REGISTERED NUMBER: 12458764 (England and Wales)

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31 March 2025

for

The Sleep People (Holdings) Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Statement of Income and Retained Earnings

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Cash Flow Statement

11

Notes to the Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

DIRECTORS:

D P Flynn

T Hargreave

REGISTERED OFFICE:

Unit 4, Royds Mills

Leeds Road

Ossett

West Yorkshire

WF5 9YA

REGISTERED NUMBER:

12458764 (England and Wales)

AUDITORS:

Hentons

Statutory Auditor

Northgate

118 North Street

Leeds

West Yorkshire

LS2 7PN

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

The subsidiary Company is a manufacturer and distributor of residential and commercial bedding products, including mattresses, divans and associated sleep products. Operations include manufacturing, assembly, warehousing, distribution, and after-sales customer support.

The subsidiary Company serves a diversified customer base comprising online marketplaces, hospitality providers, furniture retailers, and wholesale distributors. The business operates through a combination of direct-to-consumer sales channels, trade partnerships, and e-commerce platforms.

During the financial year, the subsidiary Company continued to focus on operational efficiency, product innovation, sustainable manufacturing practices, and strengthening customer relationships in a competitive market environment.

REVIEW OF BUSINESS

Strategic Objectives

The Company’s principal strategic objectives are:

- To strengthen market share within the domestic bedding and furniture sector.

- To expand online and direct-to-consumer sales channels.

- To maintain high standards of product quality and customer satisfaction.

- To improve manufacturing efficiency and cost management.

- To invest in sustainable sourcing and environmentally responsible production.

- To diversify product offerings and enhance product innovation.

- To preserve long-term profitability and shareholder value.

Management monitors performance against these objectives through financial and operational key performance indicators.

Business Model

The Company generates revenue through the manufacture and sale mattresses and beds.

Procurement

The Company sources timber, textiles, foam, springs, packaging materials, and hardware components from approved domestic and international suppliers.

Manufacturing

Products are manufactured and assembled at the Company’s production facilities using a combination of skilled labour and automated processes.

Distribution

Finished products are distributed through retail partners, wholesalers, hospitality contracts, and direct customer deliveries.

Customer Service

The Company provides product warranties, delivery coordination, and after-sales support to maintain customer satisfaction and repeat business.

Key Performance Indicators

2025

2024

Warranty Claim Rate

1.19%

N/A

Inventory Turnover

13.3

15.7

Gross Profit Margin

30.3%

32.2%

PRINCIPAL RISKS AND UNCERTAINTIES

The Company continually assesses risks that may affect business performance and financial stability.

Supply Chain Risk

Disruptions to the availability or pricing of raw materials may affect production schedules and profit margins.

Mitigation Measures:

- Diversification of suppliers.

- Long-term supplier relationships.

- Inventory management controls.

- Ongoing procurement reviews.

Economic Conditions

Reduced consumer spending and broader economic uncertainty may affect demand for discretionary household purchases.

Mitigation Measures:

- Product diversification.

- Flexible pricing strategies.

- Expansion into commercial markets.

- Strengthening online sales channels.

Competition

The market remains highly competitive with pressure from domestic manufacturers and imported products.

Mitigation Measures:

- Product quality differentiation.

- Customer service focus.

- Investment in branding and innovation.

- Efficient manufacturing operations.

Operational risk

Manufacturing interruptions, equipment failure, or labour shortages may impact operational efficiency.

Mitigation Measures:

- Preventative maintenance programmes.

- Health and safety compliance.

- Workforce training initiatives.

- Business continuity planning.

Regulatory and Environmental Risk

The Company is subject to environmental, employment, health and safety, and consumer protection regulations.

Mitigation Measures:

- Compliance monitoring.

- Internal control procedures.

- Staff training.

- Environmental management practices.

ON BEHALF OF THE BOARD:

T Hargreave - Director

1 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

D P Flynn

T Hargreave

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director 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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

T Hargreave - Director

1 July 2026

Opinion

We have audited the financial statements of The Sleep People (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 March 2025 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have 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:

- Reviewed the nature of the industry and sector, the control environment and business performance for the year.

- Identifying the laws and regulations the company operates within and enquiring with management if they are aware of any non compliance issues.

- Discussed how and where fraud may occur with all members of the audit engagement team.

- In line with all audits under ISAs (UK) we were required to perform tests to respond to the risk of management override. We tested the appropriateness of journal entries, evaluated the judgements made for accounting estimates to assess if any bias, and assessed the rationale behind any significant or unusual transactions.

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.

Other matters which we are required to address

The prior year comparatives figures were not audited due to the company qualifying for the small companies regime.

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.

Christopher Howitt (Senior Statutory Auditor)

for and on behalf of Hentons

Statutory Auditor

Northgate

118 North Street

Leeds

West Yorkshire

LS2 7PN

1 July 2026

TURNOVER

15,310,056

15,601,394

Cost of sales

8,371,199

8,078,553

GROSS PROFIT

6,938,857

7,522,841

Distribution costs

2,294,294

2,493,449

Administrative expenses

4,374,507

3,859,192

6,668,801

6,352,641

270,056

1,170,200

Other operating income

-

7,034

OPERATING PROFIT

4

270,056

1,177,234

Interest receivable and similar income

23,641

40,001

293,697

1,217,235

Interest payable and similar expenses

5

11,788

7,559

PROFIT BEFORE TAXATION

281,909

1,209,676

Tax on profit

6

141,383

330,868

PROFIT FOR THE FINANCIAL YEAR

140,526

878,808

Retained earnings at beginning of year

3,925,368

3,636,560

Dividends

8

-

(590,000

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

4,065,894

3,925,368

Profit attributable to:

Owners of the parent

140,526

878,808

FIXED ASSETS

Tangible assets

9

2,641,295

2,740,420

Investments

10

-

-

2,641,295

2,740,420

CURRENT ASSETS

Stocks

11

799,845

672,020

Debtors

12

3,469,427

3,031,153

Cash at bank and in hand

331,185

337,176

4,600,457

4,040,349

CREDITORS

Amounts falling due within one year

13

2,185,078

2,102,151

NET CURRENT ASSETS

2,415,379

1,938,198

TOTAL ASSETS LESS CURRENT LIABILITIES

5,056,674

4,678,618

CREDITORS

Amounts falling due after more than one year

14

(28,891

)

(18,986

)

PROVISIONS FOR LIABILITIES

17

(341,289

)

(113,664

)

NET ASSETS

4,686,494

4,545,968

CAPITAL AND RESERVES

Called up share capital

18

100

100

Revaluation reserve

19

620,500

620,500

Retained earnings

19

4,065,894

3,925,368

SHAREHOLDERS' FUNDS

4,686,494

4,545,968

The financial statements were approved by the Board of Directors and authorised for issue on 1 July 2026 and were signed on its behalf by:

T Hargreave - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

100

100

100

100

CURRENT ASSETS

Debtors

12

1,744,442

413,967

Cash at bank

99,633

55,770

1,844,075

469,737

CREDITORS

Amounts falling due within one year

13

435,640

65,728

NET CURRENT ASSETS

1,408,435

404,009

TOTAL ASSETS LESS CURRENT LIABILITIES

1,408,535

404,109

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

19

1,408,435

404,009

SHAREHOLDERS' FUNDS

1,408,535

404,109

Company's profit for the financial year

1,004,426

605,089

The financial statements were approved by the Board of Directors and authorised for issue on 1 July 2026 and were signed on its behalf by:

T Hargreave - Director

Cash flows from operating activities

Cash generated from operations

1

1,733,268

870,078

Interest paid

(10,132

)

(5,903

)

Interest element of hire purchase payments paid

(1,656

)

(1,656

)

Tax paid

(444,843

)

(42,299

)

Net cash from operating activities

1,276,637

820,220

Cash flows from investing activities

Purchase of tangible fixed assets

(31,821

)

(84,268

)

Sale of tangible fixed assets

5,417

-

Interest received

23,641

40,001

Net cash from investing activities

(2,763

)

(44,267

)

Cash flows from financing activities

Capital repayments in year

(7,120

)

(7,120

)

Amount introduced by directors

2,176

-

Amount withdrawn by directors

(1,274,921

)

-

Equity dividends paid

-

(590,000

)

Net cash from financing activities

(1,279,865

)

(597,120

)

(Decrease)/increase in cash and cash equivalents

(5,991

)

178,833

Cash and cash equivalents at beginning of year

2

337,176

158,343

Cash and cash equivalents at end of year

2

331,185

337,176

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

(Unaudited)

£

£

Profit before taxation

281,909

1,209,676

Depreciation charges

147,409

155,475

Loss on disposal of fixed assets

7,760

-

Finance costs

11,788

7,559

Finance income

(23,641

)

(40,001

)

425,225

1,332,709

Increase in stocks

(127,825

)

(62,759

)

Decrease in trade and other debtors

1,217,498

69,334

Increase/(decrease) in trade and other creditors

218,370

(469,206

)

Cash generated from operations

1,733,268

870,078

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 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

331,185

337,176

Year ended 31 March 2024

31.3.24

1.4.23

(Unaudited)

£

£

Cash and cash equivalents

337,176

158,343

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.4.24

Cash flow

changes

At 31.3.25

£

£

£

£

Net cash

Cash at bank

and in hand

337,176

(5,991

)

331,185

337,176

(5,991

)

331,185

Debt

Finance leases

(26,106

)

7,120

(29,640

)

(48,626

)

(26,106

)

7,120

(29,640

)

(48,626

)

Total

311,070

1,129

(29,640

)

282,559

1.	STATUTORY INFORMATION

The Sleep People (Holdings) 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 General 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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

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.

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

3.	EMPLOYEES AND DIRECTORS

2025

2024

(Unaudited)

£

£

Wages and salaries

3,035,782

2,618,414

Social security costs

283,450

245,781

Other pension costs

61,337

58,455

3,380,569

2,922,650

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

2025

2024

(Unaudited)

Administration

21

19

Manufacturing

80

72

101

91

The average number of employees by undertakings that were proportionately consolidated during the year was 101 (2024 - 91 ) .

2025

2024

(Unaudited)

£

£

Directors' remuneration

225,333

193,748

Information regarding the highest paid director for the year ended 31 March 2025 is as follows:

2025

£

Emoluments etc

114,912

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

(Unaudited)

£

£

Other operating leases

22,628

2,516

Depreciation - owned assets

147,409

155,475

Loss on disposal of fixed assets

7,760

-

Auditors' remuneration

12,000

-

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

(Unaudited)

£

£

Interest payable

10,132

5,903

Hire purchase

1,656

1,656

11,788

7,559

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

(Unaudited)

£

£

Current tax:

UK corporation tax

150,678

307,546

Deferred tax

(9,295

)

23,322

Tax on profit

141,383

330,868

7.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

8.

DIVIDENDS

2025

2024

£

£

A Ordinary shares of £1 each

Final

-

147,500

B Ordinary shares of £1 each

Final

-

147,500

C Ordinary shares of £1 each

Final

-

147,500

D Ordinary shares of £1 each

Final

-

147,500

-

590,000

9.	TANGIBLE FIXED ASSETS

Group

Freehold

Plant and

property

machinery

Totals

£

£

£

COST

At 1 April 2024

2,500,000

1,329,955

3,829,955

Additions

-

61,461

61,461

Disposals

-

(86,920

)

(86,920

)

At 31 March 2025

2,500,000

1,304,496

3,804,496

DEPRECIATION

At 1 April 2024

220,040

869,495

1,089,535

Charge for year

50,000

97,409

147,409

Eliminated on disposal

-

(73,743

)

(73,743

)

At 31 March 2025

270,040

893,161

1,163,201

NET BOOK VALUE

At 31 March 2025

2,229,960

411,335

2,641,295

At 31 March 2024

2,279,960

460,460

2,740,420

10.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

£

COST

At 1 April 2024

and 31 March 2025

100

NET BOOK VALUE

At 31 March 2025

100

At 31 March 2024

100

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

The Sleep People Limited

Registered office: Unit 4, Royds Mills, Leeds Road, Ossett, WF5 9YA

Nature of business: Bed and mattress manufacturer

%

Class of shares:

holding

Ordinary

100.00

2025

2024

£

£

Aggregate capital and reserves

3,278,058

4,141,959

Profit for the year

136,099

863,719