The directors present the strategic report for the period ended 30 November 2025.
The Furnishing Service 2025 Limited (the “company”) was incorporated on 13 February 2025 and serves as the ultimate holding company of The Furnishing Service group following the completion of a management buyout on 28 November 2025.
The company’s period of account runs from incorporation to 30 November 2025. The acquisition of the group’s intermediate holding company, The Furnishing Service Holdings Limited, completed on 28 November 2025 — two days before the period end. Accordingly, the consolidated results for this period reflect the group’s position at acquisition and the costs associated with establishing the holding structure, rather than a full period of trading activity.
The principal trading activity of the group is carried out by The Furnishing Service Limited, the operating subsidiary. That company’s results for the year ended 30 November 2025 are reported in its own financial statements and are summarised below for context.
What We Do and Why It Matters
The Furnishing Service provides domestic furniture packages, delivery and installation services to local authorities, charities, housing associations and registered social landlords across the United Kingdom.
Furniture poverty is a serious and often hidden problem across the United Kingdom. Millions of households lack access to the most basic items — a bed to sleep in, a sofa to sit on, a table at which to share a meal. For people moving into temporary accommodation, leaving crisis situations, or rebuilding their lives after a period of hardship, arriving at an unfurnished property can make an already difficult transition even harder.
A home without furniture is not yet a home. The work of The Furnishing Service sits at the heart of the solution to this problem. By supplying affordable, quality, durable furniture, white goods and flooring quickly and reliably to those who need it, we work closely with our partners to respond swiftly to the needs of households in crisis.
We take this responsibility seriously. The people we support are often among the most vulnerable in their communities. Every delivery we make, every installation we complete, makes a direct and tangible difference to the quality of a real person’s life. That knowledge motivates everyone in our business to do their work with care, professionalism and pride.
Management Buyout
The company was established as the vehicle through which senior management completed the acquisition of the group on 28 November 2025. The management team had been instrumental in designing and executing the operational improvements that restored the group to profitability following a period of restructuring, and the buyout formally places the business in the hands of the people who led that transformation.
The buyout was funded through a combination of cash consideration and loan notes totalling £5,000,000. The total consideration reflects the fair value of the net identifiable assets acquired plus goodwill of £3,941,089, which represents the directors’ assessment of the value attributable to the group’s established customer relationships, framework positions, operational platform and future earnings potential.
This alignment of ownership and management creates a clear and unified focus on continued growth and long-term value creation. The board is confident that this structure provides the right platform for the next phase of the group’s development.
Performance of the Operating Subsidiary
As the acquisition completed two days before the period end, the consolidated income statement of this company reflects only the holding structure costs incurred since completion. The full year trading performance of The Furnishing Service Limited is set out in that company’s own financial statements. Key highlights for the year ended 30 November 2025 are summarised below:
Turnover: £35,192,079 (prior 16-month period: £48,174,435)
Gross profit margin: 30.9% (prior period: 26.3%)
Operating profit: £2,113,243 (prior period: £628,736)
Profit before taxation: £1,971,498 (prior period: £353,359)
Average headcount: 166 (prior period: 199)
These results represent the strongest financial performance in recent years and reflect the full benefit of the restructuring undertaken in the prior extended period. Gross margin improvement from 26.3% to 30.9% demonstrates the effectiveness of procurement renegotiations, the removal of loss-making activity, and a more disciplined approach to contract pricing. Profit before tax of £1,971,498 represents a six fold increase on the prior period.
The year also saw two significant contract wins: the successful retender to remain on the Scotland XL framework — the most significant domestic furniture procurement framework in Scotland — and a new contract in Manchester, marking an important step in the group’s expansion into the English market.
The directors regularly review the principal risks and uncertainties facing the group. The key risks identified and the mitigating actions in place are as follows.
Tender renewals. The majority of revenues are generated through the successful award of contracts via framework agreements. The successful Scotland XL retender during the year demonstrates the company’s ability to compete and win in this environment. The group continues to work closely with its suppliers to achieve competitive pricing and manages all other costs to deliver best value to customers while maintaining appropriate profitability.
Stock prices. Fluctuations in stock prices, including where imports are affected by currency exchange rates, and geopolitical events are recognised as a risk. The company continually reviews the marketplace for alternative supply lines and maintains appropriate stock levels on key lines to mitigate this risk.
Economic and public sector spending risk. The company works closely with charities and local authorities and is therefore potentially affected by changes in public sector spending, and the wider economy. Local authorities are required by statute to provide the services in question, which provides a degree of structural mitigation. The company also continues to diversify its customer base geographically, as evidenced by the new Manchester contract, reducing dependence on any single market.
Debt service and financing risk. The buyout was part-funded by loan notes of £3,800,000, and the group also maintains bank facilities. The directors are satisfied that the group’s trading cash flows are sufficient to service these obligations and have reviewed cash flow projections confirming the group’s ability to continue as a going concern.
Goodwill impairment risk. Goodwill of £3,941,089 arising on the acquisition is subject to annual impairment review. The directors are satisfied that the performance of the operating subsidiary and the strength of the group’s contract base support the carrying value of goodwill as at the balance sheet date.
The directors look ahead with confidence. The group enters the new financial year with strong margins, a retained and expanded contract base, a motivated and well-structured team, and a management group that has demonstrated its ability to deliver results.
The completion of the management buyout means that the people responsible for the group’s performance are also its owners — an alignment that the directors believe will drive continued focus and ambition.
The Scotland XL retender success secures an important revenue base in Scotland, while the Manchester contract marks the beginning of what the directors intend to be a meaningful and growing presence in the rest of the UK. The group is well positioned on the Procurement for Housing residential furniture framework, providing a compliant route to market for housing associations and local authorities across England and Wales, and the directors are actively pursuing further opportunities in this market.
On behalf of the board
The directors present their annual report and financial statements for the period ended 30 November 2025.
The results for the period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, 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;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of The Furnishing Service 2025 Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 November 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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).
Basis for 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 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial period 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions and manipulating the Group's key performance indicators to meet targets. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, tested a sample of journals to confirm they were appropriate and reviewed areas of judgement for indicators of management bias to address these risks.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards).
We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £105,620.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The Furnishing Service 2025 Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 1 Glenburn Road, East Kilbride, Glasgow, G74 5BA.
The group consists of The Furnishing Service 2025 Limited and all of its subsidiaries.
The company was incorporated on 13th of February 2025. The first accounting period therefore runs from the date of incorporation to 30 November 2025.
The accounting reference date has been set at 30 November in order to align with the reporting period of other companies within the group.
As this is the company’s first period of account, no comparative amounts are presented.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company The Furnishing Service 2025 Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 November 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Income is recognised as a sale, at the point of delivery.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of persons (including directors) employed by the group and company during the period was:
The actual charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 30 November 2025 are as follows:
Registered office addresses (all UK unless otherwise indicated):
On 28 November 2025 the group acquired 100 percent of the issued capital of The Furnishing Service Holdings Limited.
The long-term loans are secured by way of floating charges over all the assets and undertaking of the company, both present and future.
Other loans represent Loan Notes that were issued as part of the acquisition of The Furnishing Service Holdings Limited and are repayable by instalments. The first instalment is due in January 2027 and the final instalment is due in January 2030.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon: