ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

Registered number: 01219910

HAFREN FURNISHERS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

HAFREN FURNISHERS LIMITED

COMPANY INFORMATION

Directors	P A Morgan
	T M J Morgan
	D P E Morgan (resigned 31 March 2025)


Registered number	01219910


Registered office	Border Showrooms
	Llanidloes
	Powys
	SY18 6ES


Independent auditors	WR Partners
	Chartered Accountants & Statutory Auditors
	Unit 10
	St Giles Business Park
	Newtown
	Powys
	SY16 3AJ

HAFREN FURNISHERS LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditors' Report	5 - 8
Statement of Comprehensive Income	9 - 10
Balance Sheet	10 - 11
Statement of Changes in Equity	12
Statement of Cash Flows	13 - 14
Notes to the Financial Statements	15 - 31

HAFREN FURNISHERS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 JANUARY 2026

Introduction

Hafren Furnishers is a family run independent retailer based in Llanidloes since 1965 with an 80,000sq. ft showroom. In 2022 a second ‘state of the art’ retail showroom opened in Aberystwyth offering a further 40,000sq. ft of modern furniture displays.

On 31st March 2025 a director / shareholder, DPE Morgan, retired after 40 years of notable service to the business. Also in March the Eastgate Street small storage warehouse was disposed of for residential development, in line with the objectives to centralise the storage and distribution facilities.

Business review

The last 12 months has been a period of economic uncertainty, despite this, turnover was slightly up on the previous year and gross margin remained constant. Operating and employment costs increased during the year impacting the overall performance.

In a challenging market the directors are satisfied with the positive cash flow position, resulting in a good overall performance. Net margins continue to be under pressure following further unavoidable increases in employment costs.

The relatively small ancillary investment business made a valuable contribution during the year, and the directors continue to adopt a modestly defensive medium-term strategy against the background of volatile market forces.
The company remains in a strong financial position and as such the directors are confident that the business can successfully manage in periods of ‘sluggish consumer demand’

The business continues to invest in both showrooms to ensure we continue to meet customer expectations, offering the best customer experience, showcasing a wide and diverse range of products. Alongside this commitment to the importance of our class leading physical presence across Wales, the directors continue to develop the online presence and associated marketing activities which generate business across the whole of the UK and beyond.

Page 1

HAFREN FURNISHERS LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2026

Principal risks and uncertainties

The Directors identified the below as the key principal risks and uncertainties which may impact the business:

Supply Chain: The availability of quality stock is managed through close supplier relationships, diversified sourcing arrangements and effective stock management to ensure continuity of supply and customer service.

Market Competition: Increased competition within the market which is managed through maintaining quality and timeliness of supply.

Financial Risk: Ongoing monitoring of customer credit risk, impact of inflation on costs incurred in the business and proactive management of cashflow in order to enable continued investment.

Financial key performance indicators

The Directors use financial key performance indicators to monitor the performance of the business. At present these include growth in turnover volume, sales price per unit, gross margin and net margin percentages as well as cashflow.

This report was approved by the board on 20 October 2026 and signed on its behalf.

T M J Morgan

Director

Page 2

HAFREN FURNISHERS 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.

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 judgments 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.

Results and dividends

The loss for the year, after taxation, amounted to £89,292 (2025 - profit £43,316).

Directors

The directors who served during the year were:

P A Morgan

T M J Morgan

D P E Morgan (resigned 31 March 2025)

Page 3

HAFREN FURNISHERS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2026

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.

Auditors

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

This report was approved by the board on 20 October 2026 and signed on its behalf.

T M J Morgan

Director

Page 4

HAFREN FURNISHERS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAFREN FURNISHERS LIMITED

Opinion

We have audited the financial statements of Hafren Furnishers Limited (the 'Company') for the year ended 31 January 2026, 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 January 2026 and of its loss 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.

Page 5

HAFREN FURNISHERS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAFREN FURNISHERS LIMITED (CONTINUED)

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.

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

HAFREN FURNISHERS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAFREN FURNISHERS 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:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safely Regulations and tho EU General Data Protection Regulation (GDPR).

We understood how the Company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures We also reviewed board minutes to identify any recorded instances of irregularity or compliance that might have a material impact on the financial statements.

We assessed the susceptibility of the Company's financial statements to material misstatement including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved making enquiries of management, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.

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.

Page 7

HAFREN FURNISHERS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAFREN FURNISHERS LIMITED (CONTINUED)

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.

Alex Riley FCCA (Senior Statutory Auditor)

for and on behalf of

WR Partners

Chartered Accountants

Statutory Auditors

Unit 10

St Giles Business Park

Newtown

Powys

SY16 3AJ

20 October 2026

Page 8

HAFREN FURNISHERS LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 JANUARY 2026

	2026	As restated 2025
Note	£	£


Turnover	4	5,255,742	5,170,275
Cost of sales		(3,101,291)	(3,066,914)
Gross profit		2,154,451	2,103,361
Administrative expenses		(2,332,139)	(2,206,308)
Other operating income	5	26,400	36,400
Fair value movements of investments		11,170	(27,397)
Operating loss	6	(140,118)	(93,944)
Profit on disposal of investments		23,400	36,860
Interest receivable and similar income	10	9,586	17,696
Interest payable and similar expenses	11	(793)	-
Loss before tax		(107,925)	(39,388)
Tax on loss	12	18,633	82,704
(Loss)/profit for the financial year		(89,292)	43,316

There were no recognised gains and losses for 2026 or 2025 other than those included in the statement of comprehensive income.

The notes on pages 15 to 31 form part of these financial statements.

Page 9

HAFREN FURNISHERS LIMITED

BALANCE SHEET

AS AT 31 JANUARY 2026

		As restated
	2026	2025
Note	£	£

Fixed assets
Tangible assets	13		3,777,922		4,048,226
Investments	14		363,355		484,810
Investment property	15		300,000		300,000
			4,441,277		4,833,036
Current assets
Stocks	16	2,315,692		2,285,348
Debtors: amounts falling due within one year	17	139,365		197,371
Cash at bank and in hand	18	1,142,502		1,877,194
		3,597,559		4,359,913
Creditors: amounts falling due within one year	19	(873,828)		(897,443)
Net current assets			2,723,731		3,462,470
Total assets less current liabilities			7,165,008		8,295,506
Creditors: amounts falling due after more than one year			(258,090)		(292,570)
Provisions for liabilities
Deferred tax	21	(113,294)		(224,861)
			(113,294)		(224,861)
Net assets			6,793,624		7,778,075

Page 10

HAFREN FURNISHERS LIMITED

REGISTERED NUMBER: 01219910

BALANCE SHEET (CONTINUED)

AS AT 31 JANUARY 2026

		As restated
	2026	2025
Note	£	£

Capital and reserves
Called up share capital	22	12,528	13,920
Revaluation reserve	23	1,052,973	1,101,553
Capital redemption reserve	23	1,392	-
Profit and loss account	23	5,726,731	6,662,602
		6,793,624	7,778,075

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 October 2026.

T M J Morgan

Director

The notes on pages 15 to 31 form part of these financial statements.

Page 11

HAFREN FURNISHERS LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 JANUARY 2026

	Called up share capital	Capital redemption reserve	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 February 2024 (as previously stated)	13,920	-	1,856,318	6,372,446	8,242,684
Prior year adjustment - see note 24	-	-	(754,765)	246,840	(507,925)
At 1 February 2024 (as restated)	13,920	-	1,101,553	6,619,286	7,734,759
Comprehensive income for the year
Profit for the year	-	-	-	43,316	43,316

At 1 February 2025	13,920	-	1,101,553	6,662,602	7,778,075
Comprehensive income for the year
Loss for the year	-	-	-	(89,292)	(89,292)
Reserve transfer - property disposal	-	-	(48,580)	48,580	-
Total comprehensive income for the year	-	-	(48,580)	(40,712)	(89,292)
Purchase of own shares	-	1,392	-	(895,159)	(893,767)
Shares cancelled during the year	(1,392)	-	-	-	(1,392)
Total transactions with owners	(1,392)	1,392	-	(895,159)	(895,159)
At 31 January 2026	12,528	1,392	1,052,973	5,726,731	6,793,624

The notes on pages 15 to 31 form part of these financial statements.

Page 12

HAFREN FURNISHERS LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JANUARY 2026

				As restated
			2026	2025
			£	£

Cash flows from operating activities
(Loss)/profit for the financial year	(89,292)	43,317
Adjustments for:
Depreciation of tangible assets	86,129	82,467
Profit on disposal of tangible assets	(138,760)	(14,986)
Government grants	-	(10,000)
Interest paid	793	-
Interest received	(9,586)	(17,696)
Taxation charge	(18,633)	(82,704)
(Increase)/decrease in stocks	(30,343)	11,893
(Increase)/decrease in debtors	(34,928)	43,069
(Decrease)/increase in creditors	(13,463)	337,897
Net fair value (gains)/losses recognised in P&L	(11,170)	27,397
Accrued (income)/expenses	-	(106,825)
(Profit)/loss on disposal of investments	(23,400)	(86,522)
Prior Year Adjustment - creditors	-	(356,639)
Net cash generated from operating activities	(282,653)	(129,332)

Cash flows from investing activities
Purchase of tangible fixed assets	-	(163,316)
Sale of tangible fixed assets	322,935	57,498
Purchase of investments	(151,425)	(201,900)
Sale of investments	307,450	589,200
Interest received	9,586	17,696
HP interest paid	(793)	-
Net cash from investing activities	487,753	299,178

Page 13

HAFREN FURNISHERS LIMITED

STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2026

			As restated
		2026	2025
		£	£


Cash flows from financing activities
Repayment of/new finance leases	(44,632)	44,632
Share buyback	(895,159)	-
Government grant income	-	10,000
Net cash used in financing activities	(939,791)	54,632
Net (decrease)/increase in cash and cash equivalents	(734,691)	224,478
Cash and cash equivalents at beginning of year	1,877,193	1,652,715
Cash and cash equivalents at the end of year	1,142,502	1,877,193

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	1,142,502	1,877,193
	1,142,502	1,877,193

The notes on pages 15 to 31 form part of these financial statements.

Page 14

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

1.	General information

Hafren Furnishers Limited, 01219910, is a private company limited by shares, incorporated in England and Wales, with its registered office and principal place of business at Border Showrooms, Llanidloes, Powys, United Kingdom, SY18 6ES

The principal activity of the company is furniture sales accompanied by ancillary investment business activities.

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 judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Going concern

The Company's forecasts and projections, taking account of reasonable possible changes in trading performance, show that the Company should be able to operate within the level of its current facilities.

After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the forseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 15

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

2.Accounting policies (continued)

2.4

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.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

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

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

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.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

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.

Page 16

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

2.Accounting policies (continued)

2.7

Interest income

Interest income is recognised when received, where this is not materially different from the amount that would be recognised using the effective interest method.

2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.9

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.

2.10

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.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 17

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

2.Accounting policies (continued)

2.11

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property	-		No depreciation
Plant and machinery	-	25%	Reducing balance
Motor vehicles	-	25%	Reducing balance
Fixtures and fittings	-	20%	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.

2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold 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.

2.13

Investment property

Investment property is held at fair value with the Directors performing an annual assessment as to whether there has been any indicators of a material change in value from the last external valuation performed. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 18

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

2.Accounting policies (continued)

2.15

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 first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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 to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment.

2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.20

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Page 19

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

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

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the directors the below estimates and assumptions have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year:

Freehold and Investment Property Valuation

Individual 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. The value at the year end is £3,470,000 (2025: £3,595,000) with no revaluation movement recognised in the year.

Investment property is held at fair value with the Directors performing an annual assessment as to whether there has been any indicators of a material change in value from the last external valuation performed. The value at the year end is £300,000 (2025:£300,000) with no revaluation movement recognised in the year.

Stock Provision
The Company makes assessment of whether stock items requires provision based on age and condition of stock items. At the year end a provision of £nil (2025: £nil) was recorded.

Sale of goods	5,239,439	5,152,696
Other income	16,303	17,579
	5,255,742	5,170,275

Analysis of turnover by country of destination:

					2026	2025
					£	£

United Kingdom	5,255,742	5,170,275
	5,255,742	5,170,275

Page 20

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

5.	Other operating income
		2026	2025
		£	£

Net rents receivable	26,400	26,400
Government grants receivable	-	10,000
	26,400	36,400

Depreciation	86,130	82,468
Exchange differences	686	(1,140)
Other operating lease rentals	24,069	50,917

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

13,500

12,000

Page 21

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

Wages and salaries	1,443,878	1,413,776
Social security costs	153,815	125,254
Cost of defined contribution scheme	86,170	72,896
	1,683,863	1,611,926

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

	2026	2025
	No.	No.

Directors	2	3
Employees	60	59

	62	62

9.	Directors' remuneration
		2026	2025
		£	£

Directors' emoluments	180,550	228,088
Company contributions to defined contribution pension schemes	60,000	-
	240,550	228,088

10.	Interest receivable
		2026	2025
		£	£

	Other interest receivable	9,586	17,696
		9,586	17,696

Page 22

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

11.	Interest payable and similar expenses
		2026	2025
		£	£

	Finance leases and hire purchase contracts	793	-
		793	-



Total current tax	-	-

Deferred tax
Origination and reversal of timing differences	(18,633)	(82,704)
Total deferred tax	(18,633)	(82,704)


	Tax on loss	(18,633)	(82,704)

Page 23

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

12.Taxation (continued)

Loss on ordinary activities before tax

(107,925)

(39,388)

Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025 - 24%)	(26,981)	(9,453)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	(6,943)	20,971
(Profit)/loss on sale of asset	(48,653)	(3,596)
Capital allowances for year in excess of depreciation	19,962	(6,596)
Deferred tax movement	(18,633)	(90,605)
Revaluation of investment	5,320	6,575
Chargeable gains	47,912	-
Unrelieved tax losses carried forward	9,383	-
Total tax charge for the year	(18,633)	(82,704)

Factors that may affect future tax charges

Future tax charges will be affected by tax losses carried forward of £393,443 (2025: £355,913).

Page 24

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

13.	Tangible fixed assets

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost or valuation
At 1 February 2025	3,595,000	266,559	65,995	593,610	4,521,164
Disposals	(125,000)	-	(65,995)	(4,700)	(195,695)
At 31 January 2026	3,470,000	266,559	-	588,910	4,325,469
Depreciation
At 1 February 2025	-	120,166	6,874	345,898	472,938
Charge for the year on owned assets	-	36,598	-	49,531	86,129
Disposals	-	-	(6,874)	(4,646)	(11,520)
At 31 January 2026	-	156,764	-	390,783	547,547
Net book value
At 31 January 2026	3,470,000	109,795	-	198,127	3,777,922
At 31 January 2025	3,595,000	146,393	59,121	247,712	4,048,226

Cost or valuation at 31 January 2026 is as follows:

			Land and buildings
			£

		At cost	-
		At valuation:
		Fair value at 31 January 2024	3,470,000

			3,470,000

Page 25

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

13.Tangible fixed assets (continued)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
	2026	2025
	£	£


Cost	2,412,821	2,489,241
Accumulated depreciation	(118,817)	(118,817)
Net book value	2,294,004	2,370,424

All freehold property held by the company was revalued to its fair value as at 31st January 2024
by AH Turner MRICS Of Morris Marshall & Poole. The directors consider the 2026 fair value to
be unchanged from the 2024 professional valuation.

14.	Fixed asset investments

		Investments
		£
	Valuation
	At 1 February 2025	484,810
	Additions	151,425
	Disposals	(284,050)
	Revaluations	11,170
	At 31 January 2026	363,355

Page 26

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

15.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 February 2025	300,000
	At 31 January 2026	300,000

The 2026 valuations were made by The Directors, on an open market value basis.

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
	2026	2025
	£	£

	Historic cost	201,500	201,500
		201,500	201,500

16.	Stocks
		2026	2025
		£	£

Goods for resale	2,315,692	2,285,348
	2,315,692	2,285,348

17.

Debtors

					2026	2025
					£	£


Trade debtors	79,584	65,172
Other debtors	1,651	-
Prepayments and accrued income	58,130	39,265
Deferred taxation	-	92,934
	139,365	197,371

Page 27

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

18.	Cash and cash equivalents
		2026	2025
		£	£

Cash at bank and in hand	1,142,502	1,877,194
	1,142,502	1,877,194

Trade creditors	212,825	196,803
Other taxation and social security	61,901	65,820
Obligations under finance lease and hire purchase contracts	-	44,632
Other creditors	51,780	35,389
Accruals and deferred income	547,322	554,799
	873,828	897,443

Prior year restatement - Creditors Classification
Certain comparative amounts have been reclassified to conform with the current year's presentation. Deferred income of £542,449, previously included within trade creditors, has been reclassified and presented separately within current liabilities. This reclassification has had no impact on net assets, profit for the year, or shareholders' funds.

Further prior year adjustments impacting Creditors are included within note 24.

20.	Creditors: Amounts falling due after more than one year
		2026	As restated 2025
		£	£

Other creditors	258,090	292,570
	258,090	292,570

Page 28

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

21.	Deferred taxation

		As restated 2026
		£

	At beginning of year	(131,927)
	Utilised in year	18,633
	At end of year	(113,294)

The provision for deferred taxation is made up as follows:
	2026	2025
	£	£

Accelerated capital allowances	(60,369)	(73,575)
Tax losses carried forward	98,361	92,934
Investment property	(24,625)	(24,625)
Freehold property	(126,661)	(126,661)
	(113,294)	(131,927)

22.	Share capital
		2026	2025
		£	£

Authorised

100,000 (2025 - 100,000) Ordinary shares shares of £1.00 each	100,000	100,000

Allotted, called up and fully paid

12,528 (2025 - 13,920) Ordinary shares shares of £1.00 each	12,528	13,920

During the year 1,392 ordinary shares were repurchased for consideration of £895,159 and subsequently cancelled by the Company.

Page 29

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

23.

Reserves

Revaluation reserve

The revaluation reserve represents the cumulative unrealised gains on revalued assets.

Capital redemption reserve

The capital redemption reserve represents the ordinary share capital repurchased and cancelled.

Profit and loss account

The profit and loss account represents the accumulated profits of the Company since incorporation less distributions made to shareholders. Of this balance £8,124 is undistributable.

24.	Prior year adjustment

Other Creditors

During the year the Directors were advised that, in order to comply with a pre-existing requirement of FRS102, it is necessary to recognise as a creditor the (unfunded) liability for potential future retirement benefits in respect of a pension arrangement with a former director. The potential future liability as at 1st February 2024 was calculated to be £356,639 and has now been charged against profit and loss reserves as at that date.

The previously reported profit for the year ended 31st January 2025 has increased by £31,229 as result of this change in accounting treatment.

Revaluation Reserve and Deferred Tax

In previous years the Directors had been advised that it was reasonable to consider the potential deferred tax liability arising in respect of the revaluation of the company`s permanent business premises as permanent and not required by FRS102 to be provided for in the profit and loss account. During the current year the Directors have been advised that this interpretation is not appropriate and have therefore increased the opening profit and loss reserve by £603,479 with the corresponding decrease to the opening revaluation reserve.

The Directors also identified that the above revaluation increases above the original cost of the properties,
in combination with further revaluation recognised in 2024 had not recognised the deferred tax liability of
£151,286. As such, the opening revaluation reserve balances have been adjusted to reflect this liability.

Total impact

The combined impact of the above on total reserves as at 1st February 2024 as previously stated is £507,925.

Other transfers between Revaluation Reserve and Profit and Loss Reserves as at 1st February 2024 have been effected following advice that they are necessary to properly reflect the reversal of previously recognised costs, but those adjustments have had no effect on the combined total value of the reserves at that date.

Page 30

HAFREN FURNISHERS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

25.	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 contributions payable by the Company to the fund and amounted to £86,170 (2025 - £72,896). Contributions totalling £345 (2025 - £5,221) were payable to the fund at the balance sheet date and are included in creditors.

Not later than 1 year	15,624	21,302
Later than 1 year and not later than 5 years	2,250	17,874
	17,874	39,176

27.	Transactions with directors

During the year advances of £1,560 were made to directors. Included within other debtors is a loan to the directors of £1,651 (2025: £91) which is repayable on demand.

No interest has been charged on this balance.

28.

Related party transactions

During the year, the Company incurred net expenditure of £32,840 (2025: £31,229) in respect of a pension arrangement with a former Director. The Company also incurred expenditure of £3,600 (2025: £Nil) in respect of services provided by a former director of the Company, these services were provided on an arm’s length basis. There were no outstanding balances at the year-end.

On 10 March 2025, the Company repurchased 1,392 ordinary shares from a director.

Page 31