REGISTERED NUMBER: 08814778 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

HOUZZ UK LTD.

Page

Company information

1

Balance sheet

2

Notes to the financial statements

3

Directors:

H A Bajwa

H Wang

Registered office:

Suite 2, Ground Floor

10 Temple Back

Bristol

United Kingdom

BS1 6FL

Registered number:

08814778 (England and Wales)

Auditors:

Mark Arber Limited

Statutory Auditors

71-75 Shelton Street

Covent Garden

London

WC2H 9JQ

FIXED ASSETS

Tangible assets

4

580,877

676,727

CURRENT ASSETS

Debtors: amounts falling due within one year

5

1,582,345

1,800,110

Debtors: amounts falling due after more than one year

5

2,150,000

2,235,683

Cash at bank

156,011

311,043

3,888,356

4,346,836

CREDITORS

Amounts falling due within one year

6

(509,299

)

(1,130,453

)

NET CURRENT ASSETS

3,379,057

3,216,383

TOTAL ASSETS LESS CURRENT LIABILITIES

3,959,934

3,893,110

CREDITORS

Amounts falling due after more than one year

7

(311,122

)

(456,352

)

PROVISIONS FOR LIABILITIES

(11,653

)

(14,455

)

NET ASSETS

3,637,159

3,422,303

CAPITAL AND RESERVES

Called up share capital

9

1

1

Retained earnings

10

3,637,158

3,422,302

SHAREHOLDERS' FUNDS

3,637,159

3,422,303

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 8 May 2026 and were signed on its behalf by:

H Wang - Director

1.	STATUTORY INFORMATION

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

The company’s functional and presentational currency is pounds sterling (£) and the financial statements have been rounded to the nearest pound (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going Concern

These financial statements have been drawn up on the going concern basis. The company is dependent upon the support of its parent company, and only customer, in order to meet its working capital requirements. The parent company has provided assurances that this support will continue for a period that exceeds twelve months from the date of approval of these financial statements. No adjustments have been made in these accounts which might result from that uncertainty.

Turnover

Turnover represents costs for the year plus profit recharged to the parent company, plus sublease income, excluding value added tax.

The company's turnover is derived from outside the UK with the exception of the sublease income which is derived from within the UK.

Tangible fixed assets

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.

Depreciation is provided at the following annual rates on a straight-line basis in order to write off each asset over its estimated useful life.

Computer Equipment - 33% on cost

Furniture and Fixtures - 20% on cost

Leasehold improvements - Over the term of the lease

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Repairs, maintenance and minor inspection costs are expensed as incurred.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

Basic financial liabilities

Basic financial liabilities, including creditors, and loans from fellow group companies are initially recognised at transaction price.

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 initially recognised at transaction price.

Foreign currencies

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

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2023 - NIL).

4.	TANGIBLE FIXED ASSETS

Fixtures

Improvements

and

Computer

to property

fittings

equipment

Totals

£

£

£

£

Cost

At 1 January 2024

1,306,094

470,690

165,640

1,942,424

Additions

20,638

-

3,499

24,137

Disposals

-

-

(8,501

)

(8,501

)

At 31 December 2024

1,326,732

470,690

160,638

1,958,060

Depreciation

At 1 January 2024

662,814

463,277

139,606

1,265,697

Charge for year

90,359

6,671

22,924

119,954

Eliminated on disposal

-

-

(8,468

)

(8,468

)

At 31 December 2024

753,173

469,948

154,062

1,377,183

Net book value

At 31 December 2024

573,559

742

6,576

580,877

At 31 December 2023

643,280

7,413

26,034

676,727

5.

DEBTORS

2024

2023

£

£

Amounts falling due within one year:

Amounts owed by group undertakings

1,053,384

1,084,031

Other debtors

104,389

133,439

VAT

50,985

121,033

Prepayments

373,587

461,607

1,582,345

1,800,110

Amounts falling due after more than one year:

Other debtors

2,150,000

2,235,683

Aggregate amounts

3,732,345

4,035,793

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

44,922

15,924

Tax

73,902

84,980

Social security and other taxes

20,356

32,793

Other creditors

64,276

-

Accrued expenses

305,843

996,756

509,299

1,130,453

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Accrued expenses

311,122

456,352

8.	LEASING AGREEMENTS

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

2024

2023

£

£

Within one year

1,425,000

1,425,000

Between one and five years

3,123,125

5,973,125

4,548,125

7,398,125

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

1

Ordinary

£1

1

1

The rights, preferences, and restrictions attaching to this class of shares include equal ranking for voting, dividends, and distributions on winding up. There are no specific restrictions on the distribution of dividends or the repayment of capital for this class of shares.

10.

RESERVES

Retained

earnings

£

At 1 January 2024

3,422,302

Profit for the year

214,856

At 31 December 2024

3,637,158

Retained earnings reserves represents cumulative profits and losses, net of distributions to owners.

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

The Report of the auditors was unqualified.

Mark Arber (Senior Statutory Auditor)

for and on behalf of Mark Arber Limited

12.	RELATED PARTY DISCLOSURES

The company has taken the exemption provided by FRS 102 Section 33.1A not to disclose related party transactions with wholly owned subsidiaries within the group.

13.	ULTIMATE CONTROLLING PARTY

Houzz Inc. (incorporated in USA) is regarded by the directors as being the company's immediate parent and ultimate controlling party.

The largest and smallest group in which the results of the Company are consolidated is Houzz Inc., whose registered office is at 8605 Santa Monica Blvd., #90918 West Hollywood, CA 90069-4109, USA.