The directors present their annual report and financial statements for the year ended 30 September 2025.

The principal activity of the company continued to be that of the retail of home furnishings.

The year ended 30 September 2025 represents Loom Loft’s sixth year of trade since opening its first store in Clitheroe in 2019.

During the year, the company had to absorb £200,000 in additional Government‑related costs. These costs reflect six months of increased charges implemented as part of the Government’s Budget measures, effective from 1 April 2025. With inflationary pressures across all business operators, there has also been further navigation around our manufacturers and suppliers price increases. 

Turnover for the year was £10,257,548, representing a 47% increase compared to the previous year (£6,964,088). Operating profit for the year was £515,700, an increase of 79% (2024: £288,825). EBITDA  (earnings before interest, tax, depreciation and amortisation) for the year was £698,826, an increase of 69% (2024: £413,291). Cash reserves at the year end amounted to £869,458, an increase of 67% (2024: £521,742)

The number of employees increased during the year, with headcount rising to 110 employees at 30 September 2025, compared to 87 in the previous year. 

During the year, the Company opened its fifth store in Lytham in March 2025, which contributed seven months of trading to the results for the year.

The Loft Bistros within the Clitheroe and Preston stores continue to be an important contributing factor to the performance of the business.

Throughout the year, the Company engaged in community initiatives, including supporting BBC’s DIY SOS, assisting Child Action North West, and becoming the stadium sponsor of Clitheroe Football Club.

Since the financial year end, the Company completed a comprehensive redevelopment of its website, delivering a fully redesigned digital platform with enhanced functionality, performance, and user experience.

Trade for the first quarter 1st October to 31st December 2025 is 30 percent up on the previous year.

Subsequent to the year end, the Company has been shortlisted for Independent Retailer of the Year at the inaugural Excellence in Furniture Awards.

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

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

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 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 and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent; 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 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.

For the financial year ended 30 September 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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 directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Loom Loft Limited is a private company limited by shares incorporated in England and Wales. The registered office is Office 4, Junction 7 Business Park, Clayton le Moors, Accrington, BB5 5JW.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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.

Revenue comprises sales of goods to customers and is stated net of value added tax and other sales taxes. Revenue is recognised when performance obligations are satisfied which is normally when goods are delivered to the customer and the control of goods is transferred to the buyer.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

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 credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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

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

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.

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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, 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 method 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.

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 company after deducting all of its 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 payments 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.

The 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 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 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.

Assets obtained under hire purchase contracts or finance leases are capitalised on the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals under operating leases are charged to the profit and loss on a straight line basis over the period of the lease. Lease incentives are allocated over the entire lease period.

Expenses

Expenses relating to sales orders taken in the period but not fulfilled at the balance sheet date are carried forward within prepayments and expensed in the period to which the sale is recognised. Staff costs relating to capital projects are capitalised as fixed assets and depreciated over the lives of the assets created.

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

Included within other creditors are amounts due under hire purchase contracts amounting to £111,857 (2024: £101,658 ) which are secured by the assets to which they relate.

Bank loans due under one year includes £7,889 (2024:£10,310 ) secured by government backed guarantee.

Included within other creditors are amounts due under hire purchase contracts amounting to £8,780 (2024: £128,965) which are secured by the assets to which they relate.

Bank loans due over one year £nil (2024:£7,904) are secured by government backed guarantee.

At the year end, the company had operating lease commitments of £1,911,596 (2024 - £2,202,422).

Included within other creditors falling due after more than one year are loans from the directors of £749,998 (2024 - £749,998). There is no formal agreement in place, amounts are interest free.