REGISTERED NUMBER: 03549429 (England and Wales)

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2026

FOR

FARLOWS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

R Philpott

S P G Hughes

REGISTERED OFFICE:

9 Pall Mall

London

SW1Y 5NP

REGISTERED NUMBER:

03549429 (England and Wales)

SENIOR STATUTORY AUDITOR:

Shailesh Patel

AUDITORS:

MCA Audit Limited

7 St John’s Road

Harrow

HA1 2EY

FIXED ASSETS

Intangible assets

4

4,294

4,830

Tangible assets

5

681,461

756,444

685,755

761,274

CURRENT ASSETS

Stocks

6

1,165,409

1,106,782

Debtors

7

194,062

219,353

Cash at bank and in hand

471,801

416,481

1,831,272

1,742,616

CREDITORS

Amounts falling due within one year

8

943,105

870,711

NET CURRENT ASSETS

888,167

871,905

TOTAL ASSETS LESS CURRENT LIABILITIES

1,573,922

1,633,179

CREDITORS

Amounts falling due after more than one year

9

2,026,335

2,029,320

CAPITAL AND RESERVES

Called up share capital

2,380,109

2,380,109

Revaluation reserve

11

123,314

123,314

Retained earnings

(2,955,836

)

(2,899,564

)

SHAREHOLDERS' DEFICIT

(452,413

)

(396,141

)

1,573,922

1,633,179

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 30 October 2026 and were signed on its behalf by:

R Philpott - Director

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going concern

The financial statements showed a loss for the year £56,272 and shareholders fund of £452,413 in deficit at the balance sheet date.

Having considered the company's post year end trading performance, cash resources and budget, together with the operational and financial measures available to management to mitigate these risks, we are satisfied that the company will be able to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements. In addition, the ultimate parent company has confirmed its intention to continue providing financial support to the company on an unchanged basis, where necessary, including the continued provision of seasonal working capital funding under the existing intercompany loan facility. Based on the historical support provided and the ultimate parent company's continued assurance, the management confirmed that such support will remain available for at least twelve months from the date of the audit report. Therefore, we consider it is appropriate to prepare the financial statements using the going concern basis.

Related party exemption

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

Turnover

Turnover represents the fair value of consideration received or receivable for goods supplied to customers in the ordinary course of business, net of value added tax, returns, trade discounts and other sales-related allowances.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the customer, the company retains neither continuing managerial involvement nor effective control over the goods sold, the amount of revenue and associated costs can be measured reliably, and it is probable that the economic benefits associated with the transaction will flow to the company.

For retail sales, revenue is normally recognised at the point of sale. For online and mail-order sales, revenue is recognised when the significant risks and rewards of ownership have transferred to the customer in accordance with the applicable terms of sale.

Amounts received from customers in respect of gift vouchers and gift cards are initially recognised as a liability and recognised as revenue when the voucher or gift card is redeemed. Amounts relating to unredeemed vouchers and gift cards are recognised as revenue when the company's obligation expires or when redemption is considered remote, as appropriate.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Tangible fixed assets are initially measured at cost.

Freehold land and buildings are subsequently measured at revalued amount, being fair value at the date of revaluation less subsequent accumulated depreciation and impairment losses. Revaluations are undertaken with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.

Other tangible fixed assets are subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

The cost of tangible fixed assets includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to operate as intended.

Depreciation is charged so as to allocate the depreciable amount of an asset, being its cost or valuation less its residual value, over its estimated useful economic life on a systematic basis.

The principal annual depreciation rates/periods are:

Freehold land

-

not depreciated

Freehold property

-

50 years

Improvements to property

-

10 years

Fixtures and fittings

-

3 to 5 years

Computer equipment

-

3 to 5 years

The residual values and useful economic lives of tangible fixed assets are reviewed if there is an indication of a significant change since the previous reporting date.

At each reporting date, the company considers whether there are indicators that a tangible fixed asset may be impaired. Where such indicators exist, the recoverable amount of the asset is estimated and any impairment loss recognised in accordance with FRS 102.

Revaluation gains are recognised in other comprehensive income and accumulated in the revaluation reserve, except to the extent that they reverse a previous revaluation decrease in respect of the same asset that was recognised in profit or loss. Revaluation losses are recognised in other comprehensive income to the extent of any previously recognised revaluation surplus relating to that asset, with any excess recognised in profit or loss.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Cost is determined using the weighted average cost method. This method calculates the cost of inventories based on the average cost of similar items at the beginning of the period and those purchased or produced during the period. The weighted average is recalculated after each purchase.

Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Costs of purchase include purchase price, import duties, transport and handling costs, and other directly attributable costs, net of trade discounts, rebates and similar items.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Provision is made for obsolete, slow-moving or defective inventory where appropriate.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs

From 1 April 2015, under the Pensions Act 2008, the company must put certain staff into a pension scheme and contribute towards it. This is called automatic enrolment. To comply with automatic enrolment laws, the company signed a participation agreement with a pension provider by which staff become members of an independently administered pension plan. The company and staff make contributions as specified in the plan.

For those staff members not enrolled in the above scheme the company makes contributions into their personal pension schemes.

The company has no liability under the aforementioned schemes other than for the payment of those contributions.

At the balance sheet, contributions outstanding amounted to £6,769 (2025: £6,927).

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 40 (2025 - 41 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 February 2025

and 31 January 2026

5,367

AMORTISATION

At 1 February 2025

537

Charge for year

536

At 31 January 2026

1,073

NET BOOK VALUE

At 31 January 2026

4,294

At 31 January 2025

4,830

5.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST

At 1 February 2025

296,000

2,516,382

196,235

Additions

-

5,752

-

At 31 January 2026

296,000

2,522,134

196,235

DEPRECIATION

At 1 February 2025

76,650

2,021,856

196,235

Charge for year

8,517

59,952

-

At 31 January 2026

85,167

2,081,808

196,235

NET BOOK VALUE

At 31 January 2026

210,833

440,326

-

At 31 January 2025

219,350

494,526

-

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 February 2025

390,007

3,544

1,185,002

4,587,170

Additions

5,730

-

16,912

28,394

At 31 January 2026

395,737

3,544

1,201,914

4,615,564

DEPRECIATION

At 1 February 2025

385,643

3,544

1,146,798

3,830,726

Charge for year

3,639

-

31,269

103,377

At 31 January 2026

389,282

3,544

1,178,067

3,934,103

NET BOOK VALUE

At 31 January 2026

6,455

-

23,847

681,461

At 31 January 2025

4,364

-

38,204

756,444

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows:

Computer

equipment

£

COST

At 1 February 2025

and 31 January 2026

148,410

DEPRECIATION

At 1 February 2025

and 31 January 2026

148,410

NET BOOK VALUE

At 31 January 2026

-

At 31 January 2025

-

6.

STOCKS

2026

2025

£

£

Finished goods

1,165,409

1,106,782

7.

DEBTORS

2026

2025

£

£

Amounts falling due within one year:

Other debtors

10,532

-

Prepayments and accrued income

131,930

167,753

142,462

167,753

2026

2025

£

£

Amounts falling due after more than one year:

Amount due from Subsidiary Com

pany

51,600

51,600

51,600

51,600

Aggregate amounts

194,062

219,353

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade creditors

588,508

462,117

Social security and other taxes

33,100

30,086

VAT

206,678

230,990

Other creditors

35,585

41,670

Gift Card Control Account

50,285

54,589

Accruals and deferred income

28,949

51,259

943,105

870,711

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Amount owed to group undertaking

2,026,335

2,029,320

Included in the creditors of £2,026,335, £598,677 was the amounts owed to group undertakings on a separate long term loan facility provided by the immediate holding company, Farlows Group Limited. The loan was provided with an interest rate of 7.00% per annum and with a contractual repayment date of 31 May 2028.

£1,427,658 was the amounts owed to group undertakings relate to the loan facilities provided by the immediate holding company, Farlows Group Limited. These loans are provided on an interest-free basis, with no set repayment date. The ultimate parent company has confirmed its intention to continue providing financial support to the Company on terms consistent with existing arrangements. This includes the continued provision of the working capital funding under the existing intercompany loan facility, with no changes currently anticipated to the nature or terms of that support.

Following a review of the repayment terms with the immediate parent company, the creditor has been reclassified as amounts due more than one year. The comparative figures have been reclassified accordingly to ensure consistency of presentation.

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2026

2025

£

£

Within one year

165,000

165,000

Between one and five years

165,000

330,000

330,000

495,000

11.

RESERVES

Revaluation

reserve

£

At 1 February 2025

and 31 January 2026

123,314

Deferred tax is recognised on the revaluation of property, although at the reporting date the amount was considered to be immaterial.

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

The Report of the Auditors was unqualified.

Shailesh Patel (Senior Statutory Auditor)

for and on behalf of MCA Audit Limited

13.	RELATED PARTY DISCLOSURES

Farlows Group Ltd

Immediate parent company

Registered office: 9 Pall Mall, London, SW1Y 5NP

31.1.26

31.1.25

£

£

Amount due to related party at the balance sheet date

2,026,335

2,029,320

14.	ULTIMATE CONTROLLING PARTY

The immediate parent undertaking of the company is Farlows Group Limited, which is a wholly owned subsidiary of Farlows International Limited. The ultimate controlling party is S P G Hughes, who owns 95% of the issued share capital of Farlows International Limited.