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Registration number: 11023736 (England & Wales)

Furndeco Limited
Annual Report and Financial Statements
for the Year Ended 31 December 2025

Furndeco Limited

Contents

Company Information | 1
Strategic Report | 2
Directors' Report | 3
Statement of Directors' Responsibilities | 4
Independent Auditor's Report | 5 to 7
Profit and Loss Account | 8
Balance Sheet | 9
Statement of Changes in Equity | 10
Notes to the Financial Statements | 11 to 21

Furndeco Limited

Company Information

Directors | B Doouss P Small

Registered office | 2 Marconi Drive Quedgeley Gloucester Gloucestershire GL2 2AH

Auditors | Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

Furndeco Limited

Strategic Report for the Year Ended 31 December 2025

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

Principal activity

The principal activity of the company is the retail of furniture.

Fair review of the business

The results for the year which are set out in the profit and loss account show turnover of £17,161,047 (2024 - £13,048,145) and an operating profit of £166,921 (2024 - loss of £764,278). At 31 December 2025 the company had net assets of £3,855,436 (2024 - £4,324,877).
During the year ended 31 December 2024, the directors adjusted the business strategy to delivery of a blend of bespoke products to key customers alongside a stocked range with short lead times. The implementation of this strategy required increased spend on development of the distribution function, staff members and team development. This investment into the operations led to the results achieved during 2024 and laid the foundations for the growth in revenue and return to operating profitability seen in 2025.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs | Unit | 2025 | 2024
Turnover | £'000 | 17,161 | 13,048
Gross profit margin | % | 42 | 44
Operating profit/(loss) | £'000 | 167 | (764)
Net assets | £'000 | 3,855 | 4,325

Principal risks and uncertainties

The directors have considered the key risks facing the business and concluded as follows:
Liquidity risk
The directors monitor cash flows to ensure the company is able to meet its operational requirements. The financial statements have been prepared on a going concern basis and the directors are confident that the company will meet its financial obligations over the next 12 months and beyond. It is expected that the company will continue in business for the foreseeable future and continued growth is anticipated.
Credit risk
The company offers certain of its customers credit. Before credit terms are agreed, an assessment of the customer's credit rating is undertaken to ensure the company is not exposed to major credit risk. Credit limits are set accordingly. Customers who are not given credit are required to pay deposits or pay in full prior to shipment.
Foreign exchange risk
A number of the company's purchases are transacted in non-sterling currencies. As a result exchange rate fluctuations impact on the results and cash flows of the company. Fluctuations in exchange rates are carefully monitored by the directors and the directors prepare hedging policies accordingly.
Inventory price risk
Ensuring that sufficient levels of inventory are available to satisfy sales orders as they are received is also considered to be a principal risk facing the company. The company has a network of reliable suppliers to ensure this risk is minimised.

Approved by the Board on 17 April 2026 and signed on its behalf by:

B Doouss
Director

Furndeco Limited

Directors' Report for the Year Ended 31 December 2025

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

Directors of the company

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

B Doouss

P Small

Financial instruments
The company’s financial instruments comprise cash and liquid resources, and various other items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the company. The nature of these financial instruments means that they are not subject to price risk.
The company is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. Before credit terms are agreed, an assessment of the customer’s credit rating is undertaken to ensure the company is not exposed to a major credit risk. The company is exposed to credit risk on bank balances although this risk is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The company is exposed to foreign currency risk through purchasing goods invoiced in currency other than the functional currency of GBP, which gives a risk in terms of exchange rate movements. The directors review and consider the level of risk, using hedging instruments where appropriate to manage the level of risk.
Further disclosures concerning Credit Risk and Liquidity Risk are set out in the Strategic Report.

Future developments

Following investment in the people, processes and facilities of the business during 2024, the company has had success in winning business with new ‘household’ name customers with national presence. The existing and new portfolio of customers have set the business up well to achieve its growth targets.
Management continues to focus on investing in people and a targeted product range to achieve its sales growth strategy.

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the company will be able to continue to operate for the foreseeable future.
The directors have assessed the company’s forecasts and projections, including the confirmed financial support from its ultimate parent company in respect of loan balances disclosed in note 16 to these financial statements. Based on this assessment, the directors have a reasonable expectation that the company has sufficient resources to continue in operational existence for at least twelve months from the date of approval of the financial statements.
On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Hazlewoods LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 17 April 2026 and signed on its behalf by:

B Doouss
Director

Furndeco Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

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

• | state whether applicable United Kingdom 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 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.

Furndeco Limited

Independent Auditor's Report to the Members of Furndeco Limited

Opinion

We have audited the financial statements of Furndeco Limited (the 'company') for the year ended 31 December 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, 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 31 December 2025 and of its loss 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 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Furndeco Limited

Independent Auditor's Report to the Members of Furndeco Limited

• | 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 Statement of Directors' Responsibilities set out on page 4, 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.

Extent to which the audit was 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:

• | reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; and

• | enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations.

Furndeco Limited

Independent Auditor's Report to the Members of Furndeco Limited

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of this 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.

Scott Lawrence (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor
Staverton Court
Staverton
Cheltenham
GL51 0UX

17 April 2026

Furndeco Limited

Profit and Loss Account for the Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 17,161,047 | 13,048,145
Cost of sales |  | (10,021,165) | (7,302,469)
Gross profit |  | 7,139,882 | 5,745,676
Distribution costs |  | (830,104) | (562,231)
Administrative expenses |  | (6,142,857) | (5,947,723)
Operating profit/(loss) | 4 | 166,921 | (764,278)
Other interest receivable and similar income | 5 | 11,396 | 11,601
Interest payable and similar expenses | 6 | (156,106) | (92,176)
Profit/(loss) before tax |  | 22,211 | (844,853)
Taxation | 10 | (39,140) | 199,212
Loss for the financial year |  | (16,929) | (645,641)

The above results were derived from continuing operations.

The company has no other comprehensive income for the year other than the results above.

Furndeco Limited

(Registration number: 11023736)
Balance Sheet as at 31 December 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Intangible assets | 11 | 100,102 | 155,122
Tangible assets | 12 | 856,829 | 1,096,704
|  | 956,931 | 1,251,826
Current assets |  |  |
Stocks | 13 | 3,521,375 | 4,105,620
Debtors | 14 | 3,607,922 | 1,969,396
Cash at bank and in hand |  | 469,210 | 223,052
|  | 7,598,507 | 6,298,068
Creditors: Amounts falling due within one year | 15 | (4,510,610) | (1,460,169)
Net current assets |  | 3,087,897 | 4,837,899
Total assets less current liabilities |  | 4,044,828 | 6,089,725
Creditors: Amounts falling due after more than one year | 15 | (97,756) | (1,714,016)
Deferred tax liabilities |  | (91,636) | (50,832)
Net assets |  | 3,855,436 | 4,324,877
Capital and reserves |  |  |
Called up share capital | 19, 20 | 2,080,010 | 2,110,010
Capital redemption reserve | 20 | 270,000 | 240,000
Profit and loss account | 20 | 1,505,426 | 1,974,867
Total equity |  | 3,855,436 | 4,324,877

Approved and authorised by the Board on 17 April 2026 and signed on its behalf by:

B Doouss
Director

Furndeco Limited

Statement of Changes in Equity for the Year Ended 31 December 2025

| Share capital £ | Capital redemption reserve £ | Profit and loss account £ | Total £
At 1 January 2025 | 2,110,010 | 240,000 | 1,974,867 | 4,324,877
Loss for the year | - | - | (16,929) | (16,929)
Dividends | - | - | (422,512) | (422,512)
Redemption of preference shares | (30,000) | 30,000 | (30,000) | (30,000)
At 31 December 2025 | 2,080,010 | 270,000 | 1,505,426 | 3,855,436

| Share capital £ | Capital redemption reserve £ | Profit and loss account £ | Total £
At 1 January 2024 | 2,230,010 | 120,000 | 3,292,107 | 5,642,117
Loss for the year | - | - | (645,641) | (645,641)
Dividends | - | - | (551,599) | (551,599)
Redemption of preference shares | (120,000) | 120,000 | (120,000) | (120,000)
At 31 December 2024 | 2,110,010 | 240,000 | 1,974,867 | 4,324,877

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 1 | General information

The company is a private company limited by share capital, incorporated in the United Kingdom.

The address of its registered office is:
2 Marconi Drive
Quedgeley
Gloucester
Gloucestershire
GL2 2AH

| 2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemptions

Furndeco Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available in respect of its financial statements. Exemptions have been taken in relation to financial instruments and presentation of a statement of cash flows.

Name of parent of group

These financial statements are consolidated in the financial statements of Callow Investments Limited.

The financial statements of Callow Investments Limited may be obtained from the company's registered office.

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the company will be able to continue to operate for the foreseeable future.
The directors have assessed the company’s forecasts and projections, including the confirmed financial support from its ultimate parent company in respect of loan balances disclosed in note 16 to these financial statements. Based on this assessment, the directors have a reasonable expectation that the company has sufficient resources to continue in operational existence for at least twelve months from the date of approval of the financial statements.
On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Prior period errors

In the prior period no Capital Redemption Reserve had been recognised for the purchase of preference shares made at par. The comparative information for the year ended 31 December 2024 has been restated to present an undistributable Capital Redemption Reserve brought forward of £120,000, an increase in the reserve of £120,000 and a corresponding reduction in the Profit and Loss Account.

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

Management regularly review the nature, condition and expected saleability of the inventory held by the company and a provision is made for any slow moving and discontinued stock lines identified. The carrying amount is £201,889 (2024 - £225,236).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when, the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the customer, which is upon delivery of the product.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Leasehold improvements | 10% Straight line
Plant, machinery & office equipment | 10-33% Straight line
Motor vehicles | 20% Straight line

Intangible assets

Separately acquired intangible assets are stated in the balance sheet at cost less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class | Amortisation method and rate
Computer software | 20% Straight line

Trade debtors

Trade debtors are amounts due from customers for goods sold in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Derivative financial instruments
The company uses derivative financial instruments to reduce exposure to foreign exchange risk. The company does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

| 3 | Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Sale of goods | 17,161,047 | 13,048,145

The analysis of the company's turnover for the year by market is as follows:

| 2025 £ | 2024 £
UK | 17,137,338 | 12,845,840
Europe | 23,709 | 165,448
Rest of world | - | 36,857
| 17,161,047 | 13,048,145

| 4 | Operating profit

Arrived at after charging/(crediting):

| 2025 £ | 2024 £
Depreciation expense | 260,374 | 215,360
Amortisation expense (included in administrative expenses) | 55,020 | 54,163
Foreign exchange losses/(gains) | 20,584 | (9,155)
Operating lease expense - property | 580,000 | 580,000
Operating lease expense - other | 31,511 | 148,702
Profit on disposal of property, plant and equipment | (13,991) | (15,141)

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 5 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 11,396 | 11,601

| 6 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on obligations under finance leases and hire purchase contracts | 17,621 | 4,663
Interest payable on loans from group undertakings | 138,485 | 87,513
| 156,106 | 92,176

| 7 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 3,844,935 | 3,619,015
Social security costs | 460,804 | 365,941
Pension costs, defined contribution scheme | 122,368 | 104,485
| 4,428,107 | 4,089,441

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Administration, distribution and warehouse | 86 | 86

| 8 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 16,114 | 23,840

| 9 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 27,300 | 26,000

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 10 | Taxation

Tax charged/(credited) in the profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | - | 301
UK corporation tax adjustment to prior periods | (1,664) | (37,057)
| (1,664) | (36,756)
Deferred taxation |  |
Arising from origination and reversal of timing differences | 40,804 | (162,456)
Tax expense/(receipt) in the profit and loss account | 39,140 | (199,212)

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit/(loss) before tax | 22,211 | (844,853)
Corporation tax at standard rate | 5,553 | (211,213)
Decrease in UK and foreign current tax from adjustment for prior periods | (1,664) | (37,057)
Tax increase from effect of capital allowances and depreciation | 4,050 | 4,075
Effect of expense not deductible in determining taxable profit (tax loss) | 3,067 | 5,295
Tax increase arising from overseas tax suffered/expensed | - | 300
Increase in UK and foreign current tax from unrecognised tax loss or credit | - | 39,388
Tax increase from other tax effects | 28,134 | -
Total tax charge/(credit) | 39,140 | (199,212)

Deferred tax

2025 | Liability £
Fixed asset timing differences | 173,145
Losses carried forward | (79,031)
Short term timing differences | (2,478)
| 91,636

2024 | Liability £
Fixed asset timing differences | 239,657
Losses carried forward | (185,717)
Short term timing differences | (3,108)
| 50,832

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 11 | Intangible assets

| Computer software £
Cost or valuation
At 1 January 2025 | 277,570
At 31 December 2025 | 277,570
Amortisation
At 1 January 2025 | 122,448
Amortisation charge | 55,020
At 31 December 2025 | 177,468
Carrying amount
At 31 December 2025 | 100,102
At 31 December 2024 | 155,122

| 12 | Tangible assets

| Leasehold improvements £ | Plant, machinery and office equipment £ | Motor vehicles £ | Total £
Cost
At 1 January 2025 | 836,901 | 831,446 | 342,334 | 2,010,681
Additions | - | 5,234 | 35,440 | 40,674
Disposals | - | - | (60,896) | (60,896)
At 31 December 2025 | 836,901 | 836,680 | 316,878 | 1,990,459
Depreciation
At 1 January 2025 | 341,402 | 512,973 | 59,602 | 913,977
Charge for the year | 83,692 | 114,774 | 61,908 | 260,374
Eliminated on disposal | - | - | (40,721) | (40,721)
At 31 December 2025 | 425,094 | 627,747 | 80,789 | 1,133,630
Carrying amount
At 31 December 2025 | 411,807 | 208,933 | 236,089 | 856,829
At 31 December 2024 | 495,499 | 318,473 | 282,732 | 1,096,704

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Motor Vehicles | 236,089 | 240,488

Restriction on title and pledged as security

Motor Vehicles with a carrying amount of £236,089 (2024 - £240,488) has been pledged as security for the related finance lease and hire purchase liabilities.

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 13 | Stocks

| 2025 £ | 2024 £
Finished goods | 632,293 | 786,824
Work in progress | 4,808 | 2,120
Finished goods and goods for resale | 2,884,274 | 3,316,676
| 3,521,375 | 4,105,620

| 14 | Debtors

Current | 2025 £ | 2024 £
Trade debtors | 2,729,880 | 1,064,163
Other debtors | 693,290 | 614,928
Prepayments | 184,653 | 253,248
Corporation tax asset | 99 | 37,057
| 3,607,922 | 1,969,396

| 15 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 16 | 1,593,698 | 76,472
Trade creditors |  | 577,188 | 249,664
Social security and other taxes |  | 751,337 | 345,146
Other creditors |  | 342,119 | 259,896
Accrued expenses |  | 1,246,268 | 528,991
|  | 4,510,610 | 1,460,169
Due after one year |  |  |
Loans and borrowings | 16 | 97,756 | 1,714,016

| 16 | Loans and borrowings

Current loans and borrowings

| 2025 £ | 2024 £
Finance lease liabilities | 93,698 | 76,472
Loans due to group companies | 1,500,000 | -
| 1,593,698 | 76,472

Non-current loans and borrowings

| 2025 £ | 2024 £
Finance lease liabilities | 97,756 | 164,016
Loans due to group companies | - | 1,550,000
| 97,756 | 1,714,016

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Finance lease liabilities
Obligations under finance lease and hire purchase contracts are secured on the assets to which they relate.
Loans due to group companies
Loans due to group companies total £1.50m (2024 - £1.55m), interest is charged on the balance at 8% and there are no fixed repayment terms (2024 - not due to be repaid until on or after 31 December 2025).

| 17 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £122,368 (2024 - £104,485).
Contributions totalling £19,624 (2024 - £19,251) were payable to the scheme at the end of the year and are included in creditors.

| 18 | Dividends

| 2025 £ | 2024 £
Dividends paid | 422,512 | 551,599

| 19 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
X Ordinary Shares of £0.01 each | 850 | 9 | 850 | 9
W Ordinary Shares of £0.01 each | 50 | 1 | 50 | 1
Y Ordinary Shares of £0.01 each | 50 | 1 | 50 | 1
Z Ordinary Shares of £0.01 each | 50 | 1 | 50 | 1
Preference Shares of £1 each | 2,080,000 | 2,080,000 | 2,110,000 | 2,110,000
| 2,081,000 | 2,080,010 | 2,111,000 | 2,110,010

The different classes of Ordinary shares rank pari passu in all respects to voting and dividends, which are declared at the discretion of the Board. These are non-redeemable shares.
The preference shares have no voting rights or dividend rights attached to them. These shares are redeemable a the option of the company.
In the event of a liquidation or other return of capital, distributions are made in accordance with a tiered structure set out in the Articles of Association. The structure allocates different proportions of surplus assets to each class of ordinary share depending on the capital value realised above a defined hurdle amount.
During the year, 30,000 preference shares were redeemed for their nominal value of £1 per share.

Furndeco Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 20 | Reserves

Called up share capital
This represents the nominal value of the issued share capital of the company.
Capital redemption reserve
This reserve represents the nominal value of shares repurchased by the company.
Profit and loss account
This reserve includes all current and prior period retained profits and losses, net of dividends paid and other adjustments.

| 21 | Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 105,357 | 92,309
Later than one year and not later than five years | 102,014 | 176,925
| 207,371 | 269,234

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 612,514 | 612,338
Later than one year and not later than five years | 2,322,709 | 2,355,223
Later than five years | - | 580,000
| 2,935,223 | 3,547,561

The amount of non-cancellable operating lease payments recognised as an expense during the year was £611,511 (2024 - £728,702).

| 22 | Related party transactions

Group companies
During the year the company was charged £580,000 (2024 - £580,000) and £138,485 (2024 - £87,513) for property rental and interest respectively by group companies.
During the prior year the company was advanced £1,550,000 from a group company. At the balance sheet date the amount due to group companies was £1,500,000 (2024 - £1,550,000). Interest is charged on the balance at 8% and there is no fixed repayment term.

| 23 | Parent and ultimate parent undertaking

The company's immediate parent company is Furndeco Holdings Limited (incorporated in the United Kingdom). The ultimate parent company is Callow Investments Limited (incorporated in the United Kingdom).
The most senior parent entity producing publicly available financial statements is Callow Investments Limited. These financial statements are available upon request from Straight Mile House, Beacon Road, Rotherwas Industrial Estate, Hereford, HR2 6JF.
The ultimate controlling party is B Doouss, a director of the company.