REGISTERED NUMBER: 01848362 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

27 FEBRUARY 2017 TO 25 FEBRUARY 2018

FOR

FUTON LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

R P Pearce

J J Harris

P J Willis

D M Kirby

SECRETARY:

P J Willis

REGISTERED OFFICE:

Unit A2, Circular Point

Hickman Avenue

Highams Park

London

E4 9JG

REGISTERED NUMBER:

01848362 (England and Wales)

SENIOR STATUTORY AUDITOR:

Benjamin Herbert

AUDITORS:

d&t

Chartered Accountants & Statutory Auditors

Swatton Barn

Badbury

Swindon

Wiltshire

SN4 0EU

BANKERS:

Barclays Bank Plc

1 Churchill Place

London

E14 5HP

FIXED ASSETS

Tangible assets

4

92,857

114,619

CURRENT ASSETS

Stocks

2,023,245

1,778,192

Debtors

5

170,892

213,735

Cash at bank and in hand

1,065,135

965,607

3,259,272

2,957,534

CREDITORS

Amounts falling due within one year

6

1,973,237

1,973,492

NET CURRENT ASSETS

1,286,035

984,042

TOTAL ASSETS LESS CURRENT LIABILITIES

1,378,892

1,098,661

CREDITORS

Amounts falling due after more than one year

7

(12,159

)

(18,701

)

PROVISIONS FOR LIABILITIES

-

(3,989

)

NET ASSETS

1,366,733

1,075,971

CAPITAL AND RESERVES

Called up share capital

121,500

121,500

Share premium

10

7,874

7,874

Capital redemption reserve

10

340,000

340,000

Retained earnings

10

897,359

606,597

SHAREHOLDERS' FUNDS

1,366,733

1,075,971

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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

The financial statements were approved by the Board of Directors on 7 November 2018 and were signed on its behalf by:

R P Pearce - Director

P J Willis - Director

1.	STATUTORY INFORMATION

Futon Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information

page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of 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.

TURNOVER

Turnover is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes.

Income is recognised upon despatch of goods to the customer.

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.

Plant and machinery etc

-

25% straight line basis and 20% straight line basis

STOCKS

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Cost of manufactured goods represents materials, direct labour and attributable production

overheads. Net realisable value is based on estimated selling price less any further costs expected to

be incurred to completion.

TAXATION

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income

Statement, except to the extent that it relates to items recognised in other comprehensive income or

directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the period 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.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

LEASE RENEWALS

It is the company's policy that any stamp duty that is incurred when entering into new or the renewal

of leases are not capitalised. The expense is allocated to the profit and loss account when the costs

are incurred.

DILAPIDATION COSTS

It is the company's policy to provide where appropriate for dilapidations in respect of leasehold

premises occupied by the company. In respect of properties currently occupied, a specific provision

has been made based upon the length of the lease, the square footage of the premises that the

company occupies,and historically agreed dilapidation costs.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 89 (2017 - 91 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 27 February 2017

and 25 February 2018

75,221

131,263

206,484

DEPRECIATION

At 27 February 2017

20,464

71,401

91,865

Charge for period

6,353

15,409

21,762

At 25 February 2018

26,817

86,810

113,627

NET BOOK VALUE

At 25 February 2018

48,404

44,453

92,857

At 26 February 2017

54,757

59,862

114,619

The net book value of tangible fixed assets includes £ 16,836 (2017 - £ 23,796 ) in respect of assets

held under hire purchase contracts.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Other debtors

170,892

213,735

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Hire purchase contracts (see note 8)

6,541

5,973

Trade creditors

352,130

229,339

Taxation and social security

553,131

525,468

Other creditors

1,061,435

1,212,712

1,973,237

1,973,492

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Hire purchase contracts (see note 8)

12,159

18,701

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

£

£

Net obligations repayable:

Within one year

6,541

5,973

Between one and five years

12,159

18,701

18,700

24,674

Non-cancellable

operating leases

2018

2017

£

£

Within one year

800,343

932,965

Between one and five years

2,161,389

2,114,692

In more than five years

746,121

883,294

3,707,853

3,930,951

Hire purchase contracts are secured against the asset to which they relate.

9.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Hire purchase contracts

18,700

24,674

Barclays Bank Plc have a fixed and floating charge on the company's present and future assets.

Barclays Bank Plc have issued a guarantee in favour of Mail Order Protection Scheme for £15,000 and

a guarantee in favour of HMRC for £10,000.

10.

RESERVES

Capital

Retained

Share

redemption

earnings

premium

reserve

Totals

£

£

£

£

At 27 February 2017

606,597

7,874

340,000

954,471

Profit for the period

474,284

474,284

Dividends

(183,522

)

(183,522

)

At 25 February 2018

897,359

7,874

340,000

1,245,233

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

The Report of the Auditors was unqualified.

Benjamin Herbert (Senior Statutory Auditor)

for and on behalf of d&t

12.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme. At the period end, the amount

outstanding and not yet paid over total £4,083 (2017 £1,868), and are shown in other creditors.

13.	RELATED PARTY DISCLOSURES

Unless otherwise disclosed, all related party transactions have been conducted under normal market

conditions, including dividend payments to its shareholders.