| Cult Furniture Ltd |
| Strategic Report |
|
| The Director presents their strategic report together with the audited financial statements for the period ended 31 December 2024. |
| Business Review |
The principle activity of the company is of an online furniture seller.
The Company continues to successfully attract new customers and continues to grow by serving its customers successfully by offering affordable designed furniture. |
|
| Financial key performance indicators |
|
| The company turnover for the year was £11,062,368 for the 12 months to 31st December 2024, this is higher than the previous 12 months in the year despite difficult trading conditions, last year numbers report a 15-month period. |
|
| The key performance indicators used by management are as follows: |
|
|
|
31 December 2024 |
31 December 2023 |
|
|
£ |
£ |
|
Turnover |
11,062,368 |
12,878,945 |
|
Gross profit |
5,463,003 |
6,273,555 |
|
Gross profit margin |
49% |
49% |
|
Profit before tax |
62,102 |
-260,330 |
|
| Gross Profit was maintained at 49%, level on last year and management are pleased with this performance given the current market challenges and it’s in the higher brackets for our industry. |
|
| Overall we are satisfied with the performance of the company this year and the fact that our strategy and new opportunities which we could capitalise has resulted in better than expected results reaching closer to our long terms goal |
|
| Principal risks and uncertainties |
|
The principal risk to the company is the market risk. Changes in the market due to increased shipping costs, increased shipping times and changing environmental elements add uncertainty.
The other risk and uncertainties associated with an online furniture business is consistent stock availability of key products and launching new designs to keep attracting customers. Management work closely with various external partners to ensure that stock is always managed at optimum level and the product offering is updated regularly to develop a growing range of successful products.
The financial statements have been prepared on a going concern basis. The company has made a profit of £62,102 in the year. The directors have reviewed the group's forecast and projections, including assumptions concerning capital expenditure and expenditure commitments and their impact on cashflows and believe that the company has adequate financial resources. |
|
| Future Development & Outlook |
|
| The directors believe that the Company remains well positioned to grow its market position and will continue to investment in design, people and technology to remain at the forefront of the furniture sales sector. The company expects to grow the business in UK by adding new furniture categories and continue to launch its own exclusive designed products. |
|
| This report was approved by the board on 26 September 2025 and signed on its behalf. |
|
|
|
| F Iqbal |
| Director |
|
|
| 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 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 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
|
|
| We have nothing to report in this regard. |
|
| 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 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. |
|
| Matters on which we are required to report by exception |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Capability of the audit in detecting irregularities, including fraud
The objectives of our audit are to identify and assess the risks of material misstatement of the financial
statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.
Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations. We considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure. Audit procedures performed by the engagement team included: |
| ● |
Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and |
| ● |
Assessment of identified fraud risk factors; and |
| ● |
Challenging assumptions and judgements made by management in its significant accounting estimates; and |
| ● |
Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and |
| ● |
Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transaction; and |
| ● |
Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and |
| ● |
Identifying and testing journal entries, in particular any manual entries made at the year-end for financial statement preparation; and |
| ● |
Physical safeguarding controls for stock have been reviewed to ensure they are adequate for the business. |
|
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: |
|
| ● |
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. 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. |
| ● |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
| ● |
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. |
| ● |
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. |
| ● |
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
|
| We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
|
| 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. |
|
| Cult Furniture Ltd |
| Statement of Cash Flows |
| for the year ended 31 December 2024 |
|
| Notes |
|
2024 |
|
2023 |
| £ |
£ |
| Operating activities |
| Profit/(loss) for the financial year |
62,102 |
|
(235,613) |
|
| Adjustments for: |
| Loss on sale of fixed assets |
- |
|
666 |
| Interest receivable |
(7,784) |
|
(59,577) |
| Interest payable |
15,635 |
|
39,000 |
| Tax on profit/(loss) on ordinary activities |
- |
|
(24,717) |
| Depreciation |
56,885 |
|
79,167 |
| Amortisation of goodwill |
9,056 |
|
10,031 |
| Decrease in stocks |
116,959 |
|
746,652 |
| Decrease/(increase) in debtors |
152,728 |
|
(155,004) |
| Increase/(decrease) in creditors |
626,684 |
|
(447,886) |
|
|
|
1,032,265 |
|
(47,281) |
|
| Interest received |
7,784 |
|
59,577 |
| Interest paid |
|
|
(15,635) |
|
(39,000) |
| Corporation tax paid |
(214,213) |
|
194,832 |
|
| Cash generated by operating activities |
810,201 |
|
168,128 |
|
|
|
|
|
|
| Investing activities |
| Payments to acquire intangible fixed assets |
(140,439) |
|
(1,148) |
| Payments to acquire tangible fixed assets |
(19,604) |
|
(94,598) |
|
| Cash used in investing activities |
(160,043) |
|
(95,746) |
|
|
|
|
|
|
| Financing activities |
| Equity dividends paid |
(90,000) |
|
(130,000) |
| Capital element of finance lease payments |
- |
|
(5,343) |
|
| Cash used in financing activities |
(90,000) |
|
(135,343) |
|
|
|
|
|
|
| Net cash generated/(used) |
| Cash generated by operating activities |
810,201 |
|
168,128 |
| Cash used in investing activities |
(160,043) |
|
(95,746) |
| Cash used in financing activities |
(90,000) |
|
(135,343) |
|
| Net cash generated/(used) |
560,158 |
|
(62,961) |
|
| Cash and cash equivalents at 1 January |
(53,605) |
|
9,356 |
| Cash and cash equivalents at 31 December |
506,553 |
|
(53,605) |
|
|
|
|
|
|
| Cash and cash equivalents comprise: |
| Cash at bank |
664,784 |
|
116,665 |
| Bank overdrafts |
12 |
|
(158,231) |
|
(170,270) |
|
|
|
506,553 |
|
(53,605) |
|
|
|
|
|
|
|
|
|
Investment property |
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
| 2 |
Analysis of turnover |
2024 |
|
2023 |
| £ |
£ |
|
|
Sale of goods |
11,062,368 |
|
12,878,945 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
10,772,198 |
|
12,501,350 |
|
Europe |
270,289 |
|
342,036 |
|
Rest of world |
19,881 |
|
35,559 |
|
|
|
|
|
|
11,062,368 |
|
12,878,945 |
|
|
|
|
|
|
|
|
|
|
| 3 |
Operating profit |
2024 |
|
2023 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
56,885 |
|
79,166 |
|
Amortisation of goodwill |
9,056 |
|
10,032 |
|
Operating lease rentals - plant and machinery |
2,733 |
|
1,104 |
|
Operating lease rentals - land and buildings |
644,006 |
|
865,549 |
|
Auditors' remuneration for audit services |
11,500 |
|
10,000 |
|
Auditors' remuneration for other services |
3,850 |
|
- |
|
Carrying amount of stock sold |
4,220,744 |
|
4,909,010 |
|
|
|
|
|
|
|
|
|
|
| 4 |
Director's emoluments |
2024 |
|
2023 |
| £ |
£ |
|
|
Emoluments |
16,713 |
|
10,000 |
|
|
|
|
|
|
|
|
|
|
| 5 |
Staff costs |
2024 |
|
2023 |
| £ |
£ |
|
|
Wages and salaries |
1,927,627 |
|
2,446,692 |
|
Social security costs |
186,658 |
|
202,265 |
|
Other pension costs |
38,691 |
|
50,145 |
|
|
|
|
|
|
2,152,976 |
|
2,699,102 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
15 |
|
15 |
|
Distribution |
24 |
|
28 |
|
Sales |
25 |
|
27 |
|
|
|
|
|
|
64 |
|
70 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Interest payable |
2024 |
|
2023 |
| £ |
£ |
|
|
Bank loans and overdrafts |
15,635 |
|
39,000 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Taxation |
2024 |
|
2023 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
Adjustments in respect of previous periods |
- |
|
(24,717) |
|
|
|
|
|
|
|
|
|
|
|
Tax on loss on ordinary activities |
- |
|
(24,717) |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
Profit/(loss) on ordinary activities before tax |
62,102 |
|
(260,330) |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
19% |
|
19% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
11,799 |
|
(49,463) |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
(66,066) |
|
74,180 |
|
Capital allowances for period in excess of depreciation |
54,267 |
|
(24,717) |
|
Adjustments to tax charge in respect of previous periods |
- |
|
(24,717) |
|
|
Current tax charge for period |
- |
|
(24,717) |
|
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
Future tax charge will be affected by the increase in rate of corporation tax to 25% as enacted by Finance Bill 2021 |
|
|
| 8 |
Intangible fixed assets |
£ |
|
Website & Software: |
|
|
Cost |
|
At 1 January 2024 |
60,955 |
|
Additions |
140,439 |
|
At 31 December 2024 |
201,394 |
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
At 1 January 2024 |
37,946 |
|
Provided during the year |
9,056 |
|
At 31 December 2024 |
47,002 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2024 |
154,392 |
|
At 31 December 2023 |
23,009 |
|
|
|
|
|
|
|
|
|
|
Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years. |
|
|
| 9 |
Tangible fixed assets |
|
|
|
|
|
|
|
|
Plant and machinery |
|
|
|
|
|
|
|
|
At cost |
| £ |
|
Cost or valuation |
|
At 1 January 2024 |
370,802 |
|
Additions |
19,604 |
|
At 31 December 2024 |
390,406 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2024 |
245,985 |
|
Charge for the year |
56,885 |
|
At 31 December 2024 |
302,870 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2024 |
87,536 |
|
At 31 December 2023 |
124,817 |
|
|
|
|
|
|
|
|
|
|
|
| 10 |
Stocks |
2024 |
|
2023 |
| £ |
£ |
|
|
Finished goods and goods for resale |
1,678,895 |
|
1,795,854 |
|
|
|
|
|
|
|
|
|
|
| 11 |
Debtors |
2024 |
|
2023 |
| £ |
£ |
|
|
Trade debtors |
24,680 |
|
55,106 |
|
Other debtors |
54,823 |
|
288,087 |
|
Prepayments and accrued income |
612,007 |
|
501,045 |
|
|
|
|
|
|
691,510 |
|
844,238 |
|
|
|
|
|
|
|
|
|
|
| 12 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
| £ |
£ |
|
|
Bank loans & overdrafts |
158,231 |
|
170,270 |
|
Trade creditors |
420,447 |
|
387,609 |
|
Corporation tax |
101,874 |
|
316,087 |
|
Other taxes and social security costs |
569,519 |
|
267,927 |
|
Other creditors |
1,020,237 |
|
727,983 |
|
|
|
|
|
|
2,270,308 |
|
1,869,876 |
|
|
|
|
|
|
|
|
|
| 13 |
Deferred taxation |
|
|
|
In view of the unutilised tax loss carried forward and accelerated capital allowance, the management has decided not to recognise a deferred tax asset in the current year. |
|
|
|
| 14 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
A Ordinary shares |
£0.01 each |
|
6,000 |
|
60 |
|
60 |
|
B Ordinary shares |
£0.01 each |
|
2,000 |
|
20 |
|
20 |
|
C Ordinary shares |
£0.01 each |
|
2,000 |
|
20 |
|
20 |
|
|
|
|
|
|
100 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| 15 |
Profit and loss account |
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 January |
1,034,607 |
|
1,400,220 |
|
Profit/(loss) for the financial year |
62,102 |
|
(235,613) |
|
Dividends |
(90,000) |
|
(130,000) |
|
|
At 31 December |
1,006,709 |
|
1,034,607 |
|
|
|
|
|
|
|
|
|
|
| 16 |
Dividends |
2024 |
|
2023 |
| £ |
£ |
|
|
Dividends on ordinary shares (note 15) |
90,000 |
|
130,000 |
|
|
|
|
|
|
|
|
|
|
|
| 17 |
Related party transactions |
|
|
Included in Trade Debtors is the amount of £10264 due from Boutique Camping Supplies Ltd , a company in which F Iqbal is a director and shareholder. During the year the company sold £70,032 worth of goods and purchased £1,050 worth of goods from Boutique Camping Supplies Ltd.
Included in other creditors is the amount of £210,758 (2023 : £200,759 ) due to South West Bars Ltd, a company in which F Iqbal is a director and major shareholder. During the year the company sold £3295 worth of goods to South West Bars Ltd.
The company had an outstanding directors loan of £349,044 (2023: (£5,313)) at the year end. This is included in other creditors in note 12. This loan is interest free and repayable on demand. |
|
|
| 18 |
Controlling party |
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The Company is owned by Mr F Iqbal, Mrs R Iqbal and Miss T Witham and is registered at Unit 2g 20-22, Union Road, London, England, SW4 6JP |
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| 19 |
Presentation currency |
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The financial statements are presented in Sterling. |
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| 20 |
Legal form of entity and country of incorporation |
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Cult Furniture Ltd is a private company limited by shares and incorporated in England. |
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| 21 |
Principal place of business |
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The address of the company's principal place of business and registered office is: |
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2G Union Court |
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20-22 Union Road |
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Clapham |
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SW4 6JP |