Flair Furniture Ltd

	Page
Strategic Report	1—2
Directors' Report	3—4
Independent Auditor's Report	5—6
Profit and Loss Account	7
Statement of Comprehensive Income	8
Balance Sheet	9
Statement of Changes in Equity	10
Statement of Cash Flows	11
Notes to the Statement of Cash Flows	12
Notes to the Financial Statements	13—20

The directors present their strategic report for the year ended 28 February 2025.

Review of the Business

Flair Furniture Ltd has continued to deliver strong performance, achieving significant growth despite challenging market conditions and a wider industry trend of contraction among competitors. Our ability to outperform the sector reflects both the strength of our strategic vision and our commitment to innovation, quality, and customer service.

Over the past year, we have substantially broadened our product portfolio and successfully entered new and diverse markets. Notably, we launched our Solice & Co brand in the sofa category, which has been met with an encouraging customer response, and expanded into the gaming sector with our Recoil range, capturing a rapidly growing segment of the market. These developments not only enhance our brand presence but also position Flair Furniture as a leader in addressing evolving consumer lifestyles and preferences.

In addition, we are actively diversifying into outdoor and dining furniture, further strengthening our product offering and creating new avenues for sustainable growth. This deliberate and structured expansion ensures that we are well-placed to adapt to shifting consumer trends while maintaining our reputation for delivering quality and value.

Equally important, our continued focus on customer retention and satisfaction has contributed to sustained brand loyalty and repeat business. This reflects the effectiveness of our long-term strategy, which prioritises both market expansion and customer relationship management.

Looking ahead, we remain confident in our ability to build on this momentum. With a growing product range, entry into new categories, and a clear focus on both innovation and operational excellence, Flair Furniture Ltd is well-positioned to capture further market share and deliver lasting value to our stakeholders.

The key performance indicators that are monitored are revenue growth, gross profit margin, operating margin, return on investment (ROI), operating cash flow and liquidity ratios.

Principal Risks and Uncertainties

The Board is responsible for the company's risk management framework and for identifying the principal risks and uncertainties that could impact the company's performance, position, and future development. The following principal risks and uncertainties have been identified, along with our approach to mitigation.

1. Supply Chain and Import Disruption

Description: The company is heavily reliant on a global supply chain, importing beds and mattresses from international suppliers. Disruptions due to geopolitical tensions (such as the conflicts in Ukraine and the Middle East), new trade barriers (e.g., post-Brexit UK-EU trade friction), customs delays, or the emergence of new tariffs (e.g., potential diversion of non-compliant goods to the UK market following US tariffs on Chinese products) could interrupt the supply of inventory, increase costs, and delay deliveries.

Mitigation: The company works to mitigate this through supplier diversification, maintaining strong relationships with logistics providers, and holding appropriate levels of inventory. We actively monitor the evolving trade landscape and government guidance, such as the UK critical imports and supply chains strategy, to adapt our sourcing and logistics.

2. Regulatory Compliance and Product Safety

Description: As the "first supplier" of imported furniture, the company bears responsibility for ensuring all products meet stringent UK safety regulations, including the UK Furniture and Furnishings (Fire) (Safety) Regulations 1988. There is a risk that foreign suppliers may be unfamiliar with these specific UK standards, leading to the import of non-compliant and potentially unsafe products, which could result in product recalls, fines, and significant reputational damage.

Mitigation: The company implements rigorous due diligence processes, requiring test reports and certificates for each batch of products from suppliers. We work closely with expert bodies to ensure all imported stock is compliant, providing assurance to both the business and our customers.

3. Currency Fluctuations and Cost of Goods

Description: A significant portion of our costs is incurred in foreign currencies when purchasing goods from abroad. Fluctuations in exchange rates, particularly the strengthening of source currencies against the British Pound (GBP), can increase the cost of goods sold, putting pressure on profit margins if costs cannot be fully passed on to consumers.

Mitigation: The company uses financial instruments, such as forward currency contracts, to hedge against adverse exchange rate movements. We also regularly review our pricing strategies and work with suppliers to explore cost-effective sourcing options to manage price volatility.

4. Macroeconomic Uncertainty and Consumer Demand

Description: The retail sector is highly sensitive to the general economic climate. Factors such as high inflation, rising interest rates, and the cost-of-living crisis can erode consumer purchasing power and reduce discretionary spending on big-ticket items like beds. A downturn in consumer demand could lead to lower sales volumes, excess inventory, and reduced profitability.

...CONTINUED

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Flair Furniture Ltd

Strategic Report (continued)

For The Year Ended 28 February 2025

Principal Risks and Uncertainties - continued

Mitigation: We focus on offering a range of products at different price points to cater to varied budgets. We also invest in robust inventory management systems to align stock levels with consumer demand, run targeted marketing campaigns to stimulate sales, and monitor economic indicators closely to adjust business strategy promptly.

5. Competition and Market Conditions

Description: The UK bed retail market is highly competitive, with pressure from both domestic and international online marketplaces. The potential influx of cheaper, non-compliant imported mattresses, could create a challenging pricing environment and impact our market share.

Mitigation: The company differentiates itself by focusing on product quality, excellent customer service, and ensuring all products meet high safety and quality standards. We invest in our brand reputation and online presence to maintain a competitive edge and customer loyalty.

6. Cyber Security and Data Risk

Description: The company collects and stores customer data for online sales and loyalty programs. A breach of our information systems could lead to data loss, financial fraud, reputational damage, and regulatory penalties under the UK GDPR and Data Protection Act.

Mitigation: We have implemented comprehensive cyber security measures, including regular system updates, employee training, and third-party security audits. Our systems are designed to protect customer data, and we have incident response plans in place in case of a breach.

On behalf of the board

A J Hainsworth

Director

28/11/2025

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Flair Furniture Ltd

Company No. 07536751

Directors' Report For The Year Ended 28 February 2025

Directors' Report

The directors present their report and the financial statements for the year ended 28 February 2025.

Principal Activity

The company's principal activity continues to be that of the online retail of furniture trading under the name Bed Kingdom.

Dividends

The loss for the period, after taxation, amounted to £127,608 (2024: £909,625).

The directors have declared the payment of a dividend during the year, amounting to £59,028 (2024: £Nil).

Directors

The directors who held office during the year were as follows:

A J Hainsworth
L J Hall
D J Flook	Appointed	04/07/2024	Resigned	01/10/2024

Post Balance Sheet Events

There have been no significant events affecting the company since the year end.

Matters covered in the Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company’s strategic report information required by Large and Medium-sized Companies and Groups (accounts and reports) Regulations 2008, Sch. 7 to be contained in the directors’ report. It has done so in respect of discussions relating to financial and other risk management objectives and policies.

Statement of Directors' Responsibilities

The directors are responsible for preparing the strategic report, the directors’ 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and of the profit or loss of the company for that period.

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 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; and

• 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.

Statement of Disclosure of Information to Auditors

Each of the persons who are directors at the time when this directors’ report is approved has confirmed that:

• so far as the director is aware, there is no relevant audit information of which the company’s auditor is unaware, and

• the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

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Flair Furniture Ltd

Directors' Report (continued)

For The Year Ended 28 February 2025

Independent Auditors

The auditor, Cooper Parry Group Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

On behalf of the board

A J Hainsworth

Director

28/11/2025

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Independent Auditor's Report

to the Members of

Flair Furniture Ltd

Independent Auditor's Report

Opinion

We have audited the financial statements of Flair Furniture Limited (the ‘company’) for the period ended 28 February 2025, which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows 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).

In our opinion the financial statements:

• give a true and fair view of the state of the company’s affairs as at 28 February 2025 and of its loss for the period 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 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.

Conclusions Relating to Going Concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other Information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information 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 the audit:

• the information given in the strategic report and the directors’ report for the financial 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.

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Independent Auditor's Report (continued)

to the Members of

Flair Furniture Ltd

Matters on Which We Are Required to Report by Exception

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.

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, or returns adequate for our audit have not been received from branches not visited by us; or

• the 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’ responsibilities statement set out on page 3, 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 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 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.

Other matters

The financial statements of Flair Furniture Limited for the year ended 28 February 2024 were not audited. Accordingly, we do not express an opinion on the corresponding figures included in these 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 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.

Ryan Falls (Senior Statutory Auditor)

for and on behalf of Cooper Parry , Statutory Auditor

28/11/2025

Cooper Parry

Sky View, Argosy Road

East Midlands Airport

Castle Donington

Derby

DE74 2SA

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Flair Furniture Ltd

Profit and Loss Account

For The Year Ended 28 February 2025

Profit and Loss Account

		2025	2024
	Notes	£	£
TURNOVER		28,131,856	19,599,348
Cost of sales		(19,187,355 )	(13,294,665 )

GROSS PROFIT		8,944,501	6,304,683

Administrative expenses		(8,336,734 )	(5,171,581 )
Other operating income		-	31,368

OPERATING PROFIT	4	607,767	1,164,470
Profit on disposal of fixed assets		-	88,129
Interest payable and similar charges	9	(408,551 )	(228,420 )

PROFIT BEFORE TAXATION		199,216	1,024,179
Tax on Profit	10	(104,527 )	(98,845 )

PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR		94,689	925,334

The notes on pages 12 to 20 form part of these financial statements.

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Flair Furniture Ltd

Statement of Comprehensive Income

For The Year Ended 28 February 2025

Statement of Comprehensive Income

	2025	2024
	£	£
PROFIT FOR THE FINANCIAL YEAR	94,689	925,334
OTHER COMPREHENSIVE INCOME:
Gain on revaluation of investment properties	50,000	510,900

TOTAL COMPREHENSIVE INCOME FOR THE YEAR	144,689	1,436,234

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Flair Furniture Ltd

Balance Sheet

As At 28 February 2025

Balance Sheet

Registered number: 07536751

		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	11		134,918		149,918
Tangible Assets	12		5,436,824		5,162,377

			5,571,742		5,312,295
CURRENT ASSETS
Stocks	13	4,836,163		3,455,304
Debtors	14	534,202		204,089
Cash at bank and in hand		652,742		913,033

		6,023,107		4,572,426
Creditors: Amounts Falling Due Within One Year	15	(5,864,366 )		(4,339,677 )

NET CURRENT ASSETS (LIABILITIES)			158,741		232,749

TOTAL ASSETS LESS CURRENT LIABILITIES			5,730,483		5,545,044

Creditors: Amounts Falling Due After More Than One Year	16		(2,799,615 )		(2,785,805 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	19		(399,496 )		(313,528 )

NET ASSETS			2,531,372		2,445,711

CAPITAL AND RESERVES
Called up share capital	21		100		100
Revaluation reserve			811,750		761,750
Profit and Loss Account			1,719,522		1,683,861

SHAREHOLDERS' FUNDS			2,531,372		2,445,711

On behalf of the board

A J Hainsworth

Director

28/11/2025

The notes on pages 12 to 20 form part of these financial statements.

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Flair Furniture Ltd

Statement of Changes in Equity

For The Year Ended 28 February 2025

Statement of Changes in Equity

	Share Capital	Revaluation reserve	Profit and Loss Account	Total
	£	£	£	£
As at 1 March 2023	100	250,850	786,767	1,037,717
Profit for year	-	-	925,334	925,334

Net investment property revaluation reserve	-	510,900	-	510,900

Other comprehensive income for the year	-	510,900	-	510,900

Total comprehensive income for the year	-	510,900	925,334	1,436,234

Dividends paid	-	-	(28,240)	(28,240)

As at 29 February 2024 and 1 March 2024	100	761,750	1,683,861	2,445,711


Profit for year	-	-	94,689	94,689

Net investment property revaluation reserve	-	50,000	-	50,000

Other comprehensive income for the year	-	50,000	-	50,000

Total comprehensive income for the year	-	50,000	94,689	144,689

Dividends paid	-	-	(59,028)	(59,028)

As at 28 February 2025	100	811,750	1,719,522	2,531,372

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Flair Furniture Ltd

Statement of Cash Flows

For The Year Ended 28 February 2025

Statement of Cash Flows

		2025	2024
	Notes	£	£
Cash flows from operating activities
Net cash (used in)/generated from operations	1	(759,917 )	1,460,131
Interest paid		(408,551 )	(228,420 )
Tax paid		(200,337 )	(94,250 )

Net cash (used in)/generated from operating activities		(1,368,805 )	1,137,461

Cash flows from investing activities
Purchase of intangible assets		-	(150,000 )
Purchase of tangible assets		(406,001 )	(3,916,481 )
Proceeds from disposal of tangible assets		-	308,129
Grants received		-	2,350

Net cash used in investing activities		(406,001 )	(3,756,002 )

Cash flows from financing activities
Equity dividends paid		(59,028 )	(28,240 )
Proceeds from new bank borrowings		200,214	-
Repayment of bank borrowings		-	(68,073 )
Proceeds from new other loans		1,401,110	3,298,040
Repayment of finance leases		718	(26,398 )
Amount withdrawn by directors		-	(11,824)

Net cash generated from financing activities		1,543,014	3,163,505



(Decrease)/increase in cash and cash equivalents		(231,792 )	544,964
Cash and cash equivalents at beginning of year	2	913,033	368,069
Foreign exchange losses on cash and cash equivalents		(28,499 )	-

Cash and cash equivalents at end of year	2	652,742	913,033

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Flair Furniture Ltd

Notes to the Statement of Cash Flows

For The Year Ended 28 February 2025

Notes to the Statement of Cash Flows

1. Reconciliation of profit for the financial year to cash (used in)/generated from operations

	2025	2024
	£	£
Profit for the financial year	94,689	925,334
Adjustments for:
Tax on profit	104,527	98,845
Interest expense	408,551	228,420
Amortisation of intangible assets	15,000	82
Depreciation of tangible assets	181,554	75,129
Profit on disposal of tangible assets	-	(88,129)
Grant income	-	(2,350)
Foreign exchange losses	28,498	-
Movements in working capital:
Increase in stocks	(1,380,859 )	(1,950,059 )
Increase in trade and other debtors	(330,113 )	(121,183 )
Increase in trade and other creditors	118,236	2,294,042

Net cash (used in)/generated from operations	(759,917 )	1,460,131

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2025	2024
	£	£
Cash at bank and in hand	652,742	913,033

3. Analysis of changes in net debt

	As at 1 March 2024	Cash flows	As at 28 February 2025
	£	£	£
Cash at bank and in hand	913,033	(260,291)	652,742
Finance leases	(58,322)	(718)	(59,040)
Debts falling due within one year	(985,067 )	(1,579,326)	(2,564,393 )
Debts falling due after more than one year	(2,757,635)	(21,998)	(2,779,633)

	(2,887,991)	(1,862,333)	(4,750,324)

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Flair Furniture Ltd

Notes to the Financial Statements

For The Year Ended 28 February 2025

Notes to the Financial Statements

1. General Information

Flair Furniture Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 07536751 . The registered office is Bedkingdom, Oldfield Lane, Heckmondwike, West Yorkshire, WF16 0JD.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

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 Republic of Ireland'' and the Companies Act 2006.

2.2. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

2.3. Intangible Fixed Assets and Amortisation - Intellectual Property

Intellectual property assets relate to the acquisition of various Cuckooland Limited assets. It is amortised to the profit and loss account over its estimated economic life of 10 years.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	None
Plant & Machinery	25% Reducing Balance
Motor Vehicles	25% Reducing Balance
Fixtures & Fittings	25% Reducing Balance
Computer Equipment	25% Reducing Balance

2.5. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

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Flair Furniture Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2025

2.7. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.8. Foreign Currencies

Monetary 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 ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.9. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

2.10. Government Grant

Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.

Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.

All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.

3. Other Operating Income

	2025	2024
	£	£
Grant income	-	2,350
Other operating income	-	29,018

	-	31,368

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Flair Furniture Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2025

4. Operating Profit

The operating profit is stated after charging:

	2025	2024
	£	£
Bad debts	2,452	28,786
Depreciation of tangible fixed assets	181,554	75,129
Amortisation of intangible fixed assets	15,000	82

5. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2025	2024
	£	£
Audit Services
Audit of the company's financial statements	14,000	-

6. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2025	2024
	£	£
Wages and salaries	1,597,741	666,434
Social security costs	122,369	33,359
Other pension costs	16,579	6,076

	1,736,689	705,869

7. Average Number of Employees

Average number of employees, including directors, during the year was: 36 (2024: 19)

8. Directors' remuneration

	2025	2024
	£	£
Emoluments	181,192	33,250
Company contributions to money purchase pension schemes	1,201	-

	182,393	33,250

Information regarding the highest paid director was as follows:

	2025	2024
	£	£
Emoluments	94,750	33,250

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Flair Furniture Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2025

9. Interest Payable and Similar Charges

	2025	2024
	£	£
Bank loans and overdrafts	16,621	25,244
Interest payable on other loans	384,062	196,292
Finance charges payable under finance leases and hire purchase contracts	3,756	6,884
Other finance charges	4,112	-

	408,551	228,420

10. Tax on Profit

	Tax Rate		2025	2024
The tax charge on the profit for the year was as follows:
	2025	2024	£	£
Current tax
UK Corporation Tax	25.0%	25.0%	18,558	22,129
Prior period adjustment			-	1,438

			18,558	23,567
Deferred Tax
Deferred taxation			85,969	75,278


Total tax charge for the period			104,527	98,845


The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
			2025	2024
			£	£
Profit before tax			199,216	1,024,179

Tax on profit at 25% (UK standard rate)			49,804	256,984
Goodwill/depreciation not allowed for tax			49,139	58,488
Expenses not deductible for tax purposes			1,276	-
Capital allowances			(79,173 )	(110,979 )
Short term timing differences			9,001	(4,588 )
Prior period adjustment			-	1,438
Difference in tax rates			(11,489 )	(2,671 )
Deferred tax from unrecognised tax loss or credit			85,969	78,382

Total tax charge for the period			104,527	277,054

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Flair Furniture Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2025

11. Intangible Assets

	Intellectual Property
	£
Cost
As at 1 March 2024	150,000

As at 28 February 2025	150,000

Amortisation
As at 1 March 2024	82
Provided during the period	15,000

As at 28 February 2025	15,082

Net Book Value
As at 28 February 2025	134,918

As at 1 March 2024	149,918

12. Tangible Assets

	Land & Property
	Freehold	Plant & Machinery	Motor Vehicles	Fixtures & Fittings
	£	£	£	£
Cost or Valuation
As at 1 March 2024	4,665,922	263,062	226,048	181,663
Additions	53,309	185,819	62,256	45,122
Revaluation	50,000	-	-	-

As at 28 February 2025	4,769,231	448,881	288,304	226,785

Depreciation
As at 1 March 2024	-	65,023	129,601	14,018
Provided during the period	-	77,616	38,549	51,950

As at 28 February 2025	-	142,639	168,150	65,968

Net Book Value
As at 28 February 2025	4,769,231	306,242	120,154	160,817

As at 1 March 2024	4,665,922	198,039	96,447	167,645


	Computer Equipment	Total
	£	£
Cost or Valuation
As at 1 March 2024	57,055	5,393,750
Additions	59,495	406,001
Revaluation	-	50,000

As at 28 February 2025	116,550	5,849,751

...CONTINUED

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Flair Furniture Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2025

Depreciation
As at 1 March 2024	22,731	231,373
Provided during the period	13,439	181,554

As at 28 February 2025	36,170	412,927

Net Book Value
As at 28 February 2025	80,380	5,436,824

As at 1 March 2024	34,324	5,162,377

13. Stocks

	2025	2024
	£	£
Stock	4,836,163	3,455,304

14. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	50,370	19,095
Other debtors	483,832	184,994

	534,202	204,089

15. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	39,058	30,152
Trade creditors	2,246,609	1,908,087
Bank loans and overdrafts	361,538	76,696
Other loans	2,202,855	908,371
Other creditors	170,562	164,433
Corporation tax	(159,650 )	22,129
Taxation and social security	607,511	655,386
Accruals and deferred income	395,883	574,423

	5,864,366	4,339,677

16. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	19,982	28,170
Bank loans	46,968	131,596
Other loans	2,732,665	2,626,039

	2,799,615	2,785,805

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Flair Furniture Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2025

17. Loans

An analysis of the maturity of loans is given below:

	2025	2024
	£	£
Amounts falling due within one year or on demand:
Bank loans	361,538	76,696
Other loans	2,202,855	908,371

	2,564,393	985,067

	2025	2024
	£	£
Amounts falling due between one and five years:
Bank loans	46,968	131,596
Other loans	2,732,665	2,626,039

	2,779,633	2,757,635

18. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	39,058	30,152
Later than one year and not later than five years	19,982	28,170

	59,040	58,322

	59,040	58,322

19. Deferred Taxation

The provision for deferred tax is made up as follows:

	2025	2024
	£	£
Other timing differences	399,496	313,528

20. Provisions for Liabilities


	Deferred Tax	Total
	£	£
As at 1 March 2024	313,528	313,528
Additions	85,968	85,968

Balance at 28 February 2025	399,496	399,496

21. Share Capital

	2025	2024
Allotted, called up and fully paid	£	£
100 Ordinary Shares of £ 1.00 each	100	100

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Flair Furniture Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2025

22. Pension Commitments

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.

During the year the charge to the profit and loss account in respect of defined contribution schemes was £16,579 (2024: £0).

At the balance sheet date contributions of £4,513 (2024: £3,492) were due to the fund and are included in creditors.

23. Dividends

	2025	2024
	£	£
On equity shares:
Final dividend paid	59,028	28,240

24. Restatement of prior year

The 2024 comparatives have been restated for the following items:

Sales overstated by £162,500.
VAT liability overstated by £32,500.
Creditors due more than 1 year understated by £195,000.
Corporation tax liability overstated by £178,209 in respect of retrospective R&D and capital allowance claims.

Therefore, previously the shareholders funds were reported as £2,430,002 for 2024, and in the comparatives on these financial statements they are now £2,445,711, resulting in an increase of £15,709.

Page 20