Innovative Furniture Ltd Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: NI652728

	Innovative Furniture Ltd

	Filleted Unaudited Financial Statements

	31 December 2024

Innovative Furniture Ltd

Financial Statements

Year ended 31 December 2024

Contents	Page

Officers and professional advisers	1

Statement of financial position	2

Notes to the financial statements	4

Innovative Furniture Ltd

Officers and Professional Advisers

Director	Mr R Scullion

Company secretary	Mr R Scullion

Registered office	61 Boucher Crescent
	Belfast
	BT12 6HU

Accountants	BDO Northern Ireland
	Chartered accountants
	Metro Building, 1st Floor
	6-9 Donegall Square South
	Belfast
	BT1 5JA

Bankers	AIB (NI)
	35 University Road
	Belfast
	BT7 1ND

Innovative Furniture Ltd

Statement of Financial Position

31 December 2024

	2024		2023
Note	£	£	£

Fixed assets

Tangible assets	5		284	3,398

Current assets

Stocks		96,422	105,681
Debtors	6	56,357	69,508
Cash at bank and in hand		–	1,578
		---------	---------
		152,779	176,767

Creditors: amounts falling due within one year	7	420,528		443,045
		---------		---------
Net current liabilities			267,749	266,278
			---------	---------
Total assets less current liabilities			( 267,465)	( 262,880)

Provisions

Taxation including deferred tax	–	305
	---------	---------
Net liabilities	( 267,465)	( 263,185)
	---------	---------

Capital and reserves

Called up share capital	100	100
Profit and loss account	( 267,565)	( 263,285)
	---------	---------
Shareholders deficit	( 267,465)	( 263,185)
	---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Innovative Furniture Ltd

Statement of Financial Position (continued)

31 December 2024

These financial statements were approved by the board of directors and authorised for issue on 6 November 2025 , and are signed on behalf of the board by:

Mr R Scullion
Director

Company registration number: NI652728

Innovative Furniture Ltd

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is 61 Boucher Crescent, Belfast, BT12 6HU. The principal activity of the company during the year was bedroom storage specialists.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity. The financial reporting framework that has been applied in their preparation is the Companies Act 2006 (the Act) and FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland issued by the Financial Reporting Council. The company qualifies as a small company for the period, as defined by section 382 of the Act, in respect of the financial year, and has applied the rules of the 'Small Companies Regime' in accordance with section 381 of the Act and Section 1A of FRS 102.

Going concern

On 20 December 2023, the company entered into a five-year Company Voluntary Agreement ("CVA"). If the CVA successfully completes in December 2028, approximately £322k of the company's liabilities will be written off. However, if the CVA fails at any point in time, the CVA liabilities will be due immediately in full. Therefore, these liabilities are included in full within the the amounts due within one year in the financial statements. The director is of the opinion that the company can return to profit following a significant cost cutting exercise. On this basis, the director considers that the company will be able to pay its obligations as they fall due and therefore, it is appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result if the facilities were removed of the CVA failed and the director could not obtain adequate replacement finance.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: - Going concern is discussed in detail above. In assessing the reasonableness of the going concern basis, the director has used judgement in preparing budgets and cashflow forecasts for the upcoming 12 months. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: - Tangible fixed assets are depreciated over their useful lives taking into accounts residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied, stated net of Value Added Tax. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	33% straight line
Fixtures and fittings	-	33% straight line
Equipment	-	33% straight line

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Cash and cash equivalents

Cash consists of cash on hand. There are no cash equivalents included in the financial statements.

Loans and borrowings

All borrowings by the company are initially recorded at the amount of cash received less separately incurred transaction costs, unless the arrangement constitutes, in effect, a financing transaction, in which case it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument. Subsequently, borrowings are stated at amortised cost using the effective interest rate method.

The computation of amortised cost includes any issue costs, transaction costs and fees, and any discount or premium on settlement, and the effect of this is to amortise these amounts over the expected borrowing period. Loans with no stated interest rate and repayable within one year or on demand are not amortised. Loans and borrowings are classified as current assets or liabilities unless the borrower has an unconditional right to defer settlement of the liability for at least twelve months after the financial year end date.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Other financial assets

Other financial assets comprise amounts owed by group undertakings and other debtors. Other financial assets are initially measured at the undiscounted amount of cash receivable and are subsequently measured at amortised cost less impairment, where there is objective evidence of an impairment.

Other financial liabilities

Other financial liabilities comprise trade creditors, amounts owed to group undertakings and other creditors. Other financial liabilities are measured at invoice price, unless payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. In this case the arrangement constitutes a financing transaction, and the financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Ordinary share capital

The ordinary share capital of the company is presented as equity.

4. Employee numbers

The average number of persons employed by the company during the year amounted to Nil (2023: 6 ).

5. Tangible assets

	Plant and machinery	Fixtures and fittings	Equipment	Total
	£	£	£	£
Cost
At 1 January 2024 and 31 December 2024	13,009	11,598	2,068	26,675
	--------	--------	-------	--------
Depreciation
At 1 January 2024	12,133	9,618	1,526	23,277
Charge for the year	823	1,826	465	3,114
	--------	--------	-------	--------
At 31 December 2024	12,956	11,444	1,991	26,391
	--------	--------	-------	--------
Carrying amount
At 31 December 2024	53	154	77	284
	--------	--------	-------	--------
At 31 December 2023	876	1,980	542	3,398
	--------	--------	-------	--------

6. Debtors

	2024	2023
	£	£
Amounts owed by group undertakings	51,988	38,544
Other debtors	4,369	30,964
	--------	--------
	56,357	69,508
	--------	--------

All debts are due within one year. Amounts owed by group undertakings are interest free, unsecured and repayable on demand.

7. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	45,728	45,144
Trade creditors	132,269	155,345
Amounts owed to group undertakings	134,214	133,952
Accruals and deferred income	4,820	5,449
Social security and other taxes	103,455	103,113
Other creditors	42	42
	---------	---------
	420,528	443,045
	---------	---------

Bank loans relate to the Bounce Back Loan Scheme (BBLS). As per the terms of this Scheme the UK Government covers the interest due on the loan for the first twelve months and provides the lender with a government-backed guarantee against the outstanding facility balance. The company remains liable for the full amount of the debt owed on BBLS loans. Included within creditors above is £363k in relation to amounts which form part of the Company Voluntary Agreement (CVA). If the CVA completes successfully in December 2028, approximately £322k of the company's liabilities will be written off. Amounts owed to group undertakings are interest free, unsecured and repayable on demand.

8. Operating leases

The total future minimum lease payments under non-cancellable operating leases are £ 390,000 (2023: £ 395,417 ).

9. Related party transactions

The company was under the control of its directors throughout the period. The company has taken advantage of the exemption contained within paragraph 1AC.35 of FRS 102 not to disclose any transactions with its parent and fellow wholly owned subsidiary undertakings. There were no additional related party transactions to be disclosed under FRS 102 Section 1A.