ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

Registered number: 02665163

HARLEQUIN OFFICE FURNITURE LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

HARLEQUIN OFFICE FURNITURE LIMITED

COMPANY INFORMATION

Directors	J Teesdale
	G Teesdale
	H Edmondson (appointed 25 November 2025)


Registered number	02665163


Registered office	Unit 2 Dunlop Way
	Queensway Business Park
	Scunthorpe
	North Lincolnshire
	DN16 3RN


Independent auditors	Shorts
	Chartered Accountants & Statutory Auditor
	Cedar House
	63 Napier Street
	Sheffield
	South Yorkshire
	S11 8HA


Bankers	Royal Bank of Scotland


	HSBC

HARLEQUIN OFFICE FURNITURE LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditors' Report	5 - 8
Statement of Comprehensive Income	9
Balance Sheet	10
Statement of Changes in Equity	11
Statement of Cash Flows	12 - 13
Analysis of Net Debt	14
Notes to the Financial Statements	15 - 27

HARLEQUIN OFFICE FURNITURE LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction

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

Business review

The principal activity of the business continued to be that of the wholesale of office furniture.

Market conditions are expected to remain competitive. The Company continues to maintain strong relationships with all suppliers, which is necessary to ensure it can continue to supply high quality products, to its customers, at competitive prices.

Principal risks and uncertainties

The directors consider that the risk and uncertainties surrounding the Company continue to be in line with other businesses in the sector, the key risk factor being competition in the market.

Credit Risk

The Company offers credit terms to its customers and is at risk, to the extent, that a customer may be unable to pay a debt by the specified due date. This risk is mitigated by strong on-going customer relationships and credit control procedures internally.

Liquidity Risk

The objective of the Company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The Company finances its operation through a mixture of retained profit, invoice finance and cash at bank. The Directors consider that the Company is not exposed to a cashflow or liquidity risk and that banking facilities are currently satisfied and not at risk of being withdrawn.

Employees

To achieve its objectives the Company recruits and retains a high calibre of employees at every level of the organisation and principles of equal opportunity are embodied throughout.

Financial key performance indicators

The key performance indicators of the Company are turnover, gross profit and net profit.

Turnover: £11,332,630 (2024: £11,733,993).
Gross profit: £3,076,433 (2024: £3,078,456).
Net profit: £1,217,791 (2024: £1,439,147).

Future developments

The Directors believe that the forthcoming financial year will be one of concentrating on sales growth whilst showing sustainable profitability due to focusing on improving gross margins and net profits. Their aim is to continue investment in employees and the strong partnerships with key customers and suppliers.

Page 1

HARLEQUIN OFFICE FURNITURE LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

This report was approved by the board on 8 September 2026 and signed on its behalf.

J Teesdale

Director

Page 2

HARLEQUIN OFFICE FURNITURE LIMITED

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.

Directors

The directors who served during the year were:

J Teesdale

G Teesdale

H Edmondson (appointed 25 November 2025)

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

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

∙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.

Qualifying third party indemnity provisions

The directors have been granted a qualifying third party indemnity provision under Section 234 of the Companies Act 2006. This indemnity does not provide cover in the event of a director acting fraudulently or dishonestly.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3

HARLEQUIN OFFICE FURNITURE LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditors, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 September 2026 and signed on its behalf.

J Teesdale

Director

Page 4

HARLEQUIN OFFICE FURNITURE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARLEQUIN OFFICE FURNITURE LIMITED

Opinion

We have audited the financial statements of Harlequin Office Furniture Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity 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 our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 December 2025 and of its profit 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 Auditors' 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.

Page 5

HARLEQUIN OFFICE FURNITURE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARLEQUIN OFFICE FURNITURE LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

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.

Matters on which we are required to report by exception

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.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.

Page 6

HARLEQUIN OFFICE FURNITURE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARLEQUIN OFFICE FURNITURE LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

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 Auditors' 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

∙the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙through discussions with the directors and other management and from our commercial knowledge and experience of the sectors that the Company operates in, we identified the laws and regulations applicable to the Company; and

∙focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

∙performed analytical procedures to identify any unusual or unexpected relationships;

∙considered journal entries to identify unusual transactions;

∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

∙investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

∙agreeing financial statement disclosures to underlying supporting documentation;

∙enquiring of management as to actual and potential litigation and claims; and

∙reviewing any correspondence with HMRC, relevant regulators and the Company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Page 7

HARLEQUIN OFFICE FURNITURE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARLEQUIN OFFICE FURNITURE LIMITED (CONTINUED)

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Auditors' Report.

Use of our 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 Auditors' 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.

Malcolm Pope BA FCA (Senior Statutory Auditor)

for and on behalf of

Shorts

Chartered Accountants

Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA

8 September 2026

Page 8

HARLEQUIN OFFICE FURNITURE LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover	4	11,332,630	11,733,993
Cost of sales		(8,256,197)	(8,655,537)
Gross profit		3,076,433	3,078,456
Administrative expenses		(1,427,742)	(1,145,326)
Other operating income	5	1,842	14,812
Operating profit	6	1,650,533	1,947,942
Interest receivable and similar income		3,471	4,377
Interest payable and similar expenses		(40,403)	(29,313)
Profit before tax		1,613,601	1,923,006
Tax on profit	9	(395,810)	(483,811)
Profit for the financial year		1,217,791	1,439,195

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 15 to 27 form part of these financial statements.

Page 9

HARLEQUIN OFFICE FURNITURE LIMITED

REGISTERED NUMBER: 02665163

BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	10		521,898		1,840,594
Current assets
Stocks	11	1,567,135		1,712,623
Debtors: amounts falling due within one year	12	2,632,218		2,268,326
Cash at bank and in hand		175,197		1,426,582
		4,374,550		5,407,531
Creditors: amounts falling due within one year	13	(1,857,654)		(912,773)
Net current assets			2,516,896		4,494,758
Total assets less current liabilities			3,038,794		6,335,352
Creditors: amounts falling due after more than one year	14		(2,041,596)		(171,533)
Provisions for liabilities
Deferred tax	17		(124,029)		(201,110)
Net assets			873,169		5,962,709

Capital and reserves
Called up share capital	18	77	77
Revaluation reserve	19	-	478,148
Capital redemption reserve	19	27	27
Profit and loss account	19	873,065	5,484,457
		873,169	5,962,709

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 September 2026.

J Teesdale	H Edmondson
Director	Director

The notes on pages 15 to 27 form part of these financial statements.

Page 10


		HARLEQUIN OFFICE FURNITURE LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Capital redemption reserve	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2024	77	27	489,151	4,107,659	4,596,914

Profit for the year	-	-	-	1,439,195	1,439,195
Dividends: Equity capital	-	-	-	(73,400)	(73,400)
Transfer to/from profit and loss account	-	-	(11,003)	11,003	-

At 1 January 2025	77	27	478,148	5,484,457	5,962,709

Profit for the year	-	-	-	1,217,791	1,217,791
Dividends: Equity capital	-	-	-	(6,307,331)	(6,307,331)
Transfer to/from profit and loss account	-	-	(478,148)	478,148	-
At 31 December 2025	77	27	-	873,065	873,169

The notes on pages 15 to 27 form part of these financial statements.

Page 11

HARLEQUIN OFFICE FURNITURE LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	1,217,791	1,439,195
Adjustments for:
Depreciation of tangible assets	172,332	190,361
Loss on disposal of tangible assets	26,085	16,754
Government grants	(1,842)	(12,448)
Interest paid	40,403	29,313
Interest received	(3,471)	(4,377)
Taxation charge	318,729	483,811
Decrease/(increase) in stocks	145,488	(507,658)
(Increase)/decrease in debtors	(392,849)	435,618
Decrease/(increase) in amounts owed by groups	28,955	(276,312)
Increase/(decrease) in creditors	343,525	(157,234)
Increase/(decrease)) in amounts owed to groups	-	(343,244)
Corporation tax (paid)	(360,884)	(850,642)
Net cash generated from operating activities	1,534,262	443,137

Cash flows from investing activities
Purchase of tangible fixed assets	(235,398)	(169,373)
Sale of tangible fixed assets	1,355,677	32,500
Government grants received	1,842	12,448
Interest received	3,471	4,377
HP interest paid	(23,195)	(21,826)
Net cash from investing activities	1,102,397	(141,874)
Cash flows from financing activities
New secured loans	2,445,652	-
Repayment of/new finance leases	(9,157)	(45,090)
Dividends paid	(6,307,331)	(73,400)
Interest paid	(17,208)	(7,487)
Net cash used in financing activities	(3,888,044)	(125,977)
Net (decrease)/increase in cash and cash equivalents	(1,251,385)	175,286
Cash and cash equivalents at beginning of year	1,426,582	1,251,296
Cash and cash equivalents at the end of year	175,197	1,426,582

Cash and cash equivalents at the end of year comprise:

Page 12

HARLEQUIN OFFICE FURNITURE LIMITED

STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

		2025	2024
		£	£

Cash at bank and in hand	175,197	1,426,582
	175,197	1,426,582

The notes on pages 15 to 27 form part of these financial statements.

Page 13

HARLEQUIN OFFICE FURNITURE LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2025


At 1 January 2025	Cash flows	New finance leases	At 31 December 2025
£	£	£	£

Cash at bank and in hand	1,426,582	(1,251,385)	-	175,197
Debt due after 1 year	-	(1,882,996)	-	(1,882,996)
Debt due within 1 year	-	(562,656)	-	(562,656)
Finance leases	(330,555)	68,938	(59,781)	(321,398)
	1,096,027	(3,628,099)	(59,781)	(2,591,853)

The notes on pages 15 to 27 form part of these financial statements.

Page 14

HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Harlequin Office Furniture Limited is a private Company limited by shares, incorporated in England and Wales (registered number: 02665163). Its registered office is Unit 2 Dunlop Way, Queensway Business Park, Scunthorpe, North Lincolnshire, DN16 3RN. The principal activity of the Company throughout the year continued to be that of the wholesale of office furniture.

2.Accounting policies

2.1

Basis of preparation of financial statements

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:

2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.3

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.

The depreciation rates used are

Freehold property	-	2%	straight line
Plant and machinery	-	10%	reducing balance
Motor vehicles	-	25%	reducing balance
Fixtures and fittings	-	25%	reducing balance
Computer equipment	-	25%	reducing balance

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.

2.4

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.5

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs. The impairment loss is recognised immediately in profit or loss.

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HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.6

Financial instruments

Basic financial instruments

The Company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

2.8

Operating leases: the Company as lessee

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

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HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.10

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.11

Revaluation of tangible fixed assets

Freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.

Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.12

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates, will, by definition, seldom equal the related actual results. The estimates and assumptions that have the greatest level of uncertainty are addressed below:

i.Impairment of debtors

The Company may estimate the recoverable value of debtors. When assessing impairment of trade and other debtors, management considers factor including the current credit rating of the debtor, the aging profile of the debt and historical experience and outcomes. The amount of debtors after making such provision, where required, is presented in the Debtors note to these financial statements.

ii.Stock provision

The Company may estimate the recoverable value of stock for resale. When assessing whether stock is impaired, management considers factors such as market conditions, aging profile of stock and historical experience. The amount of stock after making any such provisions is included in the Stocks note to these financial statements.

iii.Rebates

The Company makes an estimate of the value of rebates due to customers. When assessing the value of rebates, management consider factors such as the agreed rates per contracts and activity levels within the current period. Any rebates are included within the Creditors note to these financial statements.

4.	Turnover
		2025	2024
		£	£

	Turnover	11,332,630	11,733,993

All turnover arose within the United Kingdom.

5.	Other operating income
		2025	2024
		£	£

Government grants receivable	1,842	12,448
Insurance claims receivable	-	2,364
	1,842	14,812

Page 19

HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Depreciation - owned assets	63,424	65,384
Depreciation - financed assets	108,902	124,977
Lease charges - property	77,835	38,617
Lease charges - other	63,790	57,767

Fees payable to the Company's auditors for the audit of the Company's financial statements

25,000

13,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Wages and salaries	1,596,103	1,431,467
Social security costs	163,876	138,236
Cost of defined contribution scheme	23,189	193,282
	1,783,168	1,762,985

The average monthly number of employees, including the directors, during the year was as follows:

			2025	2024
			No.	No.

			48	49

Page 20

HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Corporation tax
Current tax on profits for the year	461,859	497,877
Adjustments in respect of previous periods	11,032	(3,793)
	472,891	494,084

	Deferred tax
	Origination and reversal of timing differences	(77,081)	(10,273)


	Tax on profit	395,810	483,811

Profit on ordinary activities before tax

1,613,601

1,923,006

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	403,400	480,752
Effects of:
Expenses not deductible for tax purposes	61,640	364
Fixed asset differences	(31,263)	6,500
Adjustments to tax charge in respect of prior periods	11,032	(3,793)
Other tax adjustments, reliefs and transfers	11,978	-
Chargeable gains/(losses)	(61,001)	-
Group relief surrendered/(claimed)	-	(12)
Movement in deferred tax not recognised	24	-
Total tax charge for the year	395,810	483,811

Factors that may affect future tax charges

There are no factors that may affect future tax charges.

Page 21

HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.	Tangible fixed assets

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Computer equipment	Total
	£	£	£	£	£	£
Cost or valuation
At 1 January 2025	1,300,000	84,114	663,923	156,093	38,883	2,243,013
Additions	-	-	227,533	-	7,865	235,398
Disposals	(1,300,000)	(43,997)	(169,222)	(100,485)	-	(1,613,704)
At 31 December 2025	-	40,117	722,234	55,608	46,748	864,707
Depreciation
At 1 January 2025	26,000	21,518	246,788	90,936	17,177	402,419
Charge for the year on owned assets	23,833	7,407	8,829	16,309	7,052	63,430
Charge for the year on financed assets	-	-	108,902	-	-	108,902
Disposals	(49,833)	(19,642)	(86,384)	(76,083)	-	(231,942)
At 31 December 2025	-	9,283	278,135	31,162	24,229	342,809
Net book value
At 31 December 2025	-	30,834	444,099	24,446	22,519	521,898
At 31 December 2024	1,274,000	62,596	417,135	65,157	21,706	1,840,594

The freehold property was revalued at 31 December 2023 on an open market basis as determined by the Directors.

An external valuation report, conducted by a registered valuer under the RICS Valuer Registration Scheme, was obtained on 25 September 2024, confirming a valuation of £1.3m.

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2025	2024
	£	£


	Motor vehicles	408,167	411,125

Had the land and buildings not been included at valuation, they would have been recorded under the historical cost convention. The historical cost of the land and buildings is £NIL (2024: £749,848), with accumulated depreciation of £NIL (2024: £121,789).

Page 22

HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11.	Stocks
		2025	2024
		£	£

	Goods for resale	1,567,135	1,712,623

12.

Debtors

					2025	2024
					£	£


Trade debtors	2,061,192	1,590,421
Amounts owed by group undertakings	247,357	276,312
Other debtors	212,217	293,776
Prepayments and accrued income	111,452	107,817
	2,632,218	2,268,326

13.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Bank loans	562,656	-
Trade creditors	455,457	278,833
Corporation tax	172,803	137,877
Other taxation and social security	279,280	183,490
Obligations under finance lease and hire purchase contracts	162,799	159,022
Other creditors	99,505	20,739
Accruals and deferred income	125,154	132,812
	1,857,654	912,773

Included within creditors falling due within one year are net obligations under finance leases and hire purchase contracts of £162,799 (2024: £159,022) which are secured against the underlying assets to which they relate.

There are also amounts totalling £91,768 (2024: £NIL) included within other creditors which relate to invoice finance facilities, which are secured against the book debts of the Company.

There are also amounts totalling £19,351 (2024: £38,849) included within other debtors which relate to invoice discounting facilities, which are secured against the book debts of the Company.

Included within creditors falling due within one year are bank loans of £562,656 (2024: £NIL) which are secured over all assets of the Company.

Page 23

HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

14.	Creditors: Amounts falling due after more than one year
		2025	2024
		£	£

Bank loans	1,882,996	-
Net obligations under finance leases and hire purchase contracts	158,600	171,533

Included within creditors falling due after one year are net obligations under finance leases and hire purchase contracts of £158,600 (2024: £171,533) which are secured against the underlying assets to which they relate.

Included within creditors falling due after one year are bank loans of £1,882,996 (2024: £NIL) which are secured over all assets of the Company.

Amounts falling due within one year
Bank loans	562,656	-
Amounts falling due after one year
Bank loans	1,882,996	-


	2,445,652	-

Page 24

HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

16.

Financial instruments

Derivatives

The Company enters into forward foreign exchange contracts to manage its exposure to currency risk arising from certain foreign currency payables. As at 31 December 2025, all outstanding contracts mature within nine months of the reporting date (2024: nine months).

At the reporting date, the Company was committed to purchase US$1,620,379 in exchange for a fixed amount of sterling (2024: US$2,380,339).

The forward exchange contracts are measured at fair value using valuation techniques based on observable market data. The primary input used in the valuation is the forward exchange rate for GBP:USD.

Unrealised gains of £21,226 (2024: unrealised gains of £50,285) have not been recognised in the profit and loss account. These gains will unwind as the related foreign currency transactions are settled.

Basic financial instruments

All other financial assets and liabilities are classified as basic financial instruments and are measured at amortised cost. These include trade receivables, trade payables, cash at bank, and amounts due to/from group undertakings.

Page 25

HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

17.	Deferred taxation

		2025
		£

	At beginning of year	(201,110)
	Charged to profit or loss	77,081
	At end of year	(124,029)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

Fixed asset timing differences	(124,482)	(140,544)
Short term timing differences	453	435
Capital gains	-	(61,001)
	(124,029)	(201,110)

18.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

77 (2024 - 77) Ordinary shares of £1.00 each	77	77

19.

Reserves

Revaluation reserve

The revaluation reserve represents the cumulative revaluation gains and losses in respect of land and buildings, excluding those recognised in the profit and loss account. These amounts are not distributable until realised.

Capital redemption reserve

The capital redemption reserve represents the nominal value of shares redeemed or purchased by the Company out of distributable profits, and is non-distributable.

Profit and loss account

The profit and loss account represents all current and prior retained profits and losses and is all considered to be distributable.

Page 26

HARLEQUIN OFFICE FURNITURE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

20.	Pension commitments

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. The pension cost charge represents the contributions payable by the Company to the fund and amounted to £23,189 (2024:193,282). Contributions totalling £5,916 (2024: £4,062) were payable to the fund at the Balance Sheet date and are included within creditors.

Not later than 1 year	161,816	42,965
Later than 1 year and not later than 5 years	328,723	38,236
	490,539	81,201

22.	Related party transactions
	The Company has taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned group entities. During the year the company sold the Freehold property and it's contents for £1,300,000 to a related company. The transaction was completed at an agreed price. At the balance sheet date, no amounts were outstanding in respect of this transaction.

23.	Controlling party

The immediate parent company is Harlequin Office Furniture Holdings Limited, whose registered office is Unit 2 Dunlop Way, Queensway Business Park, Scunthorpe, DN16 3RN.

From 25 November 2025, the ultimate controlling party is the Harlequin Employee Ownership Trust whose registered office is Unit 2 Dunlop Way, Queensway Industrial Estate, Scunthorpe, England, DN16 3RN.

Page 27