Natuzzi Services Limited - Limited company accounts 25.1

REGISTERED NUMBER: 05641507 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

NATUZZI SERVICES LIMITED

Page

Report of the Directors

1

Report of the Independent Auditors

3

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

10

Notes to the Financial Statements

11

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of the sale of upholstered leather furniture on a made to order basis.

REVIEW OF BUSINESS

The Company achieved in 2024 a turnover of £4.5M representing a decrease of 8.2% compared to the previous year.

The drop in sales by 8.2% is mainly due to the poor performance of the Croyden store (-34% in comparison with 2023).

Gross Product Margins increased by 0.5% from 50.6% (2023) to 51.1% (2024). Croyden margins increased where clearance values in 2024 were 21% compared to 27% in 2023. Westfield had a reduction in discounts granted to final consumers.

Selling & Administrative costs increased by £121K (+5.6%) versus 2023, in particular due to labour, insurance, service charges. Despite a reduction in delivery costs.

The comparison does not taking in consideration the rent cost as it is reclassified under long leasehold as the Company adopts IFRS 16.

DIVIDENDS

The loss for the year amounted to £93,000 (2023: profit of £5,000). The directors do not recommend the payment of a dividend (2023: £nil).

FUTURE DEVELOPMENTS

The Company's medium-term strategy remains focused on increasing its brand awareness and presence within the UK upholstery market whilst continuing to improve service levels and expand the range of product offerings to consumers.

As part of the recovery plan, in addition to the closure of all the House of Fraser concessions, Management decided to close the head-office in Finchley Road in 2022.

DIRECTORS

Mr Luigi Bruno has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

Ms Annunziata Natuzzi - resigned 11 November 2024

Mr Diego Babbo - appointed 12 November 2024

The Company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the directors’ report.

The directors are responsible for preparing 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 they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 Reduced Disclosure Framework.

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 and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- assess the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

- use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.

DISCLOSURE OF INFORMATION TO AUDITORS

The directors who held office at the date of approval of this directors’ report confirm that, so far as they are each aware, there is no relevant audit information of which the Company’s auditor is unaware; and each director has taken all the steps that he ought to have taken as a director to make himself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.

AUDITORS

The auditors, SRG Newmans Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr Luigi Bruno - Director

28 November 2025

Opinion

We have audited the financial statements of Natuzzi Services Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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 101 'Reduced Disclosure Framework' (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 2024 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 of 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 UK, including the FRC'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.

Directors' report

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 pages one and two, 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 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.

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 a Report of the Auditors 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.

We did not identify any key audit matters relating to irregularities, including fraud. As in all of our audits, we also addressed the risk of management override of internal controls including testing journals and evaluation whether there was evidence of a risk of material misstatement due to fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements,

recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not

detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery,

misrepresentations or through collusion.

There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Tim John Newman (Senior Statutory Auditor)

for and on behalf of SRG Newmans Limited

Accountants and Statutory Auditors

Five Ways

57-59 Hatfield Road

Potters Bar

Hertfordshire

EN6 1HS

28 November 2025

TURNOVER

2

4,512

4,957

Cost of sales

2,206

2,448

GROSS PROFIT

2,306

2,509

Administrative expenses

3,114

2,786

(808

)

(277

)

Other operating income

3

367

276

OPERATING LOSS

(441

)

(1

)

Interest receivable and similar income

3

-

(438

)

(1

)

Interest payable and similar expenses

5

298

92

LOSS BEFORE TAXATION

6

(736

)

(93

)

Tax on loss

8

-

LOSS FOR THE FINANCIAL YEAR

(736

)

(93

)

LOSS FOR THE YEAR

(736

)

(93

)

OTHER COMPREHENSIVE INCOME

FOR THE YEAR, NET OF INCOME

TAX

-

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

(736

)

(93

)

FIXED ASSETS

Owned

Tangible assets

10

207

294

Short Leasehold

11

-

Right-of-use

Short Leasehold

11, 18

1,982

864

2,189

1,158

CURRENT ASSETS

Stocks

12

971

972

Debtors

13

461

321

Cash at bank and in hand

148

257

1,580

1,550

CREDITORS

Amounts falling due within one year

14

3,541

2,681

NET CURRENT LIABILITIES

(1,961

)

(1,131

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

228

27

CREDITORS

Amounts falling due after more than one

year

15

2,033

1,096

CAPITAL AND RESERVES

Called up share capital

19

25,349

Share premium

20

100

Retained earnings

20

(27,254

)

(26,518

)

SHAREHOLDERS' FUNDS

(1,805

)

(1,069

)

228

27

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

Mr Luigi Bruno - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£'000

Balance at 1 January 2023

25,349

(26,425

)

100

(976

)

Changes in equity

Total comprehensive income

-

(93

)

-

(93

)

Balance at 31 December 2023

25,349

(26,518

)

100

(1,069

)

Changes in equity

Total comprehensive income

-

(736

)

-

(736

)

Balance at 31 December 2024

25,349

(27,254

)

100

(1,805

)

1.	ACCOUNTING POLICIES

1 Accounting policies

Natuzzi Services Limited (the "Company") is a private company incorporated, domiciled and registered in England in the UK. The registered number is 05641507 and the registered address is 80-81 Tottenham Court Road, London, England, W1T 4TE.

These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework ("FRS 101").

In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards as adopted by the UK ("Adopted IFRSs"), but makes amendments where necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.

- a Cash Flow Statement and related notes;

- Comparative period reconciliations for share capital and tangible fixed assets;

- Disclosures in respect of transactions with wholly owned subsidiaries;

- Disclosures in respect of capital management;

- The effects of new but not yet effective IFRSs;

- The adoption of IFRS 16 Modified Retrospective Approach

- Disclosures in respect of the compensation of Key Management Personnel; and

- The requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

- Certain disclosures regarding revenue

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.

Turnover

Turnover is attributable to the continuing activity of the Company, the retailing of upholstered leather furniture in the United Kingdom.

The company has applied IFRS 15 using the cumulative effect method and therefore the comparative information has not been restated and continues to be reported under IAS 18. The method of revenue recognition for the sale of goods remains unchanged under the requirements of IFRS 15. The Company recognises revenue when it transfers control of the furniture to the customer i.e. when the customer takes possession of and accepts the furniture. The amount of revenue recognised is adjusted for expected returns, which is estimated based on historical returns. Consideration is generally received up-front from the customer, prior to delivery. Deferred income is recognised for furniture where advance payment is taken but where the furniture has not yet been delivered to the customer.

The company also offers extended warranties as an additional sale to customers who purchase furniture. Under IFRS 15 the company recognises revenue for extended warranties on a straight-line basis over the extended warranty period of 5 years. The method of revenue recognition differs to the method of revenue recognition under IAS 18. Under IAS 18 warranty sales were recognised up-front, with a corresponding provision recognised for future estimated warranty repair costs. The change in accounting policy has an impact upon brought forward retained earnings, arising under the cumulative effect method of transition. The adjustment to retained earnings reflects the combined impact of the release of the provision for future repair costs and the deferment of revenue over a five year period.

Tangible fixed assets

Tangible fixed assets are initially recorded at cost. Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows:

Short leasehold properties - life of the lease

Fixtures and fittings - up to ten years on a straight line basis

Provision

A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability

Stocks

The Directors have used their knowledge and experience of the retail industry in determining the level and rates of provisioning required to calculate the appropriate inventory carrying values. Inventory is carried in the financial statements at the lower of cost and net realisable value.

Sales in retail can be volatile with consumer demand changing based on current trends. As a result there is a risk that the cost of inventory exceeds its net realisable value. Management calculates the inventory provision on the basis of the ageing profile of what is in stock as well as analysing results of clearance sale of the stock made through owned stores. Adjustments are made where appropriate based on Directors' knowledge and experience to calculate the appropriate inventory carrying values. Management reviewed the methodology and key assumptions used in determining the inventory obsolescence provision, such as inventory cost, period over which inventory lines have been held, forecast terminal inventory balance, as well as the sensitivity of these assumptions when reviewing the appropriateness of the provision. Management are satisfied that the assumptions used and the period end provision were reasonable.

Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.

Foreign currencies

Transactions in foreign currencies are translated to the Company's functional currencies at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date.

Right of use assets

(A) IFRS 16 "Leases"

Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments. The company applies this approach to all leases.

Critical accounting estimates and judgements

The Company makes certain estimates and judgements regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors. Critical estimates and judgements are discussed below.

Estimates:

Valuation of inventory

Under the requirements of IAS 2 management perform an assessment to value inventories at the lower of cost and net realisable value. A review of sales made subsequent to the financial year end is performed. Product lines sold either at a negative margin or not sold at all after the year-end are identified as requiring impairment. Where whole product lines have not been sold at all after the financial year-end, judgement is taken by management to determine the amount of any inventory impairment. This is based on a retrospective review of similar slow-moving product lines, combined with a qualitative assessment of the individual product lines involved.

Judgements:

Management consider the Company to be a going concern. The below note includes specific disclosure in respect of the key assumption taken in determining Natuzzi Services Limited to be a going concern.

Going concern

The Company balance sheet shows negative shareholders funds of £1,805,000 and a loss of £736,000 (2023 - negative shareholders funds £1,069,000 and net loss of £93,000). The Directors continue to adopt a going concern basis in preparing the annual financial statements on the basis that they have a reasonable expectation that the Company has adequate resources to continue in operational existence for 12 months from the date of signing these accounts. In adopting a going concern basis for preparing the financial statements, the Directors have received assurances from the board of directors of its Parent Company, Natuzzi S.p.A., that they will continue to make adequate funding available via intercompany loans and not call these accounts immediately due for the foreseeable future. At the year end the Company was able to meet its day-to-day working capital requirements and funding of new site purchases through ongoing trading activities and through borrowings from its ultimate parent undertaking.

Natuzzi S.p.A. have confirmed the reliance on the continued supply arrangement to Natuzzi Services Limited as well as on the investment of the brand in the UK market by the four stores owned by the Company.

The Company's business activities, together with the factors likely to affect its future development and its financial position, are described in the Review of the business on page 3.

Impairment excluding stocks and deferred tax assets

Financial assets (including trade and other debtors)

A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

Non-financial assets

The carrying amounts of the Company's non-financial assets, other than stocks and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit").

2.

TURNOVER

The turnover and loss before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

2024

2023

as restated

£'000

Sale of goods

4,512

4,957

4,512

4,957

3.	OTHER OPERATING INCOME

2024

2023

as restated

£'000

Other income

367

276

Within other operating income £136,567 is related to delivery revenue and £67,515 to warranty sales. The remaining £163,416 relate to other services provided.

4.	EMPLOYEES AND DIRECTORS

2024

2023

as restated

£'000

Wages and salaries

731

636

Social security costs

19

85

Other pension costs

14

17

764

738

The average number of employees during the year was as follows:

2024

2023

as restated

Store Staff

15

2024

2023

as restated

£

Directors' remuneration

-

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

as restated

£'000

Bank interest

12

14

Other financial costs

137

78

Lease interest

149

-

298

92

6.	LOSS BEFORE TAXATION

The loss before taxation is stated after charging:

2024

2023

as restated

£'000

Cost of inventories recognised as expense

2,206

2,448

Depreciation - owned assets

89

140

Depreciation - assets on hire purchase contracts or finance leases

673

471

Loss on disposal of fixed assets

-

2

Foreign exchange differences

1

-

7.	AUDITORS' REMUNERATION

2024

2023

as restated

£'000

Fees payable to the company's auditors for the audit of the company's

financial statements

26

21

Amounts receivable by the Company's auditor and its associates in respect of services to the Company and its associates, other than the audit of the Company's financial statements, have not been disclosed as the information is required instead to be disclosed on a consolidated basis in the consolidated financial statements of the Company's parent, Natuzzi S.p.A.

8.

TAXATION

Analysis of tax expense

No liability to UK corporation tax arose for the year ended 31 December 2024 nor for the year ended 31 December 2023.

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2024.

2023

Gross

Tax

Net

£'000

Change in accounting policy

9.	PRIOR YEAR ADJUSTMENT

Prior year adjustments have been made as follows:

Bank balances, cash balances, and on account credits with service providers. These have been separated. £47,362 removed from the bank. £12,947 put to cash, and £34,415 put to service providers.

Amendments to fixtures and fittings. Disposals removed. Additions made. Depreciation amended. £5,987 of additions have been added, and disposals reduced. Depreciation amended to move out of the repairs and renewals profit and loss, and correctly to depreciation profit and loss. Depreciation elimination on disposal removed and charge for the year added, each of £8,415.

Prepayments have been moved to prepayments and accrued income, as there is accrued income of £72,150 in 2024.

Right-of-use leases have been amended to remove the additions of a lease commencing January 2024, where payments had been made in advance of the December 2023 year-end. The disposal of leases have been applied where the leases came to an end or renewed.

- Additions made of £1,635,912 added in 2023 relating to the new leases for Tottenham Court Road. This lease began January 2024. Thus, a prior year adjustment to remove from 2023.

- £1,724,620 of lease disposals added. Equally, the amortisation eliminated. This is in relation to Croyden.

- £939,512 of lease disposals added. Equally, the amortisation eliminated. This is in relation to old Tottenham.

- £877,150 of lease disposals added. Equally, the amortisation eliminated. This is in relation to Finchley Road.

- £479,541 of lease disposals added. Equally, the amortisation eliminated. This is in relation to Westfield.

- £311,086 of impairment in 2023 has been removed. Instead, this is considered part of the amortisation.

Other leases updated to reflect the disposed and new leases. In total reducing by £1,682,065. Spreading the total £1,140,219 remaining over the 5 year capital payments.

10.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£'000

COST

At 1 January 2024

1,393

81

1,474

Additions

-

3

Disposals

(1

)

-

(1

)

At 31 December 2024

1,392

84

1,476

DEPRECIATION

At 1 January 2024

1,099

81

1,180

Charge for year

89

-

89

At 31 December 2024

1,188

81

1,269

NET BOOK VALUE

At 31 December 2024

204

3

207

At 31 December 2023

294

-

294

11.	SHORT LEASEHOLD

Total

£'000

FAIR VALUE

At 1 January 2024

3,306

Additions

2,346

Disposals

(2,934

)

At 31 December 2024

2,718

DEPRECIATION

At 1 January 2024

2,442

Charge for year

673

Eliminated on disposal

(2,379

)

At 31 December 2024

736

NET BOOK VALUE

At 31 December 2024

1,982

At 31 December 2023

864

12.

STOCKS

2024

2023

as restated

£'000

Stocks

971

972

Amounts written-off inventories in the year was £212,454 (2023: £262,137).

Stock in the balance sheet is made by £162,514 of Goods in transit and £808,094 of Finished Goods.

13.

DEBTORS

2024

2023

as restated

£'000

Amounts falling due within one year:

Trade debtors

18

147

Other debtors

180

-

Prepayments and accrued income

225

138

423

285

Amounts falling due after more than one year:

Amounts recoverable on contract

38

36

Aggregate amounts

461

321

Trade Debtors

Amounts written off of trade debtors during the year was NIL (2023-NIL).

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

as restated

£'000

Leases (see note 17)

810

196

Trade creditors

212

99

Amounts owed to group undertakings

1,539

1,465

Social security and other taxes

17

22

VAT

55

37

Other creditors

105

364

Deposits received

621

498

Accrued expenses

182

-

3,541

2,681

Amounts owed to group undertakings include a trading balance of £1,668,704 (2023: £1,531,908) due to Natuzzi S.p.A.

Amounts due from group undertakings include a trading balance of £130,125 (2023: £66,960) due from Natuzzi UK Retail Limited.

Deferred Income consists of both advance payments made by customers prior to furniture delivery, as well as warranty revenues deferred into future periods. On account of the fact that standard warranty periods are 5 years, there is a non-current element of the deferred income. The non-current portion of deferred income is £71,268 (2023: £69,521).

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN

ONE YEAR

2024

2023

as restated

£'000

Leases (see note 17)

1,962

1,026

Long Term Contracts

71

70

2,033

1,096

16.

TAX

The UK Corporation Tax rate is 19% or 25% based on the results. The unrecognised deferred tax asset as at 31 December 2024 has been calculated based on this rate.

The March 2023 Budget announced that a rate of 25% would apply with effect from 1 April 2023, from profits above £250,000. This will increase both the company's future current tax charge and the unrecognised deferred tax asset accordingly.

Potential deferred tax assets of £7,761,080 (2023 - £7,609,069) made up of £7,472,722 (2023 - £7,320,780) of tax losses carried forward, £288,358 (2023 - £288,289) of accelerated capital allowances and nil (2023 - nil) of other timing differences have not been recognised in the financial statements as recoverability in the foreseeable future is considered uncertain. Unrecognised deferred tax assets have been calculated using a tax rate of 25%.

17.

FINANCIAL LIABILITIES - BORROWINGS

2024

2023

as restated

£'000

Current:

Leases (see note 18)

810

196

2024

2023

as restated

£'000

Non-current:

Leases (see note 18)

1,962

1,026

Terms and debt repayment schedule

1 year or

less

1-2 years

2-5 years

Totals

£'000

Leases

810

805

1,157

2,772

18.

LEASING

Right-of-use assets

2024

2023

£'000

FAIR VALUE

At 1 January 2024

3,305

7,326

Additions

2,347

0

Disposal

(2,934

)

(4,021

)

2,718

3,305

DEPRECIATION

At 1 January 2024

2,441

5,992

Elimination on disposal

(2,379

)

(4,021

)

Charge for the year

673

470

735

2,441

NET BOOK VALUE

1,983

864

Lease liabilities

Minimum lease payments fall due as follows:

2024

2023

as restated

£'000

Gross obligations repayable:

Within one year

810

196

Between one and five years

1,962

945

2,772

1,141

Finance charges repayable:

Between one and five years

-

(79

)

In more than five years

-

(2

)

-

(81

)

Net obligations repayable:

Within one year

810

196

Between one and five years

1,962

1,024

In more than five years

-

2

2,772

1,222

19.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

as restated

£

2,534,935

Ordinary shares

1

25,349,353

Share capital

Called-up share capital represents the nominal value of shares that have been issued.

Profit and loss account

The Profit and Loss account includes all current and prior year retained profits and losses.

20.

RESERVES

Retained

Share

earnings

premium

Totals

£'000

At 1 January 2024

(26,518

)

100

(26,418

)

Deficit for the year

(736

)

(736

)

At 31 December 2024

(27,254

)

100

(27,154

)

21.	ULTIMATE PARENT COMPANY AND PARENT COMPANY OF LARGER GROUP

The Company is a subsidiary undertaking of Natuzzi S.p.A. which is the immediate and ultimate parent company and ultimate controlling party, and is incorporated in Italy; registered office is Via Iazzitiello 47, 70029 Santeramo in Colle (BA), Italy.

The largest and smallest group in which the results of the Company are consolidated is that headed by Natuzzi S.p.A., incorporated in Italy and listed on the NYSE. The group financial statements of this Group are available from Natuzzi S.p.A. whose registered office is Via Iazzitiello 47, 70029 Santeramo in Colle (BA), Italy.