REGISTERED NUMBER: 03233080 (England and Wales)

Strategic Report, Report of the Director and

Audited Financial Statements

for the Year Ended 30 September 2025

for

Classic Furniture (Binbrook) Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTOR:

Mr D R Rippin

REGISTERED OFFICE:

Hangar 4

Binbrook Technical Park

Brookenby

MARKET RASEN

Lincolnshire

LN8 6BW

REGISTERED NUMBER:

03233080 (England and Wales)

AUDITORS:

Nicholsons Audit (Statutory Auditor)

Newland House

The Point

Weaver Road

LINCOLN

Lincolnshire

LN6 3QN

BANKERS:

HSBC Bank plc

10 Market Place

MARKET RASEN

Lincolnshire

LN8 3HR

SOLICITORS:

Bridge McFarland

9 Cornmarket

LOUTH

Lincs

LN11 9PY

REVIEW OF BUSINESS

Classic Furniture (Binbrook) Limited, a specialist importer and distributor of wooden furniture based in Lincolnshire, has delivered a notable recovery in financial year 2025 despite operating within a persistently challenging economic environment. This review examines the company's financial performance, contextualises its position within the broader UK consumer furniture sector, and identifies key headwinds that continue to shape the business outlook.

Financial Performance Summary

Despite achieving turnover of £16.6m, a growth of 23%, the company has reported a loss before taxation of £134k. As consumer trends change and the company pivots to operating differently stock write downs and losses are becoming more of a feature. Stock write downs contributed to a reduction in margin which reduced on an underlying basis to 6.3%.

On an underlying basis the company achieved a profit of £103k.

Net assets reduced from £3.9m to £3.7m

Cash Flow and Liquidity Considerations

The cash position warrants careful attention. Cash at bank declined to £517k from £1.18 million, with net cash outflow from operating activities of £660k compared to outflows of £406k in the prior year. This deterioration primarily reflects increased working capital requirements, including a £670k rise in trade debtors and £607k reduction in trade creditors, indicating tighter collection cycles and faster supplier payments.

Net debt increased to £2.04 million from £1.51 million, though the company continued servicing loan repayments totalling £134k.

Management expected and planned for this reduction in cash as the business model shifts to a more supply chain reliant model.

Economic Headwinds and Industry Context

The UK furniture market continues to face material headwinds consistent with those affecting Classic Furniture. Industry research indicates sub-£500 furniture volumes fell 17.3% between early 2024 and early 2025, with 68% of UK consumers surveyed planning to postpone non-essential furniture purchases until inflation eases and the impact of the cost of living subsides. The cost-of-living crisis has reduced discretionary spending, whilst wood and other input costs have risen approximately 23% since 2023.

As a furniture importer, Classic Furniture faces exposure to post-Brexit trade complexities, fluctuating exchange rates, and elevated shipping costs. The company has prudently responded by strengthening supplier relationships and investing in new product ranges, though management anticipates substantial stock investment will be required as product transitions continue over the coming years. This will result in more focus on stock management and the need to turn stock more quickly so that it does not become obsolete. Foreign exchange gains of £286,247 provided welcome support to margins in FY2025 but are a sign of the impact global trade events can have on profitability.

Outlook & Risks

Despite the challenging operating environment, the company's return to profitability and strengthened balance sheet represent meaningful progress. However, management are aware that cash conversion, working capital management and foreign currency management are strategic priorities.

ON BEHALF OF THE BOARD:

Mr D R Rippin - Director

7 May 2026

The director presents his report with the financial statements of the company for the year ended 30 September 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the import and distribution of wooden furniture.

DIVIDENDS

The total distribution of dividends for the year ended 30 September 2025 will be £ 50,796 .

DIRECTOR

Mr D R Rippin held office during the whole of the period from 1 October 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr D R Rippin - Director

7 May 2026

Opinion

We have audited the financial statements of Classic Furniture (Binbrook) Limited (the 'company') for the year ended 30 September 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 September 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 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 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.

Opinions 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 Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director 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 Report of the Director.

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:

-	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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

Based on our understanding of the company and its industry we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations and in identifying and assessing the risk of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

· Inquiring of management and where appropriate those charge with governance as to whether the company is in compliance with laws and regulations.

· Inspecting correspondence, if any, with relevant licensing authorities.

· Communicating to our engagement team identified laws and regulations and remaining alert to any instances of non-compliance throughout our audit; and

· Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations which have a direct effect on the preparation of the financial statements such as tax legislation, the Companies Act 2006 and the reporting framework (FRS102).

Further to this, we evaluated the Directors’ and managements incentives and opportunities for fraudulent manipulation of the financial statements including the risk of management override of controls and determined the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to stock valuations and warranty provisions.

Our audit procedures in relation to fraud included but were not limited to:

· Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;

· Gaining an understanding of internal controls established to mitigate risks related to fraud;

· Discussing amongst the engagement team the risks of fraud; and

· Addressing the risks of fraud through management override of controls by performing journal entry testing.

· Testing of assumptions and reperforming calculations

· Conducting impairment reviews around plant and machinery held by the company.

· Sensitivity analysis around assumptions used

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Report of the Auditors.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Steve Robinson (Senior Statutory Auditor)

for and on behalf of Nicholsons Audit (Statutory Auditor)

Newland House

The Point

Weaver Road

LINCOLN

Lincolnshire

LN6 3QN

27 May 2026

TURNOVER

3

16,577,035

13,477,849

Cost of sales

15,765,170

12,254,451

GROSS PROFIT

811,865

1,223,398

Distribution costs

597,824

576,420

Administrative expenses

167,383

290,505

765,207

866,925

OPERATING PROFIT

5

46,658

356,473

Interest receivable and similar income

10,123

14,571

56,781

371,044

Interest payable and similar expenses

6

190,829

221,332

(LOSS)/PROFIT BEFORE TAXATION

(134,048

)

149,712

Tax on (loss)/profit

7

(15,578

)

36,986

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(118,470

)

112,726

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(118,470

)

112,726

FIXED ASSETS

Tangible assets

9

669,712

729,025

CURRENT ASSETS

Stocks

10

4,484,392

4,382,559

Debtors

11

3,397,134

2,786,891

Cash at bank

516,585

1,176,515

8,398,111

8,345,965

CREDITORS

Amounts falling due within one year

12

4,116,624

4,609,155

NET CURRENT ASSETS

4,281,487

3,736,810

TOTAL ASSETS LESS CURRENT LIABILITIES

4,951,199

4,465,835

CREDITORS

Amounts falling due after more than one year

13

(218,048

)

(225,054

)

PROVISIONS FOR LIABILITIES

17

(990,298

)

(328,662

)

NET ASSETS

3,742,853

3,912,119

CAPITAL AND RESERVES

Called up share capital

18

51

51

Capital redemption reserve

19

51

51

Retained earnings

19

3,742,751

3,912,017

SHAREHOLDERS' FUNDS

3,742,853

3,912,119

The financial statements were approved by the director and authorised for issue on 7 May 2026 and were signed by:

Mr D R Rippin - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2023

51

3,850,087

51

3,850,189

Changes in equity

Dividends

-

(50,796

)

-

(50,796

)

Total comprehensive income

-

112,726

-

112,726

Balance at 30 September 2024

51

3,912,017

51

3,912,119

Changes in equity

Dividends

-

(50,796

)

-

(50,796

)

Total comprehensive income

-

(118,470

)

-

(118,470

)

Balance at 30 September 2025

51

3,742,751

51

3,742,853

Cash flows from operating activities

Cash generated from operations

1

(254,574

)

674,415

Interest paid

(169,289

)

(195,134

)

Interest element of hire purchase payments paid

(21,540

)

(26,198

)

Net cash from operating activities

(445,403

)

453,083

Cash flows from investing activities

Purchase of tangible fixed assets

(54,995

)

(520,414

)

Sale of tangible fixed assets

6,800

6,859

Interest received

10,123

14,571

Net cash from investing activities

(38,072

)

(498,984

)

Cash flows from financing activities

Loan repayments in year

(133,690

)

(270,456

)

Finance lease movement

8,031

(38,619

)

Equity dividends paid

(50,796

)

(50,796

)

Net cash from financing activities

(176,455

)

(359,871

)

Decrease in cash and cash equivalents

(659,930

)

(405,772

)

Cash and cash equivalents at beginning of year

2

1,176,515

1,582,287

Cash and cash equivalents at end of year

2

516,585

1,176,515

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30/9/25

30/9/24

£

£

(Loss)/profit before taxation

(134,048

)

149,712

Depreciation charges

114,308

134,473

Profit on disposal of fixed assets

(6,800

)

(1,986

)

Provisions

677,214

263,398

Finance costs

190,829

221,332

Finance income

(10,123

)

(14,571

)

831,380

752,358

(Increase)/decrease in stocks

(101,833

)

183,428

Increase in trade and other debtors

(610,243

)

(530,346

)

(Decrease)/increase in trade and other creditors

(373,878

)

268,975

Cash generated from operations

(254,574

)

674,415

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

516,585

1,176,515

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

1,176,515

1,582,287

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank

1,176,515

(659,930

)

516,585

1,176,515

(659,930

)

516,585

Debt

Finance leases

(268,332

)

(8,031

)

(276,363

)

Debts falling due within 1 year

(2,414,198

)

133,690

(2,280,508

)

(2,682,530

)

125,659

(2,556,871

)

Total

(1,506,015

)

(534,271

)

(2,040,286

)

1.	STATUTORY INFORMATION

Classic Furniture (Binbrook) Limited 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.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Property improvements

-

Straight line over 10 years

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

25% on reducing balance and 15% on reducing balance

Motor vehicles

-

25% on reducing balance

Stock

Stock is valued at the lower of cost and net realisable value and includes the cost of stock in transit.

Financial instruments

Only basic financial instruments as defined in FRS 102 are held. Financial assets and financial liabilities are recognised in the accounts only when the entity becomes party to the contractual provisions of the instrument and their measurement basis is as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at transaction price.

Financial liabilities - trade creditors, accruals and other creditors are basic financial instruments, and are measured at amortised cost. Where a financial liability constitutes a financing transaction it is initially and subsequently measured at the present value of future payments, discounted at a market rate of interest.

Derivative financial instruments, consisting of forward foreign currency exchange contracts, are initially recognised at fair value at the date the derivative contract is entered into and are subsequently measured at fair value at each reporting date. Movements in fair value are recognised in the Statement of Income.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

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.

Provisions

Provisions are recognised when there is a present obligation, either legal or constructive, as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and the amount can reliably be estimated.

3.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

30/9/25

30/9/24

£

£

United Kingdom

16,404,886

13,467,305

Rest of the world

172,149

10,544

16,577,035

13,477,849

4.	EMPLOYEES AND DIRECTORS

30/9/25

30/9/24

£

£

Wages and salaries

766,151

763,530

Social security costs

81,095

69,646

Other pension costs

29,075

27,644

876,321

860,820

The average number of employees during the year was as follows:

30/9/25

30/9/24

Directors

1

1

Staff

22

23

23

24

30/9/25

30/9/24

£

£

Director's remuneration

53,000

53,000

Director's pension contributions to money purchase schemes

989

1,590

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30/9/25

30/9/24

£

£

Other operating leases

155,826

160,203

Depreciation - owned assets

65,419

69,287

Depreciation - assets on hire purchase contracts

48,889

65,186

Profit on disposal of fixed assets

(6,800

)

(1,986

)

Auditors' remuneration

7,875

7,000

Foreign exchange differences

(286,247

)

(186,744

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

30/9/25

30/9/24

£

£

Bank loan interest

169,289

195,134

Hire purchase

21,540

26,198

190,829

221,332

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

30/9/25

30/9/24

£

£

Current tax:

UK corporation tax

-

58,711

Deferred tax movement

(15,578

)

(21,725

)

Tax on (loss)/profit

(15,578

)

36,986

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30/9/25

30/9/24

£

£

(Loss)/profit before tax

(134,048

)

149,712

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 0% (2024 - 19%)

-

28,445

Effects of:

Depreciation in excess of capital allowances

-

26,391

Utilisation of tax losses

-

(52,068

)

Deferred tax

(15,578

)

(21,725

)

Previous years tax

-

55,943

Total tax (credit)/charge

(15,578

)

36,986