Wilsons Furnishers (Holdings) Limited - Limited company accounts 23.2

WILSONS FURNISHERS (HOLDINGS) LIMITED - Company Information

IRIS Accounts Production v24.1.0.578 08201653 Board of Directors 30.9.23 1.10.22 30.9.23 30.9.23 true true true false true true false false false false false false true false Fair value model Ordinary 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh082016532022-09-30082016532023-09-30082016532022-10-012023-09-30082016532021-09-30082016532021-10-012022-09-30082016532022-09-3008201653ns15:EnglandWales2022-10-012023-09-3008201653ns14:PoundSterling2022-10-012023-09-3008201653ns10:Director12022-10-012023-09-3008201653ns10:Consolidated2023-09-3008201653ns10:ConsolidatedGroupCompanyAccounts2022-10-012023-09-3008201653ns10:PrivateLimitedCompanyLtd2022-10-012023-09-3008201653ns10:Consolidatedns10:FRS1022022-10-012023-09-3008201653ns10:Consolidatedns10:Audited2022-10-012023-09-3008201653ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-10-012023-09-3008201653ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-10-012023-09-3008201653ns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-10-012023-09-3008201653ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Consolidated2022-10-012023-09-3008201653ns10:FullAccounts2022-10-012023-09-3008201653ns5:Subsidiary12022-10-012023-09-3008201653ns5:Subsidiary22022-10-012023-09-3008201653ns5:Subsidiary32022-10-012023-09-300820165312022-10-012023-09-3008201653ns10:OrdinaryShareClass12022-10-012023-09-3008201653ns10:Consolidated2022-10-012023-09-3008201653ns10:Director22022-10-012023-09-3008201653ns10:RegisteredOffice2022-10-012023-09-3008201653ns10:Consolidated2021-10-012022-09-3008201653ns5:CurrentFinancialInstruments2023-09-3008201653ns5:CurrentFinancialInstruments2022-09-3008201653ns5:Non-currentFinancialInstruments2023-09-3008201653ns5:Non-currentFinancialInstruments2022-09-3008201653ns5:ShareCapital2023-09-3008201653ns5:ShareCapital2022-09-3008201653ns5:RetainedEarningsAccumulatedLosses2023-09-3008201653ns5:RetainedEarningsAccumulatedLosses2022-09-3008201653ns5:ShareCapital2021-09-3008201653ns5:RetainedEarningsAccumulatedLosses2021-09-3008201653ns5:RetainedEarningsAccumulatedLosses2021-10-012022-09-3008201653ns5:RetainedEarningsAccumulatedLosses2022-10-012023-09-3008201653ns5:NetGoodwill2022-10-012023-09-3008201653ns5:IntangibleAssetsOtherThanGoodwill2022-10-012023-09-3008201653ns5:OwnedOrFreeholdAssetsns5:LandBuildings2022-10-012023-09-3008201653ns5:LeaseholdImprovements2022-10-012023-09-3008201653ns5:PlantMachinery2022-10-012023-09-3008201653ns5:FurnitureFittings2022-10-012023-09-3008201653ns5:MotorVehicles2022-10-012023-09-3008201653ns5:ComputerEquipment2022-10-012023-09-3008201653ns5:CostValuation2022-09-3008201653ns5:Subsidiary112022-10-012023-09-30082016533ns5:Subsidiary22022-10-012023-09-3008201653ns5:Subsidiary352022-10-012023-09-3008201653ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-09-3008201653ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-09-3008201653ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-09-3008201653ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2022-09-3008201653ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-09-3008201653ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-09-3008201653ns5:Secured2023-09-3008201653ns5:Secured2022-09-3008201653ns10:OrdinaryShareClass12023-09-3008201653ns5:RetainedEarningsAccumulatedLosses2022-09-30

REGISTERED NUMBER: 08201653 (England and Wales)

WILSONS FURNISHERS (HOLDINGS) LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 SEPTEMBER 2023

Page

Company Information

Group Strategic Report

Report of the Directors

Report of the Independent Auditors

Consolidated Income Statement

Consolidated Other Comprehensive Income

Consolidated Balance Sheet

Company Balance Sheet

Consolidated Statement of Changes in Equity

Company Statement of Changes in Equity

Consolidated Cash Flow Statement

Notes to the Consolidated Cash Flow Statement

Notes to the Consolidated Financial Statements

DIRECTORS:

Mr R N Wilson

Mr R D Wilson

REGISTERED OFFICE:

Unit 7, Houndhill Park

Bolton Road

Wath-Upon-Dearne

Rotherham

South Yorkshire

S63 7LG

REGISTERED NUMBER:

08201653 (England and Wales)

SENIOR STATUTORY AUDITOR:

Kelvin Fitton BA FCA

AUDITORS:

Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

The directors present their strategic report of the company and the group for the year ended 30 September 2023.

REVIEW OF BUSINESS

The Directors are pleased to report that the business has performed satisfactorily during the year and the Group continues to prioritise investments for the benefit of the business.

Trading for 2023/24 has so far been in line with expectations.

Financial Key Performance Indicators

The key performance indicators used by the directors are those shown within the financial statements.

Results

The group made a profit after taxation of £1,234,787 (2022: £1,401,726)

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider that the principal risk the group faces is the increase in interest rates and inflationary pressures that may have an impact on consumer spending and confidence.

CURRENCY RISK

The group mainly uses forward contracts to manage its exposure to variations in foreign currency exchange rates.

CREDIT RISK

The group mainly trades with the general public through its online and retail outlets and is therefore not exposed to any major credit risk.

SECTION 172(1) STATEMENT

The Board of Wilsons Furnishers Limited consider that the requirement of Section 172 of the Companies Act 2006 ("The Act") has been complied with and the directors of the company have acted in good faith in performing their duty in promoting the success of the company. During the year the Directors have had regard for (amongst others):

- Any potential long term consequences as a result of decisions taken during the year

- The interests of the company's employees, including any training requirements

- The need to meet customer's needs as well as their expectations

- The impact on the environment as a result of the company carrying on its trade

EMPLOYEES

The group continues to seek to recruit and retain good quality staff and to adopt progressive policies of internal and external training so as to maximise their performance.

ENVIRONMENT

The group endeavours to minimise any adverse impact that its activities may have on the environment.

FIXED ASSETS

Details of fixed assets are shown in the notes to the accounts. In the opinion of the directors, the market value of the land and buildings is not less than the amount at which they are stated in the accounts.

ON BEHALF OF THE BOARD:

Mr R D Wilson - Director

5 March 2024

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2023.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of flooring wholesalers and retailers.

DIVIDENDS

The total distribution of dividends for the year ended 30 September 2023 will be £850,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report.

Mr R N Wilson

Mr R D Wilson

GOING CONCERN

The directors have considered it appropriate to adopt the going concern basis in the preparation of the financial statements for the year ended 30 September 2023. The directors are not aware of any conditions or material uncertainties which would effect this assessment or may cast doubt over the groups ability to continue to trade for at least twelve months following the approval of the financial statements. The group has sufficient working capital to continue to trade and meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group 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 accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the 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 group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr R D Wilson - Director

5 March 2024

Opinion

We have audited the financial statements of Wilsons Furnishers (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 September 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 Statement of Directors' Responsibilities set out on page three, 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 group's and the parent 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 group or the parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Group, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements.

As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procedures performed by the engagement team include:

Enquiring of and obtaining written representation from management in relation to known or suspected instances
of non-compliance with laws and regulations and fraud;

Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws
and regulations;

Evaluation of management's controls designed to prevent and detect irregularities;

Review of board meeting minutes and meetings of those charged with governance;

Identifying and, where relevant, testing journal entries posted by senior management or with unusual
combinations;

Assessing and evaluating the business rationale of significant transactions outside the normal course of
business;

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with
applicable laws and regulations;

Review of correspondence with regulators in so far as they are related to the financial statements;

Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

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.

Kelvin Fitton BA FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

7 March 2024

TURNOVER

43,874,920

40,576,203

Cost of sales

21,032,966

19,544,497

GROSS PROFIT

22,841,954

21,031,706

Administrative expenses

20,840,089

19,508,359

2,001,865

1,523,347

Other operating income

75,207

34,328

Gain/loss on revaluation of tangible assets

572,027

OPERATING PROFIT

2,077,072

2,129,702

Interest receivable and similar income

90,498

4,673

2,167,570

2,134,375

Gain/loss on revaluation of tangible assets

(304,807

)

2,167,570

1,829,568

Interest payable and similar expenses

259,836

141,315

PROFIT BEFORE TAXATION

1,907,734

1,688,253

Tax on profit

672,947

286,527

PROFIT FOR THE FINANCIAL YEAR

1,234,787

1,401,726

Profit attributable to:

Owners of the parent

1,234,787

1,401,726

PROFIT FOR THE YEAR

1,234,787

1,401,726

OTHER COMPREHENSIVE INCOME

Capital distribution

(1,296,990

)

Income tax relating to other comprehensive
income

OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

(1,296,990

)

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,234,787

104,736

Total comprehensive income attributable to:

Owners of the parent

1,234,787

104,736

FIXED ASSETS

Intangible assets

66,350

78,674

Tangible assets

11,210,064

11,231,411

Investments

Investment property

160,017

11,436,431

11,470,102

CURRENT ASSETS

Stocks

4,764,560

4,756,408

Debtors

1,328,512

1,445,390

Cash at bank and in hand

4,459,172

2,941,275

10,552,244

9,143,073

CREDITORS

Amounts falling due within one year

8,598,491

7,266,312

NET CURRENT ASSETS

1,953,753

1,876,761

TOTAL ASSETS LESS CURRENT
LIABILITIES

13,390,184

13,346,863

CREDITORS

Amounts falling due after more than one
year

(2,797,087

)

(3,411,274

)

PROVISIONS FOR LIABILITIES

(886,502

)

(613,781

)

NET ASSETS

9,706,595

9,321,808

CAPITAL AND RESERVES

Called up share capital

1,759,670

Revaluation reserve

572,027

Retained earnings

7,374,898

6,990,111

SHAREHOLDERS' FUNDS

9,706,595

9,321,808

The financial statements were approved by the Board of Directors and authorised for issue on 5 March 2024 and were signed on its behalf by:

Mr R D Wilson - Director

FIXED ASSETS

Intangible assets

Tangible assets

Investments

1,759,570

Investment property

7,282,915

9,042,485

CURRENT ASSETS

Debtors

419

Cash at bank and in hand

7,191

94,443

7,610

94,443

CREDITORS

Amounts falling due within one year

3,992,313

3,658,445

NET CURRENT LIABILITIES

(3,984,703

)

(3,564,002

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

5,057,782

5,478,483

CREDITORS

Amounts falling due after more than one
year

2,797,087

3,392,788

NET ASSETS

2,260,695

2,085,695

CAPITAL AND RESERVES

Called up share capital

1,759,670

Retained earnings

501,025

326,025

SHAREHOLDERS' FUNDS

2,260,695

2,085,695

Company's profit for the financial year

1,025,000

1,622,267

The financial statements were approved by the Board of Directors and authorised for issue on 5 March 2024 and were signed on its behalf by:

Mr R D Wilson - Director

Called up

Retained

Revaluation

Other

Total

capital

earnings

reserve

reserves

equity

Balance at 1 October 2021

1,759,670

6,966,402

1,116,000

9,842,072

Changes in equity

Dividends

(625,000

)

(625,000

)

Total comprehensive income

648,709

572,027

(1,116,000

)

104,736

Balance at 30 September 2022

1,759,670

6,990,111

572,027

9,321,808

Changes in equity

Dividends

(850,000

)

(850,000

)

Total comprehensive income

1,234,787

Balance at 30 September 2023

1,759,670

7,374,898

572,027

9,706,595

Called up

Retained

Total

capital

earnings

equity

Balance at 1 October 2021

1,759,670

625,748

2,385,418

Changes in equity

Dividends

(625,000

)

(625,000

)

Total comprehensive income

325,277

Balance at 30 September 2022

1,759,670

326,025

2,085,695

Changes in equity

Dividends

(850,000

)

(850,000

)

Total comprehensive income

1,025,000

Balance at 30 September 2023

1,759,670

501,025

2,260,695

Cash flows from operating activities

Cash generated from operations

4,678,457

1,832,570

Interest paid

(254,203

)

(131,290

)

Interest element of hire purchase payments
paid

(5,633

)

(10,025

)

Tax paid

(326,095

)

(232,720

)

Net cash from operating activities

4,092,526

1,458,535

Cash flows from investing activities

Purchase of tangible fixed assets

(1,098,190

)

(399,987

)

Sale of tangible fixed assets

149,933

172,412

Interest received

90,498

4,673

Net cash from investing activities

(857,759

)

(222,902

)

Cash flows from financing activities

Loan repayments in year

(616,725

)

(638,580

)

Capital repayments in year

(113,220

)

(170,637

)

Amount introduced by directors

118,743

Amount withdrawn by directors

(136,925

)

(31,383

)

Equity dividends paid

(850,000

)

(625,000

)

Capital distribution

(1,296,990

)

Net cash from financing activities

(1,716,870

)

(2,643,847

)

Increase/(decrease) in cash and cash equivalents

1,517,897

(1,408,214

)

Cash and cash equivalents at beginning of
year

2,941,275

4,349,489

Cash and cash equivalents at end of year

4,459,172

2,941,275

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023

2022

Profit before taxation

1,907,734

1,688,253

Depreciation charges

1,021,311

975,479

Profit on disposal of fixed assets

(39,383

)

(67,027

)

Gain on revaluation of fixed assets

(267,220

)

Finance costs

259,836

141,315

Finance income

(90,498

)

(4,673

)

3,059,000

2,466,127

Increase in stocks

(8,152

)

(234,215

)

Decrease/(increase) in trade and other debtors

135,060

(247,195

)

Increase/(decrease) in trade and other creditors

1,492,549

(152,147

)

Cash generated from operations

4,678,457

1,832,570

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 September 2023

30.9.23

1.10.22

Cash and cash equivalents

4,459,172

2,941,275

Year ended 30 September 2022

30.9.22

1.10.21

Cash and cash equivalents

2,941,275

4,349,489

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.10.22

Cash flow

At 30.9.23

Net cash

Cash at bank and in hand

2,941,275

1,517,897

4,459,172

2,941,275

1,517,897

4,459,172

Debt

Finance leases

(130,860

)

113,220

(17,640

)

Debts falling due within 1 year

(646,518

)

21,024

(625,494

)

Debts falling due after 1 year

(3,392,788

)

595,701

(2,797,087

)

(4,170,166

)

729,945

(3,440,221

)

Total

(1,228,891

)

2,247,842

1,018,951

1.	STATUTORY INFORMATION

Wilsons Furnishers (Holdings) 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 General 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the group and rounded to the nearest £1.

Basis of consolidation

The Group financial statements consolidate the financial statements of the Company and all its subsidiaries for the year ended 30 September 2023. Any internal sales and profits are eliminate on consolidation and any goodwill arising on consolidation has been written off against accumulated profits carried forward.

Going concern

The directors have considered it appropriate to adopt the going concern basis in the preparation of the financial statements for the year ended 30 September 2023. Given consideration to the current economic conditions, the directors are not aware of any other conditions or material uncertainties which would effect this assessment or may cast doubt over the group's ability to continue to trade for at least twelve months following the approval of the financial statements. Therefore, the group continues to adopt the going concern basis of accounting in preparing the financial statements.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

In the application of the Group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, where the revision affects only that period, or in the period of the revisions and future periods where the revision affects both current and future periods.

Key estimates have been made as follows:

Tangible fixed assets

The annual depreciation charge is sensitive to changes in estimated useful economic lives and residual values of the assets. These are reviewed regularly to ensure that appropriate charges are made for depreciation.

Stock

Current working practices ensure that adequate provision is made for obsolete and slow moving stock.

Supplier and customer rebates

The directors have in place systems to measure supplier and customer spend and rebates due to/by the Group. Ongoing supplier and customer rebate debtor/creditor amounts are re-assessed on a regular basis.

The following principal accounting policies have been applied consistently throughout the period:

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2003, is being amortised evenly over its estimated useful life of twenty years.

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.

Trade Mark's are being amortised evenly over their useful economic life of 10 years.

Number Plates are not being amortised as the useful economic life cannot be accurately assessed, however the directors will review the assets for indications of impairment on an annual basis.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

2% on cost

Improvements to property

10% on cost

Plant and machinery

10% - 33% on cost

Fixtures and fittings

10% on cost

Motor vehicles

25% on reducing balance

Computer equipment

Straight line over 3 years and Straight line over 3 years

Assets held by the group that are under construction are not depreciated until they are available for use.

Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are initially measured at cost, including transaction costs. Subsequently investment properties whose fair value can be measured reliably without undue cost or effort on an on-going basis are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise. Investment properties whose fair value cannot be measured reliably without undue cost or effort on an on-going basis are included in plant, property and equipment at cost less accumulated depreciation and accumulated impairment losses.

Rents receivable from investment properties are recorded in accordance with the agreements in place and are recorded in other operating income.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payments of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or, in the case of an out-right short-term loan, not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the Balance Sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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

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 and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2023

2022

Wages and salaries

7,191,855

6,940,706

Social security costs

670,043

646,139

Other pension costs

182,176

164,579

8,044,074

7,751,424

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

2023

2022

Administration (including Directors)

Sales & Warehouse

219

222

246

249

2023

2022

Directors' remuneration

25,140

29,010

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023

2022

Hire of plant and machinery

114,918

121,491

Depreciation - owned assets

950,498

864,623

Depreciation - assets on hire purchase contracts

58,488

96,492

Profit on disposal of fixed assets

(39,383

)

(67,027

)

Goodwill amortisation

12,174

14,232

Trade Mark amortisation

150

132

Auditors' remuneration

16,996

15,066

Foreign exchange differences

(48,974

)

222,144

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

Bank loan interest

227,755

118,857

Loan interest

26,448

12,433

Hire purchase interest

5,633

10,025

259,836

141,315

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2023

2022

Current tax:

UK corporation tax

378,842

317,948

Overprovision in earlier year

21,384

12,274

Total current tax

400,226

330,222

Deferred tax

272,721

(43,695

)

Tax on profit

672,947

286,527

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023

2022

Profit before tax

1,907,734

1,688,253

Profit multiplied by the standard rate of corporation tax in the UK of 22 %
(2022 - 19 %)

419,701

320,768

Effects of:

Expenses not deductible for tax purposes

35,232

Income not taxable for tax purposes

(90,284

)

Depreciation in excess of capital allowances

87,464

Adjustments to tax charge in respect of previous periods

21,375

12,274

Enhanced capital allowances

(6,629

)

Movement in deferred tax charge relating to timing differences

272,721

(43,695

)

Movement in deferred tax charge relating to changes in tax rate

(69,453

)

Total tax charge

672,947

286,527

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 30 September 2023.

2022

Gross

Tax

Net

Capital distribution

(1,296,990

)

(1,296,990

)

7.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

The parent company's profit for the financial year was £1,025,000 (2022: £1,622,267)

DIVIDENDS

The total distribution of dividends for the year ended 30 September 2023 will be £850,000 (2022: £625,000).

9.	INTANGIBLE FIXED ASSETS

Group

Number

Trade

Goodwill

plate

Mark

Totals

COST

At 1 October 2022

and 30 September 2023

240,390

7,879

1,703

249,972

AMORTISATION

At 1 October 2022

170,466

832

171,298

Amortisation for year

12,174

150

12,324

At 30 September 2023

182,640

982

183,622

NET BOOK VALUE

At 30 September 2023

57,750

7,879

721

66,350

At 30 September 2022

69,924

7,879

871

78,674

10.	TANGIBLE FIXED ASSETS

Group

Improvements

Freehold

Plant and

property

machinery

COST

At 1 October 2022

7,024,298

565,431

3,080,572

Additions

11,377

1,764

16,870

Disposals

(4,895

)

At 30 September 2023

7,035,675

562,300

3,097,442

DEPRECIATION

At 1 October 2022

310,058

1,094,280

Charge for year

140,676

40,368

275,128

Eliminated on disposal

(2,333

)

At 30 September 2023

140,676

348,093

1,369,408

NET BOOK VALUE

At 30 September 2023

6,894,999

214,207

1,728,034

At 30 September 2022

7,024,298

255,373

1,986,292

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

COST

At 1 October 2022

1,231,898

1,852,245

220,190

13,974,634

Additions

167,479

839,082

61,617

1,098,189

Disposals

(11,630

)

(367,971

)

(4,195

)

(388,691

)

At 30 September 2023

1,387,747

2,323,356

277,612

14,684,132

DEPRECIATION

At 1 October 2022

533,419

668,249

137,217

2,743,223

Charge for year

132,212

358,058

62,544

1,008,986

Eliminated on disposal

(7,144

)

(264,808

)

(3,856

)

(278,141

)

At 30 September 2023

658,487

761,499

195,905

3,474,068

NET BOOK VALUE

At 30 September 2023

729,260

1,561,857

81,707

11,210,064

At 30 September 2022

698,479

1,183,996

82,973

11,231,411

The freehold properties were valued by Eddisons Chartered Surveyors and the directors on 31 August 2022.

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

Plant and

Motor

machinery

vehicles

Totals

COST

At 1 October 2022

302,919

577,842

880,761

Disposals

(29,255

)

(29,255

)

Transfer to ownership

(302,919

)

(410,402

)

(713,321

)

At 30 September 2023

138,185

DEPRECIATION

At 1 October 2022

269,718

338,555

608,273

Charge for year

8,304

50,184

58,488

Eliminated on disposal

(23,588

)

(23,588

)

Transfer to ownership

(278,022

)

(290,091

)

(568,113

)

At 30 September 2023

75,060

NET BOOK VALUE

At 30 September 2023

63,125

At 30 September 2022

33,201

239,287

272,488

11.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

COST

At 1 October 2022

and 30 September 2023

1,759,570

NET BOOK VALUE

At 30 September 2023

1,759,570

At 30 September 2022

1,759,570

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Wilsons Furnishers Limited

Registered office: Unit 7 Houndhill Park, Bolton Road, Wath-Upon-Dearne, Rotherham, S63 7LG

Nature of business: Flooring wholesalers and retailers

Class of shares:

holding

Ordinary

100.00

Generation Flooring (Holdings) Limited

Registered office: Unit 8 Houndhill Park, Bolton Road, Wath-Upon-Dearne, Rotherham S63 7LG

Nature of business: Dormant

Class of shares:

holding

Ordinary

100.00

Generation Flooring Limited *

Registered office: Unit 8 Houndhill Park, Bolton Road, Wath-Upon-Dearne, Rotherham S63 7LG

Nature of business: Dormant

Class of shares:

holding

Ordinary

100.00

The holding marked * is an indirect holding.

12.	INVESTMENT PROPERTY

Group

Total

FAIR VALUE

At 1 October 2022

and 30 September 2023

160,017

NET BOOK VALUE

At 30 September 2023

160,017

At 30 September 2022

160,017

The investment properties were valued by Eddisons Chartered Surveyors and the directors on 31 August 2022.

Company

Total

FAIR VALUE

At 1 October 2022

and 30 September 2023

7,282,915

NET BOOK VALUE

At 30 September 2023

7,282,915

At 30 September 2022

7,282,915

The investment properties were valued by Eddisons Chartered Surveyors and the directors on 31 August 2022.

13.

STOCKS

Group

2023

2022

Stocks

4,764,560

4,756,408

14.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2023

2022

2023

2022

Trade debtors

41,805

84,768

Other debtors

290,908

249,163

419

Directors' current accounts

18,182

Prepayments

977,617

1,111,459

1,328,512

1,445,390

419

15.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2023

2022

2023

2022

Bank loans and overdrafts (see note 17)

625,494

646,518

625,494

646,518

Hire purchase contracts (see note 18)

17,640

112,374

Trade creditors

3,741,173

3,752,672

702

309

Amounts owed to group undertakings

3,311,774

2,948,131

Tax

378,842

304,711

49,140

59,301

Social security and other taxes

163,059

154,714

VAT

781,472

553,485

777

788

Other creditors

32,289

86,475

911

Directors' current accounts

118,743

Accruals and deferred income

2,858,522

1,536,620

3,515

2,487

8,598,491

7,266,312

3,992,313

3,658,445

16.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

Company

2023

2022

2023

2022

Bank loans (see note 17)

2,797,087

3,392,788

2,797,087

3,392,788

Hire purchase contracts (see note 18)

18,486

2,797,087

3,411,274

2,797,087

3,392,788

17.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

2023

2022

2023

2022

Amounts falling due within one year or on

demand:

Bank loans

625,494

646,518

625,494

646,518

Amounts falling due between one and two

years:

Bank loans

2,185,468

544,155

2,185,468

544,155

Amounts falling due between two and five

years:

Bank loans

611,619

2,848,633

611,619

2,848,633

18.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase contracts

2023

2022

Net obligations repayable:

Within one year

17,640

112,374

Between one and five years

18,486

17,640

130,860

The total financial commitments which are not included in the balance sheet amount to £3,942,633 (2022: £3,446,904).

19.	SECURED DEBTS

The following secured debts are included within creditors:

Group

Company

2023

2022

2023

2022

Bank loans

3,422,581

4,039,306

3,422,581

4,039,306

Hire purchase contracts

17,640

130,860

3,440,221

4,170,166

3,422,581

4,039,306

The bank borrowing is secured by way of legal charges over the group's freehold property. Hire purchase creditors are secured on the assets to which they relate.

20.	PROVISIONS FOR LIABILITIES

Group

2023

2022

Deferred tax

Accelerated capital allowances

886,502

613,781

Group

Deferred

tax

Balance at 1 October 2022

613,781

Provided during year

272,721

Timing differences

Change of tax rate

Balance at 30 September 2023

886,502

21.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

1,759,670

Ordinary

£1

1,759,670

Each ordinary share holds full and equal rights in respect of voting, dividends and capital distributions.

22.

RESERVES

Group

Retained

Revaluation

earnings

reserve

Totals

At 1 October 2022

6,990,111

572,027

7,562,138

Profit for the year

1,234,787

Dividends

(850,000

)

(850,000

)

At 30 September 2023

7,374,898

572,027

7,946,925

Company

Retained

earnings

At 1 October 2022

326,025

Profit for the year

1,025,000

Dividends

(850,000

)

At 30 September 2023

501,025

23.	CONTINGENT LIABILITIES

The Group has given Barclays Bank plc a cross guarantee and debenture between the Group and Generation Flooring (Holdings) Limited and Generation Flooring Limited. As at 30 September 2023, the amount of bank borrowing for these companies was £3,422,581 (2022: £4,039,306).

24.	ULTIMATE CONTROLLING PARTY

The controlling party is R N Wilson.