Somerset & Avon Carpet Company Limited

Contents

Statement of Financial Position	1 to 2
Notes to the Unaudited Financial Statements	3 to 9

Somerset & Avon Carpet Company Limited

(Registration number: 01234846)
Statement of Financial Position as at 31 December 2025

	Note	2025 £	2025 £
Fixed assets
Tangible assets	4	-	549,054
Investment property	5	469,497	-
		469,497	549,054
Current assets
Stocks	6	-	98,984
Debtors	7	215,654	110,587
Cash at bank and in hand		106,312	25,547
		321,966	235,118
Creditors: Amounts falling due within one year	8	(87,191)	(68,948)
Net current assets		234,775	166,170
Total assets less current liabilities		704,272	715,224
Creditors: Amounts falling due after more than one year	8	(164,583)	(170,050)
Provisions for liabilities		(41,117)	(58,617)
Net assets		498,572	486,557
Capital and reserves
Called up share capital		2,201	2,201
Profit and loss account		496,371	484,356
Shareholders' funds		498,572	486,557

Somerset & Avon Carpet Company Limited

(Registration number: 01234846)
Statement of Financial Position as at 31 December 2025 (continued)

For the financial period ending 31 December 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Statement of Comprehensive Income.

Approved and authorised by the Board on 1 July 2026 and signed on its behalf by:
 

Mr S A Scott Director

Somerset & Avon Carpet Company Limited

Notes to the Unaudited Financial Statements for the Period from 1 April 2025 to 31 December 2025

1	General information

The company is a private company limited by share capital, incorporated in UK.

The address of its registered office is:
80 Oxford Street
Burnham-On-Sea
Somerset
TA8 1EF

Principal activity

The principal activity of the company is carpets, furniture and linens retailer.

The principal place of business is:
20 Victoria Street
Burnham On Sea
Somerset
TA8 1AN

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

Somerset & Avon Carpet Company Limited

Notes to the Unaudited Financial Statements for the Period from 1 April 2025 to 31 December 2025 (continued)

2	Accounting policies (continued)

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold property	2% straight line
Property improvements	10% reducing balance

Somerset & Avon Carpet Company Limited

Notes to the Unaudited Financial Statements for the Period from 1 April 2025 to 31 December 2025 (continued)

2	Accounting policies (continued)

Plant & machinery	25% reducing balance
Computer equipment	25% reducing balance

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. .

The cost of finished goods and work in progress 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, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Somerset & Avon Carpet Company Limited

Notes to the Unaudited Financial Statements for the Period from 1 April 2025 to 31 December 2025 (continued)

2	Accounting policies (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

3	Staff numbers

The average number of persons employed by the company (including directors) during the period, was 8 (2025 - 6).

Somerset & Avon Carpet Company Limited

Notes to the Unaudited Financial Statements for the Period from 1 April 2025 to 31 December 2025 (continued)

4	Tangible assets

	Land and buildings £	Improvements £	Plant and machinery £	Office equipment £	Total £
Cost or valuation
At 1 April 2025	631,293	64,322	400	551	696,566
Transferred to investment properties	(631,293)	-	-	-	(631,293)
At 31 December 2025	-	64,322	400	551	65,273
Depreciation
At 1 April 2025	82,626	64,322	400	164	147,512
Charge for the period	9,170	-	-	387	9,557
Transferred to investment properties	(91,796)	-	-	-	(91,796)
At 31 December 2025	-	64,322	400	551	65,273
Carrying amount
At 31 December 2025	-	-	-	-	-
At 31 March 2025	548,667	-	-	387	549,054

5	Investment properties

	2025 £
Transfers to and from owner-occupied property	539,497
Fair value adjustments	(70,000)
At 31 December	469,497

The freehold property, 20 Victoria Street, Burnham on Sea, was revalued by Greenslade Taylor Hunt, at open market value as at 30 September 2025, at £430,000. During the year the company purchased 22 Victoria Street, which is included at cost, as in the directors opinion there would have no material change in value at the year end.

6

Stocks

	2025 £	2025 £
Finished goods and goods for resale	-	98,984

Somerset & Avon Carpet Company Limited

Notes to the Unaudited Financial Statements for the Period from 1 April 2025 to 31 December 2025 (continued)

7

Debtors

	2025 £	2025 £
Trade debtors	187,171	34,086
Other debtors	28,483	75,217
Prepayments	-	1,284
	215,654	110,587

8

Creditors

Creditors: amounts falling due within one year

	Note	2025 £	2025 £
Due within one year
Loans and borrowings		6,000	6,000
Trade creditors		19,189	22,840
Taxation and social security		54,839	21,809
Accruals and deferred income		3,364	1,000
Other creditors		3,799	17,299
		87,191	68,948

Creditors: amounts falling due after more than one year

	Note	2025 £	2025 £
Due after one year
Loans and borrowings		164,583	170,050

9

Reserves

Profit and loss account:

This reserve records retained earnings and accumulated losses. At 31 December 2025, non-distributable reserves amounted to £261,223 (2025 £331,223).

Somerset & Avon Carpet Company Limited

Notes to the Unaudited Financial Statements for the Period from 1 April 2025 to 31 December 2025 (continued)

10	Related party transactions

At 31 December 2025 the company ceased to trade, with the former trade being sold to a former employee. From that date, the company has become an investment company leasing it's former trading premises.

Transactions with directors

2025	At 1 April 2025 £	Advances to director £	Repayments by director £	At 31 December 2025 £
Director's loan account	75,217	32,478	(79,974)	27,721

2025	At 1 April 2024 £	Advances to director £	Repayments by director £	At 31 March 2025 £
Director's loan account	(31,359)	151,952	(45,376)	75,217