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Registered number:
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
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HYPNOS CONTRACT BEDS LIMITED
COMPANY INFORMATION
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HYPNOS CONTRACT BEDS LIMITED
CONTENTS
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HYPNOS CONTRACT BEDS LIMITED
STRATEGIC REPORT
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
The directors present the strategic report for the 18 month period ended 31 December 2024.
Company overview Keen & Toms Holdings Limited is the parent company of several entities (“the Group”) that collectively trade under the name Hypnos. Established in Buckinghamshire in 1904, the fifth-generation family-run business manufactures handcrafted, pocket spring beds and upholstery using natural and responsibly sourced materials. The Group supplies retail and hospitality clients in the UK and internationally, and has held a Royal Warrant since 1929. As a pioneer in sustainable and ethical bed making, Hypnos is focused on delivering comfort with integrity for the well-being of people and the planet. Hypnos is a proud partner of the Eden Project, holder of the Planet Mark and has been certified Carbon Neutral by Planet Mark since 2011.
Building a secure foundation for future growth
2024 was a significant year in the Group’s history, marking the 120th anniversary as well as the completion of a two-year change programme to place the business in the strongest possible position for its next centenary. Initiated in 2022, Project Rightsize involved a comprehensive strategic review to refocus the business and develop capabilities to form a robust platform for long-term success. The Group invested £1.7M to achieve its strategic goals. key outcomes of the change programme including:
∙New Board and leadership structure, aligned to company objectives.
∙Closure of the loss-leading venture into two-man furniture delivery services, including the exit of three operating sites.
∙Consolidation of Group buildings from six sites to one wholly owned facility, and headcount reduction from 519 to circa 290.
∙Refocused sales, finance and operations functions and processes, enhancing efficiency, productivity, service, and financial position.
∙Investment of circa £1m in new ERP infrastructure development to integrate workflows, enable consolidated data and improve reporting.
∙Appointment of a new transport and logistics partner, generating cost savings and supporting the Group’s CO2 reduction ambitions.
∙Along with international licencing and manufacturing partners.
Even during this period of significant change and against a backdrop of macroeconomic uncertainty, the business continued to launch innovative new products and maintained strong commercial relationships with retail and hospitality key accounts, as well as with independent retailers. The Group’s unwavering commitment to excellence, sustainability, and the finest British craftsmanship was recognised with the granting of a Royal Warrant by His Majesty King Charles III, adding to a proud history of supplying the Royal Households for almost a century. The successful delivery of the change programme, coupled with the strength of the underlying business, is testament to the dedication of the Group’s skilled and committed people and the effectiveness of its empowered, ambitious, and engaged culture.
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HYPNOS CONTRACT BEDS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
Looking ahead with confidence
Trading in the first 8 months of the 2025 financial year has been robust, with operating profits exceeding those recorded over the preceding 18 months. The strong cash generation is clear evidence of the business’ resilience and growth potential, which are supported by the new 5-year facility agreed in April 2025. With firm foundations in place, the Board is confident that the Group is well positioned to achieve its strategic ambitions and deliver long-term, sustainable success. Towards the end of the reporting period, Hypnos Contract Beds Limited became a sales and distribution business, only maintaining its focus on large premium hospitality groups and luxury hotel contracts for the UK and international export markets. Following a decision to consolidate manufacturing at the Princes Risborough facility of sister company Hypnos Limited, the lease on the Castle Donington site was not renewed, and manufacturing operations ceased in March 2024. This reduction in fixed costs has placed Hypnos Contract Beds in an excellent position for growth, maximising access to the Group’s facilities, knowledge and team.
Section 172 statement
Statement by the directors in performance of their statutory duties in accordance with s172(1) of the Companies Act 2006. In accordance with section 172 of the Companies Act 2006, each director acts in a way they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. The Board ensures that all decisions are taken for the long term, and collectively and individually aims to always uphold the highest standard of conduct. Similarly, the Board acknowledges that the business can only grow and prosper over the long term if it understands and respects the views and needs of the company’s shareholders, customers, employees, suppliers and other stakeholders to whom it is accountable, as well as the environment in which the business operates. The CEO, together with the Group Managing Director, sets the agenda for each Board meeting to ensure that requirements of section 172 are always met and considered through a combination of the following:
∙Board papers ensure that stakeholder factors are addressed, where relevant.
∙Health & Safety performance is always the first item on the agenda. Other standing agenda points include updates on operational and financial performance against objectives, including progress against budget and cash position.
∙At the time of undertaking the annual budgeting exercise, the Board considers the strategic direction of the business and how this fulfils the Group’s long-term objectives.
The Board recognises that its strategic decisions can have long-term implications for the business and its stakeholders, and these implications are assessed as a core part of the decision-making process.
Employee Engagement Attraction and retention of skilled people are core to the success of the Group. Employee engagement is extremely important to the Board, and there are several workforce engagement mechanisms in place:
∙Employees are kept informed of performance, strategy and short-term outlook through regular news briefings and updates from members of the Board, including Town Hall presentations by the Group Managing Director to the whole company.
∙Employee engagement surveys are undertaken, with results and proposed action plans shared with the Board.
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HYPNOS CONTRACT BEDS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
∙The Workplace Council, made up of employees and hosted by a Board member, meets monthly provides a valuable source of insights and ideas.
∙Pay rates and benefit structures are reviewed regularly to ensure every colleague receives fair pay.
∙Employee-related topics including staff welfare, workplace morale, succession planning and promoting diverse recruitment are regular agenda items at monthly main Board meetings.
∙The group operates a Valuing Diversity and Dignity at Work Policy.
Having regard to the need to foster the company’s business relationships with suppliers, customers and others
Suppliers The Board recognises the importance of fostering long-term, collaborative relationships with key suppliers to support the Group’s growth, innovation and sustainability, while balancing value for shareholders to ensure mutual benefit. The Group is proud to have pioneered certifications and standards in the industry and supply chain, including the Responsible Wool Standard (RWS), which focuses on improved land management and animal welfare for British farms and farmers, and the Red Tractor assured farm standards. Hypnos has supported the Woolkeepers® initiative since 2019 to achieve these standards whilst providing British farmers a fair price for their wool. 2024 saw the RWS standard applied to 60 UK farms. The Group Managing Director and other members of the senior management team (SMT) work with suppliers on projects including New Product Development, implementing new standards, and sharing experience from key initiatives. Third party guidance is introduced as needed, for example from Planet Mark, to aid continuous development programmes to benefit product, service and sustainability goals. This work is reported on and reviewed at Board and SMT meetings. Customers Customer obsession is one of the Group’s core values, alongside sustainable innovation, responsibility, and integrity. Customer and consumer sentiment is reflected in sales performance, which is reviewed regularly by the Board. Senior management also provides updates to the Board on their perceptions of customer sentiment and the market outlook. Customer interests are considered in strategic decision-making across key areas, including product portfolio changes, brand image and reputation, maintaining an innovative approach to sustainability, development of IT systems to facilitate doing business with the Group, and investment in marketing. Credit facility providers and credit reference agencies Alongside the Group Managing Director, the Group Finance Director is responsible for managing the relationships with banks and credit rating agencies, and for the Group’s cash, debt management and financing activities. The Group Finance Director provides regular reports to the Board on these activities, including plans to ensure appropriate access to debt capital and monitoring the headroom of credit facilities. Having regard to the impact of the company’s operations on the community and the environment Operating sustainably and responsibly is at the heart of the Group’s values and operations, evidenced by ISO 14001 certification and a proactive approach to reducing emissions. More information can be found in the Streamlined Energy and Carbon Report. The Group’s 6-year relationship with the Eden Project has influenced multiple areas of the business including sourcing, and linking to local conservation and community. In addition to encouraging colleagues’ fundraising and volunteering initiatives, each year the Group supports selected national and local charity partners with monetary donations, volunteering and driving awareness.
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HYPNOS CONTRACT BEDS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
Beneficiaries have included Chiltern Rangers, The Furniture Makers’ Company benevolent fund, Pace Centre, and Youth Concern.
The Board has overall responsibility for the management of risk and the identification of principal risks that may affect achievement of the Group’s strategic objectives. Risk management is an integral part of decision-making, with risks and mitigations evaluated regularly. The principal [financial and liquidity] risks identified by the Group are outlined below.
The Group’s primary financial instruments are trade creditors, cash at bank, overdrafts and inter-company balances. These arise directly from the Group’s trading activities and management have implemented procedures to monitor and control the liquidity and credit risks relating to the Group’s financial affairs. Through Project Rightsize, the Group utilised its cash and cash equivalents to execute the accelerated change programme, funding short-term impact costs strategically over the reporting period. Credit risk The Group has a confidential invoice discounting facility, a specific credit insurance policy to cover credit risk, and a policy to actively review client credit scores. Bad debts remain low, and credit control processes are reviewed regularly to ensure they are appropriate for the Group’s risk appetite Cash flow risk The Group operates a detailed cash flow forecasting process and proactively seeks appropriate funding to support its ambitions. As the Group has significantly reduced its fixed costs this risk is considered to be minimal. Price risk The Group is not significantly exposed to fluctuations in commodity prices, and the diversity of its supplier base would help minimise any potential impact. Foreign exchange risk The Group does not use derivative financial instruments and instead relies on a natural hedge between receivables and payables in foreign currencies.
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HYPNOS CONTRACT BEDS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
Financial key performance indicators
The directors use a variety of measures to assess the performance of the company. The major measures are operational profitability, stock-turn ratio and revenue growth.
This report was approved by the board on 30 September 2025 and signed on its behalf.
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HYPNOS CONTRACT BEDS LIMITED
DIRECTORS' REPORT
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the 18 month period ended 31 December 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the 18 month period, after taxation, amounted to £1,969,112 (53 week ending 1 July 2023 profit £129,301).
The company did not declare dividends in the 18 month period (53 week ending 1 July 2023 - £Nil).
The directors who served during the 18 month period were:
C J Hayfield was appointed as a director on 6 March 2025.
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HYPNOS CONTRACT BEDS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
The company has chosen, in accordance with section 414C of the Company's Act 2006, to set out the following information which would otherwise be required to be contained in the director's report within strategic report:
i) Business review and future developments; and ii) Likely financial risk management objective and policies; and key performance indicators.
Subsequent to the year end, the company refinanced its existing borrowing facilities. The refinancing replaced
the previous loan agreement with new facilities on improved terms. This event occurred after the year end and does not affect the amounts recognised in the financial statements. There are no other subsequent events that require disclosure or adjustments to the financial statements.
After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006.
This report was approved by the board on
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HYPNOS CONTRACT BEDS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPNOS CONTRACT BEDS LIMITED
We have audited the financial statements of Hypnos Contract Beds Limited (the 'Company') for the 18 month period ended 31 December 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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HYPNOS CONTRACT BEDS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPNOS CONTRACT BEDS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial 18 month period for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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HYPNOS CONTRACT BEDS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPNOS CONTRACT BEDS LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows: i) Companies Act 2006 ii) FRS 102 iii) Tax legislation iv) Employment legislation v) Health and safety legislation
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HYPNOS CONTRACT BEDS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPNOS CONTRACT BEDS LIMITED (CONTINUED)
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
∙Making enquiries of management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
∙Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
∙Reviewing the financial statements and testing the disclosures against supporting documentation;
∙Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
∙Inspecting and testing journal entries to identify unusual or unexpected transactions;
∙Assessing whether judgement and assumptions made in determining significant accounting estimates, were indicative of management bias; and
∙Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.
The areas that we identified as being susceptible to misstatement through fraud were:
∙Management bias in the estimates and judgements made;
∙Management override of controls; and
∙Posting of unusual journals or transactions.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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HYPNOS CONTRACT BEDS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPNOS CONTRACT BEDS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Brook Business Centre
Cowley Mill Road
Middlesex
UB8 2FX
Date:
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HYPNOS CONTRACT BEDS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
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HYPNOS CONTRACT BEDS LIMITED
REGISTERED NUMBER: 08529305
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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HYPNOS CONTRACT BEDS LIMITED
REGISTERED NUMBER: 08529305
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 17 to 33 form part of these financial statements.
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HYPNOS CONTRACT BEDS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE 53 WEEK PERIOD ENDED 1 JULY 2023
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
Hypnos Contract Beds Limited is a company limited by shares, incorporated in England and Wales. The address of the registered office is Hypnos Limited, Longwick Road, Princes Risborough, Buckinghamshire, HP27 9RS.
The company specialises in manufacture of beds and furniture.
2.Accounting policies
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 and on the assumption that the company is a going concern.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The company previously maintained its accounting records on a weekly basis. However, the Company has elected to extend the year end to 31 December 2024 therefore forming an 18 month period. The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Keen & Toms Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The financial statements are prepared on a going concern basis, despite the balance sheet showing net current liabilities of £4,418,148 (2023 - £2,675,695). The directors note that the company is trading adequately and has sufficient working capital and other finance available to continue trading for a period of not less than 12 months from the date of signing these financial statements. As such, the directors believe that there are no significant uncertainties in their assessment of whether the business is a going concern and therefore have prepared the accounts on a going concern basis.
Furthermore, the directors of the company's fellow subsidiaries have provided an undertaking that they will not seek repayment of the amount due to them until such time that the company has sufficient funds to do so and will continue to support the company for the foreseeable future, and specifically for a period not less than 12 months from the date of signing of these financial statements, such that the company will be able to meet its liabilities as they fall due.
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of comprehensive income during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company only enters into basic financial instruments 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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payments obligations. The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
The whole of the turnover is attributable to the manufacture of beds and furniture.
Analysis of turnover by country of destination:
Page 23
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
Page 24
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
During the period the directors were remunerated through Hypnos Limited. Only the directors are considered to be key management and therefore the remuneration of key management is as disclosed for directors in Hypnos Limited and Keen & Toms Holdings Limited. No apportionment has been deemed necessary.
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
Page 26
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
11.Taxation (continued)
Future tax charges are anticipated to be affected by the utilisation of losses carried forward amounting to £1,836,044 (period ended 1 July 2023 - £50,190). A deferred tax asset has not been recognised in respect of these losses due to uncertainty over the timing of the future utilisation of the losses. There is no expiry date of timing difference of unused tax losses.
There were no other factors that may affect future tax charges.
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
Page 28
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
13.Tangible fixed assets (continued)
Page 29
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
Page 30
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
Page 31
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
21.Deferred taxation (continued)
Profit and loss account
There is an unlimited cross guarantee originally dated 26 August 2008 and updated due to new subsidiaries between the company, Keen & Toms Partnership Limited, Hypnos Limited, Keen & Toms Holdings Limited, The Furniture Recycling Company Limited, The Sheen Bed Company Limited, Keen & Able Limited and Imperial Sleep Limited over any overdraft or invoice discounting borrowings from their bankers of the respective companies. The company entered into a debenture with its bankers on 13 August 2008 providing security over all assets of the company. The total amount of borrowings in the group is £5,041,358 at 31 December 2024 (1 July 2023 - £4,095,624).
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £101,769 for the 18 month period. (53 week period ended 1 July 2023 - £145,092).
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HYPNOS CONTRACT BEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2024
There are no other subsequent events that require disclosure or adjustments to the financial statements.
The immediate parent company is Keen & Toms Partnership Limited. The ultimate parent company is Keen & Toms Holdings Limited, a company registered in England and Wales. In the view of the directors there is no ultimate controlling party.
Consolidated accounts for Keen & Toms Holdings Limited are available at Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ. This is the only company in the group which prepares consolidated accounts.
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