ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

Registered number: 08445275

ASPIRE FURNITURE LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

ASPIRE FURNITURE LIMITED

COMPANY INFORMATION

Directors	K Burgoyne
	B M Dobson
	P N Murphy
	C A P Oulton
	S J Pinch (appointed 23 March 2026)


Registered number	08445275


Registered office	40a Racecommon Road
	Barnsley
	South Yorkshire
	S70 6AF


Independent auditors	Shorts
	Chartered Accountants & Statutory Auditor
	Cedar House
	63 Napier Street
	Sheffield
	South Yorkshire
	S11 8HA


Bankers	National Westminster Bank Plc

ASPIRE FURNITURE LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditors' Report	5 - 8
Statement of Income and Retained Earnings	9
Balance Sheet	10 - 11
Statement of Cash Flows	12
Analysis of Net Debt	13
Notes to the Financial Statements	14 - 29

ASPIRE FURNITURE LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2025

The directors present their strategic report on the company for the year ended 30th September 2025.

Introduction

Aspire Furniture Ltd is a manufacturer, importer and distributor of beds, mattresses and sofas, operating mainly in the UK

The financial period ending 30 September 2025 was a year of consolidation for the business with focus on growth in gross margins and building the foundations for future expansion.
Turnover to 30th September 2025 was £20.0m, a 4.3% increase on the previous financial year.

Gross margin increased by £0.6m, 182bp, owing to driving production efficiencies in the factory and revenue management, providing a platform for further margin enhancement in 2026 and beyond.

We have invested in additional resource and infrastructure in 2025 to give us a platform for sustained growth. In particular, we have centralised our distribution network at premises near Leeds close to the regional motorway network.

The results of these investments show as an increased net asset position to £1.28m from £1.27m in the prior period. The investment has caused an increase in overhead and borrowing costs, thereby impacting trading profit in the short term. We are confident this puts us in a strong position to scale and diversify the business in the coming years.

EBITDA remained relatively flat at £0.6m. However, the 2025 results include £0.2m one-off and double running costs owing to the relocation of our distribution operation. Underlying EBITDA was £0.8m for the financial year to 30th September 2025.

Macro economic conditions

Inflationary pressures on our input costs eased significantly in the financial year, but higher labour costs driven by increases in National Minimum Wage rates, increases in Employer National Insurance and labour shortages are impacting our wages and salary costs.
In the financial year the market showed signs of recovery, but the impact of the 2024 budget has depressed customer confidence and eroded disposable income; market conditions remain challenging.

Changes to United States trade policy is impacting global supply chains and cost, especially a consequence of dumping of Chinese manufacturers. However, shipping costs are falling, cost of imported products has decreased owing to favourable exchange rate fluctuations, and there is opportunity to secure further supply from overseas suppliers at a competitive price.

Despite these challenges we continue to attract new customers and expand our offering to grow turnover and gross profit due to our current market leading products and service offering, and from diversifying our offering to meet customer demand.

In September 2025, Aspire Furniture launched our Sofa offering. Sales in the first months of trading are substantially ahead of target, and we have secured contracts with a significant number of new customers and extended our product range to our existing client base.

Page 1

ASPIRE FURNITURE LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Financial key performance indicators

The company uses the following financial measures to monitor progress against budgets, strategies and corporate objectives.

Turnover is one of the indicators the company monitors when measuring its performance against budgets and strategies set out prior, Aspire saw revenues increase by 4.5% comparable 12 months to 30th September 2024. In addition, gross margin is also used to see how the company is progressing. For financial year 2025, cost control and margin focus has resulted in a 182bp increase in gross margin.

Finally, we review administration costs, depreciation and interest cost as a proportion of revenue. Our administration costs ratio deteriorated by 255bp as we built the infrastructure, skills and controls to successfully deliver our three years growth targets.

In 2025 Aspire Furniture delivered growth in profitability and built the foundations to deliver further growth in sales and margins in 2026 and beyond.

This report was approved by the board on 22 May 2026 and signed on its behalf.

K Burgoyne

Director

Page 2

ASPIRE FURNITURE LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2025

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

Directors

The directors who served during the year were:

K Burgoyne

B M Dobson

P N Murphy

C A P Oulton

Directors' responsibilities statement

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;

∙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.

Results and dividends

The profit for the year, after taxation, amounted to £119,295 (2024 - £243,737).

Qualifying third party indemnity provisions

The directors have been granted a qualifying third party indemnity provision under Section 234 of the Companies Act 2006. The Company's indemnity does not provide cover in the event of a director being proved to have acted fraudulently or dishonestly.

Page 3

ASPIRE FURNITURE LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2025

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 auditors are 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 auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditors, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 22 May 2026 and signed on its behalf.

K Burgoyne

Director

Page 4

ASPIRE FURNITURE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASPIRE FURNITURE LIMITED

Opinion

We have audited the financial statements of Aspire Furniture Limited (the 'Company') for the year ended 30 September 2025, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, 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 30 September 2025 and of its profit 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 Auditors' 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.

Page 5

ASPIRE FURNITURE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASPIRE FURNITURE LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion 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 year 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.

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.

Page 6

ASPIRE FURNITURE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASPIRE FURNITURE LIMITED (CONTINUED)

Auditors' 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 Auditors' 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.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

∙the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙through discussions with the directors and other management and from our commercial knowledge and experience of the sector, we identified the laws and regulations applicable to the Company; and

∙focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence

We assessed the susceptibility of the Company’s financial statements to material misstatement, including
obtaining an understanding of how fraud might occur, by:

∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

∙performed analytical procedures to identify any unusual or unexpected relationships;

∙considered journal entries to identify unusual transactions;

∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

∙investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

∙agreeing financial statement disclosures to underlying supporting documentation;

∙enquiring of management as to actual and potential litigation and claims;

∙considered relationship with HMRC, relevant regulators and the Company’s legal advisors; and

∙review of legal and professional fees and of incident log for evidence of litigation.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Page 7

ASPIRE FURNITURE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASPIRE FURNITURE LIMITED (CONTINUED)

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

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 Auditors' 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.

Howard Freeman BSc FCA (Senior Statutory Auditor)

for and on behalf of

Shorts

Chartered Accountants

Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA

22 May 2026

Page 8

ASPIRE FURNITURE LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

	2025	2024
Note	£	£


Turnover	4	20,012,721	19,182,395
Cost of sales		(16,119,076)	(15,857,247)
Gross profit		3,893,645	3,325,148
Administrative expenses		(3,579,851)	(2,875,610)
Operating profit	5	313,794	449,538
Interest payable and similar expenses	9	(138,530)	(120,113)
Profit before tax		175,264	329,425
Tax on profit	10	(55,969)	(85,688)
Profit after tax		119,295	243,737



Retained earnings at the beginning of the year	1,016,161	876,234
Profit for the year	119,295	243,737
Dividends declared and paid	(103,965)	(103,810)
Retained earnings at the end of the year	1,031,491	1,016,161

The notes on pages 14 to 29 form part of these financial statements.

Page 9

ASPIRE FURNITURE LIMITED

REGISTERED NUMBER: 08445275

BALANCE SHEET

AS AT 30 SEPTEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Intangible assets	12		257,216		303,876
Tangible assets	13		1,285,348		1,216,680
Investments	14		8		8
			1,542,572		1,520,564
Current assets
Stocks	15	1,100,514		974,144
Debtors: amounts falling due within one year	16	4,151,549		3,924,101
Cash at bank and in hand		115,043		48,969
		5,367,106		4,947,214
Creditors: amounts falling due within one year	17	(5,058,823)		(4,568,818)
Net current assets			308,283		378,396
Total assets less current liabilities			1,850,855		1,898,960
Creditors: amounts falling due after more than one year	18		(337,355)		(423,666)
Provisions for liabilities
Deferred tax	21		(232,951)		(210,075)
Net assets			1,280,549		1,265,219

Capital and reserves
Called up share capital		1,052	1,052
Share premium account	22	248,006	248,006
Profit and loss account	22	1,031,491	1,016,161
		1,280,549	1,265,219

Page 10

ASPIRE FURNITURE LIMITED

REGISTERED NUMBER: 08445275

BALANCE SHEET (CONTINUED)

AS AT 30 SEPTEMBER 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 May 2026.

K Burgoyne

Director

The notes on pages 14 to 29 form part of these financial statements.

Page 11

ASPIRE FURNITURE LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	119,295	243,737
Adjustments for:
Amortisation of intangible assets	46,660	46,660
Depreciation of tangible assets	214,758	216,512
Profit on disposal of tangible assets	(3,593)	(6,372)
Interest paid	138,530	120,112
Taxation charge	55,969	85,688
(Increase)/decrease in stocks	(126,370)	170,404
(Increase) in debtors	(227,448)	(15,969)
Increase/(decrease) in creditors	575,079	(879,434)
Net cash generated from operating activities	792,880	(18,662)

Cash flows from investing activities
Purchase of tangible fixed assets	(392,051)	(337,084)
Sale of tangible fixed assets	112,218	18,709
HP interest paid	(24,780)	(24,336)
Net cash from investing activities	(304,613)	(342,711)
Cash flows from financing activities
Repayment of other loans	(138,951)	(19,274)
Repayment of/new finance leases	(65,527)	8,903
Dividends paid	(103,965)	(103,810)
Interest paid	(113,750)	(95,776)
Net cash used in financing activities	(422,193)	(209,957)
Net increase/(decrease) in cash and cash equivalents	66,074	(571,330)
Cash and cash equivalents at beginning of year	48,969	620,299
Cash and cash equivalents at the end of year	115,043	48,969

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	115,043	48,969

The notes on pages 14 to 29 form part of these financial statements.

Page 12

ASPIRE FURNITURE LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 30 SEPTEMBER 2025


At 1 October 2024	Cash flows	New loans & finance leases	Other non-cash changes	At 30 September 2025
£	£	£	£	£

Cash at bank and in hand	48,969	66,074	-	-	115,043
Debt due after 1 year	(6,667)	-	-	6,667	-
Debt due within 1 year	(138,950)	-	138,950	(6,667)	(6,667)
Finance leases	(623,212)	-	65,528	-	(557,684)
	(719,860)	66,074	204,478	-	(449,308)

The notes on pages 14 to 29 form part of these financial statements.

Page 13

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

1.	General information

Aspire Furniture Limited is a private company limited by shares, incorporated in England and Wales (registered number: 08445275). Its registered office is 40a Racecommon Road, Barnsley, S70 6AF. The principal activity of the Company throughout the year continued to be that of the sale of furniture.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Going concern

The Directors have considered the likely outcomes for the foreseeable future based on available information, and have concluded that the Company will have sufficient funds to meet its liabilities as they fall due.

As such, the directors consider the Company to be a going concern, and the financial statements have been prepared on this basis.

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is pounds sterling.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

2.7

Current and deferred taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.8

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Income and Retained Earnings over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 16

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

2.9

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.

Depreciation is provided on the following basis:

Plant and machinery	-	10-20% reducing balance
Computer equipment	-	33% straight line
Motor vehicles	-	25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.10

Impairment of fixed assets and goodwill

Assets that are subject to depreciaation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately indentifiable cash flows (CGU's). Non-financial assets that have been previously impaired are reviewed at each baalnce sheet date to assess whether there is any indication that the impairment losses recognised in proior periods may no longer exist or may have decreased.

2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

Page 17

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

2.13

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 18

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, contain varying degrees of uncertainty.

Significant judgement is exercised by management in respect of the following estimates and assumptions:

(i) Stock provisioning

The company makes an estimate of the recoverable value of stock of finished goods and goods for resale. When assessing impairment of stock, management considers factors such as market conditions, ageing profile of stock, and historical experience.

The value of stock after making such a provision was £1,100,514 (2024: £974,144).

(ii) Impairment of debtors

The company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors, and historical experience.

The value of trade debtors after making such a provision was £3,452,785 (2024: £3,181,660).

(ii) Impairment of fixed asset investments

The company assesses the value of fixed asset investments annually, to determine whether any indications of impairment are present. When assessing impairment of investments, management considers the current market value of the investment, and current and future profitability of the investment.

The value of fixed asset investments after making such a provision was £8 (2024: £8)

Sale of goods	21,130,311	20,410,078
Discounts	(1,117,590)	(1,227,683)
	20,012,721	19,182,395

All turnover arose within the United Kingdom.

Page 19

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Depreciation of tangible fixed assets	214,758	135,894
Amortisation of intangible fixed assets	46,660	46,661
Operating leases	496,661	459,775

Fees payable to the Company's auditors for the audit of the Company's financial statements

26,250

25,000


	Other fees	5,250	13,000

Wages and salaries	2,300,549	1,847,591
Social security costs	213,935	145,171
Cost of defined contribution scheme	55,608	40,957
	2,570,092	2,033,719

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Employees	85	73

Page 20

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

8.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	57,816	57,237
Company contributions to defined contribution pension schemes	10,493	10,343
	68,309	67,580

During the year retirement benefits were accruing to 4 directors (2024 - 4) in respect of defined contribution pension schemes.

9.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	17,400	26,473
Other loan interest payable	-	1,609
Finance leases and hire purchase contracts	24,780	24,336
Invoice discounting fees	96,350	67,695
	138,530	120,113

Corporation tax
Current tax on profits for the year	33,093	22,771

Deferred tax
Origination and reversal of timing differences	22,876	55,275
Adjustment in respect of prior periods	-	7,642
Total deferred tax	22,876	62,917


	Tax on profit	55,969	85,688

Page 21

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

10.Taxation (continued)

Profit on ordinary activities before tax

175,264

329,425

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)	43,816	82,356
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	2,073	2,345
Adjustments to tax charge in respect of prior periods	-	7,642
Fixed asset differences	10,080	(6,655)
Total tax charge for the year	55,969	85,688

11.	Dividends
		2025	2024
		£	£

Dividends paid

103,965

103,810

Page 22

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

12.	Intangible assets

	Other intangible assets	Goodwill	Total
	£	£	£
Cost
At 1 October 2024	158,475	201,591	360,066
At 30 September 2025	158,475	201,591	360,066
Amortisation
At 1 October 2024	15,872	40,318	56,190
Charge for the year on owned assets	6,342	40,318	46,660
At 30 September 2025	22,214	80,636	102,850
Net book value
At 30 September 2025	136,261	120,955	257,216
At 30 September 2024	142,603	161,273	303,876

Page 23

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

13.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Computer equipment	Total
	£	£	£	£
Cost or valuation
At 1 October 2024	1,227,481	572,110	7,416	1,807,007
Additions	197,683	180,468	13,900	392,051
Disposals	(22,007)	(261,512)	(7,416)	(290,935)
At 30 September 2025	1,403,157	491,066	13,900	1,908,123
Depreciation
At 1 October 2024	297,175	285,756	7,396	590,327
Charge for the year	124,408	88,033	2,317	214,758
Disposals	(17,032)	(157,882)	(7,396)	(182,310)
At 30 September 2025	404,551	215,907	2,317	622,775
Net book value
At 30 September 2025	998,606	275,159	11,583	1,285,348
At 30 September 2024	930,306	286,354	20	1,216,680

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2025	2024
	£	£


Plant and machinery	516,472	576,136
Motor vehicles	259,014	282,373
	775,486	858,509

Page 24

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

14.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 October 2024	8
	At 30 September 2025	8

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

	PM Sales & Marketing Limited	40a Racecommon Road, Barnsley, England, S70 6AF	Ordinary A	100%
	Aspire Furniture Inc	171 17th Street, NW, Suite 2100, Atlanta, GA 30363	Ordinary	100%

15.	Stocks
		2025	2024
		£	£

Raw materials	328,910	302,160
Finished goods	771,604	671,984
	1,100,514	974,144

Page 25

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

16.

Debtors

					2025	2024
					£	£


Trade debtors	3,452,785	3,181,660
Amounts owed by group undertakings	115,096	104,052
Other debtors	65,397	23,056
Prepayments and accrued income	518,271	615,333
	4,151,549	3,924,101

17.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Other loans	6,667	138,950
Trade creditors	1,617,120	1,542,829
Amounts owed to other participating interests	189,378	481,008
Corporation tax	55,864	22,771
Other taxation and social security	626,219	539,312
Obligations under finance lease and hire purchase contracts	220,330	206,212
Other creditors	1,959,479	1,365,020
Accruals and deferred income	383,766	272,716
	5,058,823	4,568,818

Included in other creditors is amounts due to RBS in respect of invoice discounting facilities of £1,661,513 (2024: £1,083,879), which are secured by a debenture over all assets of the company.

18.	Creditors: Amounts falling due after more than one year
		2025	2024
		£	£

Other loans	-	6,667
Net obligations under finance leases and hire purchase contracts	337,355	416,999
	337,355	423,666

Page 26

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Amounts falling due within one year
Other loans	6,667	138,950
Amounts falling due 1-2 years
Other loans	-	6,667


	6,667	145,617

Other loans include £16,667 owed to to Barclays Plc. This loan is repayable over 5 years from the drawdown at an annual interest rate of 4.58%. This loan is secured by floating charges over the assets of the company.

The directors of the business have provided a personal guarantee in favour of the bank to the value of £333,500.

Within one year	220,331	206,212
Between 1-5 years	337,354	416,999
	557,685	623,211

Amounts due related to obligations under finance leases and hire purchase contracts shown above are secured against the underlying assets.

Page 27

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

21.	Deferred taxation

		2025
		£

	At beginning of year	(210,075)
	Charged to profit or loss	(22,876)
	At end of year	(232,951)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

Accelerated capital allowances	234,255	213,377
Short term timing differences	(1,304)	(3,302)
	232,951	210,075

22.

Reserves

Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Profit and loss account

This reserve records retained earnings and accumulated losses.

23.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £44,338 (2024: £40,957). Contributions totalling £8,693 (2024: £4,982) were payable to the fund at the balance sheet date and are included in creditors.

Page 28

ASPIRE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Not later than 1 year	483,807	407,358
Later than 1 year and not later than 5 years	314,308	389,223
	798,115	796,581

25.

Related party transactions

The company has taken advantage of the exemption under paragraph 33.1A from the provisions of section 33 of FRS 102. Related party disclosures from disclosing transactions with wholly owned subsidiary undertakings.

Other Related Parties

The entity is connected to other entities by virtue of common directorships and close relationships.

Included within other creditors due within one year are amounts due to the directors totalling £212,877 (2024: £212,877).

Included within other debtors are amounts due from the directors totalling £24,578 (2024: £23,058).

At the year-end date, there were amounts due from / to connected parties included within debtors and creditors of net amount £74,282 credit (2024: £481,008 credit). These amounts due are largely as a result of normal trading activities. During the period, sales totalling £480,183 (2024: £508,938) and purchases of £2,525,405 (2024: £2,959,403) were undertaken with related entities.

In addition, rent of £30,000 (2024: £30,000) was paid during the period to a connected entity.

Cross guarantees exist between entities under common control.

The compensation paid to key management personnel for services provided to the company was £171,366 (2024: £73,962).

During the year, the company paid salaries totaling £36,272 (2024: £13,049) to a close family member of a director and key management personnel. These transactions were conducted on normal commercial terms.

26.	Controlling party

Aspire Furniture Limited is controlled jointly by K Burgoyne and P Murphy, who each have a 45% shareholding thus there is no ultimate controlling party.

Page 29