REGISTERED NUMBER: 07717440 (England and Wales)

Report of the Director and

Unaudited Financial Statements for the Year Ended 31 March 2025

for

The Sofa Library Ltd

Page

Company Information

1

Report of the Director

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTOR:

M J Gill

REGISTERED OFFICE:

122 Winchcombe Street

Cheltenham

GL5 2NW

REGISTERED NUMBER:

07717440 (England and Wales)

ACCOUNTANTS:

Crossley and Co.

122 Winchcombe Street

Cheltenham

Gloucestershire

GL52 2NW

The director presents his report with the financial statements of the company for the year ended 31 March 2025.

REVIEW OF BUSINESS

This was the first full year of trading at our new five story central Brighton store (opposite The Ivy Restaurant) and high short term interest costs while borrowing to open that store was repaid have impacted our bottom line as was anticipated and supported by shareholders funds while turnover becomes established.

DIRECTOR

M J Gill held office during the whole of the period from 1 April 2024 to the date of this report.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

M J Gill - Director

3 July 2026

FIXED ASSETS

Tangible assets

4

432,368

461,938

CURRENT ASSETS

Stocks

5

659,413

615,235

Debtors

6

1,007,951

874,274

Cash at bank

-

25,199

1,667,364

1,514,708

CREDITORS

Amounts falling due within one year

7

844,155

426,532

NET CURRENT ASSETS

823,209

1,088,176

TOTAL ASSETS LESS CURRENT LIABILITIES

1,255,577

1,550,114

CREDITORS

Amounts falling due after more than one year

8

857,725

1,037,921

NET ASSETS

397,852

512,193

CAPITAL AND RESERVES

Called up share capital

10

105,000

105,000

Retained earnings

11

292,852

407,193

SHAREHOLDERS' FUNDS

397,852

512,193

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2025 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 director and authorised for issue on 3 July 2026 and were signed by:

M J Gill - Director

1.	STATUTORY INFORMATION

The Sofa Library 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.

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.

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 the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

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 18 (2024 - 14 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 April 2024

89,891

142,054

456,202

9,750

697,897

Additions

-

-

7,847

-

7,847

At 31 March 2025

89,891

142,054

464,049

9,750

705,744

DEPRECIATION

At 1 April 2024

-

65,609

164,147

6,203

235,959

Charge for year

-

7,644

28,886

887

37,417

At 31 March 2025

-

73,253

193,033

7,090

273,376

NET BOOK VALUE

At 31 March 2025

89,891

68,801

271,016

2,660

432,368

At 31 March 2024

89,891

76,445

292,055

3,547

461,938

5.

STOCKS

31.3.25

31.3.24

£

£

Stocks

659,413

615,235

6.

DEBTORS

31.3.25

31.3.24

£

£

Amounts falling due within one year:

Amounts recoverable on contract

146,190

125,516

Prepayments

19,784

23,908

165,974

149,424

Amounts falling due after more than one year:

Other debtors

841,977

724,850

Aggregate amounts

1,007,951

874,274

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.25

31.3.24

£

£

Bank loans and overdrafts (see note 9)

6,627

-

Trade creditors

564,981

351,479

Tax

16,035

16,035

Social security and other taxes

64,267

30,148

VAT

109,460

25,370

Accrued expenses

82,785

3,500

844,155

426,532

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.25

31.3.24

£

£

Bank loans (see note 9)

262,178

214,978

Other creditors

500

89,327

Directors' loan accounts

595,047

733,616

857,725

1,037,921

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

262,178

214,978

9.

LOANS

An analysis of the maturity of loans is given below:

31.3.25

31.3.24

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

6,627

-

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

262,178

214,978

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.3.25

31.3.24

value:

£

£

105,000

Ordinary

1

105,000

105,000

11.

RESERVES

Retained

earnings

£

At 1 April 2024

407,193

Deficit for the year

(114,341

)

At 31 March 2025

292,852