Company registration number 13634746 (England and Wales)
QUERCY HOLDINGS LIMITED
CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
QUERCY HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr J T Bannister
Mr S L Altman
Mr J R T Lewis
Mr P A Isom
Company number
13634746
Registered office
St. Martin's Court
10 Paternoster Row
London
England
EC4M 7EJ
Auditor
Azets Audit Services
Third Floor, Gateway House
Tollgate
Chandlers Ford
Hampshire
United Kingdom
SO53 3TG
QUERCY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 32
QUERCY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 1 -

The directors present the strategic report for the year ended 31 January 2025.

Review of the business

Our business is a trusted and proven retailer that focusses on furniture for the living room, dining room and bedroom with a curated product range.

Our customer proposition is premised on the following key themes:

- Built to last

- Customer trust

- Quality at affordable prices

- Whole home offering

- Classic and contemporary designs

Despite macroeconomic headwinds in recent years - including global volatility and the UK’s cost of living pressures - the strength of our proposition has enabled us to deliver growth and outperform market trends.

We are cautiously optimistic about the market outlook. We believe the resilience of the UK consumer, combined with improving macroeconomic indicators - including low unemployment, declining interest rates, and easing inflation - provides a more supportive backdrop for consumer confidence.

Moreover, we operate in a substantive market, with the UK furniture market valued in excess of £20 billion - with our differentiated proposition, proven product quality, and compelling price points, we are confident in our ability to continue growing our share of the market.

The year in review:

Following a focus in prior year on product range repositioning and a strengthening of our wider operational infrastructure, the group has delivered robust financial results in this last financial year. Revenue in the year to 31 January 2025 totalled £30.9m, an increase of 69% on prior year revenue of £18.2m, and underpinning a significant improvement in profitability, as illustrated in the key performance metrics section of the strategic report.

Key performance indicators

|  | 2025 | 2024 | Variance |
|  | £M | £M |  |
Turnover |  | 30.9 | 18.2 | 12.7 |
Operating profit/Loss | 0.2 | (5.7) | 5.9 |
EBITDA |  | 0.6 | (5.6) | 6.2 |
Net Assets | (6.8) | (9.6) | 2.8 |
Adjusted Net Assets (to reflect shareholder funding) | 5.0 | (1.0) | 6.0 |
Cash and Cash Equivalents | 1.0 | 0.8 | 0.2 |

QUERCY HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 2 -
Principal risks and uncertainties

The risks and uncertainties described below represent those which the Directors consider to be the most significant to delivering the business strategy. These are reviewed on a regular basis and mitigating actions put in place as required.

Supply Chain risk

Key product suppliers are based in the Far East, exposing the Group to supply chain delay risks that could impact the customer experience and ultimately the reputation of the business. To mitigate risk, the business works with multiple suppliers and a broad product base.

Product arrives fully insured into the UK by sea making profit margins sensitive to sea freight costs . These specific costs are managed using contracts with a range of shipping lines and utilising stock buffers to further manage any adverse fluctuations in cost.

Foreign Exchange

Product is purchased for resale and mostly sourced from the Far East in USD. With revenues received in GBP, fluctuations in the exchange rate can impact profit margins. To mitigate this risk, exchange rates are monitored frequently, and the business utilises forward currency exchange contracts aligned to the Group's treasury policy.

Liquidity Risk

The business is subject to liquidity risk. Lending facilities are in place to manage liquidity requirements and senior management review cash flow forecasts regularly with the Board to ensure the business can operate within its facilities.

Information Security and Data Protection

Risks include any data breach, cyber-attack or service interruption that could result in fines, business interruption and reputational damage. To mitigate risk, the business maintains a robust suite of Information Security and Data Protection policies complemented by regular staff training.

Health and Safety

The health and safety of all employees, customers and partners is of the upmost importance to the business. Any breaches could cause injury, financial loss and reputational damage. To mitigate risk, the business maintains a robust suite of Health and Safety policies complemented by regular staff training. Health and safety is overseen by a central compliance function and any issues must be reported to senior management for discussion at Board level.

QUERCY HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 3 -
Investors and Board

We continue to benefit from the active support of our investor base, both strategically and financially. In 2024, we secured £4.8 million in growth capital to support our continued expansion and long-term ambitions.

In parallel, we have strengthened our leadership team with two high-calibre appointments. Adam Pikett has joined as a Board Advisor. As the founder and former CEO of Sports Pursuit and now an operating partner at a leading large-cap private equity firm, Adam brings deep digital and commercial expertise that will support the refinement of our go-to-market strategy. Neil Baishnab has been appointed Chief Financial Officer, bringing with him extensive experience in the consumer sector and a strong track record in financial leadership.

We are delighted to welcome them to the team and we are confident that their expertise will be instrumental as we continue to scale the business and evolve our proposition.

Looking ahead

Following a transformational year for the business, we are pleased to provide an update on the key pillars of our future strategy:

Omni-Channel Expansion

With deep sector experience and insight into the customer journey, we recognise that for a segment of our customer base, the ability to experience our products in a physical showroom remains a key driver of conversion. In June 2025, we opened our first showroom in Peterborough, which is trading ahead of expectations. We have a pipeline of potential locations for further showrooms in 2025 and beyond. However, we will continue to take a measured approach to expansion, applying a disciplined and data-driven methodology when evaluating future site opportunities.

Brand Evolution – Launch of "Oak and More"

In June 2025, we completed a strategic rebrand from "Oak Furniture Superstore" to "Oak and More" to better reflect our broadened product offering and align more closely with evolving customer expectations. The rebrand was underpinned by comprehensive consumer research and insight. Early feedback since the launch has been highly encouraging, with the new brand identity supporting increased engagement and performance across all customer touchpoints. This marks a key milestone in our evolution to a fully integrated omni-channel retailer.

Funding

Since year-end, we have secured nearly £2 million in additional funding from our existing investor base and secured a new £3m revolving credit facility from our bank. This continued backing reflects the confidence of our stakeholders in both the business and the opportunities ahead.

Product Strategy

We remain focused on enhancing our curated product offering through ongoing refinement and innovation. In addition to strengthening our core collections, we are actively exploring adjacent product categories and areas where we see meaningful potential for growth.

On behalf of the board

Mr P A Isom
Director
29 September 2025
QUERCY HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 4 -

The directors present their annual report and financial statements for the year ended 31 January 2025.

Principal activities

The principal activity of the company and group continued to be the import and sale of furniture direct to customers.

The business has continued to grow into the year ending January 2025. Additional financing has been secured to underpin this growth trajectory.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid.

Directors

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

Mr J T Bannister
Mr S L Altman
Mr J R T Lewis
Mr P A Isom
Future developments

It is anticipated that consumer confidence and the macro-economic environment will remain challenging in the year ahead. However, the Directors are confident that a unique mix of high-quality furniture at an accessible price point, combined with excellent customer service will drive continued success in the future.

The business undertakes continued Research and Development activities targeted at the product offering, customer experience and internal efficiencies to support anticipated growth.

Statement of disclosure to auditor

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.

On behalf of the board
Mr P A Isom
Director
29 September 2025
QUERCY HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2025
- 5 -

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.

QUERCY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF QUERCY HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Quercy Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2025 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 January 2025 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' r eport 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.

QUERCY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUERCY HOLDINGS LIMITED
- 7 -
Matters on which we are required to report by exception

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 identifie d material misstatements in the strategic report or the directors' r eport.

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.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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.

Auditor's 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 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.

QUERCY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUERCY HOLDINGS LIMITED
- 8 -

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.

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.

Other matters

In the previous accounting period the directors of the company took advantage of audit exemption under s477 of the Companies Act. Therefore, the prior period financial statements were not subject to 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.

QUERCY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUERCY HOLDINGS LIMITED
- 9 -
Mr Richard Hutchinson (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
30 September 2025
Chartered Accountants
Statutory Auditor
Third Floor, Gateway House
Tollgate
Chandlers Ford
Hampshire
United Kingdom
SO53 3TG
QUERCY HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025
- 10 -
2025
2024
Notes
£
£
Turnover
3
30,914,630
18,268,566
Cost of sales
(17,139,205)
(12,097,727)
Gross profit
13,775,425
6,170,839
Distribution costs
(2,988,853)
(2,406,049)
Administrative expenses
(10,328,887)
(9,497,678)
Other operating income
-
0
7,363
Exceptional item
4
(131,720)
-
0
Operating profit/(loss)
5
325,965
(5,725,525)
Interest payable and similar expenses
9
(648,753)
(708,375)
Amounts written off investments
10
1,485,368
-
Profit/(loss) before taxation
1,162,580
(6,433,900)
Tax on profit/(loss)
11
1,639,167
-
0
Profit/(loss) for the financial year
2,801,747
(6,433,900)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
QUERCY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 JANUARY 2025
31 January 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
12
313,360
352,530
Other intangible assets
12
1,006,642
602,620
Total intangible assets
1,320,002
955,150
Tangible assets
13
221,311
125,011
1,541,313
1,080,161
Current assets
Stocks
16
5,867,697
4,694,628
Debtors
17
4,130,114
505,981
Cash at bank and in hand
999,525
840,735
10,997,336
6,041,344
Creditors: amounts falling due within one year
18
(6,635,163)
(7,063,483)
Net current assets/(liabilities)
4,362,173
(1,022,139)
Total assets less current liabilities
5,903,486
58,022
Creditors: amounts falling due after more than one year
19
(12,680,000)
(9,636,283)
Net liabilities
(6,776,514)
(9,578,261)
Capital and reserves
Called up share capital
24
803,000
803,000
Profit and loss reserves
(7,579,514)
(10,381,261)
Total equity
(6,776,514)
(9,578,261)
The financial statements were approved by the board of directors and authorised for issue on 29 September 2025 and are signed on its behalf by:
29 September 2025
Mr P A Isom
Director
Company registration number 13634746 (England and Wales)
QUERCY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2025
31 January 2025
- 12 -
2025
2024
as restated
Notes
£
£
£
£
Fixed assets
Investments
14
10
10
Current assets
Debtors
17
10,189,753
5,168,218
Cash at bank and in hand
57,881
121,216
10,247,634
5,289,434
Creditors: amounts falling due within one year
18
(32,485)
(48,350)
Net current assets
10,215,149
5,241,084
Total assets less current liabilities
10,215,159
5,241,094
Creditors: amounts falling due after more than one year
19
(11,813,234)
(8,597,450)
Net liabilities
(1,598,075)
(3,356,356)
Capital and reserves
Called up share capital
24
803,000
803,000
Profit and loss reserves
(2,401,075)
(4,159,356)
Total equity
(1,598,075)
(3,356,356)

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £1,758,281 (2024 - £211,995 loss).

The financial statements were approved by the board of directors and authorised for issue on 29 September 2025 and are signed on its behalf by:
29 September 2025
Mr P A Isom
Director
Company registration number 13634746 (England and Wales)
QUERCY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 January 2024:
Balance at 1 February 2023
803,000
(3,947,361)
(3,144,361)
Year ended 31 January 2024:
Loss and total comprehensive income
-
(6,433,900)
(6,433,900)
Balance at 31 January 2024
803,000
(10,381,261)
(9,578,261)
Year ended 31 January 2025:
Profit and total comprehensive income
-
2,801,747
2,801,747
Balance at 31 January 2025
803,000
(7,579,514)
(6,776,514)
QUERCY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 January 2024:
Balance at 1 February 2023
803,000
(3,947,361)
(3,144,361)
Year ended 31 January 2024:
Loss and total comprehensive income for the year
-
(211,995)
(211,995)
Balance at 31 January 2024
803,000
(4,159,356)
(3,356,356)
Year ended 31 January 2025:
Profit and total comprehensive income
-
1,758,281
1,758,281
Balance at 31 January 2025
803,000
(2,401,075)
(1,598,075)
QUERCY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2025
- 15 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(2,970,337)
(2,130,729)
Interest paid
(262,488)
(206,324)
Net cash outflow from operating activities
(3,232,825)
(2,337,053)
Investing activities
Purchase of intangible assets
(502,704)
(111,500)
Purchase of tangible fixed assets
(131,506)
(116,953)
Proceeds from disposal of tangible fixed assets
524
-
Proceeds from disposal of subsidiaries, net of cash disposed
-
708,135
Interest received
15,999
-
Net cash (used in)/generated from investing activities
(617,687)
479,682
Financing activities
Proceeds from borrowings
4,300,000
-
Repayment of borrowings
-
2,690,920
Repayment of bank loans
(290,698)
Net cash generated from financing activities
4,009,302
2,690,920
Net increase in cash and cash equivalents
158,790
833,549
Cash and cash equivalents at beginning of year
840,735
7,186
Cash and cash equivalents at end of year
999,525
840,735
QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
- 16 -
1
Accounting policies
Company information

Quercy Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is St Martin's Court, 10 Paternoster Row, London, EC4M 7EJ.

The group consists of Quercy Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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 a mounts in these financial statements are rounded to the nearest £.

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 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

1.2
Business combinations

In the parent company financial statements, t he 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. I nvestments 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.

QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Quercy 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 January 2025. 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 g roup.

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.

1.4
Going concern

In assessing whether the financial statements should be prepared on a going concern basis, the directors have considered the outlook of the group and company and in so doing have given consideration to the current and future operating results, cashflow requirements of the business and its available funding lines. The directors believe that the group has adequate resources to meet its liabilities as they fall due and the ability to operate as a going concern for a period of at least 12 months from the date of approval of these financial statements.

The directors therefore consider it appropriate to continue to adopt the going concern basis in the preparation of these financial statements.

1.5
Turnover

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.

1.6
Intangible fixed assets - goodwill

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.

QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 18 -
1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Development costs
Over 5 years
Intellectual property
Over 10 years
1.8
Tangible fixed assets

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:

Plant and equipment
Over 5 years
Office and IT equipment
Over 3 years

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.

1.9
Fixed asset investments

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.

1.10
Impairment of fixed assets

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.

QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 19 -

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.

1.11
Stocks

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

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 sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

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.

1.13
Financial instruments

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

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 m ethod 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.

QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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

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 paymen ts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

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

1.14
Equity instruments

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.

1.15
Taxation

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

Current 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

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.

1.16
Employee benefits

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.

1.17
Retirement benefits

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

1.18
Leases

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 lease d asset are consumed.

QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 22 -
1.19
Foreign exchange

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.

2
Judgements and key sources of estimation uncertainty

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.

3
Turnover

All turnover is from the principal activity and arises in the UK.

4
Exceptional item
2025
2024
£
£
Expenditure
Exceptional costs
131,720
-

Exceptional costs mainly relate to one off legal and redundancy costs that are not expected to be incurred going forward.

5
Operating profit/(loss)
2025
2024
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange (gains)/losses
(282,891)
183,842
Depreciation of owned tangible fixed assets
34,682
7,942
Amortisation of intangible assets
137,852
98,052
Operating lease charges
143,162
119,515
QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 23 -
6
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,125
3,500
Audit of the financial statements of the company's subsidiaries
21,750
22,500
28,875
26,000
7
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Directors
4
4
4
4
Operations
38
29
-
-
Admin
8
6
-
-
Total
50
39
4
4

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
2,172,882
1,715,198
-
0
-
0
Social security costs
211,898
140,521
-
-
Pension costs
37,383
25,964
-
0
-
0
2,422,163
1,881,683
-
0
-
0
8
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
390,000
392,125
Company pension contributions to defined contribution schemes
1,321
1,321
391,321
393,446
QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
8
Directors' remuneration
(Continued)
- 24 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
210,000
211,292
9
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
213,763
186,916
Interest on related party loans
450,990
502,051
Other interest
(16,000)
19,408
Total finance costs
648,753
708,375
10
Amounts written off investments
2025
2024
£
£
Amounts written back to investments held at fair value
1,485,368
-

The above represents amounts recovered against investments in subsidiaries previously impaired.

11
Taxation
2025
2024
£
£
Deferred tax
Origination and reversal of timing differences
(1,639,167)
-
0
QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
11
Taxation
(Continued)
- 25 -

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

2025
2024
£
£
Profit/(loss) before taxation
1,162,580
(6,433,900)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
290,645
(1,608,475)
Tax effect of expenses that are not deductible in determining taxable profit
1,135
-
0
Tax effect of income not taxable in determining taxable profit
(444,564)
-
0
Tax effect of utilisation of tax losses not previously recognised
(290,798)
52,999
Unutilised tax losses carried forward
-
0
1,555,476
Permanent capital allowances in excess of depreciation
24,183
-
0
Deferred tax adjustments in respect of prior years
(1,405,737)
-
0
Non-trading loan relationship debits
185,969
-
0
Taxation credit
(1,639,167)
-
12
Intangible fixed assets
Group
Goodwill
Development costs
Intellectual property
Total
£
£
£
£
Cost
At 1 February 2024
391,700
111,500
550,002
1,053,202
Additions
-
0
502,704
-
0
502,704
At 31 January 2025
391,700
614,204
550,002
1,555,906
Amortisation and impairment
At 1 February 2024
39,170
3,882
55,000
98,052
Amortisation charged for the year
39,170
43,682
55,000
137,852
At 31 January 2025
78,340
47,564
110,000
235,904
Carrying amount
At 31 January 2025
313,360
566,640
440,002
1,320,002
At 31 January 2024
352,530
107,618
495,002
955,150
The company had no intangible fixed assets at 31 January 2025 or 31 January 2024.
QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 26 -
13
Tangible fixed assets
Group
Plant and equipment
Office and IT equipment
Total
£
£
£
Cost
At 1 February 2024
101,000
31,953
132,953
Additions
102,392
29,114
131,506
Disposals
-
0
(524)
(524)
At 31 January 2025
203,392
60,543
263,935
Depreciation and impairment
At 1 February 2024
2,750
5,192
7,942
Depreciation charged in the year
23,187
11,495
34,682
At 31 January 2025
25,937
16,687
42,624
Carrying amount
At 31 January 2025
177,455
43,856
221,311
At 31 January 2024
98,250
26,761
125,011
The company had no tangible fixed assets at 31 January 2025 or 31 January 2024.
14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
10
10
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2024 and 31 January 2025
10
Carrying amount
At 31 January 2025
10
At 31 January 2024
10
15
Subsidiaries

Details of the company's subsidiaries at 31 January 2025 are as follows:

QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
15
Subsidiaries
(Continued)
- 27 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Moreham Wood Limited
Kinetic Business Centre, Theobald Street, Borehamwood, United Kingdom, WD6 4PJ
Retail of furniture
Ordinary
100.00
Mark Harris Furniture Limited
2nd Floor, 110 Cannon Street, London, EC4N 6EU
Retail of furniture
Ordinary
100.00

The results of Mark Harris Furniture Limited are not cosolidated in these accounts as no control was exercised over this subsidiary. On 26 May 2025 Mark Harris Furniture Limited was dissolved.

16
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Finished goods and goods for resale in transit
2,638,154
1,970,574
-
-
Finished goods and goods for resale
3,229,543
2,724,054
-
0
-
0
5,867,697
4,694,628
-
-
17
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,259,142
344,188
-
0
-
0
Other debtors
264,357
69,390
5,112
2,000
Prepayments and accrued income
967,448
92,403
-
0
4,037
2,490,947
505,981
5,112
6,037
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
10,038,211
5,162,181
Deferred tax asset (note 21)
1,639,167
-
0
146,430
-
0
1,639,167
-
10,184,641
5,162,181
Total debtors
4,130,114
505,981
10,189,753
5,168,218
QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 28 -
18
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
20
470,282
454,150
-
0
-
0
Trade creditors
2,575,227
1,558,714
10,800
16,128
Other taxation and social security
1,243,165
1,619,040
-
-
Deferred income
22
2,208,364
2,948,643
-
0
-
0
Other creditors
9,084
199,309
10
10
Accruals and deferred income
129,041
283,627
21,675
32,212
6,635,163
7,063,483
32,485
48,350
19
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
20
866,766
1,038,833
-
0
-
0
Amounts owed to related parties
11,813,234
8,597,450
11,813,234
8,597,450
12,680,000
9,636,283
11,813,234
8,597,450

Amounts owed to related parties comprise loan notes that bear interest at 6% and 11% per annum and are due for repayment in 2028.

20
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
1,337,048
1,492,983
-
0
-
0
Payable within one year
470,282
454,150
-
0
-
0
Payable after one year
866,766
1,038,833
-
0
-
0

The bank loans were secured by fixed and floating charges over the trade and assets of Moreham Wood Limited.

QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 29 -
21
Deferred taxation

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

Assets
Assets
2025
2024
Group
£
£
Tax losses
1,639,167
-
Assets
Assets
2025
2024
Company
£
£
Tax losses
146,430
-
Group
Company
2025
2025
Movements in the year:
£
£
Asset at 1 February 2024
-
-
Credit to profit or loss
(1,639,167)
(146,430)
Asset at 31 January 2025
(1,639,167)
(146,430)

The deferred tax asset relates to the utilisation of tax losses against future expected profits.

22
Deferred income
Group
Company
2025
2024
2025
2024
£
£
£
£
Arising from deferred income
2,208,364
2,948,643
-
-
23
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
37,383
25,964

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.

QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 30 -
24
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
750,000
750,000
750,000
750,000
Non-voting ordinary of £1 each
53,000
53,000
53,000
53,000
803,000
803,000
803,000
803,000

Each ordinary share is entitled to one vote, and ranks equally for any dividend payments, other distributions or on winding up of the company.

Non-voting shares do not have voting rights. Each share ranks equally for dividend payments, other distribution or on winding up. of the company. The shares are not redeemable or liable to be redmmed at the option of the company or shareholders.

25
Operating lease commitments
Lessee

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:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
70,000
12,641
-
-
Between two and five years
231,479
-
-
-
301,479
12,641
-
-
26
Related party transactions

During the year, the group was charged fees of £50,004 (2024: £50,004) by Moulton Goodies Limited, a related party due to their shareholding in Quercy Holdings Limited.

Loan notes from Moulton Goodies Limited are repaid over the agreed period with interest as detailed in note 20. Interest charged during the year on loan notes advanced by Moulton Goodies Limited totalled £375,026. The total amount due to Moulton Goodies Limited in respect of these loan notes at the year end was £5,969,501 (2024: £4,858,139).

Secured loan notes, repayable in full in 2028, have been issued by the company to a director/shareholder.

Interest charged during the year on these loan notes totalled £74,846, at rates between 6% and 11%. The total amount due to the director in respect of these loan notes at the year end was £1,195,391 (2024: £1,028,503).

QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 31 -
27
Controlling party

The immediate and ultimate parent company is Moulton Goodies Limited, a company registered in Guernsey. The ultimate controlling party is Mr J P Moulton.

28
Cash absorbed by group operations
2025
2024
£
£
Profit/(loss) for the year after tax
2,801,747
(6,433,900)
Adjustments for:
Taxation credited
(1,639,167)
-
0
Finance costs
648,753
708,375
Amortisation and impairment of intangible assets
137,852
98,052
Depreciation and impairment of tangible fixed assets
34,682
7,942
Other gains and losses
(1,485,368)
-
Movements in working capital:
Increase in stocks
(1,173,069)
(2,251,612)
Increase in debtors
(1,984,966)
(813,080)
Increase in creditors
429,478
3,604,851
(Decrease)/increase in deferred income
(740,279)
2,948,643
Cash absorbed by operations
(2,970,337)
(2,130,729)
29
Analysis of changes in net debt - group
1 February 2024
Cash flows
Other non-cash changes
31 January 2025
£
£
£
£
Cash at bank and in hand
840,735
158,790
-
999,525
Borrowings excluding overdrafts
(10,090,433)
(4,009,302)
949,453
(13,150,282)
(9,249,698)
(3,850,512)
949,453
(12,150,757)
30
Prior period adjustment

A prior period adjustment has been made in both the parent and subsidiary financial statements to take into account loan interest that was not previously recognised on amounts due to from a subsidiary. This has resulted in a decrease of the reported loss for the year of £314,737 and a decrease in the net liabilities by the same amount.

There is no impact on the reported group numbers as this adjustment is eliminated on consolidation.

Reconciliation of changes in equity - group
The prior period adjustments do not give rise to any effect upon equity.
QUERCY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
30
Prior period adjustment
(Continued)
- 32 -
Reconciliation of changes in loss for the previous financial period
2024
£
Adjustments to prior year
Total adjustments
-
Loss as previously reported
(6,433,900)
Loss as adjusted
(6,433,900)
Reconciliation of changes in equity - company
1 February
31 January
2023
2024
£
£
Adjustments to prior year
Inter-company loan interest
-
(314,737)
Equity as previously reported
(3,144,361)
(3,671,093)
Equity as adjusted
(3,144,361)
(3,985,830)
Analysis of the effect upon equity
Profit and loss reserves
-
314,737
Reconciliation of changes in loss for the previous financial period
2024
£
Adjustments to prior year
Inter-company loan interest
(314,737)
Loss as previously reported
(526,732)
Loss as adjusted
(841,469)
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