The Directors present the strategic report for the year ended 31 October 2025.

The principal activity of the company during the year continued to be the design, manufacture and sale of office furniture.

The year ended 31 October 2025 was one of significant investment and transformation for Gresham Office Furniture Limited.

The commercial office furniture market remained challenging throughout the year as economic uncertainty continued to influence customer confidence and investment decisions. These market conditions resulted in lower sales than the previous year and, consequently, a reduction in profitability.

Despite these headwinds, the Directors took the decision to continue investing in the long-term future of the business rather than prioritising short-term financial performance. During the year we successfully implemented a new Enterprise Resource Planning (ERP) system and completed significant investment in our manufacturing facilities. Together, these projects represent one of the largest operational investment programmes undertaken by the Company in recent years.

These investments have strengthened the operational foundations of the business and provide enhanced visibility, improved planning capability and increased manufacturing efficiency. Whilst many of the benefits will be realised progressively over the coming years, the Directors believe these investments position the Company well for future growth and improved profitability.

Although trading conditions remain uncertain, we enter the new financial year with confidence in the long-term prospects of the business and believe the investments completed during the year provide a strong platform for sustainable growth.

Our Business

Gresham Office Furniture Limited designs, manufactures and supplies high-quality workplace furniture throughout the United Kingdom, serving customers across both the public and private sectors.

The Company's strategy is centred upon innovative product design, manufacturing excellence and exceptional customer service, supported by continual investment in technology, people and operational capability.

Market Environment

The commercial office furniture market remained challenging throughout the year as businesses continued to adopt a cautious approach to capital expenditure and workplace investment. This resulted in lower levels of demand across much of the sector.

Against this backdrop, revenue reduced to £25.6 million compared with £32.6 million in the previous financial year. The Company reported an operating loss of £0.4 million (2024: operating profit of £1.5 million) and a loss before taxation of £0.7 million.

Whilst these financial results were below the Directors' expectations, they should be considered in the context of the significant strategic investments undertaken during the year and the long-term benefits these are expected to deliver.

Investing for the Future

Throughout the year, the Board remained committed to strengthening the long-term competitiveness of the business.

Rather than reducing investment in response to weaker market conditions, the Company continued to invest significantly in technology and manufacturing capability.

A key milestone during the year was the successful implementation of a new Enterprise Resource Planning (ERP) system. This investment has transformed the Company's core business systems, providing enhanced operational visibility, improved management information and greater integration across all areas of the organisation.

Alongside this, substantial investment was made in modern manufacturing machinery, increasing production capability whilst creating opportunities to improve productivity, efficiency and product quality.

Together, these investments represent a significant step in the Company's long-term development. They establish a stronger operational platform from which the Company can continue to improve customer service, streamline processes, enhance manufacturing efficiency and support sustainable future growth.

The Directors expect the benefits of these investments to become increasingly evident over the coming years as the systems and equipment become fully embedded within the business.

Financial performance

The Directors monitor a range of financial and operational measures when assessing business performance.

Although turnover reduced significantly during the year, the Company maintained a gross margin of 40.9%, consistent with the previous year. This reflects continued pricing discipline, careful management of product mix and the resilience of the Company's manufacturing operation despite challenging market conditions.

Administrative expenses reduced compared with the previous year as management maintained a disciplined approach to overhead expenditure whilst continuing to invest in the future of the business. The increase in finance costs reflects the funding required to support the Company's investment programme.

The Company continues to maintain a strong balance sheet with shareholders' funds of £14.8 million and net current assets of £7.5 million. These provide a solid financial foundation from which to support future growth.

Position at the end of the year

The company current assets ratio is a healthy 1.66 compared to 2.89 in the previous year and this is considered sufficient to service finance and loan commitments and liabilities as they fall due.

Our People

The successful delivery of the Company's transformation programme would not have been possible without the commitment, professionalism and adaptability of its employees.

The implementation of a new ERP system and the introduction of significant new manufacturing equipment represented substantial organisational change across every area of the business. Employees embraced these changes whilst continuing to maintain the high standards of quality, service and customer support for which Gresham is recognised.

The Directors would like to express their sincere appreciation to all employees for their dedication and contribution throughout the year.

Principal Risks and Uncertainties

The Directors regularly review the principal risks facing the business and ensure appropriate mitigation strategies remain in place.

Market Risk

Demand for commercial office furniture continues to be influenced by wider economic conditions and business investment. The Company mitigates this through continual product innovation, maintaining a diverse customer base and investing in operational efficiency.

Operational Risk

Maintaining efficient manufacturing operations remains fundamental to the Company's success. Continued investment in manufacturing technology, integrated business systems and employee development enhances operational resilience and supports continuous improvement.

Credit Risk

The Company operates robust credit management procedures, including credit assessment of new customers and continuous monitoring of outstanding balances. Exposure to bad debts remains low.

Liquidity Risk

Cash flow, working capital and funding facilities are closely monitored to ensure the Company maintains sufficient liquidity to support day-to-day operations and future investment.

Health, Safety and Environmental Management

The Company remains committed to maintaining the highest standards of health, safety and environmental performance. Certification to ISO 14001 and ISO 45001 continues to support responsible manufacturing and the Company's commitment to continuous improvement.

Outlook

The Directors believe that 2025 represents an important milestone in the Company's long-term development.

The successful implementation of a new ERP system together with substantial investment in modern manufacturing technology has created a significantly stronger operational platform for the future. As these investments become fully embedded within the business, the Directors expect to realise further improvements in operational efficiency, manufacturing productivity, management information and customer service.

The Company will continue to invest in innovation, product development and operational excellence whilst maintaining a disciplined approach to financial management and sustainable growth.

Although economic conditions remain uncertain, the Directors remain confident in the long-term prospects of the business. Gresham enters the new financial year with enhanced operational capability, a strong balance sheet, an experienced workforce and a clear strategy focused on delivering sustainable, profitable growth.

By order of the board

The Directors present their report and financial statements for the year ended 31 October 2025.

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £240,000. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company made no political contributions in the current or previous period.

The research and development activities of Gresham Office Furniture Limited are concentrated on the development of new products, new processes and the continual development of existing products, with increased investment in plant and machinery.

The company intends to keep its innovative and competitive edge by extending its product range. The company aims to grow by looking for new markets to replace the reduction in public sector spending. The company also intends to consolidate its position in those markets where the company gained a foothold during the year under consideration.

The directors consider that the company has performed well over the period and are confident that the company will continue to develop and grow despite the high competition within the industry.

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of:

-Financial risk management objectives and policies

-Information on exposure to credit risk and liquidity risk

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Gresham Office Furniture Limited (the 'company') for the year ended 31 October 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 October 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 Auditor's 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 company and the company's member, for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Gresham Office Furniture Limited (Company number 01284733) is a company limited by shares incorporated and domiciled in England and Wales. The registered office and principal place of business is Platinum Park, Lynstock Way, Horwich, Bolton, Greater Manchester, United Kingdom, BL6 4SA.

The company's principal activity is detailed in the Strategic Report.

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, including the provisions of the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008 and under the going concern basis.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Disclosure of carrying amounts;

• Section 33 'Related Party Disclosures' - Disclosure of transaction between group companies.

The financial statements of the company are consolidated in the financial statements of JD Roebuck Holdings Limited. These consolidated financial statements are available from its registered office, Platinum Park, Lynstock Way, Horwich, Bolton, BL6 4SA.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has 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 the value of all goods and services despatched prior to the year end, after trade discounts and exclusive of Value Added Tax.

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.

Research expenditure is written off against profits in the year in which it is incurred.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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 credited or charged to profit or loss.

At each reporting end date, the company reviews the carrying amounts of its tangible 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.

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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.

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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 trade and other receivables 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.

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 company 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 company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, and loans from fellow group companies, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. The holiday entitlement is for the year to December and an accrual is included for holidays accrued but not taken as at the year end.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the income statement so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Group relief

The financial statements have been prepared based on the assumption that group relief will be used to facilitate the transfer of corporation tax losses between companies in the group, and there will be no payments made for group relief surrendered.

In the application of the company’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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The company supplies seating and furniture with a 5 and 10 year warranty respectively.

A provision is included in the financial statements to estimate the future costs to the company of issuing the warranty. Calculation of the provision requires judgements to be made to estimate the timing and costs of these warranties.

Property, plant and equipment are depreciated over their estimated useful lives to their estimated residual values. Both the estimated useful life and the residual value are reviewed at least at each financial year-end.

An analysis of the company's revenue is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

The net carrying value of tangible fixed assets, includes the following in respect of assets held under finance leases or hire purchase contracts. These assets have been pledged as security for the related liabilities.

Obligations under finances leases totalling £243,384 (2024: £133,774) are secured against the asset to which they relate.

Included within other payables is an amount due to HSBC Asset Finance for factored debts. The liability of £2,956,426 (2024: £1,135,820) is secured against trade receivables.

Obligations under finances leases totalling £831,652 (2024: £117,742) are secured against the asset to which they relate.

Bank loan 1

The HSBC bank loan of £284,772 (2024: £436,343) is secured by a debenture incorporating a fixed and floating charge over all assets of the company, along with a cross guarantee by Gresham UK Holdings Limited.

The bank loan is repayable by monthly instalments over a 5 year period commencing August 2022.

Bank loan 2

The HSBC bank loan of £3,080,000 (2024: £1,176,952) is repayable on demand.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term remaining is 1 to 4 years.

The finance leases are secured by the lessors' title to the leased assets which have a carrying value of £1,253,408 (2024: £405,183).

The directors consider that the carrying amount of the obligations under finance leases approximate to their fair value.

The company supplies products with either a 5 or 10 year warranty. The provision is based on the directors assessment of likely rectification costs calculated in the light of historic experience. The timing and amount of payments from the provision is uncertain, as the number and severity of warranty claims in the future is unpredictable. The provision is reviewed annually by the directors.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Included in the financial statements is an amount of £39,141 (2024: £41,412) owing by the company with regard to pensions. This represents amounts that have been deducted at the year end but paid to the scheme after the year end.

The shares rank pari passu in respect of distribution of capital or voting at Annual General Meetings of the company. The right to dividend of each share type is at the discretion of the directors and can be varied.

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

Revaluation reserve

This reserve records the value of asset revaluations recognised in other comprehensive income. Any excess depreciation charge resulting from the revaluation is transferred from the revaluation reserve to retained earnings.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company and subsequently cancelled.

Guarantees

The company's bankers, HSBC Bank Plc, hold an Unlimited Multilateral Guarantee dated 22 August 2008 between Gresham Office Furniture Limited and Gresham UK Holdings Limited.

The bank also have a debenture incorporating a fixed and floating charge over all assets of the company.

The total indebtedness of both companies to HSBC Bank Plc at 31 October 2025 is £7,606,398 (2024: £6,553,636). Loan balances of £4,241,626 (2024: £4,940,341) are held in Gresham UK Holdings Limited, with the balance in this company.

The loan has a right of set off and net indebtedness of both companies to HSBC Bank Plc at 31 October 2025 is £7,155,861 (2024: £5,402,695).

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Amounts contracted for but not provided in the financial statements:

The company has taken advantage of the exemptions provided by FRS 102 Section 1 in relation to paragraph 33.1A from disclosing transactions and balances with other group companies.

During the period, the company purchased services from an 'other related party' totalling £20,000 (2024: £15,000). The amount outstanding at the balance sheet date was £Nil (2024: £Nil).

The immediate parent company of Gresham Office Furniture Limited is Gresham UK Holdings Limited.

In the directors' opinion the company's ultimate parent company is JD Roebuck Holdings Limited, a company incorporated in the UK, by virtue of its 100% ownership of Gresham UK Holdings Limited. Copies of the accounts for JD Roebuck Holdings Limited can be obtained from its registered office address: Platinum Park, Lynstock Way, Horwich, Bolton, BL6 4SA.

JD Roebuck Holdings Limited is the only member of the group to prepare consolidated accounts.

The company is under the ultimate control of Julian Roebuck, director and majority shareholder of JD Roebuck Holdings Limited.