REGISTERED NUMBER: 08470022 (England and Wales)

FINANCIAL STATEMENTS

FOR THE PERIOD

4 FEBRUARY 2024 TO 1 FEBRUARY 2025

FOR

WATERWORKS OPERATING COMPANY UK LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

A P Sallick

R E Bennett

G Friedman

J Preston

C Hargarten

SECRETARY:

Ms J Falor

REGISTERED OFFICE:

10 John Street

London

United Kingdom

WC1N 2EB

REGISTERED NUMBER:

08470022 (England and Wales)

AUDITORS:

Oury Clark Chartered Accountants

Statutory Auditors

Herschel House

58 Herschel Street

Slough

Berkshire

SL1 1PG

FIXED ASSETS

Tangible assets

4

163,032

73,297

CURRENT ASSETS

Stocks

620,141

629,655

Debtors

5

581,297

179,438

Cash at bank

3,358,119

5,601,138

4,559,557

6,410,231

CREDITORS

Amounts falling due within one year

6

12,616,347

14,475,855

NET CURRENT LIABILITIES

(8,056,790

)

(8,065,624

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(7,893,758

)

(7,992,327

)

CAPITAL AND RESERVES

Called up share capital

8

1

1

Other reserves

69,286

69,286

Retained earnings

(7,963,045

)

(8,061,614

)

SHAREHOLDERS' FUNDS

(7,893,758

)

(7,992,327

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 October 2025 and were signed on its behalf by:

R E Bennett - Director

1.	STATUTORY INFORMATION

Waterworks Operating Company UK Ltd (the "Company") is a private company, limited by shares, registered in England and Wales. The Company's registered number and registered office address can be found on the Company Information page.

Waterworks Operating Company UK Ltd's trading address is 579-581 Kings Road, London, SW6 2EH.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis as Waterworks Holdings, Inc., an intermediate parent company, will continue to support the Company for a period of at least twelve months and one day from the date the audit report attached to these financial statements is signed.

Related party exemption

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales tax. Turnover is recognised upon delivery, once the Company has transferred to the buyer the significant risks and rewards of the ownership of the goods.

Tangible fixed assets

Tangible assets are initially measured at cost. Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Land and buildings - over remaining term of lease

Plant and machinery etc - 33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Stocks are valued using the average cost method.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

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

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

Foreign currencies

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Basic financial instruments

Basic financial instruments as covered by Section 11 of FRS 102 (Section 1A) are measured at amortised cost. The Company does not have any other financial instrument as covered by Section 12 of FRS 102 (Section 1A).

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 13 (2024 - 13 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 4 February 2024

1,486,260

248,476

1,734,736

Additions

-

154,540

154,540

Disposals

-

(5,286

)

(5,286

)

At 1 February 2025

1,486,260

397,730

1,883,990

DEPRECIATION

At 4 February 2024

1,486,260

175,179

1,661,439

Charge for period

-

64,805

64,805

Eliminated on disposal

-

(5,286

)

(5,286

)

At 1 February 2025

1,486,260

234,698

1,720,958

NET BOOK VALUE

At 1 February 2025

-

163,032

163,032

At 3 February 2024

-

73,297

73,297

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

1.2.25

3.2.24

£

£

Trade debtors

226,714

44,583

Other debtors

354,583

134,855

581,297

179,438

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

1.2.25

3.2.24

£

£

Trade creditors

56,694

72,166

Amounts owed to group undertakings

11,144,665

12,788,282

Taxation and social security

114,129

287,259

Other creditors & accruals

1,300,859

1,328,148

12,616,347

14,475,855

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

1.2.25

3.2.24

£

£

Within one year

129,000

-

Between one and five years

483,750

-

612,750

-

This lease relates to the renting of a new business premises, the lease terminates on the 4th of November 2029.

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

1.2.25

3.2.24

value:

£

£

1

Ordinary

£1

1

1

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Amy Enslin (Senior Statutory Auditor)

for and on behalf of Oury Clark Chartered Accountants

We would like to draw your attention to the following statement contained within our audit report as included within the full financial statements:-

"Use of our report

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

10.	ULTIMATE PARENT COMPANY

RH, formerly known as Restoration Hardware Holdings Inc (incorporated in USA), is regarded by the directors as being the Company's ultimate parent company. This is the largest and smallest group for which consolidated accounts are produced. These consolidated accounts are publicly available, and can be found at ir.rh.com.

Waterworks Holdings, Inc is regarded as the Company's immediate parent company, incorporated in the USA, with its registered office at 60 Backus Avenue, Danbury, CT 06810, USA.

11.

SECURITY

The Company's bank holds a fixed charge with negative pledge over all the assets of the Company in relation to any debts due to the bank, including the balance in a collateral account of £236,869 at the year end (2024: £230,726) which is shown within Cash at bank. At the year end, there are no amounts owed to the bank.