Dorel Home Furnishings Europe Limited - Accounts to registrar (filleted)

REGISTERED NUMBER: 07888601 (England and Wales)

Financial Statements for the Year Ended 31 December 2025

for

Dorel Home Furnishings Europe Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mrs. W Denieffe Storm

J Schwartz

S H Soegaard

REGISTERED OFFICE:

C/o Bracher Rawlins Llp, 16

High Holborn

London

WC1V 6BX

REGISTERED NUMBER:

07888601 (England and Wales)

AUDITORS:

Krogh & Partners Limited, (Statutory Auditor)

823 Salisbury House

29 Finsbury Circus

London

EC2M 5QQ

FIXED ASSETS

Intangible assets

4

170,500

232,500

Tangible assets

5

8,195

54,855

Investments

6

1

178,696

287,356

CURRENT ASSETS

Stocks

2,105,074

3,538,462

Debtors

7

1,412,536

650,678

Cash at bank

332,235

1,657,810

3,849,845

5,846,950

CREDITORS

Amounts falling due within one year

8

3,836,860

4,989,678

NET CURRENT ASSETS

12,985

857,272

TOTAL ASSETS LESS CURRENT
LIABILITIES

191,681

1,144,628

PROVISIONS FOR LIABILITIES

10

37,000

60,000

NET ASSETS

154,681

1,084,628

CAPITAL AND RESERVES

Called up share capital

11

5,700,116

Share premium

2,999,999

Retained earnings

(8,545,434

)

(7,615,487

)

SHAREHOLDERS' FUNDS

154,681

1,084,628

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 11 August 2026 and were signed on its behalf by:

J Schwartz - Director

Mrs. W Denieffe Storm - Director

S H Soegaard - Director

1.	STATUTORY INFORMATION

Dorel Home Furnishings Europe Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

These financial statements are prepared for Dorel Home Furnishings Europe Limited as an individual company on the grounds that its subsidiary company is dormant and the impact on any consolidated accounts would be immaterial.

Going concern

These financial statements have been prepared on a going concern basis. The going concern basis of presentation assumes that the company will continue its operations for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. In assessing whether the going concern assumption is appropriate and whether there are material uncertainties that may cast significant doubt about the company's ability to continue as a going concern, management must take into account all available information about the future, including estimated future cash flows, for a period of at least twelve months from when the financial statements are authorised for issue.

The company has incurred net losses for the years ended 31 December 2025 and 2024, however budget for the year 2026 shows improvements and a minor, positive net profit. As per 31 December 2025 the company has net current assets of £13k. The directors have prepared a cash flow forecast for the period until 30 June 2027, which indicate, taking account of reasonably possible downsides, the company will have sufficient funds to meet its liabilities as they fall due during the going concern assessment period.

The company is however, as disclosed in note 9, guarantor for certain loan facilities in the Dorel Industries Inc. group. Under these facilities the group is subject to certain quarterly covenants. The group's ability to fund its operations and meet its cash flow requirements is dependent upon the continued support of the lenders and the group's ability to meet quarterly covenants. The group was compliant with covenants as at 31 December 2025. Group management plans to adhere to quarterly covenants by actively managing liquidity through the management of both its working capital and discretional spending, prioritizing capital expenditures and exploring strategic initiatives including the monetization of certain assets.

Assessing the group's estimated future cash flows and liquidity, including its future compliance with covenants under its loan facilities, requires significant judgement. As there is significant uncertainty surrounding the group's cash flow projections etc., group management concluded that the group may not be able to meet its quarterly financial covenants during the going concern assessment period. Group management is closely monitoring its cash flows etc., however, there can be no assurance that the group will be successful in meeting its quarterly covenants during the going concern assessment period or that the group will generate sufficient cash flows to meet its obligations. Accordingly, these circumstances indicate the existence of a material uncertainty that may cast significant doubt on the group's and, through its guarantees, Dorel Home Furnishings Europe Limited's ability to continue as a going concern.

The financial statements of Dorel Home Furnishings Europe Limited have been prepared on a going concern basis and do not include any adjustments to the amounts and classifications of the assets and liabilities that might be necessary should the group and company be unable to achieve its plan and remain in business. If the going concern assumption was not appropriate for these financial statements, then adjustments would be necessary to the carrying value of assets and liabilities, the reported expenses, and the classification of items in the financial statements. Such adjustments could be material.

Turnover

Turnover from the sale of furniture products is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to the incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Administrative expenses

Administrative expenses include expenses relating to the Entity's ordinary activities, including expenses for salaries, premises, stationery and office supplies, etc. This item also includes writedowns of receivables recognised in current assets.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Staff costs

Staff costs comprise salaries and wages, and social security contributions, pension contributions, etc. for entity staff.

Pension costs and other post-retirement benefits

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Financial instruments

The company only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of the business in 2018, is being amortised evenly over its estimated useful life of ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement.

Other intangible assets

Other intangible assets, being customer relationships identified in connection with the acquisition of the business in 2018, are initially recognised at cost. After initial recognition, other intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Other intangibles are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Tangible fixed assets are initially recognised at cost. After initial recognition, tangible fixed assets are measured at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Fixtures and fittings

- Straight line over 3 years

Computer equipment

- Straight line over 3 years

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less provision for any permanent diminution in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is based on the first-in first-out principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition.

Debtors

Debtors are valued individually and there are made provisions according to this valuation.

Cash at bank

Cash at bank include deposits held at call with banks.

Creditors

Creditors are carried at payment or settlement amounts. Where the time value of money is material, creditors are carried at amortized cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2024 - 7 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

COST

At 1 January 2025

and 31 December 2025

975,578

620,000

1,595,578

AMORTISATION

At 1 January 2025

975,578

387,500

1,363,078

Charge for year

-

62,000

At 31 December 2025

975,578

449,500

1,425,078

NET BOOK VALUE

At 31 December 2025

-

170,500

At 31 December 2024

-

232,500

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

COST

At 1 January 2025

and 31 December 2025

16,952

219,380

236,332

DEPRECIATION

At 1 January 2025

16,690

164,787

181,477

Charge for year

262

46,398

46,660

At 31 December 2025

16,952

211,185

228,137

NET BOOK VALUE

At 31 December 2025

-

8,195

At 31 December 2024

262

54,593

54,855

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2025

and 31 December 2025

1

NET BOOK VALUE

At 31 December 2025

1

At 31 December 2024

1

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

Alphason Designs Limited

Registered office: C/O Bracher Rawlins Llp, 16, High Holborn, London, England, WC1V 6BX

Nature of business: Dormant company

%

Class of shares:

holding

Ordinary

100.00

31.10.25

31.10.24

£

Aggregate capital and reserves

1

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

Trade debtors

524,997

537,496

Amounts owed by group undertakings

779,043

-

Prepayments

108,496

113,182

1,412,536

650,678

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

Trade creditors

310,045

533,014

Amounts owed to group undertakings

3,030,389

3,947,205

Social security and other taxes

8,700

11,292

VAT

188,612

229,790

Staff pension payables

814

1,340

Accrued expenses

298,300

267,037

3,836,860

4,989,678

9.	SECURED DEBTS

A group of lenders led by affiliates of TCW Asset Management Company LLC ("TCW") as administrative agent holds a fixed and floating charge with negative pledge over all the property or undertaking of the company dated 3 December 2025. As charger the company guarantees for a credit agreement between the group of lenders and the ultimate parent undertaking Dorel Industries Inc. and other group companies. As per 31 December 2025 the total liability under the credit agreement was 223 mUSD.

10.	PROVISIONS FOR LIABILITIES

2025

2024

£

Deferred tax

37,000

60,000

Deferred

tax

£

Balance at 1 January 2025

60,000

Credit to Income Statement during year

(23,000

)

Balance at 31 December 2025

37,000

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

5,700,116

Ordinary

1

5,700,116

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Material uncertainty related to going concern

We draw attention to Note 2 in the financial statements, which indicates that the company is guarantor for certain loan facilities in the Dorel Industries Inc. group and that the group is subject to certain quarterly covenants. The group's ability to fund its operations and meet its cash flow requirements is dependent upon the continued support of the lenders and the group's ability to meet quarterly covenants. As stated in note 2, these events and conditions, along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

John Lindegaard (Senior Statutory Auditor)

for and on behalf of Krogh & Partners Limited, (Statutory Auditor)

13.	OTHER FINANCIAL COMMITMENTS

At 31 December 2025 the company had commitments under non-cancellable operating leases totalling £0 (31 December 2024 - £6,218).

14.	RELATED PARTY DISCLOSURES

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

15.	ULTIMATE CONTROLLING PARTY

The immediate parent undertaking is Dorel Industries Inc., a company incorporated and registered in Canada.

Dorel Industries Inc. (incorporated in Canada) is the smallest and largest group to consolidate these financial statements and copies can be obtained from:

Dorel Industries Inc.

1255 Greene Avenue

Suite 300

Westmount, Quebec

Canada H3Z 2A4