Registered number: 06448915
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their Strategic report for the year ended 31 December 2025.
The Company’s principal activity is the rental of domestic furniture.
The Company achieved a turnover of £4,826,726 (2024 - £5,341,238). This decrease was primarily due to a decline in our residential and relocation revenues over the prior year.
For much of our income we are dependent on the volume of staff relocation assignments by international companies to the UK. Political uncertainty in the UK and abroad reduced demand for corporate relocation movements in 2025, although we benefitted from increased revenues from contract furnishing sales. We also continue to derive incremental revenues from large scale build to rent sector installations.
We have continued to manage our inventory and purchasing carefully, resulting in an improvement in gross margin to 81.0% (2024 – 79.2%). Whilst distribution costs decreased year on year, annual performance was hindered by decreased other operating income due to the receipt of an insurance claim in 2024. As a result, loss before tax was £714,343 (2024 – profit £616,629). Net assets at the reporting date were £4,131,814 (2024 - £4,651,917).
The outlook for 2026 will continue to be dominated by the geo-political and economic uncertainties that have materialised during the first quarter. These will have a short-term impact on some of our markets, but we will be able to maintain an income stream throughout. In addition, we have sufficient cash reserves and the ongoing support of our Holding Company.
The management of the business and the execution of the Company’s strategy are subject to several key risks:
1)International companies reducing the level of staff secondments to the UK.
2)An increase in the availability of furnished accommodation versus unfurnished accommodation.
3)A systemic reduction in the availability of rental property due to government legislative changes.
4)A change in the HR policy of multinational companies such that shipping furniture is preferred to renting furniture for an unfurnished property, although the importance of sustainability and increased costs of shipping are mitigating against this.
5)The introduction of new competitors into the market.
The Company uses a series of key performance indicators to monitor the performance of the business. These include, but are not limited to, the following:
We will continue to develop and grow the business through our excellence in service and product.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors’ duty under Section 172 is to promote the success of the Company for the benefit of the members as a whole, having regard to the following matters set out in Section 172 (1):
1)Long term consequences of decisions:
We aim to secure our long-term prospects and viability by pursuing strategies that deliver long-term benefit to our company and supply chain. These are considered in bi-weekly reporting to senior management, monthly meetings of the UK management team, and periodic re-forecasting of our business outlook.
We aim to secure our long-term prospects and viability by pursuing strategies that deliver long-term benefit to our company and supply chain. These are considered in bi-weekly reporting to senior management, monthly meetings of the UK management team, and periodic re-forecasting of our business outlook.
2)Interest of employees:
The Company issues performance, operating or status updates to staff, either in person, writing or via conference call.
The Company issues performance, operating or status updates to staff, either in person, writing or via conference call.
3)Need to foster the Company’s business relationships:
We actively seek to acquire new customers through a range of marketing, brand, or business development initiatives. Our vision is that everything is possible through service, and this drives our customer service philosophy. Our supply of services is dependent on collaboration with a range of third-party suppliers on a long-term basis, and these are actively managed by our procurement team.
We actively seek to acquire new customers through a range of marketing, brand, or business development initiatives. Our vision is that everything is possible through service, and this drives our customer service philosophy. Our supply of services is dependent on collaboration with a range of third-party suppliers on a long-term basis, and these are actively managed by our procurement team.
4)Impact on the community & environment:
Through our business model, the Company seeks to minimise its environmental impact. We invest in durable products manufactured to high-quality standards and maintain the pieces throughout the furniture rental process. Our products are durable enough to be re-used several times within the rental cycle. At the end of their rental life, our furniture is taken to our CORT Furniture retail outlet to be sold to its forever home.
Through our business model, the Company seeks to minimise its environmental impact. We invest in durable products manufactured to high-quality standards and maintain the pieces throughout the furniture rental process. Our products are durable enough to be re-used several times within the rental cycle. At the end of their rental life, our furniture is taken to our CORT Furniture retail outlet to be sold to its forever home.
5)High standards of business conduct:
Our internal and external policies are reviewed by the Directors, and incorporate Anti-Bribery, Modern Slavery and General Data Protection Regulation requirements.
Our internal and external policies are reviewed by the Directors, and incorporate Anti-Bribery, Modern Slavery and General Data Protection Regulation requirements.
6)Act fairly between members of the Company:
We are a wholly owned subsidiary of CORT Business Services Corp, a Berkshire Hathaway company. Our monthly management accounts and periodic forecasts are reviewed by key management personnel, consistent with CORT best practice, and we participate in all required Berkshire Hathaway group compliance and control activities.
We are a wholly owned subsidiary of CORT Business Services Corp, a Berkshire Hathaway company. Our monthly management accounts and periodic forecasts are reviewed by key management personnel, consistent with CORT best practice, and we participate in all required Berkshire Hathaway group compliance and control activities.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements 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; 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 to 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.
The directors who served during the year were:
There were no post balance sheet events.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORT BUSINESS SERVICES UK LIMITED
We have audited the financial statements of Cort Business Services UK Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of income and retained earnings, the Statement of financial position and the related notes, 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 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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORT BUSINESS SERVICES UK LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORT BUSINESS SERVICES UK LIMITED (CONTINUED)
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
−The Companies Act 2006;
−Financial Reporting Standard 102;
−UK Employment Legislation;
−UK Health and Safety Legislation;
−General Data Protection Regulations;
−UK Tax Legislation; and
−FCA regulation.
∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
−Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
−Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
−Challenging assumptions and judgments made by management in its significant accounting estimates; and
−Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, 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:
−The application of inappropriate judgements or estimations to manipulate the Company's financial position;
−Posting of unusual journals and complex transactions;
−The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests; and
−The misappropriation of the Company's fixed assets for personal use or resale either by individuals employed or connected with the entity, or unconnected third parties.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORT BUSINESS SERVICES UK LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's 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 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditor
2nd Floor Origin One
108 High Street
West Sussex
RH10 1BD
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2025
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 20 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Cort Business Services UK Limited is a private company limited by shares incorporated in England and Wales. The
address of the registered office is disclosed on the company information page.
The financial statements are presented in sterling which is the functional currency of the Company and rounded to
the nearest £.
address of the registered office is disclosed on the company information page.
The financial statements are presented in sterling which is the functional currency of the Company and rounded to
the nearest £.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Berkshire Hathaway Inc as at 31 December 2025 and these financial statements may be obtained from 3555 Farnam Street, Omaha, NE 68131.
Operating lease income
Income from the operating lease rental of domestic furniture is recognised in the profit and loss account in the period to which it relates.
Finance lease income
Amounts due from lessees in respect of assets held under finance leases are included in debtors at the amount of the net investment in the lease.
Rental payments under finance leases are apportioned between interest, which is credited to the profit and loss account as gross earnings, and repayment of capital, which reduces the amount due from the lessee.
Gross earnings from finance leases are allocated to accounting periods to give a constant periodic rate of return on the net cash investment in the lease, using the investment period method of allocation. The initial direct costs incurred in negotiating and arranging finance leases are charged to the profit and loss account in
the period in which they are incurred.
Income from the operating lease rental of domestic furniture is recognised in the profit and loss account in the period to which it relates.
Finance lease income
Amounts due from lessees in respect of assets held under finance leases are included in debtors at the amount of the net investment in the lease.
Rental payments under finance leases are apportioned between interest, which is credited to the profit and loss account as gross earnings, and repayment of capital, which reduces the amount due from the lessee.
Gross earnings from finance leases are allocated to accounting periods to give a constant periodic rate of return on the net cash investment in the lease, using the investment period method of allocation. The initial direct costs incurred in negotiating and arranging finance leases are charged to the profit and loss account in
the period in which they are incurred.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Other
Other turnover amounts comprise the invoiced value of goods and services supplied by the Company, excluding value added tax.
Other turnover amounts comprise the invoiced value of goods and services supplied by the Company, excluding value added tax.
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities
at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability
using the effective interest method. Finance charges are allocated to each period so as to produce a constant
rate of interest on the remaining balance of the liability.
at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability
using the effective interest method. Finance charges are allocated to each period so as to produce a constant
rate of interest on the remaining balance of the liability.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
In making its judgement for depreciation management has considered the benefit accruing over the useful life of the asset. Impairment reviews are carried out on a timely basis to ensure that the accounting policy adopted reflects a true and fair value of the assets.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
There were no factors that may affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Each ordinary share carries voting rights and there are no restrictions on the distribution of dividends.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Profit and loss account
This reserve represents the sum of the Company's retained earnings and accumulated losses.
This reserve represents the sum of the Company's retained earnings and accumulated losses.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totaling £7,966 (2024 - £7,072) were payable to the fund at the reporting date and are included in creditors.
The ultimate parent company is considered to be Berkshire Hathaway Inc, a company incorporated in the United States of America and quoted on the New York Stock Exchange. The Company's immediate parent is Cort Business
Services Corp, a company incorporated in the United States of America, registered address being 14850 Conference Center Dr #110, Chantilly VA 20151.
Copies of the group accounts of Berkshire Hathaway Inc. may be obtained from 3555 Farnam Street, Omaha, NE 68131.
Services Corp, a company incorporated in the United States of America, registered address being 14850 Conference Center Dr #110, Chantilly VA 20151.
Copies of the group accounts of Berkshire Hathaway Inc. may be obtained from 3555 Farnam Street, Omaha, NE 68131.
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