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Registered number:
For the year ended
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F.M. BIRCH LIMITED
Company Information
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F.M. BIRCH LIMITED
Contents
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F.M. BIRCH LIMITED
Strategic report
For the year ended 31 January 2026
The directors present their strategic report for the year ended 31 January 2026.
F M Birch Limited specialises in the wholesale distribution of flooring, such as carpets, carpet tiles, matting, decorative vinyl, safety flooring, laminates, underlays and associated accessories, to trade customers. Our principal customer base is in Yorkshire and the bordering counties and is serviced from our three trade counter locations in Sheffield (HQ), Hull and Leeds. We supply to trade customers, local authorities, national projects and framework agreements through a well-established logistics network and partner distributors. We are a member and shareholder of Homedécor International Group, a notable association of independent businesses spanning Western Europe with expertise in specifying and sourcing flooring, and associated interior finishes, globally. We are also a member and shareholder of Floorwise, a long established buying group of independent wholesalers who operate local trade counters and nationwide distribution of the extensive range of flooring products and accessories marketed under the Floorwise brand.
The environment for our business remained challenging for this financial year with national and geopolitical conditions creating market instability shaped by domestic fiscal pressures, shifting international trade policies, escalating global risks, and unpredictable competitor activity.
Turnover for the period grew ahead of target but, despite static staffing levels, increases in National Insurance contributions, alongside higher Real Living Wage levels, put pressure on margins. During the period there was also a significant non-recurring expense for a share purchase, and other associated costs, related to the retirement of a Director. Ongoing conflicts in the Middle East and Europe aggravated logistical hurdles and drove up manufacturing, transport, and utility costs, some of which couldn’t be passed on to customers in a timely manner. Inertia in local planning systems continued to stifle investment, housing delivery, and infrastructure projects. Equally, activity generated by some of our national supply agreements remained subdued, though latterly there were indications that this was improving. Despite the ongoing headwinds caused by national and global economic and political uncertainty our outlook for the next financial year remains very positive with expectations that new marketing initiatives, product launches and improved logistical capability will deliver growth and stronger profitability.
Cyber incidents, IT disruptions and the potential for data breaches are a cause for growing concern as digital dependency continues to grow and accelerate, prompted by the seemingly unchecked primacy of AI driven systems. Costs related to security and insurance in this area are expected to grow.
The potential for business interruption caused by IT incidents, regional conflicts, shifts in trading norms, extreme weather events, and insolvencies has the potential to cause significant disruption. Inflationary pressures will remain a concern, driven by volatile oil prices and regional conflict. Supply chain interruption caused by one or more of the adverse factors described elsewhere in this report will be mitigated, wherever possible, by spreading risk across suppliers and regions.
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F.M. BIRCH LIMITED
Strategic report (continued)
For the year ended 31 January 2026
Turnover for the period was up 7.7%, recovering from the fall the previous year, driven by service improvements and demand for key product lines, but the value of operating profit was on par with the previous year, reflecting increased overheads.
Gross margin % was improved by 0.7% and value by 10.8%, and stock levels were reduced by 6.2%, on the previous year. An improved purchasing function and the removal of some stock lines with unsatisfactory turn or profitability are the main contributory factors.
Despite margin pressures the decision was made to maintain our commitment to the Real Living Wage as part of our effort to attract and retain staff in key roles.
Following audits by our accreditation body we have maintained certification in both ISO 9001:2015 and ISO 14001:2015. We have also expanded the recording and reporting function within the business to enhance relevant data quality.
This report was approved by the board on 30 September 2026 and signed on its behalf.
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F.M. BIRCH LIMITED
Directors' report
For the year ended 31 January 2026
The directors present their report and the financial statements for the year ended 31 January 2026.
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 judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 profit for the year, after taxation, amounted to £220,000 (2025 -£216,387).
No final dividend is proposed.
The directors who served during the year were:
Certain matters required by regulation to be dealt with in the annual report have been dealt with in the strategic report rather than the Directors' report, these matters include future developments.
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F.M. BIRCH LIMITED
Directors' report (continued)
For the year ended 31 January 2026
The auditors, J S Bethell & Co, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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F.M. BIRCH LIMITED
Independent auditors' report to the members of F.M. Birch Limited
We have audited the financial statements of F.M. Birch Limited (the 'Company') for the year ended 31 January 2026, which comprise the Profit and loss account, the Statement of comprehensive income, the Analysis of net debt, 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 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 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.
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F.M. BIRCH LIMITED
Independent auditors' report to the members of F.M. Birch 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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F.M. BIRCH LIMITED
Independent auditors' report to the members of F.M. Birch 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 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:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of such regulations, including fraud. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including but not limited to, the Companies Act 2006 and UK tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated whether there was evidence of management override of internal controls and bias by the directors in determining accounting estimates that represented a risk of material misstatement due to fraud. Audit procedures performed by the engagement team included, discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations, challenging assumptions and judgments made by management in their significant accounting estimates, identifying and testing journal entries and review of the nominal ledger and reviewing the financial statement disclosures and agreeing to underlying supporting documentation. We have considered the risk of fraud in revenue and have carried out audit procedures to ensure that revenue is being recognised in accordance with appropriate accounting standards and therefore not materially misstated.
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 Auditors' report.
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F.M. BIRCH LIMITED
Independent auditors' report to the members of F.M. Birch Limited (continued)
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.
for and on behalf of
Chartered Accountants
Registered Auditor
70 Clarkehouse Road
S10 2LJ
Date:
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F.M. BIRCH LIMITED
Profit and loss account
For the year ended 31 January 2026
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F.M. BIRCH LIMITED
Statement of comprehensive income
For the year ended 31 January 2026
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F.M. BIRCH LIMITED
Registered number: 00196854
Balance sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 28 form part of these financial statements.
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