2024, they have acted in a way which is most likely to promote the success of the company for the benefit of the company’s shareholders as a whole, whilst having regard to the stakeholders and matters set out in s172(1)(a-f) of the Companies Act 2006.

The directors’ objective is to promote the long-term financial viability and success of the company. In doing so they have considered matters including the following:

• The expected long-term consequence of the decisions they make;

• The impact upon HSL’s retail customers.

• The interests of colleagues across the company.

• The company’s bank and other funding partners.

• Relationships with the company’s suppliers and other business partners.

• The impact of operations on society and the environment.

• The need to maintain a reputation for high standards of business conduct; and

• The need to act fairly as between all shareholders of the company.

In this regard, the directors discharge their duties as follows:

Risk management

The directors have consideration of long-term risks to the company, which are managed through a continuous exercise of risk identification, risk appraisal and, where appropriate, the implementation of mitigating actions.

This exercise includes regular review of risks in board meetings, which take place at least monthly, and input from colleagues within relevant areas of the business and from a range of external sources.

The principal risks and uncertainties faced by the company are outlined below.

Customers

As a retailer serving a typically older demographic, the directors at all times recognise the company’s responsibility to its customers. All key strategic and operational decisions include consideration of the impact on the customer.

experience, product quality, service standards, and value-for-money. This includes gathering feedback directly from customers via surveys, independent customer reviews, customer listening groups and seeking input from colleagues who work within the company’s retail channel.

Colleagues

The directors are committed to treating all colleagues with fairness, respect and equality, and continue to assess ways of enhancing the pay and benefits and wider support available to all colleagues.

Health and safety and colleague wellbeing are key focuses and are managed by measures including a group-wide health & safety committee, which reports into the board of the company’s parent company, trained mental health first-aiders, wellbeing content provided to colleagues via a range of channels, and a free-to-use Employee Assistance Programme.

Our people are our greatest asset. As a family-run business, we're dedicated to fostering a strong culture and values, and we're incredibly proud that our efforts have been recognised. We're honoured to be named the 72nd Best Large Company to Work For in the UK by Best Companies.

Bank and funding partners

HSL’s strategic plans are developed and appraised with careful regard to the interests of the company’s bank and other funding partners. The directors seek to ensure that sufficient facilities remain available to meet current needs, and to provide sufficient headroom for future investment and unexpected events.

The company has a proactive and transparent relationship with all funding partners, including its bank, Natwest.

This approach includes sharing budgetary and financial information regularly and meeting periodically to discuss trading performance and strategic plans.

Suppliers and business partners

To provide high-quality products and services, HSL works with a carefully selected network of third-party manufacturers and service partners.

Our directors and senior management team regularly collaborate with these partners to discuss performance, quality, and pricing. By working in close partnership, we continually strengthen our supply chain and improve our offerings for customers.

Society and the environment

As a national retailer, we are committed to making a positive impact on our customers, colleagues, and the communities we serve. Our operational strategy is guided by a strong sense of social responsibility, which we support through local and national charitable activities.

In 2024, we took significant steps forward in our environmental and sustainability strategy. Our key focus was on refining processes and using technology to reduce waste. This led to a substantial investment in reusing cardboard boxes to minimise our environmental footprint, as well as the installation of solar panels at our Leeds distribution centre.

Our sustainability efforts also continued with our impactful partnerships. Working closely with the Salvation Army and the British Heart Foundation, we successfully diverted over 1,000 tons of furniture from landfill.

Business conduct and shareholders

The directors are committed to operating with the highest standards of business conduct and governance, believing that this is critical for delivering our strategy and promoting the company’s long-term success.

The company is wholly owned by its parent company, High Seat Holdings Limited, and all key beneficial shareholders of the parent are represented on both the company’s and parent company’s boards of directors.

Through regular board meetings, which include detailed performance reports prepared by directors and senior management, shareholders are able to properly consider and provide input on key strategic matters, ensuring that the company's activities remain compliant with these conduct standards.

On behalf of the board

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

The company acts as the holding company for its two wholly owned subsidiaries, High Seat Limited and HSL Manufacturing Limited. The results presented are those for the consolidated group, the principal activities of which are the design, manufacture, retail sale and delivery of fixed and motion furniture.

The results for the year are set out on page 13.

Ordinary dividends of £2.9m (2023 - £1.1m) were paid during the year. The directors do not recommend payment of a further dividend in relation to the year.

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

The group is committed to a policy of recruitment and promotion on the basis of aptitude and ability, without discrimination of any kind. Particular attention is given to the training and promotion of disabled colleagues to ensure that their career development is not unfairly restricted by their disability, or perceptions of it.

The group’s HR procedures make clear that full and fair consideration must be given to applications made by and the promotion of disabled persons. Where a colleague becomes disabled, the group’s HR procedures also require that reasonable effort is made to ensure that they have the opportunity for continued employment within the group.

Where appropriate colleagues who become disabled are offered the opportunity to retrain.

The company maintains an intranet site, ourHSL, providing colleagues with information on matters of concern to them as employees. In addition, colleagues receive regular briefings from the directors and the senior management team through a number of other channels, highlighting matters relevant to them, including the economic, financial and commercial factors affecting the performance of the company.

The company also periodically undertakes listening groups across all areas of the business, ad hoc questionnaires, and an annual survey to measure colleague engagement levels and canvass views on significant matters.

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

In accordance with the Streamlined Energy and Carbon (“SECR”) reporting requirements, the directors report on the group’s energy usage and greenhouse gas emissions for the year ended 31 December 2024.

In accordance with the requirements, energy usage data reflect the group’s electricity and gas use during the year at HSL’s factory, office and warehouse premises as well as across the estate of showrooms. In addition, reported energy use captures fuel used by company operated vehicles and machinery, and business mileage undertaken by colleagues in privately owned cars.

Emissions have been calculated using conversion factors available from public information sources. Emissions and intensity ratios are presented on both a location-basis and market-basis, in the latter case reflecting the impact of a renewable energy tariff.

Summary of HSL's Environmental Activities During 2024

HSL's environmental strategy in 2024 was focused on continuing its journey toward a net-zero operation, with key achievements in energy, waste reduction, and transport. The company's directors expressed satisfaction with the progress made and are now looking to expand their focus to include Scope 3 emissions.

Key Initiatives and Achievements:

• Renewable Energy: HSL re-entered a renewable electricity tariff for all its sites on December 1, 2023, and maintained this "green tariff" throughout 2024. This action had a significant positive impact, leading to a reduction of 43 tonnes of CO2 emissions.

• Solar Energy Investment: In a major step toward on-site energy generation, HSL undertook the installation of a solar energy system at its distribution centre during 2024.

• Waste Diversion and Partnership: The company continued its ongoing partnership with the British Heart Foundation (BHF), a critical activity in its waste reduction efforts. This collaboration involves diverting "second quality" furniture from landfill, thereby reducing waste and providing charitable support.

• Fleet Electrification: HSL continued its investment in electric vehicles, expanding its fleet to include both company cars and other vehicles. This ongoing strategy aims to reduce emissions from its transport operations.

The directors are pleased with the progress made in 2024 and have identified the measurement of Scope 3 emissions as the next significant step in their journey toward achieving net zero.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

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

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

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

We have audited the financial statements of High Seat Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year 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 group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias; 

• Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,984,828 (2023 - £974,650 profit).

High Seat Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Units 1-3a Grange Road Industrial Estate, Grange Road, Batley, West Yorkshire, WF17 6LN.

The group consists of High Seat Holdings Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company High Seat Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Assets in the course of construction are not depreciated.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

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

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

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

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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

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

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

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The stock provision has been calculated based on estimated net realisable value of demonstration stock items. The directors have assumed that a consistent stock provision will be needed against all stock lines in all stores, based upon stock type, and the historical stock write downs will remain consistent in the future.

The returns provision has been calculated based on historical levels of customer returns. The directors have assumed that the future level of returns will continue to be consistent with historical levels.

A cut-off adjustment has been posted to the financial statements for dispatches where title had not passed to the customer at the year end. The directors have calculated this adjustment based on information obtained during the stock counts performed internally and at the company's two largest carriers, covering a significant majority of dispatches.

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

Their aggregate remuneration comprised:

The numebr of directors for whom retirement benefits are accruing under defined contribution schemes amouted to 6 (2023 - 7)

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

The directors applied the amendments to FRS102, effective 1 January 2019, and as a result elected to transfer investment properties at deemed cost to tangible fixed assets at this date. These properties are owned by the company and leased to other entities within the group.

Details of the company's subsidiaries at 31 December 2024 are as follows:

Registered office addresses (all UK unless otherwise indicated):

Obligations under finance leases are secured against the assets to which they relate.

The company took out a revolving credit facility in the year which had a balance of £2.75m at the year end. Interest is charged at 2.7% per annum over the relevant reference rate and is due by the 15 August 2027.

The above is secured through cross company guarantees.

Finance lease payments represent rentals payable by the company or group for certain items of fixtures and fittings. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

Deferred tax is not recognised in respect of tax losses of £3,509,252 (2023: £4,631,244) as it is not probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits. Had this not been the case a deferred tax asset of £809,466 (2023: £1,157,811) would have been recognised when calculated at the estimated future rate of 25% (2023 - 25%).

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

Ordinary A1 shares carry the right of one vote each, have the entitlement to receive dividends and £25,000,000 return of capital subject to the holders of B shares being paid out fixed amounts first.

Ordinary A2 shares carry the right of one vote per four shares, have the entitlement to receive dividends and are entitled to 55% of the surplus on a return of capital, subject to the A1 shares being paid out first.

Ordinary B1 shares carry no right to vote, are not entitled to receive dividends but are entitled to a fixed amount of £2,000 to each shareholder on a return of capital. Thereafter the shares are entitled to 33.75% of the surplus on a return of capital subject to the A1 shares being paid out first.

Ordinary B2 shares carry no right to vote, are not entitled to receive dividends but are entitled to a fixed amount of £2,000 to each shareholder on a return of capital. Thereafter the shares are entitled to 2.5% of the surplus on a return of capital subject to the A1 shares being paid out first.

Ordinary C shares carry the right of one vote each, are not entitled to receive dividends but are entitled to 7.5% of the surplus on a return of capital subject to the A1 shares being paid out first.

Ordinary D shares carry no right to vote, are not entitled to receive dividends but are entitled to 1.25% of the surplus on a return of capital subject to the A1 shares being paid out first. During the year 25 Ordinary D shares were cancelled reducing the total number of shares to 0 (2023: 25).

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The group has taken advantage of the disclosure exemptions of Section 33.1A of FRS 102 which permit it to not present details of its transactions with members of the group headed by High Seat Holdings Limited where relevant group companies are all wholly owned. Details of outstanding balances as at the year end are given in notes 17 and 19.

During the year the group paid rent of £60,850 (2023 - £60,850) to P Burrows, a relative of Mr W J Burrows, a director.

The company is jointly controlled by Mr W J Burrows and Mrs D L Burrows, both of whom are directors.