Designer Sofas Group Ltd. - Period Ending 2022-09-30
Designer Sofas Group Ltd. - Period Ending 2022-09-30
Registration number:
Designer Sofas Group Ltd.
for the Year Ended 30 September 2022
Designer Sofas Group Ltd.
Contents
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Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Designer Sofas Group Ltd.
Company Information
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Director |
Mr Michael Solomon |
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Registered office |
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Auditors |
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Designer Sofas Group Ltd.
Strategic Report for the Year Ended 30 September 2022
The director presents his strategic report for the year ended 30 September 2022.
Principal activity
The principal activity of the company is sale of designer furniture
Fair review of the business
The compay has grown over the last few years but has managed to maintain level heads and keep the entire business under control and remain profitable. The future is expected to continue to grow and run on at least current levels, with ever increasing efficiencies.
The company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2022 |
2021 |
|
Turnover |
£ |
25,361,580 |
15,216,392 |
|
Gross profit margin |
% |
43 |
44 |
|
Profit before tax |
£ |
3,269,205 |
1,592,948 |
Principal risks and uncertainties
The principle risks in the retail trade are dependant on a throiving economy and in the company's case the ability of customers to afford and want nice furniture. Inspite of current challenges the company has seen steady sales and expects to go from strength to strength.
Approved and authorised by the
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Designer Sofas Group Ltd.
Director's Report for the Year Ended 30 September 2022
The director presents his report and the financial statements for the year ended 30 September 2022.
Director of the company
The director who held office during the year was as follows:
Financial instruments
Objectives and policies
Financial risk is managed by tight monitoring of income and costs.
Price risk, credit risk, liquidity risk and cash flow risk
The business' activities expose it primarily to the financial risks of changes in spending policies in the retail market.
The business' principal financial instruments comprise bank balances and trade
creditors. The comapny has been careful to avoid the need for financing and receives payments on or before sale and thus avoids the risk of customer payment issues.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of
funding and flexibility through the use of careful cash management.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Disclosure of information to the auditors
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.
Reappointment of auditors
The auditors Paul Winston Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
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Designer Sofas Group Ltd.
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:
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• |
select suitable accounting policies and apply them consistently; |
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• |
make judgements and accounting estimates that are reasonable and prudent; |
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• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Designer Sofas Group Ltd.
Independent Auditor's Report to the Members of Designer Sofas Group Ltd.
Opinion
We have audited the financial statements of Designer Sofas Group Ltd. (the 'company') for the year ended 30 September 2022, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 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 30 September 2022 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Designer Sofas Group Ltd.
Independent Auditor's Report to the Members of Designer Sofas Group Ltd.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's Report.
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 director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 4], the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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 auditor’s 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Detecting irregularities, including fraud
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s 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.
Designer Sofas Group Ltd.
Independent Auditor's Report to the Members of Designer Sofas Group Ltd.
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For and on behalf of
Silver Rose Unit 21
East Lodge Village
East Lodge Lane
EN2 8AS
Designer Sofas Group Ltd.
Profit and Loss Account for the Year Ended 30 September 2022
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Note |
2022 |
2021 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
3,269,205 |
1,592,948 |
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Profit before tax |
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Tax on profit |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Designer Sofas Group Ltd.
Statement of Comprehensive Income for the Year Ended 30 September 2022
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2022 |
2021 |
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Profit for the year |
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Total comprehensive income for the year |
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Designer Sofas Group Ltd.
(Registration number: 11005900)
Balance Sheet as at 30 September 2022
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Note |
2022 |
2021 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
- |
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Net assets |
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Capital and reserves |
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Called up share capital |
1 |
1 |
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Retained earnings |
4,987,844 |
2,099,714 |
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Shareholders' funds |
4,987,845 |
2,099,715 |
Approved and authorised by the
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Designer Sofas Group Ltd.
Statement of Changes in Equity for the Year Ended 30 September 2022
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Share capital |
Retained earnings |
Total |
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At 1 October 2021 |
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Profit for the year |
- |
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At 30 September 2022 |
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Share capital |
Retained earnings |
Total |
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At 1 October 2020 |
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Profit for the year |
- |
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At 30 September 2021 |
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Designer Sofas Group Ltd.
Statement of Cash Flows for the Year Ended 30 September 2022
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Note |
2022 |
2021 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Income tax expense |
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Working capital adjustments |
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Increase in stocks |
( |
( |
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Increase in trade debtors |
( |
( |
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(Decrease)/increase in trade creditors |
( |
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Increase in provisions |
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- |
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Other movement |
- |
373,917 |
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Cash generated from operations |
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Income taxes paid |
( |
- |
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Net cash flow from operating activities |
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Cash flows from investing activities |
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Acquisitions of tangible assets |
( |
( |
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Net increase in cash and cash equivalents |
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Cash and cash equivalents at 1 October |
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- |
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Cash and cash equivalents at 30 September |
3,024,773 |
2,914,563 |
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Designer Sofas Group Ltd.
Notes to the Financial Statements for the Year Ended 30 September 2022
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General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
England
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The financial statements have been prepared on a going concern basis.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Designer Sofas Group Ltd.
Notes to the Financial Statements for the Year Ended 30 September 2022
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Designer Sofas Group Ltd.
Notes to the Financial Statements for the Year Ended 30 September 2022
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
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2022 |
2021 |
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Sale of goods |
|
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Rental income from investment property |
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Grants received |
- |
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Operating profit |
Arrived at after charging/(crediting)
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2022 |
2021 |
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Depreciation expense |
|
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Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
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2022 |
2021 |
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Wages and salaries |
|
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Social security costs |
|
- |
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Pension costs, defined contribution scheme |
|
- |
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Other employee expense |
|
- |
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The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
Designer Sofas Group Ltd.
Notes to the Financial Statements for the Year Ended 30 September 2022
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2022 |
2021 |
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Other departments |
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Director's remuneration |
The director's remuneration for the year was as follows:
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2022 |
2021 |
|
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Remuneration |
|
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Contributions paid to money purchase schemes |
|
- |
|
50,228 |
42,500 |
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Auditors' remuneration |
|
2022 |
2021 |
|
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Audit of the financial statements |
|
- |
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Taxation |
Tax charged/(credited) in the income statement
|
2022 |
2021 |
|
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Current taxation |
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UK corporation tax |
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Designer Sofas Group Ltd.
Notes to the Financial Statements for the Year Ended 30 September 2022
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Tangible assets |
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Land and buildings |
Furniture, fittings and equipment |
Total |
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Cost or valuation |
|||
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At 1 October 2021 |
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Additions |
- |
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At 30 September 2022 |
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Depreciation |
|||
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At 1 October 2021 |
- |
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Charge for the year |
- |
|
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At 30 September 2022 |
- |
|
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Carrying amount |
|||
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At 30 September 2022 |
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At 30 September 2021 |
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Included within the net book value of land and buildings above is £177,939 (2021 - £177,939) in respect of short leasehold land and buildings.
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Stocks |
|
2022 |
2021 |
|
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Finished goods and goods for resale |
|
|
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Debtors |
|
Current |
Note |
2022 |
2021 |
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Trade debtors |
- |
|
|
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Amounts owed by related parties |
|
- |
|
|
|
|
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Cash and cash equivalents |
|
2022 |
2021 |
|
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Cash at bank |
|
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Designer Sofas Group Ltd.
Notes to the Financial Statements for the Year Ended 30 September 2022
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Creditors |
|
Note |
2022 |
2021 |
|
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Due within one year |
|||
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trade creditors |
|
|
|
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Social security and other taxes |
|
|
|
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Other payables |
|
- |
|
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Accrued expenses |
|
|
|
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Income tax liability |
381,075 |
299,150 |
|
|
|
|
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Provisions for liabilities |
|
Warranties |
Total |
|
|
Increase (decrease) in existing provisions |
|
|
|
At 30 September 2022 |
|
|
|
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Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
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Share capital |
Allotted, called up and fully paid shares
|
2022 |
2021 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
1 |
|
1 |
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Dividends |