20 May 2024
Likewise Group plc
("Likewise" or the "Group")
Audited Final Results for the year ended 31 December 2023
Business on track for £ 200 million in sales achieving first £1 million order intake
in a single day
Likewise Group plc (AIM:LIKE), the fast growing UK floor coverings distributor, is pleased to announce its audited Final Results for the year ended 31 December 2023 ("FY23").
Financial Highlights
· Group Sales increased 12.9% to £139.5 million (FY22: £123.6 million)
· Underlying EBITDA of £7.9 million (FY22: £6.6 million)
· Following further investment in infrastructure, Underlying Profit Before Tax of £2.32 million (FY22: £2.56 million)
· Proposed Final Dividend of 0.25 pence per Ordinary Share, an increase of 25% (FY22: 0.20 pence). (Assuming shareholders approve the total dividend relating to FY23 will be 0.35 pence per Ordinary Share, being an overall increase of 75% compared with FY22*)
· Completion of All Deferred Consideration Payments of £4.3 million post year end
· During April 2024 the Group processed its first £1 million order intake in a single day
· Group Sales to the end of April 2024 increasing by 8.7% and Sales in Likewise Branded businesses increasing by 15.3% compared with the prior year
Operational Highlights as at April 2024
· 11 Distribution and Logistics Centres created with total capacity at c.15 million cubic feet
· 80 Suppliers across key flooring products
· 94 Customer focused Management and Sales Executives
· 139 Delivery trucks providing next day service
· 507 Employees, with a significant majority with long-standing flooring experience
· 100,000's of point of sale items creating market presence
· Over 5,000 Customers, principally independent flooring retailers and contractors
Chairman and Chief Executive Statement
Likewise is pleased to announce that total Revenue has increased by 12.9% to £139.5 million. The Group has continued to invest during 2023 and also into 2024 to further strengthen the Sales Resource and Logistics Infrastructure. Establishing this overall structure to enable the Group to achieve its medium term objectives inevitably impacts on short term profitability with Underlying Profit Before Tax for FY23 being £2.32 million. Whilst the Group will continue to invest, particularly in Sales Resource, the significant infrastructure costs are largely complete in this phase of our development.
The Group has again made significant progress in 2023, which has continued into the first four months of 2024, with Group Sales to the end of April increasing by 8.7% and Sales in Likewise Branded businesses increasing by 15.3% compared with the prior year. The Group continues to trade in line with current market expectations.
Logistics Network
The Glasgow Distribution Hub, opened in the Spring of 2023, is now making a meaningful contribution with regard to Storage, Picking and Cutting into the Likewise Logistics Network. Furthermore, Likewise Scotland is progressively increasing market share in both Residential and Commercial Flooring.
Likewise North East, which moved into a new Logistics Centre at the beginning of 2022 is now very clearly established across all flooring sectors and is well placed to progress its geographical presence.
Likewise North, based in Leeds, is particularly active throughout the M62 Corridor and with enhanced service to North West England through the new Manchester Logistics Centre. Further investment in sales resource and Point of Sale will continue to increase their market share in Residential and Commercial Flooring.
A&A will move into their new Logistics Centre in June. A&A has made an important contribution to the Group since being acquired in February 2020 and the new facility will allow A&A to make its next progression in both Residential and now Commercial Flooring.
Based in Birmingham, the Likewise Midlands business has made tremendous progress over the last two years and is now very much established as a principal distributor of Residential and Commercial Flooring throughout the Midlands.
Likewise South is progressively taking market share of Residential Flooring in the South of England and will benefit from the expansion of the Floors by Lewis Abbott Premium Branded Carpet.
Likewise London moved into a new Logistics Centre in Sidcup during January 2023 providing a much improved geographical reach and enhanced transportation network. To further develop Likewise London, investment has been made in 2024 to strengthen the Management and Sales Team.
Similarly from its Distribution Centre in Sudbury, Likewise South East invested further in its Management and Sales Team. This allows both businesses to significantly increase their presence in the important London and South East Flooring markets and also particularly benefiting from the Floors by Lewis Abbott product range.
Likewise Wales became operational in January 2024 from the Newport Distribution Centre and with the support of the Likewise Network has every opportunity to build a meaningful business in both Residential and Commercial Flooring.
Valley Wholesale Carpets ("Valley") is a very important part of the Group. The profitability and positive cash flow of Valley has been particularly strong in the last two years. Valley has extended its geographical reach over the last year and there are further opportunities to expand from its key Distribution Centres in Erith, Derby and Newport. Furthermore, Valley will increase its product portfolio and develop additional point of sale displays to provide an enlarged offering to their customers, enabling Valley to have an exciting future whilst remaining autonomous in the Group structure.
The H&V Carpets, Delta Carpets, Likewise Rugs and Matting and Floors by Lewis Abbott Premium Brand have every opportunity to further establish themselves in their respective products segments to be an increasing part of the Group's activities.
Dividend
Whilst the Group will continue to invest, the significant initial phase is now largely complete and therefore the Board is confident in expanding on the progressive policy previously announced by proposing a Final Dividend payment of 0.25 pence per ordinary share (FY22: 0.20 pence per ordinary share).
This makes the total dividend paid in the year of 0.35 pence per ordinary share (2022: 0.20* pence per ordinary share). This is a 75% increase on the FY22 Total Dividend, an encouraging reflection of the financial performance in 2023. The final dividend, if approved by shareholders at the AGM, will be paid on 5 July 2024 to shareholders on the register at the close of business on 31 May 2024, the ex-dividend date being 30 May 2024.
Shareholders can also take advantage of the Dividend Reinvestment Plan ("DRIP") by registering their intentions with the Company's registrar by 14 June 2024.
Outlook
Developing the Group's market presence is fundamental to achieving its aspirations with the 94 Sales Management and Sales Executives absolutely focused on their daily visits to independent flooring retailers and contractors to maximise the various Brands and in store displays.
To support these numerous sales initiatives, the Logistics Network is now very well established in both the Likewise Floors and Valley Operations with capacity created to extend the Group through its medium term objectives.
The quality of the infrastructure developed over the last three years was clearly demonstrated in early April when the Group was able to process a record order intake of over £1 million of Sales in a single day.
With a continued focus on investment in Sales Resource and Point of Sale combined with the additional capacity in the Logistics Infrastructure, the Board is confident of achieving its ambitions in the coming years. Notwithstanding some cost inflation, Sales progression in the near future will be delivered at a lower than historic percentage cost resulting in Operational Gearing and the Return on Sales meeting the aspirations of the Group.
The quality of the Management and Sales Teams created by the Group over the last three years is particularly impressive and in our opinion, the strongest in the UK Flooring Industry, providing the foundations for the Likewise Group to reach and then surpass its medium term intentions.
Tony Brewer, Chief Executive of Likewise Group plc, said:
"The Group has made significant progress in the last three years. The Board thanks the Management, Sales Teams and all Staff for their tremendous contribution to developing the Group and what has been achieved in such a short time.
Despite challenging market conditions, 2024 has started positively and we have every confidence of a successful year and most importantly another major step towards our medium term objectives.
The Group would also like to thank all our Suppliers, Customers and Shareholders for their support over the last few years and look forward to further strengthen those relationships to our mutual benefit."
*The 2022 interim dividend of 0.20 pence per ordinary share was the maiden dividend paid by the Group on 8 July 2022. Whilst this was paid as an interim dividend in 2022, it was in reflection of the Group's performance in the year ending 31 December 2021 for which no final dividend was declared. The Capital Reduction at the beginning of 2022 enabled a payment of a maiden dividend in respect of the Group's performance in 2021. Therefore, the total dividend for 2023 of 0.35 pence per ordinary share represents a 75% increase on the total dividend paid in respect of the performance of the Group in FY22 of 0.20 pence per ordinary share.
For further information, please contact: |
|
Likewise Group plc Tony Brewer, Chief Executive |
Tel: +44 (0) 121 817 2900 |
Zeus (Nominated Adviser and Joint Broker) Jordan Warburton / David Foreman / James Edis (Investment Banking) Dominic King (Corporate Broking) |
Tel: +44 (0) 20 3829 5000 |
WH Ireland (Joint Broker) Hugh Morgan / Antonio Bossi (Corporate Finance) Fraser Marshall / Harry Ansell (Corporate Broking) |
Tel: +44 (0) 20 7220 1666 |
Ravenscroft (Joint Broker) Semelia Hamon (Corporate Finance) |
Tel: +44 (0) 1481 732 746 |
Novella Communications (Financial PR) Claire de Groot / Tim Robertson |
Tel: +44 (0) 20 3151 7008 |
CAUTIONARY STATEMENT
Certain statements included or incorporated by reference within this announcement may constitute "forward-looking statements" in respect of the Group's operations, performance, prospects and/or financial condition. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words and words of similar meaning as "anticipates", "aims", "due", "could", "may", "will", "should", "expects", "believes", "intends", "plans", "potential", "targets", "goal" or "estimates". By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in the Group, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares or other securities of the Group. Past performance cannot be relied upon as a guide to future performance and persons needing advice should consult an independent financial adviser. Statements in this announcement reflect the knowledge and information available at the time of its preparation.
STRATEGIC REPORT
Business overview |
Likewise Group plc is a wholesale distributor of floorcoverings, rugs and matting products and strives to become one of the UK's largest distributors in this sector. Leveraging the many years' experience and knowledge of the Board and the collective Management Team, the Group have rapidly developed a significant distribution network with 11 operational sites delivering to customers across the UK. This has been achieved through accretive acquisitions and more notably through the establishment of new sites, leveraging the brand and network to create meaningful businesses within their respective territories. The Board consider the logistics capabilities created can support the Group's medium‑term aspirations achieving revenues in excess of £200m.
The Group's Distribution Hubs in Glasgow, Leeds, Birmingham and Sudbury, plus Distribution Centres in Manchester, Newcastle, Newbury and Sidcup in addition to the Valley Network in Erith, Derby and Newport totaling 15 million cubic feet, will allow the Group to meet its medium‑term objectives.
The Group will continue to make further investment in organic growth through sales and marketing initiatives and development in specific geographic locations. Whilst the Group sees incremental value in leveraging the Group's brand, acquisition opportunities will be considered in the future if they are earnings enhancing and provide the appropriate strategic rationale.
Trading performance
The directors are pleased to report the Group's revenue increased from £123.6m in 2022 to £139.5m for the year ended December 2023.
Likewise London, and Floors by Lewis Abbott moved into its newly refurbished Logistics Centre at the beginning of 2023 providing improved geographical reach, enhanced logistics capability and a better working environment for the local team. Further investment has been made in 2024 to further strengthen the Management and Sales Team.
Likewise South in Newbury established in April 2022 is progressively taking market share of residential flooring in the South of England and is benefitting from the development of the Floors by Lewis Abbott premium branded ranges.
Likewise Midlands has made tremendous progress over the past two years, and is now a principal distributor of both residential and commercial flooring throughout the midlands. In addition, with further investment in cutting capacity, the facility has strengthened the wider logistics network of benefit to both the Northern and Southern businesses maximising the Group's ability to provide a next day service of key benefit to customers.
In line with the strategic plan for A&A, the business appointed its first contract sales representative in Q4 2023, providing opportunity to expand its offering in 2024. The business is set to relocate to its new Logistics Centre in June 2024, enhancing the wellbeing of employees and enabling the facility to leverage the wider Likewise network to provide opportunities for growth.
The new Glasgow Distribution Hub, opened in Spring 2023 and now makes a meaningful contribution to the wider Group creating additional storage, picking and cutting capacity into the Likewise logistics network whilst also supporting the growth of the Likewise Scotland business established in 2019.
Further investment has been made in establishing a new Likewise Wales facility which became operational at the beginning of 2024, with the business benefitting from operating from the shared Valley site in Newport. With the investment in key personnel, and the support of the wider Likewise network, 2024 should provide many opportunities to considerably develop the business.
Likewise North East has developed a significant trade counter business benefitting from the wider support of both the Leeds and Scotland Distribution Hubs to allow it to continue to develop its geographical presence in the region.
Likewise North, operating from the Leeds Distribution Hub continues to be particularly active in the M62 corridor and now benefits from the distribution abilities of A&A in the Northwest, gaining more effective distribution routes for customers, whilst realising synergies for the Group.
Further investment in the Likewise South East Sales and Management Team continues to allow the business to expand its geographical reach with similar investments in London, positioning the Group as a major distributor in key London and South East markets.
Development of the Group's market presence is fundamental in delivering the medium‑term objectives of the Group and with input from the Sales Team, further development of in‑store displays and Point‑of‑Sale initiatives are critical in realising gains in market share.
Valley Wholesale Carpets (Valley) continues to be a key member of the Group, providing strong profitability and positive cash flows over the past two years since acquisition. Further investment has been made to Sales Teams to expand the business' Geographical reach, as well as investment in its previously unutilised Newport facility to bring this into operation to benefit customers in the South West and South Wales regions. Management are also increasing the current product range and developing new in‑store displays which will be of significant benefit to customers. This enables Valley to have an exciting future whilst remaining autonomous in the Group structure.
With a continued focus on investment in the development of the Group's market presence and Sales Resource, combined with the additional capacity forged in the Group's extensive distribution network, the Board is confident in achieving its medium‑term objectives in the coming years. Notwithstanding some cost inflation, the Board acknowledges with the significant establishment investment now made, the future development of the Group will result in improvements to operational gearing with return on sales meeting the aspirations of the Group.
Business strategy
It is the belief of the Board that value can be generated for suppliers, customers and shareholders by creating a national supplier and distributor of floorcoverings in the UK.
The investments made over the past few years in scaling the business have created a recognised trade brand within the sector. The leveraging of the Group's brand and logistics network have underpinned the success of many start‑up sites across the UK, and whilst acquisitions have provided opportunities to rapidly grow, the organic growth of the business is key to the long‑term strategy of the Group. Whilst acquisitions will always be considered where the Board believe they offer value for shareholders, and accretive growth to the Group, the ability to leverage the Group's brand and network will be key to achieving the medium‑term objectives.
Whilst there will be a level of investment required to continue the development of the Group's Sales initiatives, the significant investment in establishing the network needed to deliver the Group's medium‑term objectives has been made and as such there are now significant opportunities to improve operational gearing and thus increase return on sales in line with the aspirations of the Group.
Market and competition
The floorcovering market is made up of manufacturers, distributors, retailers and installers. It is the strategy of the Group to become a national distributor in the market. The UK flooring market is worth c. £2 billion split between residential, commercial, public and industrial markets. It is the strategy of the Group to focus on the residential and commercial areas of the market.
Key performance indicators |
The Board consider the following as financial key performance indicators (KPIs) for the Group: revenue, adjusted profit before tax and operating cash flow. The Board members review these for each of the businesses on a monthly basis. Individual subsidiaries have additional key performance indicators specific to their operations. Sales and margin are also monitored against budget on a daily basis by the executive management team. Key performance indicators were as follows:
Currency: £m |
Year ended 31 December 2023 £ |
Year ended 31 December 2022 £
|
Increase % |
Revenue |
139.5 |
123.6 |
12.9% |
Adjusted profit before tax |
2.3 |
2.6 |
(9.0%) |
Operating cash flow |
6.1 |
(1.3) |
556.5% |
The above adjusted profit before tax figure is stated after adding back:
Currency: £m |
Year ended 31 December 2023 £
|
Year ended 31 December 2022 £ |
Acquisition fees & related costs |
‑ |
2.3 |
Loss from new operations* |
0.1 |
0.5 |
Exceptional investment in point of sale |
0.3 |
0.5 |
Amortisation of intangibles |
0.4 |
0.4 |
Share based payments |
0.3 |
0.3 |
Strategic relocation and establishment costs |
1.2 |
‑ |
*Losses from new operations relate to costs incurred in the initial start‑up phase whilst the business is in its initial development phase and therefore not generating significant returns.
Exceptional investment in point of sale relate to accelerated expenses incurred in increasing the Group's market presence from providing heavily discounted in‑store displays to retailers in order to accelerate the growth in market share. This amount relates to specific strategic stand placements over and above what is incurred in the ordinary course of business recognised in the Consolidated Statement of Profit or Loss.
Strategic relocation and establishment costs relate to costs incurred in the relocation and establishment of the new 47,000 sq. ft. high bay Distribution Hub in Glasgow for Likewise Scotland, the relocation and establishment of the Likewise London business to new facilities in Sidcup, the commencement of costs incurred in the forthcoming closure of the A&A Manchester facility as this looks forward to moving to brand new facilities in June 2024 and closure costs incurred for H&V's small warehouse facility in Muelebeke, Belgium.
The Board additionally monitors the square footage of available warehouse space as a non financial KPI. The warehouse capacity as at 31 December 2023 was 499,250 square feet (2022 ‑ 519,000 square feet). This has slightly reduced since 2022 following the closure of the underutilised H&V Muelebeke site.
The following tables show a reconciliation of the adjusted results.
Currency: £m |
|
2023 |
|
2022* |
||||
|
Underlying |
Non-underlying** |
Total |
|
Underlying |
Non-underlying** |
Total |
|
Revenue |
|
139.5 |
- |
139.5 |
|
123.6 |
- |
123.6 |
Cost of sales |
|
(97.3) |
|
(97.3) |
|
(86.3) |
- |
(86.3) |
Gross profit |
|
42.2 |
|
42.2 |
|
37.3 |
- |
37.3 |
Other operating income |
|
- |
- |
- |
|
- |
- |
- |
Admin costs |
|
(20.6) |
(1.9) |
(22.5) |
|
(16.8) |
(3.1) |
(19.9) |
Distribution costs |
|
(17.8) |
(0.2) |
(18.0) |
|
(17.0) |
- |
(17.0) |
Impairment loses on trade receivables |
|
(0.3) |
- |
(0.3) |
|
(0.2) |
- |
(0.2) |
Profit/(loss) from operations |
|
3.5 |
(2.0) |
1.5 |
|
3.4 |
(3.1) |
0.2 |
Finance income |
|
0.1 |
- |
0.1 |
|
0.0 |
- |
0.0 |
Finance costs |
|
(1.3) |
(0.2) |
(1.5) |
|
(0.8) |
- |
(0.8) |
Gain/(Loss) on revaluation |
|
- |
0.1 |
0.1 |
|
- |
(0.8) |
(0.8) |
Profit/(loss) before tax |
|
2.3 |
(2.1) |
0.2 |
|
2.6 |
(3.9) |
(1.4) |
Taxation |
|
0.7 |
- |
0.7 |
|
0.6 |
- |
0.6 |
Profit/(loss) for the year |
|
3.1 |
(3.9) |
0.8 |
|
3.1 |
(3.9) |
(0.8) |
* As restated to align treatment with that of the year-end financial statements.
**Non‐underlying values are exceptional items, which include share based payment transactions, acquisition costs, amortisation of acquisition intangibles and strategic project costs. Adjusted results are non‐GAAP metrics used by management and are not an IFRS disclosure. Details of these charges can be seen in note 7 in the accounts below.
Financial Results and Ordinary Dividend
The results of the Group are shown in the Consolidated Statement of Profit or Loss and Other Comprehensive Income.
An interim dividend of 0.10p per ordinary share was paid on 17 November 2023 to shareholders on the register as at 13 October 2023.
A final dividend, in relation to the year ended 31 December 2022, of 0.20p per share was paid on 7th July 2023 to shareholders on the register at the close of business on 2nd June 2023, the ex‑dividend date being 1st June 2023.
The directors propose to pay a final dividend of 0.25p per ordinary share in respect of the financial year ended 31 December 2023. This to be subject to shareholder approval at the forthcoming AGM.
If approved, the total dividend payable for 2023 will be 0.35p per ordinary share.
The final dividend, if approved by shareholders at the AGM will be paid on 5 July 2024 to shareholders on the register at the close of business on 31 May 2024, the ex‑dividend date being 30 May 2024.
The last day for investors to elect for the Dividend Re‑Investment Plan (DRIP) will be 14 June 2024.
Consolidated statement of profit and loss and other comprehensive income for the year ended 31 December 2023
|
|
|
|
|
As restated |
||
|
|
|
|
2023 |
2022 |
||
|
|
|
|
Note |
£ |
£ |
|
|
|
|
|
||||
Revenue |
6 |
139,538,014 |
123,642,673 |
||||
Cost of sales |
|
(97,306,471) |
(86,309,299) |
||||
Gross profit |
|
42,231,543 |
37,333,374 |
||||
|
|
|
|
||||
Administrative expenses |
|
(22,481,980) |
(19,914,378) |
||||
Distribution expenses |
|
(17,989,409) |
(16,956,934) |
||||
Impairment losses on trade receivables |
|
(266,087) |
(238,201) |
||||
Profit from operations |
|
1,494,067 |
223,861 |
||||
|
|
|
|
||||
Finance income |
10 |
52,330 |
5,043 |
||||
Finance expense |
10 |
(1,487,716) |
(796,843) |
||||
Gain/(loss) on revaluation of consideration on acquisition |
|
129,750 |
(846,380) |
||||
Profit/(loss) before tax |
|
188,431 |
(1,414,319) |
||||
|
|
|
|
||||
Taxation |
11 |
655,594 |
578,015 |
||||
Profit/(loss) for the year |
|
844,025 |
(836,304) |
||||
Other comprehensive income: |
|
|
|||||
Items that will not be reclassified to profit or loss: |
|
|
|
||||
Revaluation of land and buildings |
14 |
24,389 |
309,957 |
||||
Actuarial loss on defined benefit schemes |
33 |
- |
(5,000) |
||||
Tax relating to revaluation of land and buildings |
11 |
(6,097) |
- |
||||
|
|
18,292 |
304,957 |
||||
Items that will or may be reclassified to profit or loss: |
|
|
|
||||
Exchange (losses)/gains arising on translation on foreign operations |
|
(7,015) |
16,138 |
||||
Total comprehensive income |
|
855,302 |
(515,209) |
||||
|
The total basic profit per share attributable to the ordinary equity holders of the Company was 0.3p (2022 ‑ loss of 0.3p). The total diluted profit per share attributable to the ordinary equity holders of the Company was 0.3p (2022 ‑ loss of 0.3p). |
Consolidated statement of financial position as at 31 December 2023
|
2023 |
2022 |
|
Note |
£ |
£ |
|
Assets |
|
|
|
Non‑current assets |
|
|
|
Property, plant and equipment |
14 |
48,385,689 |
47,300,221 |
Other intangible assets |
15 |
3,938,497 |
4,208,884 |
Goodwill |
16 |
5,624,284 |
5,624,284 |
|
|
57,948,470 |
57,133,389 |
Current assets |
|
|
|
Inventories |
18 |
20,253,799 |
18,388,527 |
Trade and other receivables |
19 |
17,679,986 |
15,573,303 |
Cash and cash equivalents |
20 |
5,709,229 |
5,913,155 |
|
|
43,643,014 |
39,874,985 |
Total assets
|
|
101,591,484 |
97,008,374 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
Non‑current liabilities |
|
|
|
Trade and other liabilities |
21 |
- |
4,380,365 |
Loans and borrowings |
22 |
20,743,819 |
20,222,050 |
Deferred tax liability |
11 |
1,866,950 |
2,496,677 |
|
|
22,610,769 |
27,099,092 |
Current liabilities |
|
|
|
Trade and other liabilities |
21 |
29,765,971 |
22,970,426 |
Loans and borrowings |
22 |
9,647,060 |
7,777,512 |
Provisions |
25 |
45,103 |
50,075 |
|
|
39,458,134 |
30,798,013 |
Total liabilities |
|
62,068,903 |
57,897,105 |
Net assets |
|
39,522,581 |
39,111,269 |
Share capital |
28 |
2,439,645 |
2,438,360 |
Share premium |
29 |
17,396,190 |
17,384,625 |
Share option reserve |
34 |
903,295 |
628,454 |
Revaluation reserve |
|
2,626,976 |
2,662,384 |
Foreign exchange reserve |
|
(47,502) |
(40,487) |
Warrant reserve |
|
128,170 |
128,170 |
Retained earnings |
|
16,075,807 |
15,909,763 |
Total equity |
|
39,522,581 |
39,111,269 |
Consolidated statement of changes in equity for the year ended 31 December 2023
|
Share capital |
Share premium |
Share option reserve |
Revaluation reserve |
Foreign exchange reserve |
Warrant reserve |
Retained earnings |
Total attributable to equity holders of parent |
Total equity |
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
At 1 January 2023 |
2,438,360 |
17,384,625 |
628,454 |
2,662,384 |
(40,487) |
128,170 |
15,909,763 |
39,111,269 |
39,111,269 |
Profit for the year |
- |
- |
- |
- |
- |
- |
844,025 |
844,025 |
844,025 |
Other comprehensive income (see note 32) |
- |
- |
- |
(35,408) |
(7,015) |
- |
53,700 |
11,277 |
11,277 |
Total comprehensive income for the year |
- |
- |
- |
(35,408) |
(7,015) |
- |
897,725 |
855,302 |
855,302 |
Dividends |
- |
- |
- |
- |
- |
- |
(731,681) |
(731,681) |
(731,681) |
Shares options exercised |
1,285 |
11,565 |
- |
- |
- |
- |
- |
12,850 |
12,850 |
Share options and warrants issued |
- |
- |
274,841 |
- |
- |
- |
- |
274,841 |
274,841 |
Total contributions by and distributions to owners |
1,285 |
11,565 |
274,841 |
- |
- |
- |
(731,681) |
(443,990) |
(443,990) |
At 31 December 2023 |
2,439,645 |
17,396,190 |
903,295 |
2,626,976 |
(47,502) |
128,170 |
16,075,807 |
39,522,581 |
39,522,581 |
Consolidated statement of changes in equity for the year ended 31 December 2022
|
Share capital |
Share premium |
Share option reserve |
Revaluation reserve |
Foreign exchange reserve |
Warrant reserve |
Retained earnings |
Total attributable to equity holders of parent |
Total equity |
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
At 1 January 2022 |
1,923,742 |
22,458,816 |
308,776 |
2,406,127 |
(56,625) |
128,170 |
(4,815,043) |
22,353,963 |
22,353,963 |
Loss for the year |
- |
- |
- |
- |
- |
- |
(836,304) |
(836,304) |
(836,304) |
Other comprehensive income (see note 32) |
- |
- |
- |
256,257 |
16,138 |
- |
48,700 |
321,095 |
321,095 |
Total comprehensive income for the year |
- |
- |
- |
256,257 |
16,138 |
- |
(787,604) |
(515,209) |
(515,209) |
Dividends |
- |
- |
- |
- |
- |
- |
(487,590) |
(487,590) |
(487,590) |
Issue of share capital |
512,143 |
17,425,358 |
- |
- |
- |
- |
- |
17,937,501 |
17,937,501 |
Share options exercised |
2,475 |
22,550 |
- |
- |
- |
- |
- |
25,025 |
25,025 |
Transfer to retained earnings |
- |
- |
- |
- |
- |
- |
22,000,000 |
22,000,000 |
22,000,000 |
Reduction in share premium |
- |
(22,000,000) |
- |
- |
- |
- |
- |
(22,000,000) |
(22,000,000) |
Share issue costs |
- |
(522,099) |
- |
- |
- |
- |
- |
(522,099) |
(522,099) |
Share options |
- |
- |
319,678 |
- |
- |
- |
- |
319,678 |
319,678 |
Total contributions by and distributions to owners |
514,618 |
(5,074,191) |
319,678 |
- |
- |
- |
21,512,410 |
17,272,515 |
17,272,515 |
At 31 December 2022 |
2,438,360 |
17,384,625 |
628,454 |
2,662,384 |
(40,487) |
128,170 |
15,909,763 |
39,111,269 |
39,111,269 |
Consolidated statement of cash flows for the year ended 31 December 2023
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
Cash flows from operating activities |
|
|
|
|||
Profit/(loss) for the year |
|
844,025 |
(836,304) |
|||
Adjustments for |
|
|
|
|||
Depreciation and amortisation |
14/15 |
4,924,947 |
3,633,356 |
|||
Revaluation of consideration |
|
(129,750) |
846,380 |
|||
Taxation |
11 |
(655,594) |
(578,015) |
|||
Finance income |
10 |
(52,330) |
(5,043) |
|||
Finance costs |
10 |
1,487,716 |
796,843 |
|||
Amendments to property, plant and equipment |
|
(107,072) |
- |
|||
Gain on sale of property, plant and equipment |
|
(110,898) |
(35,193) |
|||
Defined benefit pension contributions |
33 |
- |
(5,000) |
|||
Decrease in provisions |
25 |
(4,972) |
(152,601) |
|||
Share options issued |
34 |
274,841 |
319,678 |
|||
Net foreign exchange (gain)/loss |
|
(7,015) |
15,429 |
|||
|
|
6,463,898 |
3,999,530 |
|||
Movements in working capital: |
|
|
|
|||
Increase in trade and other receivables |
|
(2,106,683) |
(3,624,487) |
|||
Increase in inventories |
|
(1,865,272) |
(4,437,276) |
|||
Increase in trade and other payables |
|
3,544,930 |
3,249,449 |
|||
Cash generated from operations |
|
6,036,873 |
(812,784) |
|||
|
|
|
|
|||
Corporation taxes received/(paid) |
|
19,770 |
(514,040) |
|||
Net cash from/(used in) operating activities
|
|
6,056,643 |
(1,326,824) |
|||
Cash flows from investing activities |
|
|
|
|||
Acquisition of subsidiary, net of cash acquired |
|
- |
(13,541,050) |
|||
Purchases of property, plant and equipment |
|
(1,895,323) |
(2,001,322) |
|||
Proceeds from disposal of property, plant and equipment |
|
206,965 |
76,424 |
|||
Purchase of intangibles |
15 |
(133,983) |
- |
|||
Deferred consideration paid |
|
(1,000,000) |
- |
|||
Interest received |
10 |
52,330 |
5,043 |
|||
Net cash used in investing activities |
|
(2,770,011) |
(15,460,905) |
|||
|
|
|
|
|||
Cash flows from financing activities |
|
|
|
|||
Interest paid |
10 |
(449,168) |
(225,834) |
|||
Consideration for new shares |
|
12,850 |
16,025,026 |
|||
Costs of share issue |
|
- |
(522,099) |
|||
Repayment of lease liabilities |
|
(3,886,917) |
(2,448,536) |
|||
Increase in invoice discounting |
|
766,116 |
2,029,473 |
|||
Repayment of loans |
|
(1,696,758) |
(117,106) |
|||
New bank loans |
|
2,495,000 |
- |
|||
Dividends paid to the holders of the parent |
13 |
(731,681) |
(487,590) |
|||
Net cash (used in)/from financing activities |
|
(3,490,558) |
14,253,334 |
|||
Net decrease in cash and cash equivalents |
|
(203,926) |
(2,534,395) |
|||
|
|
|
|
|||
Cash and cash equivalents at the beginning of year |
|
5,913,155 |
8,447,550 |
|||
Cash and cash equivalents at the end of the year |
|
5,709,229 |
5,913,155 |
|||
Cash and cash equivalents at 31 December 2023 of £5,709,229 (2022 ‑ £5,913,155) comprised of cash and cash equivalents of £5,709,229 (2022 ‑ £5,913,155) less bank overdrafts of £Nil (2022 ‑ £Nil).
Notes to the consolidated financial statements for the year ended 31 December 2023
1.
|
General information
|
|
The Company is a public company limited by shares, registered in England and Wales and listed on the Alternative Investment Market (AIM). The registered company number is 08010067 and the address of the registered office is Unit 4 Radial Park, Radial Way, Birmingham Business Park, Solihull, England, B37 7WN.
The principal activity of the Group is the wholesale distribution of floorcoverings and associated products.
2.
|
Restatement of prior period
|
Management have restated the prior period comparatives within the subsidiary companies Valley Wholesale Carpets Limited and Likewise Floors Limited to ensure that classification of cost of sales, distribution expenses and administrative expenses are in line with the classifications of Likewise Group Plc.
The impact of this has been to:
‑ decrease cost of sales by £863,145 from £87,172,444 to £86,309,299
‑ increase administrative expenses by £944,768 from £18,969,610 to £19,914,378
‑ decrease distribution expenses by £81,623 from £17,038,557 to £16,956,934
There have been no amendments to the prior period Statement of Financial Position as a result of these reclassifications.
3.
|
Basis of preparation
|
These financial statements consolidate those of the Company and its subsidiaries (together referred to as the "Group"). The Parent Company financial statements present information about the Company as a separate entity.
The financial information is presented in pounds sterling, which is the functional currency of the entity and rounded to the nearest £. The financial statements are prepared on the historical cost basis unless otherwise specified within these accounting policies.
Both the Company and consolidated financial statements have been prepared and approved by the directors in accordance with UK adopted International Accounting Standards. On publishing the Company financial statements here together with the consolidated financial statements, the Company is taking advantage of the exemption in s408 of the Companies Act 2006 not to present its individual income statement and statement of comprehensive income and related notes.
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
4. Accounting policies
|
4.1
|
Going concern
|
The consolidated financial statements for the Group have been prepared on a going concern basis.
The Group continues to utilise invoice financing arrangements in some subsidiaries and has the option to draw on additional authorised facilities to support working capital requirements. The Group has operated within these facilities throughout the year and continues to do so in 2024. The directors are confident that the Group will be able to operate within the finance facilities available to us.
The Board have also undertaken assessments of going concern by building a cash flow model through to December 2025, based on 2023 actuals, 2024 budget and forecast performance for 2025. These cashflows indicate that the business has adequate resources to continue to operate for the foreseeable future and within the current financing arrangements in place.
Overall, given the strength of the Group's balance sheet, significant cash reserves on hand, availability of financing arrangements and the strong forecast performance of the Group, this provides the directors with sufficient assurance on the Group's ability to continue as a going concern, and therefore adopt the going concern basis of accounting in preparing the financial statements.
|
4.2
|
Basis of consolidation
|
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an investee so as to obtain benefits from its activities, has exposure, or rights, to variable returns and can use its power to affect those returns. In assessing control, potential voting rights that are currently exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
|
4.3
|
Impact of new international reporting standards
|
There were a number of narrow scope amendments to existing standards which were effective from 1 January 2023. None of these had an impact on the Group.
Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2023 reporting periods and have not been early adopted by the Group. These standards, amendments or interpretations are not expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.
|
4.4
|
Revenue
|
Revenue comprises sales of goods to customers outside the Group, less an appropriate deduction for discounts, and is stated at the fair value of the consideration net of value added tax and other sales taxes.
Revenue and receivables are recognised when performance obligations are satisfied and the goods are delivered to customers as this is the point in time that the consideration is unconditional, control of goods has passed and only the passage of time is required before the payment is due.
|
4.5
|
Finance income and costs
|
Interest income and expense is recognised using the effective interest method which calculates the amortised cost of a financial asset or liability and allocates the interest income or expense over the relevant period.
|
4.6
|
Property, plant and equipment
|
Property, plant and equipment under the cost model are stated at historical cost less depreciation less any recognised impairment losses. Cost includes expenditure that is directly attributable to the acquisition or construction of these items. Subsequent costs are included in the asset's carrying amount only when it is probable that future economic benefits associated with the item will flow to the company and the costs can be measured reliably. All other costs, including repairs and maintenance costs, are charged to the Income Statement in the period in which they are incurred.
Depreciation is provided on all property, plant and equipment and is calculated as follows:
Freehold property ‑ 2% straight line
Leasehold improvements ‑ straight line over the term of the lease
Plant and machinery ‑ 10% ‑ 33% straight line
Motor vehicles ‑ 20% ‑ 50% straight line
Fixtures, fittings and computer equipment ‑ 10% ‑ 33% straight line
Depreciation is provided on cost less residual value. The residual value, depreciation methods and useful lives are annually reassessed.
Each asset's estimated useful life has been assessed with regard to its own physical life limitations and to possible future variations in those assessments. Estimates of remaining useful lives are made on a regular basis for all machinery and equipment, with annual reassessments for major items. Changes in estimates are accounted for prospectively.
The gain or loss arising on disposal or scrapping of an asset is determined as the difference between the sales proceeds, net of selling costs, and the carrying amount of the asset and is recognised in the Income Statement.
|
4.7
|
Revaluation of property
|
Individual properties are carried at current year value at fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Consolidated Statement of Financial Position date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in Other Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the Income Statement.
The difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset's original cost is transferred from revaluation reserve to retained earnings at the end of each reporting period. Any remaining revaluation surplus included in equity is transferred directly to retained earnings when the asset is disposed of.
|
4.8
|
Impairment of non‑financial assets (excluding Goodwill)
|
At each reporting date, the directors review the carrying amounts of the Group's non current assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where the asset does not generate cash flows that are independent from other assets, the directors estimate the recoverable amount of the cash generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs of disposal and value in use. 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 which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash generating unit is reduced to its recoverable amount. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit.
An impairment loss is recognised as an expense immediately.
Where an impairment loss on non financial assets subsequently reverses, the carrying amount of the asset or cash generating unit is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset or cash generating unit in prior periods. A reversal of an impairment loss is recognised in the Income Statement immediately.
|
4.9
|
Inventories
|
Inventory is valued at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, inventories are assessed for impairment. If inventories are impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement.
|
4.10
|
Cash and cash equivalents
|
Cash at bank comprise cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less from inception.
|
4.11
|
Financial instruments
|
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument.
Financial assets and financial liabilities are measured initially at fair value plus transactions costs. Financial assets and financial liabilities are measured subsequently as described below.
Cash equivalents comprise short‑term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. An investment with a maturity of three months or less is normally classified as being short‑term.
Derivatives, including forward foreign exchange contracts, are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re‑measured at their fair value. Changes in the fair value of derivatives are recognised in the Income Statement in finance costs or income as appropriate.
|
4.12
|
Financial assets
|
Trade and other receivables are recorded initially at transaction price and subsequently measured at amortised cost. This results in their recognition at nominal value less an allowance for any doubtful debts. This allowance for expected credit losses (ECL) may be established where evidence of credit deterioration is observed. In order to assess credit deterioration, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on its historical experience and informed credit assessment, that includes forward‑looking information. An additional reserve is established, where required, when a loss is both probable and the amount is known.
ECLs are a probability‑weighted estimate of lifetime credit losses. Under the ECL model, the Group calculates the allowance for credit losses by considering on a discounted basis the cash shortfalls it would incur in various default scenarios for prescribed future periods and multiplying the shortfalls by the probability of each scenario occurring. The allowance is the sum of these probability weighted outcomes. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Group expects to receive) with a discount factor applied to such overdue amounts. The discount matrix ("ECL Matrix") below is applied to derive an ECL for overdue amounts:
Past due (days) 31‑60 61‑90 90‑120 120‑250 Over 250
Discount to Amounts Overdue 0% 0% 5% 50% 100%
The Group exercises its discretion in the application of discounts outside of the ECL Matrix based on extenuating circumstances that may apply from time to time to the Group's trade receivables (see note 19). An example of such an extenuating circumstance may occur when it is known that an overdue amount will be collected post a reporting or measurement date.
|
4.13
|
Financial liabilities
|
The Group's financial liabilities include trade and other payables and borrowings.
Interest bearing bank loans and overdrafts are initially recorded at fair value, which equals the proceeds received, net of direct interest costs. They are subsequently held at amortised cost. Finance charges, including premiums payable on settlement or redemption are accounted for using an effective interest rate method and are added to or deducted from the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost. Generally, this results in their recognition at their nominal value.
|
4.14
|
Foreign currency
|
The presentation currency for the Group's financial information is pounds sterling.
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Any gain or loss on translation of monetary foreign currency assets and liabilities arising from a movement in exchange rates subsequent to initial measurement is included as an exchange gain or loss in the Consolidated Statement of Profit or Loss.
The assets and liabilities of overseas subsidiary undertakings are translated at the closing exchange rate. Income Statements and cash flows of such subsidiaries are translated into Sterling at the average rates of exchange. The adjustments to period end rates are taken to foreign exchange reserve in equity and reported in the Other Comprehensive Income.
|
4.15
|
Taxation
|
Current taxation
Current taxation is based on the local taxable income at the local statutory tax rate enacted or substantively enacted at the reporting date and includes adjustments to tax payable or recoverable in respect of previous periods.
Deferred taxation
Deferred taxation is calculated using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the historical financial information. However, if the deferred tax arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences, it is not accounted for. No deferred tax is recognised on initial recognition of goodwill or on investment in subsidiaries. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the year end date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax liabilities are provided in full, and are not discounted.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the Income Statement, except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority where there is an intention to settle the balances on a net basis.
|
4.16
|
Business combination
|
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:
‑ fair values of the assets transferred
‑ liabilities incurred to the former owners of the acquired business
‑ equity interests issued by the Group
‑ fair value of any asset or liability resulting from a contingent consideration arrangement, and
‑ fair value of any pre‑existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.
Acquisition related costs are expensed as incurred.
The excess of the consideration transferred and acquisition date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognised directly in the Income Statement as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in the Income Statement.
|
4.17
|
Goodwill
|
Goodwill is initially recognised and measured as set out above.
Goodwill not attributed to a specific intangible asset is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to each of the Group's cash generating units expected to benefit from the synergies of the combination. If the recoverable value of the cash generating unit is less than the carrying amount of goodwill, the impairment loss is recognised. An impairment loss recognised for goodwill is not reversed in a subsequent period.
On disposal of a cash generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
|
4.18
|
Intangible assets
|
||
|
Other intangible assets
|
|
||
Goodwill attributable to the brand name of acquired subsidiaries or customer base is initially recognised
and measured as set out above. Licences are initially recognised at cost.
Amortisation is provided on all other intangible assets and is calculated as follows:
|
|
Brand name |
10 ‑ 15 years straight line |
|
|
Customer base |
10 ‑ 15 years straight line |
|
|
Software |
10 years straight line |
The useful lives of intangible assets are annually reassessed and all assets are reviewed for impairment at least annually. On disposal of a subsidiary, the attributable amount of intangible assets is included in the determination of the profit or loss on disposal.
|
4.19
|
Employment benefits
|
Provision is made in the financial statements for all employee benefits. Liabilities for wages and salaries, including non monetary benefits and annual leave obliged to be settled within 12 months of the reporting date, are recognised in accruals.
Contributions to defined contribution pension plans are charged to the Statement of Profit or Loss in the year to which the contributions relate.
Likewise Floors Limited, a subsidiary of the Group operates a defined benefit pension plan for certain employees.
The amount recognised in the Consolidated Statement of Financial Position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method. Annually the Group engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').
Where the calculation results in a benefit to the Group, the asset recognised is limited to the present value of any future refunds from the plan or reductions in future contributions to the plan.
|
4.20
|
Leases
|
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right‑of‑use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short‑term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Group recognises the lease payments as an operating expense on a straight line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
Right‑of‑use assets are depreciated over the shorter period of lease term and useful life of the underlying asset.
|
4.21
|
Borrowing costs
|
Borrowing costs are recognised in the Statement of Profit or Loss in the year in which they are incurred.
|
4.22
|
Share based payments
|
The fair value of equity instruments granted to employees is charged to the Statement of Comprehensive Income, with a corresponding increase in equity. The fair value of share options is measured at grant date using the Black‑Scholes pricing model and spread over the period during which the employee becomes unconditionally entitled to the award. The charge is adjusted to reflect the number of shares or options that vest.
|
4.23
|
Invoice discounting
|
The Group has an invoice discounting arrangement. The amount owed by customers to the Group are included within trade receivables and the amount owed to the invoice discounting company is included within borrowings. The amount owed to the invoice discounting company represents the difference between the amounts advanced by the invoice discounting company and the invoices discounted. The interest element of the invoice discounting charges and other related costs are recognised as they accrue and are included in the Income Statement with other finance costs.
|
4.24
|
Segment reporting
|
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses related to transactions with other components of the same entity), whose operating results are regularly reviewed by the entity's Chief Operating Decision Maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Chief Operating Decision Maker has been identified as the board of executive directors, at which level strategic decisions are made.
Details of the Group's reporting segments are provided in note 6.
|
4.25
|
Provisions
|
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
5.
|
Judgements and key sources of estimation uncertainty
|
The preparation of the financial statements, in conformity with adopted IFRSs requires management to make judgements, estimates and assumptions that affect the carrying amounts of assets and liabilities at the date of these financial statements and the reported amount of revenues and expenses during the period. These judgements, estimates and assumptions are continually evaluated by management and are based upon historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The key assumptions concerning the future and other key sources of estimation uncertainty at the statement of financial position date, that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are as follows:
Contingent consideration
Contingent consideration may be payable in respect of acquisitions and is calculated with reference to the Likewise Group Plc share price at a future determination date. The fair value of contingent consideration at the date of acquisition and subsequent remeasurement dates requires significant judgements and estimates and is sensitive to share price changes.
Intangible assets
The Group recognises identifiable intangible assets, such as brands and customer relationships, at fair value on acquisition of the relevant subsidiaries. Any excess paid over the value of net assets acquired is recognised as Goodwill in the Consolidated Statement of Financial Position and is allocated to the appropriate business.
The annual amortisation charge and useful life is based on the period over which management expects to benefit from the intangible assets, based on past experience and knowledge of the business acquired.
Goodwill
Goodwill is recognised on acquisition of subsidiaries. This value is the excess paid over the net assets acquired which cannot be separately identified as an intangible asset. Goodwill is not amortised but is subject to an annual impairment review.
The impairment assessment compares the carrying value of Goodwill with its recoverable amount. The recoverable amount is determined by performing a discounted cash flow (DCF) analysis of the Cash Generating Unit (CGU) with reference to divisional budgets prepared by management. To prepare the DCF, management are required to use estimates and judgement for the parameters applied to the model of growth and termination growth rate percentages along with the discount factor. The percentages used to calculate the growth rates are based on prior performance along with budgets for the coming year. The discount factor is based on the proportion of the company's cost of capital weighted between the use of debt and equity finance.
Impairment of trade receivables
Trade and other receivables are recognised at nominal value less an allowance for doubtful debts. This allowance for expected credit losses (ECL) may be established where evidence of credit deterioration is observed. In order to assess credit deterioration, the directors use reasonable and supportable information that is relevant and available without undue cost or effort. This includes the directors assessment of both quantitative and qualitative information and analysis, based on its historical experience and informed credit assessment, that includes forward‑looking information. An additional reserve is established, where required, when the directors consider that a loss is both probable and the amount is known. See notes 4.12 and 19 for further information.
Inventory valuation
Inventories are stated at the lower of cost and the estimated selling price less costs to complete and sell.
Inventory provisions are recognised to provide for short length stock dependant on its length and using the directors judgement of likely future sale to calculate it's likely realisable value. In addition, a provision is recognised for any aged stock, on an increasing basis, once it's been held in inventory for at least one year.
A significant shift in consumer market or customer demand may result in the directors inclusion of an additional specific provision based on their assessment of likely future sale.
Valuation of land and buildings
The Group carries its land and buildings at fair value, with changes in fair value being recognised in Other Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the Income Statement. The Group engaged independent valuation specialists to determine fair value. Significant changes in the commercial property market may impact the valuation of the Group's property. See note 14 for further information.
6.
|
Segmental reporting
|
|||||
|
For the purposes of segmental reporting, the Group's Chief Operating Decision Maker (CODM) is considered to be the executive board of directors. The board has not identified any separate operating segments within the business. The board reviews revenue and expenses for the business as a whole and makes decisions about resources and assesses performance based on this information.
|
|||||
|
The following is an analysis of the Group's revenue for the year from continuing operations:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Sale of goods |
139,538,014 |
123,642,673 |
|||
|
|
139,538,014 |
123,642,673 |
|
The Group generates revenue from both the UK and overseas as detailed below:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
United Kingdom |
139,297,993 |
123,432,273 |
|||
|
Rest of Europe |
229,533 |
182,417 |
|||
|
Rest of the world |
10,488 |
27,983 |
|||
|
|
139,538,014 |
123,642,673 |
7.
|
Operating profit
|
|||||
|
Operating profit is stated after charging:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Depreciation of property, plant and equipment |
1,496,198 |
1,217,258 |
|||
|
Depreciation of right‑of‑use assets |
3,024,379 |
2,049,591 |
|||
|
(Profit)/loss on foreign exchange |
(331) |
31,229 |
|||
|
Short term lease expense: |
|
|
|||
|
‑ plant |
172,446 |
174,539 |
|||
|
‑ property |
188,500 |
150,000 |
|||
|
Amortisation of intangible assets |
404,370 |
366,507 |
|||
|
Share based payments |
274,841 |
319,678 |
|||
|
Loss from new operations |
95,466 |
497,968 |
|||
|
Exceptional investment in point of sale |
283,933 |
486,536 |
|||
|
Strategic location and establishment costs |
852,200 |
- |
|||
|
Acquisition fees and related costs |
- |
1,455,992 |
|
Losses from new operations relate to costs incurred in the initial start‑up phase whilst the business is in its initial development phase and therefore not generating significant returns.
|
8.
|
Auditors' remuneration
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
Fees payable to the Group's auditors for the audit of the Group's financial statements |
150,000 |
150,000 |
|||
|
Fees payable to the Group's auditors: |
|
|
|||
|
‑ taxation advisory services |
- |
500 |
|||
|
‑ work in respect of acquisition due diligence |
- |
62,000 |
|||
|
|
|||||
9.
|
Directors and employees
|
|||||
|
Group
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
Employee benefit expenses (including directors) comprise: |
|
|
|||
|
Wages and salaries |
18,215,855 |
16,289,890 |
|||
|
National insurance |
1,946,475 |
1,722,647 |
|||
|
Defined contribution pension cost |
513,550 |
500,267 |
|||
|
Compensation for loss of office |
- |
15,541 |
|||
|
Share based payment expenses |
274,841 |
319,678 |
|||
|
|
20,950,721 |
18,848,023 |
|
Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the directors of the Company listed on page 1, and other senior management.
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Salary |
1,159,356 |
1,703,375 |
|||
|
Social security costs |
147,521 |
214,322 |
|||
|
Group pension contribution to defined contribution schemes |
61,350 |
61,350 |
|||
|
Share based payments |
68,462 |
82,468 |
|||
|
|
1,436,689 |
2,061,515 |
|
As at 31 December 2023, 1,285,714 share options remained active under the Group's SAYE scheme (2022 ‑ 1,285,714). During the year no options were granted to key management personnel, no options lapsed and no options were exercised. These options may be exercised between March and October 2024. Post year end, 300,000 of these options were exercised during March 2024.
|
|||||
|
Group
|
|||||
|
The monthly average number of persons, including the directors, employed by the Group during the year was as follows:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
No. |
No. |
|
Directors |
5 |
5 |
|||
|
Other employees |
462 |
450 |
|||
|
|
467 |
455 |
|
The monthly average number of persons, including the Directors, employed by the Company during the year was 8 (2022 - 12).
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
Remuneration of directors |
|
|
|||
|
Remuneration |
649,972 |
939,327 |
|||
|
Social security costs |
79,465 |
107,188 |
|||
|
Group pension contribution to defined contribution schemes |
25,600 |
25,600 |
|||
|
Share based payments |
12,869 |
14,418 |
|||
|
|
767,906 |
1,086,533 |
|
In addition, fees of £Nil (2022 ‑ £Nil) were paid to non‑executive directors in the year.
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
No. |
No. |
|
|
|
|
|||
|
Directors accruing benefits under money purchase pension schemes |
1 |
1 |
|||
|
|
1 |
1 |
|
2,700,000 share options were granted to directors during 2019 at an exercise price of £0.10 per share. There have been no options exercised or additional options granted since this time. These options may be exercised between January and March 2024.
|
10.
|
Finance income and expense
|
|||||
|
Recognised in profit or loss
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
Finance income |
|
|
||||
|
Interest on: |
|
|
|||
|
Bank deposits |
52,330 |
- |
|||
|
Other interest receivable |
- |
5,043 |
|||
|
Total finance income |
52,330 |
5,043 |
|||
|
Finance expense |
|
|
|||
|
Bank interest payable |
164,269 |
74,575 |
|||
|
Interest on lease liabilities |
1,038,548 |
571,009 |
|||
|
Other interest payable |
304 |
22,283 |
|||
|
Invoice discounting facility interest payable |
284,595 |
128,976 |
|||
|
Total finance expense |
1,487,716 |
796,843 |
|||
|
|
|
|
|||
|
Net finance expense recognised in profit or loss |
(1,435,386) |
(791,800) |
11.
|
Taxation on ordinary activities
|
|||||
|
11.1 Income tax recognised in profit or loss
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
Current tax |
|
|
|||
|
Adjustments in respect of prior years |
(19,770) |
(70,812) |
|||
|
Total current tax |
(19,770) |
(70,812) |
|||
|
Deferred tax expense |
|
|
|||
|
Origination and reversal of timing differences |
(635,824) |
(699,135) |
|||
|
Effect of change in tax rates |
- |
191,932 |
|||
|
Total deferred tax |
(635,824) |
(507,203) |
|||
|
|
|
|
|||
|
Total tax credit |
(655,594) |
(578,015) |
|
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to profits for the year are as follows:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Profit/(loss) for the year |
844,025 |
(836,304) |
|||
|
Income tax expense/(credit) |
(655,594) |
(578,015) |
|||
|
Profit/(loss) before income taxes |
188,431 |
(1,414,319) |
|||
|
|
|
|
|||
|
Tax using the Company's domestic tax rate of 23.5% (2022:19%) |
44,281 |
(268,721) |
|||
|
Fixed asset differences |
86,308 |
391,971 |
|||
|
(Income)/expenses not deductible for tax purposes |
(19,092) |
345,325 |
|||
|
Adjustments to tax charge in respect of prior periods |
(19,770) |
(70,812) |
|||
|
Non‑taxable consolidation adjustments |
3,774 |
(2,619) |
|||
|
Remeasurement of deferred tax |
12,383 |
(30,975) |
|||
|
Movement in deferred tax not recognised |
(767,116) |
(932,774) |
|||
|
Chargeable losses |
(18,245) |
- |
|||
|
Other differences leading to an increase/(decrease) in the tax charge |
21,883 |
(9,410) |
|||
|
Total tax credit |
(655,594) |
(578,015) |
Changes in tax rates and factors affecting the future tax charges
At 31 December 2023, the Group has tax losses of £13,955,031 (2022 ‑ £11,539,175) which are available for offset against future taxable profits.
The main rate of corporation tax changed on 1 April 2023 from 19% to 25% (with marginal rate relief available for companies with small profits). As the current financial year includes periods before and after the change in tax rate, the effective rate applicable to profits generated in the year ended 31 December 2023 is 23.5%.
|
11.2 Deferred tax balances
|
|||||
|
The following is the analysis of deferred tax assets/(liabilities) presented in the consolidated statement of financial position:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Deferred tax liabilities |
(1,866,950) |
(2,496,677) |
|
A deferred tax asset of £1,318,295 (2022 ‑ £1,577,985) has not been recognised in the financial statements in relation to tax losses. In addition a deferred tax asset of £162,970 (2022 ‑ £Nil) has not been recognised in the financial statements in relation to the future tax benefit on the future exercise of employee share options. A deferred tax asset has not been recognised in the year where it is uncertain that the asset will crystallise in the foreseeable future.
|
||||||
|
|
|
|
|
|
||
|
|
Opening balance |
Recognised in profit or loss |
Recognised in other comprehensive income |
Closing balance |
||
|
|
£ |
£ |
£ |
£ |
||
2023 |
|
|
|
|
|||
|
Fixed asset timing differences |
(1,303,975) |
(267,323) |
- |
(1,571,298) |
||
|
Arising from business combinations |
(1,052,221) |
98,217 |
- |
(954,004) |
||
|
Capital gains |
(1,569,838) |
25,489 |
(6,097) |
(1,550,446) |
||
|
Short term timing differences |
122,548 |
(84,213) |
- |
38,335 |
||
|
Losses and other deductions |
1,306,809 |
863,654 |
- |
2,170,463 |
||
|
|
(2,496,677) |
635,824 |
(6,097) |
(1,866,950) |
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
Opening balance |
Recognised in profit or loss |
Acquisition/ disposals |
Closing balance |
||
|
|
£ |
£ |
£ |
£ |
||
2022 |
|
|
|
|
|||
|
Fixed asset timing differences |
(653,904) |
(381,332) |
(268,739) |
(1,303,975) |
||
|
Arising from business combinations |
(880,249) |
91,627 |
(263,599) |
(1,052,221) |
||
|
Capital gains |
(502,946) |
- |
(1,066,892) |
(1,569,838) |
||
|
Short term timing differences |
19,366 |
103,182 |
- |
122,548 |
||
|
Losses and other deductions |
613,083 |
693,726 |
- |
1,306,809 |
||
|
|
(1,404,650) |
507,203 |
(1,599,230) |
(2,496,677) |
||
12.
|
Earnings per share
|
|||||||
|
(i) Basic and diluted loss per share
|
|||||||
|
The total basic profit per share attributable to the ordinary equity holders of the Company was £0.003 (2022 ‑ loss of £0.003). The total diluted profit per share attributable to the ordinary equity holders of the Company was £0.003 (2022 ‑ loss of £0.003).
|
|||||||
|
|
|
|
|
2023 |
2022 |
||
|
|
|
|
|
Pence |
Pence |
||
|
From continuing operations attributable to the ordinary equity holders of the Company |
0.3 |
(0.3) |
|||||
|
Total basic earnings per share attributable to the ordinary equity holders of the Company |
0.3 |
(0.3) |
|||||
|
(ii) Reconciliation of earnings used in calculating earnings per share
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
Profit/(loss) attributable to the ordinary equity holders of the Company used in calculating basic earnings per share: |
|
|
|||
|
Used in calculating basic and diluted earnings per share |
844,025 |
(836,304) |
|
(iii) Weighted average number of shares used as the denominator
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
Number |
Number |
|
|
|
|
|||
|
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share |
243,884,066 |
241,979,322 |
|||
|
Adjustments for calculation of diluted earnings per share: |
|
|
|||
|
Options |
4,413,734 |
23,640,830 |
|||
|
Warrants |
2,900,000 |
2,800,000 |
|||
|
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share |
251,197,800 |
268,420,152 |
13.
|
Dividends
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Final dividend of £0.002 paid per Ordinary Share in the year (2022 ‑ £Nil) in relation to the prior year results |
487,717 |
- |
|||
|
Interim dividend of £0.001 paid per Ordinary Share in the year (2022 ‑ £0.002). |
243,964 |
487,590 |
|||
|
|
731,681 |
487,590 |
The directors are proposing a final dividend of £0.0025 per share (2022 ‑ £0.002). The dividend has not been accrued in the consolidated statement of financial position.
14. |
Property, plant and equipment
|
|
|
|
|||||
|
Group |
|
|
|
|||||
|
Land and buildings - freehold and long leasehold |
Right of use assets ‑ leasehold property |
Leasehold improvements |
Plant and machinery |
Motor vehicles |
Fixtures, fittings & computer equipment |
Right of use assets ‑ other |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
Cost or valuation |
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
5,785,000 |
8,976,689 |
298,719 |
1,928,736 |
657,796 |
1,161,407 |
3,870,997 |
22,679,344 |
|
Additions |
517,757 |
8,172,355 |
18,692 |
1,543,168 |
202,306 |
983,331 |
2,577,922 |
14,015,531 |
|
Acquisition of subsidiary |
15,966,907 |
- |
- |
102,981 |
810,247 |
42,071 |
- |
16,922,206 |
|
Disposals |
- |
(434,574) |
(10,219) |
- |
(105,735) |
(40,469) |
(301,273) |
(892,270) |
|
Foreign exchange movements |
- |
- |
- |
- |
836 |
- |
- |
836 |
|
At 31 December 2022 |
22,269,664 |
16,714,470 |
307,192 |
3,574,885 |
1,565,450 |
2,146,340 |
6,147,646 |
52,725,647 |
|
Additions |
38,208 |
- |
- |
1,339,637 |
1,119,665 |
500,083 |
2,702,800 |
5,700,393 |
|
Disposals |
- |
(324,440) |
(1,502) |
(48,319) |
(293,093) |
(3,034) |
(148,766) |
(819,154) |
|
Transfers between classes |
- |
- |
- |
7,739 |
- |
(7,739) |
- |
- |
|
Revaluations |
(183,043) |
- |
- |
- |
- |
- |
- |
(183,043) |
|
At 31 December 2023 |
22,124,829 |
16,390,030 |
305,690 |
4,873,942 |
2,392,022 |
2,635,650 |
8,701,680 |
57,423,843 |
|
|
|
|
|
|
|
|
|
|
|
|
Land and buildings - freehold |
Right of use assets ‑ leasehold property |
Leasehold improvements |
Plant and machinery |
Motor vehicles |
Fixtures, fittings & computer equipment |
Right of use assets ‑ other |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
Accumulated depreciation and impairment |
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
- |
997,305 |
30,719 |
248,735 |
410,439 |
327,114 |
946,311 |
2,960,623 |
|
Charge for the year |
309,957 |
- |
30,096 |
297,108 |
341,492 |
238,605 |
- |
1,217,258 |
|
Charge for right‑of‑use assets |
- |
962,408 |
- |
- |
- |
- |
1,087,183 |
2,049,591 |
|
Transfer intra group |
- |
- |
- |
5,636 |
- |
(5,636) |
- |
- |
|
Disposals |
- |
(145,960) |
(10,219) |
- |
(53,089) |
(1,405) |
(281,543) |
(492,216) |
|
On revalued assets |
(309,957) |
- |
- |
- |
- |
- |
- |
(309,957) |
|
Exchange adjustments |
- |
- |
- |
(612) |
836 |
(97) |
- |
127 |
|
At 31 December 2022 |
- |
1,813,753 |
50,596 |
550,867 |
699,678 |
558,581 |
1,751,951 |
5,425,426 |
|
Charge for the year |
309,389 |
- |
30,719 |
438,768 |
402,058 |
315,264 |
- |
1,496,198 |
|
Charge for right‑of‑use assets |
- |
1,224,103 |
- |
- |
- |
- |
1,800,276 |
3,024,379 |
|
Disposals |
- |
(324,440) |
- |
(40,158) |
(206,689) |
(11,515) |
(117,615) |
(700,417) |
|
On revalued assets |
(207,432) |
- |
- |
- |
- |
- |
- |
(207,432) |
|
At 31 December 2023 |
101,957 |
2,713,416 |
81,315 |
949,477 |
895,047 |
862,330 |
3,434,612 |
9,038,154 |
|
|
|
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
5,785,000 |
7,979,384 |
268,000 |
1,680,001 |
247,357 |
834,293 |
2,924,686 |
19,718,721 |
|
At 31 December 2022 |
22,269,664 |
14,900,717 |
256,596 |
3,024,018 |
865,772 |
1,587,759 |
4,395,695 |
47,300,221 |
|
At 31 December 2023 |
22,022,872 |
13,676,614 |
224,375 |
3,924,465 |
1,496,975 |
1,773,320 |
5,267,068 |
48,385,689 |
|
If the freehold and long leasehold property had not been included at valuation, it would have been included under the historical cost convention as follows:
Cost of £19,622,872 (2022 £19,584,664)
Depreciation of £704,974 (2022 £449,285)
Net book value of £18,917,898 (2022 £19,135,379)
|
14.1. Assets held under leases
|
||
|
The net book value of owned and leased assets included as "Property, plant and equipment" in the Consolidated Statement of Financial Position is as follows:
|
||
|
|
31 December 2023 |
31 December 2022 |
|
|
£ |
£ |
|
|
|
|
|
Property, plant and equipment owned |
29,442,007 |
28,003,809 |
|
Right‑of‑use assets |
18,943,682 |
19,296,412 |
|
|
48,385,689 |
47,300,221 |
|
Information about right‑of‑use assets is summarised below:
Net book value
|
||||
|
|
|
|
31 December 2023 |
31 December 2022 |
|
|
|
|
£ |
£ |
|
Property |
13,676,614 |
14,900,717 |
||
|
Motor vehicles & plant and machinery |
5,267,068 |
4,395,695 |
||
|
|
18,943,682 |
19,296,412 |
|
Depreciation charge for the year ended
|
||||
|
|
|
|
31 December 2023 |
31 December 2022 |
|
|
|
|
£ |
£ |
|
Property |
1,224,103 |
962,408 |
||
|
Motor vehicles & plant and machinery |
1,800,276 |
1,087,183 |
||
|
|
3,024,379 |
2,049,591 |
|
14.2 Fair value measurement and Impairment
|
Fair value measurement
Included in land and buildings is land with a cost of £6,254,057 (2022 ‑ £6,254,057) which is not depreciated.
The Group's freehold and long leasehold land and buildings are stated at their revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The Group acquired £4,872,179 freehold and £11,094,728 long leasehold land and buildings as part of the acquisition of the Valley Wholesale Carpets. These were valued at a total of £15,966,907 by the directors at the date of acquisition based on valuations obtained on 13 July 2022 by BNP Paribas Real Estate, independent valuers not related to the Group.
The Group obtained valuations on these freehold and leasehold properties at the reporting date from Gerald Eve LLP.
As the valuations obtained from Gerald Eve were not materially different to the original valuation, the directors have decided to revalue both the freehold and leasehold properties back to the original valuation plus improvements made in the current financial year.
In addition, the Group holds freehold property in its subsidiary William Armes Holdings Limited which was valued at £5,500,000 as at 8 February 2024 by Gerald Eve LLP, independent valuers not related to the Group. The directors do not believe that this valuation is materially different to the valuation at the year end for this property.
Gerald Eve LLP and BNP Paribas Real Estate are chartered surveyors and property consultants that have appropriate qualifications and recent experience in the fair value measurement of properties in the relevant locations. The valuation reports have been prepared in accordance with Royal Institution of Chartered Surveyors ("RICS") Valuation ‑ Global Standards (incorporating the IVSC International Valuation Standards) issued November 2021 and effective from 31 January 2022 together, where applicable, with the UK National Supplement effective from 14 January 2019, together the "Red Book".
Property valuations are complex, require a degree of judgement and are based on data that may or may not be publicly available. Valuation of investment property and the respective inputs have been classified as level 3 inputs as defined by IFRS 13 Fair Value Measurement. Level 3 means that the valuation model cannot rely on inputs that are directly available from an active market; however there are related inputs from recent property sales that can be used as a basis.
The freehold property in Sudbury has been valued using the traditional "all risks" yield method of valuation, having regard to comparable evidence and current market sentiment. In establishing fair value, the most significant unobservable input is considered to be the appropriate yield to apply to the rental income. This is based on a number of factors including financial covenant strength of the tenant, location, marketability of the unit if it were to become vacant, quality of the property and its scope for potential alternative uses.
The yield applied in the valuation is 6.6%. Assuming all else stayed the same; a decrease of 1% in the yield would result in an increase in fair value of £1,032,000. An increase of 1% in the yield would result in a decrease in fair value of £760,000.
The properties acquired as part of the acquisition of Valley Wholesale Carpets, consisting of two freehold units and a long‑leasehold site have been valued using the market (comparative) method of valuation, multiplying the capital value per square foot by the size of the respective buildings. In determining the capital value, the valuers have utilised observable capital values from recent sales in similar locations, condition and size to the respective sites.
The revaluation gain on land and buildings for 2023 of £24,389 (2022 ‑ gain of £309,957) has been recognised within Other Comprehensive Income.
Capital commitments
As at 31 December 2023, the Group had capital commitments totalling £Nil (2022 ‑ £1,090,204).
|
14.3 Assets pledged as security
|
There is a floating charge against the assets of the subsidiary Likewise Floors Limited, from NatWest Bank PLC.
There is a fixed charge over the freehold land and buildings held by the Group in respect of the bank loans in place for the Group.
|
Company |
|
|
||||||
|
|
|
|
||||||
|
Right of use assets ‑ leasehold property |
Leasehold improvements |
Motor vehicles |
Fixtures, fittings & computer equipment |
Right of use assets ‑ other |
Total |
|||
|
£ |
£ |
£ |
£ |
£ |
£ |
|||
Cost or valuation |
|
|
|
|
|
|
|||
At 1 January 2022 |
66,422 |
10,219 |
- |
42,299 |
- |
118,940 |
|||
Additions |
5,513,875 |
- |
112,000 |
8,095 |
39,248 |
5,673,218 |
|||
Disposals |
(66,422) |
(10,219) |
(112,000) |
- |
- |
(188,641) |
|||
At 31 December 2022 |
5,513,875 |
- |
- |
50,394 |
39,248 |
5,603,517 |
|||
Additions |
- |
- |
96,995 |
14,887 |
- |
111,882 |
|||
At 31 December 2023 |
5,513,875 |
- |
96,995 |
65,281 |
39,248 |
5,715,399 |
|||
|
|
|
|
|
|
|
|||
|
Right of use assets ‑ leasehold property
£ |
Leasehold improvements
£ |
Motor vehicles
£ |
Fixtures, fittings & computer equipment
£ |
Right of use assets - other
£ |
Total
£ |
|||
Accumulated depreciation and impairment |
|
|
|
|
|
|
|||
At 1 January 2022 |
66,422 |
10,219 |
- |
13,495 |
- |
90,136 |
|||
Charge for the year |
- |
- |
5,600 |
9,920 |
- |
15,520 |
|||
Charge for right‑of‑use assets |
90,531 |
- |
- |
- |
2,186 |
92,717 |
|||
Disposals |
(66,422) |
(10,219) |
(5,600) |
- |
- |
(82,241) |
|||
At 31 December 2022 |
90,531 |
- |
- |
23,415 |
2,186 |
116,132 |
|||
Charge for the year |
- |
- |
6,466 |
11,255 |
- |
17,721 |
|||
Charge for right‑of‑use assets |
319,400 |
- |
- |
- |
13,083 |
332,483 |
|||
At 31 December 2023 |
409,931 |
- |
6,466 |
34,670 |
15,269 |
466,336 |
|||
Net book value |
|
|
|
|
|
|
|||
At 1 January 2022 |
- |
- |
- |
28,804 |
- |
28,804 |
|||
At 31 December 2022 |
5,423,344 |
- |
- |
26,979 |
37,062 |
5,487,385 |
|||
At 31 December 2023 |
5,103,944 |
- |
90,529 |
30,611 |
23,979 |
5,249,063 |
|||
|
14.4. Assets held under leases
|
||
|
The net book value of owned and leased assets included as "Property, plant and equipment" in the Company Statement of Financial Position is as follows:
|
||
|
|
31 December 2023 |
31 December 2022 |
|
|
£ |
£ |
|
|
|
|
|
Property, plant and equipment owned |
121,140 |
26,979 |
|
Right‑of‑use assets |
5,127,923 |
5,460,406 |
|
|
5,249,063 |
5,487,385 |
|
Information about right‑of‑use assets is summarised below:
Net book value
|
|||||||||
|
|
|
|
31 December 2023 |
31 December 2022 |
|||||
|
|
|
|
£ |
£ |
|||||
|
Property |
5,103,944 |
5,423,344 |
|||||||
|
Motor vehicles & plant and machinery |
23,979 |
37,062 |
|||||||
|
|
5,127,923 |
5,460,406 |
|||||||
15.
|
Intangible assets
|
|||||||||
|
Group
|
|||||||||
|
|
|
|
|
||||||
|
|
Delta Carpets Customer base |
Likewise Floors Customer base |
Delta Carpets Brandname |
Software |
Likewise Floors Brandname |
Total |
|||
|
|
£ |
£ |
£ |
£ |
£ |
£ |
|||
|
Cost |
|
|
|
|
|
|
|||
|
At 1 January 2022 |
- |
2,122,349 |
- |
- |
2,189,075 |
4,311,424 |
|||
|
Additions on acquisition of subsidiary |
513,684 |
- |
540,710 |
- |
- |
1,054,394 |
|||
|
At 31 December 2022 |
513,684 |
2,122,349 |
540,710 |
- |
2,189,075 |
5,365,818 |
|||
|
Additions |
- |
- |
- |
133,983 |
- |
133,983 |
|||
|
At 31 December 2023 |
513,684 |
2,122,349 |
540,710 |
133,983 |
2,189,075 |
5,499,801 |
|||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
|
Delta Carpets Customer base |
Likewise Floors Customer base |
Delta Carpets Brandname |
Software |
Likewise Floors Brandname |
Total |
|||
|
|
£ |
£ |
£ |
£ |
£ |
£ |
|||
|
Accumulated amortisation and impairment |
|
|
|
|
|
|
|||
|
At 1 January 2022 |
- |
389,097 |
- |
- |
401,330 |
790,427 |
|||
|
Charge for the year |
38,526 |
141,490 |
40,553 |
- |
145,938 |
366,507 |
|||
|
At 31 December 2022 |
38,526 |
530,587 |
40,553 |
- |
547,268 |
1,156,934 |
|||
|
Charge for the year |
51,368 |
141,490 |
54,071 |
11,503 |
145,938 |
404,370 |
|||
|
At 31 December 2023 |
89,894 |
672,077 |
94,624 |
11,503 |
693,206 |
1,561,304 |
|||
|
Net book value |
|
|
|
|
|
|
|||
|
At 1 January 2022 |
- |
1,733,252 |
- |
- |
1,787,745 |
3,520,997 |
|||
|
At 31 December 2022 |
475,158 |
1,591,762 |
500,157 |
- |
1,641,807 |
4,208,884 |
|||
|
At 31 December 2023 |
423,790 |
1,450,272 |
446,086 |
122,480 |
1,495,869 |
3,938,497 |
|||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software £ |
|
|
|
|
|
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
Additions |
|
|
|
|
133,983 |
|
|
At 31 December 2023 |
|
|
|
|
133,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software £ |
|
|
Accumulated amortisation and impairment |
|
|||||
|
Charge for the year |
|
|
|
|
11,503 |
|
|
At 31 December 2023 |
|
|
|
|
11,503 |
|
|
Net book value |
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
122,480 |
16.
|
Goodwill
|
|||||
|
Group
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Cost |
5,624,284 |
5,624,284 |
|||
|
|
5,624,284 |
5,624,284 |
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
Cost |
|
|
|||
|
At 1 January |
5,624,284 |
4,216,728 |
|||
|
Additions on acquisition of subsidiaries |
- |
1,407,556 |
|||
|
At 31 December |
5,624,284 |
5,624,284 |
|||
|
Accumulated impairment |
|
|
|||
|
At 31 December |
- |
- |
|
16.1 Allocation of goodwill to cash generating units
|
|||||
|
The carrying amount of goodwill has all been allocated to the Group's primary activity of wholesale distribution and has been allocated to trading brands as follows:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Likewise Floors Limited |
3,253,210 |
3,253,210 |
|||
|
Lewis Abbott Limited |
467,847 |
467,847 |
|||
|
H&V Carpets BVBA |
307,230 |
307,230 |
|||
|
A. & A. Carpets Limited |
188,441 |
188,441 |
|||
|
Valley Wholesale Carpets Limited |
234,864 |
234,864 |
|||
|
Delta Carpets Limited |
1,172,692 |
1,172,692 |
|||
|
|
5,624,284 |
5,624,284 |
|
The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.
|
Likewise Floors Limited
The break even point of goodwill for Likewise Floors Limited is at a growth level of ‑10.4% with terminal growth factor of 2%.
Lewis Abbott Limited
The break even point of goodwill for Lewis Abbott Limited is at a growth level of ‑62.1% with terminal growth factor of 2%.
H&V Carpets BVBA
The break even point of goodwill for H&V Carpets BVBA is at a growth level of ‑1.1% with terminal growth factor of 1%.
A. & A. Carpets Limited
The break even point of goodwill for A. & A. Carpets Limited is at a growth level of ‑1.7% with terminal growth factor of 1%.
Valley Wholesale Carpets Limited
The break even point of goodwill for Valley Wholesale Carpets Limited is at a growth level of ‑18.4% with terminal growth factor of 1%.
Delta Carpets Limited
The break even point of goodwill for Delta Carpets Limited is at a growth level of ‑8.0% with terminal growth factor of 1%.
17.
|
Subsidiaries
|
|
|||||||
|
Details of the Group's material subsidiaries at the end of the reporting period are as follows:
|
|
|||||||
|
Name of subsidiary |
|
Principal activity |
Place of incorporation and operation |
Proportion of ownership interest and voting power held by the Group (%) |
|
|||
|
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Likewise Floors Limited |
Wholesale distribution of floor coverings and associated products |
England & Wales |
100 |
100 |
||||
|
2) H&V Carpets BVBA |
Wholesale distribution of floor coverings and associated products |
Belgium |
100 |
100 |
||||
|
3) Valley Wholesale Carpets (2004) Limited |
Holding company |
England & Wales |
100 |
100 |
||||
|
4) Valley Wholesale Carpets Limited (100% subsidiary of Valley Wholesale Carpets (2004) Limited) |
Wholesale distribution of floor coverings and associated products |
England & Wales |
100 |
100 |
||||
|
5) Delta Carpets (Holdings) Limited (100% subsidiary of Likewise Floors Limited) |
Holding company |
England & Wales |
100 |
100 |
||||
|
6) Delta Carpets Limited (100% subsidiary of Delta Carpets (Holdings) Limited) |
Dormant company |
England & Wales |
100 |
100 |
||||
|
7) Likewise Holdings Limited (formerly William Armes Holdings Limited) |
Holding company |
England & Wales |
100 |
100 |
||||
|
8) William Armes Limited (100% subsidiary of William Armes Holdings Limited) |
Dormant company |
England & Wales |
100 |
100 |
||||
|
9) A. & A. Carpets Limited |
Dormant company |
England & Wales |
100 |
100 |
||||
|
10) Likewise Trading Limited |
Holding company |
England & Wales |
100 |
100 |
||||
|
11) Lewis Abbott Limited (100% subsidiary of Likewise Trading Limited) |
Dormant company |
England & Wales |
100 |
100 |
||||
|
12) Factory Flooring Outlet Ltd (100% subsidiary of Likewise Floors Limited) |
Dormant company |
England & Wales |
100 |
100 |
||||
|
13) Likewise Limited |
Dormant company |
England & Wales |
100 |
100 |
||||
|
The registered offices of H&V Carpets BVBA are Nijverheidsstraat 26, 8760 Meulebeke, Belgium. The registered offices of all other companies within the Group are Unit 4 Radial Park, Radial Way, Birmingham Business Park, Solihull, England, B37 7WN.
|
|||||
|
||||||
|
|
|||||
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
At 1 January |
|
42,119,270 |
11,738,831 |
||
|
Additions |
|
- |
30,158,850 |
||
|
Share options |
|
190,115 |
221,589 |
||
|
|
|
42,309,385 |
42,119,270 |
||
|
The Group considers impairment of its subsidiaries annually, this is assessed in the context of the Group's structure, and if appropriate an impairment provision is made.
|
|||||
18.
|
Inventories
|
|||||
|
Group
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|
Finished goods and goods for resale |
20,253,799 |
18,388,527 |
|
|
20,253,799 |
18,388,527 |
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Amounts of inventories recognised as an expense during the year |
97,306,471 |
87,172,444 |
|||
|
Amounts of inventories impaired during the year |
1,123,021 |
395,225 |
|
The Company did not hold any inventories in either the current or prior year.
|
||
|
|||
19.
|
Trade and other receivables
|
||
|
|
||
|
Group
|
||
|
|
2023 |
2022 |
|
|
£ |
£ |
|
|
|
|
|
Trade receivables |
12,802,078 |
12,007,770 |
|
Less: provision for impairment of trade receivables |
(369,399) |
(302,989) |
|
Trade receivables ‑ net |
12,432,679 |
11,704,781 |
|
Prepayments |
2,309,125 |
1,586,490 |
|
Other receivables |
2,938,182 |
2,282,032 |
|
Total trade and other receivables |
17,679,986 |
15,573,303 |
|
Total current portion |
(17,679,986) |
(15,573,303) |
|
Company
|
||
|
|
2023 |
2022 |
|
|
£ |
£ |
|
|
|
|
|
Receivables from related parties |
6,543,832 |
8,265,009 |
|
Total financial assets other than cash and cash equivalents classified as loans and receivables |
6,543,832 |
8,265,009 |
|
Prepayments |
355,900 |
72,722 |
|
Other receivables |
50,121 |
31,205 |
|
Total trade and other receivables |
6,949,853 |
8,368,936 |
|
Less: current portion ‑ prepayments and accrued income |
(355,900) |
(72,722) |
|
Less: current portion ‑ other receivables |
(50,121) |
(31,205) |
|
Less: current portion ‑ receivables from related parties |
(6,543,832) |
(8,265,009) |
|
Total current portion |
(6,949,853) |
(8,368,936) |
|
Total non‑current portion |
- |
- |
|
All of the above amounts are financial assets of the Group and Parent Company except certain prepayments.
|
||
|
|
Group |
Group |
|
|
2023 |
2022 |
|
|
£ |
£ |
|
|
|
|
|
Not more than 30 days |
7,060,259 |
6,360,941 |
|
More than 30 days but not more than 60 days |
3,957,155 |
3,638,050 |
|
More than 60 days but not more than 90 days |
773,893 |
986,714 |
|
More than 90 days but not more than 120 days |
126,006 |
135,723 |
|
More than 120 days |
884,765 |
886,342 |
|
Loss allowance |
(369,399) |
(302,989) |
|
|
12,432,679 |
11,704,781 |
|
|
|||||
|
|
|
|
|
2023 |
ECL |
|
|
|
|
|
£ |
|
|
|
|
|
|||
|
More than 90 days but not more than 120 days ‑ 5% (adjusted ‑ see below) |
114,420 |
5,721 |
|||
|
More than 120 days ‑ 50% (adjusted for payment plans ‑ see below) |
591,765 |
295,883 |
|||
|
Additional loss allowance |
- |
67,795 |
|||
|
|
706,185 |
369,399 |
|
The debtors balance to which the ECL has been applied has been adjusted where there are specific payment plans in place.
|
||||
|
|
|
|
|
2023 |
|
|
|
|
|
£ |
|
Reconciliation of ECL allowance balance |
|
|||
|
Balance at 1 January |
302,989 |
|||
|
ECL allowance charged to profit or loss |
266,087 |
|||
|
Other movements |
(199,677) |
|||
|
|
369,399 |
|
The carrying amounts of the trade receivables include receivables which are subject to a factoring agreement. Under this arrangement, the subsidiary trading companies have transferred the relevant receivables to the factor in exchange for cash and are prevented from selling or pledging the receivables. However, the subsidiaries retain the late payment and credit risk. The Group therefore continues to recognise the transferred assets in their entirety in its Consolidated Statement of Financial Position. The amount repayable under the factoring agreement is presented as secured borrowing. The Group considers the held to collect business model to remain appropriate for these receivables and hence continues measuring them at amortised cost.
|
|||||
|
The relevant carrying amounts are:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Factored receivables |
6,873,509 |
5,851,797 |
|||
|
Associated secured borrowings |
(5,155,132) |
(4,389,016) |
20.
|
Cash and cash equivalents
|
||||
|
|
Group |
Group |
Company |
Company |
|
|
2023 |
2022 |
2023 |
2022 |
|
|
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
Cash at bank and in hand |
5,709,229 |
5,913,155 |
182,420 |
689,259 |
|
|
5,709,229 |
5,913,155 |
182,420 |
689,259 |
21.
|
Trade and other payables
|
||
|
|
||
|
Group
|
||
|
|
2023 |
2022 |
|
|
£ |
£ |
|
|
|
|
|
Trade payables |
21,638,744 |
18,106,217 |
|
Other payables |
533,997 |
429,321 |
|
Accruals |
1,462,027 |
1,727,216 |
|
Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost |
23,634,768 |
20,262,754 |
|
Other payables ‑ tax and social security payments |
1,880,688 |
1,707,672 |
|
Deferred consideration |
4,250,515 |
5,380,365 |
|
Total trade and other payables |
29,765,971 |
27,350,791 |
|
Less: current portion ‑ trade payables |
(21,638,744) |
(18,106,217) |
|
Less: current portion ‑ other payables |
(2,414,685) |
(2,136,993) |
|
Less: current portion ‑ accruals |
(1,462,027) |
(1,727,216) |
|
Less: current portion ‑ deferred consideration |
(4,250,515) |
(1,000,000) |
|
Total current portion |
(29,765,971) |
(22,970,426) |
|
Total non‑current position |
- |
4,380,365 |
|
Company
|
||
|
|
2023 |
2022 |
|
|
£ |
£ |
|
|
|
|
|
Trade payables |
258,578 |
27,657 |
|
Payables to related parties |
10,564,144 |
9,569,537 |
|
Other payables |
1,350 |
1,350 |
|
Accruals |
254,491 |
480,257 |
|
Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost |
11,078,563 |
10,078,801 |
|
Other payables ‑ tax and social security payments |
110,700 |
116,772 |
|
Deferred consideration |
3,855,000 |
4,984,750 |
|
Total trade and other payables |
15,044,263 |
15,180,323 |
|
Less: current portion ‑ trade payables |
(258,578) |
(27,657) |
|
Less: current portion ‑ payables to related parties |
(10,564,144) |
(9,569,537) |
|
Less: current portion ‑ other payables |
(112,050) |
(118,122) |
|
Less: current portion ‑ accruals |
(254,491) |
(480,257) |
|
Less: current portion ‑ deferred income |
(3,855,000) |
(1,000,000) |
|
Total current portion |
(15,044,263) |
(11,195,573) |
|
Total non‑current position |
- |
3,984,750 |
|
Trade payables and accruals principally comprise amounts outstanding in relation to trade purchases and ongoing costs. Trade payables are unsecured and the Group has financial risk management procedures in place to ensure that all payables are paid within pre‑agreed credit terms.
|
||
|
|||
22.
|
Loans and borrowings
|
||
|
Group
|
||
|
|
2023 |
2022 |
|
|
£ |
£ |
|
Non‑current |
|
|
|
Bank loans ‑ secured |
2,342,222 |
1,456,025 |
|
Lease liabilities |
18,401,597 |
18,766,025 |
|
|
20,743,819 |
20,222,050 |
|
Current |
|
|
|
Bank loans and invoice discounting facility |
5,273,300 |
4,595,139 |
|
Lease liabilities |
4,373,760 |
3,182,373 |
|
|
9,647,060 |
7,777,512 |
|
Total loans and borrowings |
30,390,879 |
27,999,562 |
|
Company
|
||
|
|
2023 |
2022 |
|
|
£ |
£ |
|
Non‑current |
|
|
|
Bank loans ‑ secured |
2,342,222 |
1,456,025 |
|
Lease liabilities |
5,187,733 |
5,226,397 |
|
|
7,529,955 |
6,682,422 |
|
Current |
|
|
|
Bank loans ‑ secured |
118,168 |
206,123 |
|
Lease liabilities |
376,067 |
320,191 |
|
|
494,235 |
526,314 |
|
Total loans and borrowings |
8,024,190 |
7,208,736 |
|
The directors consider that the carrying amount of the invoice discounting facility and bank loan approximates their fair value.
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
Amounts repayable under bank loans ‑ Group and Company |
|
|
|||
|
Within one year |
118,168 |
206,123 |
|||
|
In the second to fifth year inclusive |
462,401 |
706,822 |
|||
|
Beyond five years |
1,879,821 |
749,203 |
|||
|
|
2,460,390 |
1,662,148 |
|
During the year the Company restructured their bank loans resulting in a principal loan value of £2,495,000 drawn down in July 2023. Repayments commenced in September 2023 and will continue until July 2038. The loan is secured by a fixed and floating charge over the Group's assets. The loan carries interest at on a floating rate basis with interest at Bank of England rate plus a margin of 2.35%. |
|||||
|
||||||
23.
|
Leases
|
|||||
|
Group
|
|||||
|
(i) Leases as a lessee
|
|||||
|
The Group's leases include leases for buildings, plant and motor vehicles. The average lease term is 13 years for buildings and 4 years for other fixed assets.
|
|||||
|
Lease liabilities are due as follows:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
Contractual undiscounted cash flows due |
|
|
|||
|
Not later than one year |
4,613,991 |
3,357,091 |
|||
|
Between one year and five years |
11,812,221 |
11,018,626 |
|||
|
Later than five years |
13,109,026 |
15,073,388 |
|||
|
|
29,535,238 |
29,449,105 |
|||
|
|
|
|
|||
|
Lease liabilities included in the Consolidated Statement of Financial Position at 31 December |
22,775,357 |
21,948,398 |
|||
|
|
|
|
|||
|
Non‑current |
18,401,597 |
18,766,025 |
|||
|
Current |
4,373,760 |
3,182,373 |
|
The following amounts in respect of leases have been recognised in profit or loss:
|
||||
|
|
|
|
2023 |
2022 |
|
|
|
|
£ |
£ |
|
Interest expense on lease liabilities |
1,038,548 |
571,009 |
||
|
Depreciation on lease liabilities |
3,024,379 |
2,049,591 |
||
|
Profit on termination of lease liabilities |
(18,358) |
(34,535) |
||
|
Expense relating to short‑term leases |
360,946 |
324,539 |
|
||||||
|
Company
|
|||||
|
(ii) Leases as a lessee
|
|||||
|
The Company's leases include leases for buildings and other assets. The average lease term is 15 years for buildings and 3 years for other fixed assets.
|
|||||
|
Lease liabilities are due as follows:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
Contractual undiscounted cash flows due |
|
|
|||
|
Not later than one year |
376,406 |
328,506 |
|||
|
Between one year and five years |
2,295,234 |
2,100,777 |
|||
|
Later than five years |
6,709,897 |
7,280,760 |
|||
|
|
9,381,537 |
9,710,043 |
|||
|
|
|
|
|||
|
Lease liabilities included in the Company Statement of Financial Position at 31 December |
5,563,800 |
5,546,588 |
|||
|
|
|
|
|||
|
Non‑current |
5,187,733 |
5,226,397 |
|||
|
Current |
376,067 |
320,191 |
|
The following amounts in respect of leases have been recognised in profit or loss:
|
||||
|
|
|
|
2023 |
2022 |
|
|
|
|
£ |
£ |
|
Interest expense on lease liabilities |
347,292 |
42,148 |
||
|
Depreciation on lease liabilities |
332,483 |
92,717 |
||
|
Expense relating to short‑term leases |
45,754 |
25,704 |
24.
|
Financial instruments
|
|
Classification of financial instruments
|
|
|
Group |
Group |
Company |
Company |
|
|
2023 |
2022 |
2023 |
2022 |
|
|
£ |
£ |
£ |
£ |
|
Financial assets at amortised cost |
|
|
|
|
|
Trade receivables |
12,432,679 |
11,704,781 |
- |
- |
|
Amounts owed by Group undertakings |
- |
- |
6,543,832 |
8,265,009 |
|
Other receivables |
2,938,182 |
2,282,032 |
50,121 |
31,205 |
|
Cash and cash equivalents |
5,709,229 |
5,913,155 |
182,420 |
689,259 |
|
|
21,080,090 |
19,899,968 |
6,776,373 |
8,985,473 |
|
All of the above financial assets' carrying values are approximate to their fair values, as at each reporting date disclosed.
|
||||
|
|
Group |
Group |
Company |
Company |
|
|
2023 |
2022 |
2023 |
2022 |
|
|
£ |
£ |
£ |
£ |
|
Non current financial liabilities |
|
|
|
|
|
Bank loans ‑ amortised cost |
2,342,222 |
1,456,025 |
2,342,222 |
1,456,025 |
|
Deferred consideration ‑ held at fair value |
- |
4,380,365 |
- |
3,984,750 |
|
|
2,342,222 |
5,836,390 |
2,342,222 |
5,440,775 |
|
|
Group |
Group |
Company |
Company |
|
|
2023 |
2022 |
2023 |
2022 |
|
|
£ |
£ |
£ |
£ |
|
Current financial liabilities at amortised cost unless otherwise stated |
|
|
|
|
|
Trade payables |
21,638,744 |
18,106,217 |
258,578 |
27,657 |
|
Amounts owed to Group undertakings |
- |
- |
10,564,144 |
9,569,537 |
|
Deferred consideration ‑ held at fair value |
4,250,515 |
- |
3,855,000 |
- |
|
Deferred consideration ‑ amortised cost |
- |
1,000,000 |
- |
1,000,000 |
|
Other payables |
533,997 |
429,321 |
1,350 |
1,350 |
|
Accruals |
1,462,027 |
1,727,216 |
254,491 |
480,257 |
|
Invoice discounting facility |
5,155,132 |
4,389,016 |
- |
- |
|
Bank loans ‑ current |
118,168 |
206,123 |
118,168 |
206,123 |
|
|
33,158,583 |
25,857,893 |
15,051,731 |
11,284,924 |
|
All of the above financial liabilities' carrying values are considered by management to be approximate to their fair values, as at each reporting date disclosed.
|
|||
25.
|
Provisions
|
|
||
|
Group
|
|
||
|
|
|
Dilapidation provision £ |
|
|
At 1 January 2023 |
|
50,075 |
|
|
Utilised during the year |
|
(4,972) |
|
|
At 31 December 2023 |
|
45,103 |
|
|
Due within one year or less |
|
45,103 |
|
|
|
|
45,103 |
|
26.
|
Financial instrument risk exposure and management
|
|
|
26.1 Financial risk management objectives
|
|
The Group's operations expose it to degrees of financial risk that include liquidity risk, credit risk, interest rate risk, and foreign currency risk.
This note describes the Group's objectives, policies and process for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented in the notes above.
|
26.2 Foreign currency risk
|
|
Most of the Group's transactions are carried out in GBP. Exposures to foreign currency exchange rates arise from the Group's overseas sales and purchases, which are denominated in a number of currencies, primarily EUR and USD.
|
|
The Group assesses exposure and takes out forward currency contracts to mitigate this foreign exchange risk. As at the 31 December 2023, the value of forward contracts held by the subsidiary companies were as follows:
Likewise Floors Limited held forward Euro contracts totalling €615,576 (2022 ‑ €1,191,033) and forward USD contracts totalling $3,975,491 (2022 ‑ $299,300).
|
|
|
|
26.3 Interest rate risk
|
The Group has secured debt consisting of an invoice discounting facility and bank loan.
The interest on the bank loan and discounting facility are at floating rates. Interest rate risk is high due to the volatility experienced during 2023 and the current economic climate of both the UK and worldwide economy.
Bank loan
The directors have performed a sensitivity analysis which shows the impact on the loan for the coming year should the base rates rise a further 5% from 5.25% to 10.25% after the year end. This would result in a negative impact to the cash‑flow over the coming 12 months of £0.1m. In this unlikely scenario, management would look at the options available for refinancing.
Invoice discounting
The directors have performed a sensitivity analysis which shows the impact on the invoice financing for the coming year should the base rates rise a further 5% from 5.25% to 10.25% after the year end. This would result in a negative impact to cash‑flow over the coming 12 months of £0.3m. In this unlikely scenario, management would look at reducing the amount of debtors financed or other alternative methods of finance.
Forecasts are currently showing that interest rates should remain stable or potentially fall as we move into Q2 of 2024.
The directors do not deem this to be a significant risk.
|
26.4 Credit risk
|
The Group's credit risk is primarily attributable to its cash balances and trade receivables.
In respect of trade and other receivables, the Group is not exposed to any significant credit risk exposure to any single counter party or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various industries and geographical areas. Based on historical information about customer default rates management consider the credit quality of trade receivables that are not past due or impaired to be good.
The ageing profile of the trade receivables balance can be seen in note 19 above.
The Group's total credit risk amounts to the total of the sum of the receivables and cash and cash equivalents. At the 2023 reporting date this amounts to £21,080,090 (2022 ‑ £19,899,968).
|
26.5 Liquidity risk
Liquidity and interest risk tables
The following tables detail the Group's remaining contractual maturity for its non‑derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Group may be required to pay. |
||||||||
|
|
Carrying amount |
Total |
1 ‑ 3 months |
3 ‑ 12 months |
1 ‑ 2 years |
2 ‑ 5 years |
More than 5 years |
|
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
|
31 December 2023 |
|
|
|
|
|
|
|
|
|
Trade payables |
21,638,744 |
21,638,744 |
21,638,744 |
- |
- |
- |
- |
|
|
Other taxation and social security |
1,880,688 |
1,880,688 |
1,880,688 |
- |
- |
- |
- |
|
|
Other payables |
533,997 |
533,997 |
533,997 |
- |
- |
- |
- |
|
|
Accruals |
1,462,027 |
1,462,027 |
1,462,027 |
- |
- |
- |
- |
|
|
Lease liabilities |
22,775,357 |
29,535,238 |
1,141,830 |
3,472,161 |
4,263,852 |
7,548,369 |
13,109,026 |
|
|
Invoice discounting facility |
5,155,132 |
5,155,132 |
5,155,132 |
- |
- |
- |
- |
|
|
Bank loans |
2,460,390 |
4,076,204 |
92,641 |
208,442 |
277,923 |
833,769 |
2,663,429 |
|
|
Deferred consideration |
4,250,515 |
4,250,515 |
4,250,515 |
- |
- |
- |
- |
|
|
|
60,156,850 |
68,532,545 |
36,155,574 |
3,680,603 |
4,541,775 |
8,382,138 |
15,772,455 |
|
|
31 December 2022 |
|
|
|
|
|
|
|
|
|
Trade payables |
18,106,217 |
18,106,217 |
18,106,217 |
- |
-
|
- |
- |
|
|
Other taxation and social security |
1,707,672 |
1,707,672 |
1,707,672 |
- |
-
|
- |
- |
|
|
Other payables |
429,321 |
429,321 |
429,321 |
- |
-
|
- |
- |
|
|
Accruals |
1,727,216 |
1,727,216 |
1,727,216 |
- |
-
|
- |
- |
|
|
Lease liabilities |
21,948,398 |
29,449,105 |
855,576 |
2,501,515 |
3,490,139 |
7,528,487 |
15,073,388 |
|
|
Invoice discounting facility |
4,389,016 |
4,389,016 |
4,389,016 |
- |
-
|
- |
- |
|
|
Bank loans |
1,662,148 |
2,293,057 |
53,013 |
159,037 |
212,050
|
636,150 |
1,232,807 |
|
|
Deferred consideration |
5,380,365 |
5,380,565 |
1,000,000 |
- |
4,380,565 |
- |
- |
|
|
|
55,350,353 |
63,482,169 |
28,268,031 |
2,660,552 |
8,082,754 |
8,164,637 |
16,306,195 |
|
|
||||||
27.
|
Capital management
|
|||||
|
The Group's capital management objectives are:
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Equity |
39,522,581 |
39,111,269 |
|||
|
Borrowings |
30,390,879 |
27,999,562 |
|||
|
Cash and cash equivalents |
(5,709,229) |
(5,913,155) |
|||
|
|
64,204,231 |
61,197,676 |
|
The board of directors monitors the level of capital as compared to the Group's commitments and adjusts the level of capital as is determined to be necessary by issuing new shares or adjusting the level of debt. The Group is not subject to any externally imposed capital requirements.
|
||
28.
|
Share capital
|
||
|
Consolidated and Company
|
||
|
Authorised
|
|
|
|
|
2023 |
2023 |
|
|
Number |
£ |
|
|
|
|
|
Shares treated as equity |
|
|
|
Ordinary shares of £0.01 each |
243,964,480 |
2,439,645 |
|
|
243,964,480 |
2,439,645 |
|
Issued and fully paid
|
|
|
|
|
2023 |
2023 |
|
|
Number |
£ |
|
|
|
|
|
Ordinary shares of £0.01 each
|
|
|
|
At 1 January
|
243,835,980 |
2,438,360 |
|
Shares issued
|
128,500 |
1,285 |
|
At 31 December |
243,964,480 |
2,439,645 |
|
The Company has one class of ordinary share which carry no right to fixed income.
|
|||||
29.
|
Share premium
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|||
|
Share premium at 1 January |
17,384,625 |
22,458,816 |
|||
|
Premium on shares issued in the year |
11,565 |
17,447,908 |
|||
|
Share issue costs |
- |
(522,099) |
|||
|
Reduction of share premium |
- |
(22,000,000) |
|||
|
Share premium at 31 December |
17,396,190 |
17,384,625 |
|
See note 28 for details of shares issued in the year. |
30.
|
Reserves
|
Share capital
This represents the nominal value of shares that have been issued.
Share premium
This reflects proceeds generated on issue of shares in excess of their nominal value and is a non‑distributable reserve.
Revaluation reserve
This is used to record increases in the fair value of fixed assets and decreases to the extent that the decrease relates to a previous increase on the same asset. The revaluation reserve is a non‑distributable reserve. The excess depreciation on revalued assets in comparison to historical cost depreciation is transferred from the revaluation reserve to retained earnings.
Foreign exchange reserve
This reflects the exchange differences on the translation of the foreign subsidiary.
Retained earnings
This includes all current and prior period gains and losses.
Share option reserve
This represents the cumulative fair value of options granted.
Warrant reserve
This represents the cumulative fair value of warrants granted.
31.
|
Warrants over ordinary shares
|
On 9 January 2019, the Company issued warrants over 1,800,000 shares as part of the IPO at a price of £0.10 per share.
On 1 May 2019, the Company issued warrants over 1,000,000 shares as part of the acquisition of H&V Carpets BVBA at a price of £0.30 per share. The fair value of the warrants at the date of grant was considered to be £128,170.
Warrants are exercisable at any date in the ten years following the date of grant and none had been exercised as at 31 December 2023.
On 25 October 2023, the Company issued warrants over 100,000 shares to WH Ireland Limited following their appointment as joint broker to the Group. Warrants were issued at a price of £0.05 per warrant share and are exercisable from 2 April 2024, up to the fifth anniversary from the date of the warrant instrument agreement.
32.
|
Analysis of amounts recognised in other comprehensive income
|
||||
|
|
Note |
Revaluation reserve |
Foreign exchange reserve |
Retained earnings |
|
|
|
£ |
£ |
£ |
|
Year to 31 December 2023
|
|
|
|
|
|
Property revaluation |
14 |
24,389 |
- |
- |
|
Deferred tax on property revaluation |
11 |
(6,097) |
- |
- |
|
Translation in relation to foreign subsidiary |
|
- |
(7,015) |
- |
|
Transfer to/from retained earnings |
|
(53,700) |
- |
53,700 |
|
|
|
(35,408) |
(7,015) |
53,700 |
|
|
|
|
|
|
|
|
Note |
Revaluation reserve |
Foreign exchange reserve |
Retained earnings |
|
|
|
£ |
£ |
£ |
|
Year to 31 December 2022
|
|
|
|
|
|
Property revaluation |
14 |
309,957 |
- |
- |
|
Actuarial losses on pension |
33 |
- |
- |
(5,000) |
|
Translation in relation to foreign subsidiary |
|
- |
16,138 |
- |
|
Transfer to/from retained earnings |
|
(53,700) |
- |
53,700 |
|
|
|
256,257 |
16,138 |
48,700 |
33.
|
Retirement plans
|
|
|
Defined contribution scheme
|
|
|
(i) Defined benefit scheme characteristics and funding
|
|
Likewise Floors Limited, a subsidiary of the Group, operates a pension scheme providing benefits based on final pensionable pay. The Scheme is closed to new members and is closed to future accrual. For pensions earned after 5 April 1997 and for Guaranteed Minimum Pensions earned between 6 April 1998 and 5 April 1997, increases in payment will be in line with CPI rather than RPI. Revaluations of pensions in deferment are linked to RPI.
The assets of the Scheme are held separately from those of the Group in trustee‑administered funds. The level of contributions is determined by a qualified actuary on the basis of triennial valuations. The liabilities have been rolled forward based on data at 31 December 2020.
The contribution paid for the year ended 31 December 2023 was £Nil (2022 ‑ £5,000). The Group expects to contribute £Nil to the scheme in the coming financial year.
Given that the defined benefit pension scheme is in surplus at 31 December 2023, there is expected to be no material impact on the Group's future cash flows.
|
(ii) Reconciliation of defined benefit obligation and fair value of scheme assets
|
|||||||||
|
All defined benefit schemes are exposed to materially the same risks and therefore the reconciliation below is presented in aggregate.
|
|||||||||
|
|
Defined benefit obligation
|
Fair value of scheme assets |
Effect of asset ceiling
|
Net defined scheme liability
|
|||||
|
|
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
|
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January
|
1,266,000
|
1,731,000
|
(1,577,000)
|
(1,928,000)
|
311,000
|
197,000
|
-
|
-
|
|
|
Interest cost
|
58,000
|
32,000
|
(58,000)
|
(32,000)
|
-
|
-
|
-
|
-
|
|
|
Included in profit or loss |
1,324,000 |
1,763,000 |
(1,635,000) |
(1,960,000) |
311,000 |
197,000 |
- |
- |
|
|
Actuarial loss from:
|
|
|
|
|
|
|
|
|
|
|
‑ Demographic assumptions
|
5,000
|
(402,000)
|
-
|
-
|
-
|
-
|
5,000
|
(402,000)
|
|
|
‑ Limited by asset ceiling
|
-
|
-
|
-
|
-
|
13,000
|
114,000
|
13,000
|
114,000
|
|
|
Return on plan assets (excluding interest)
|
-
|
-
|
(18,000)
|
293,000
|
-
|
-
|
(18,000)
|
293,000
|
|
|
Included in other comprehensive income
|
5,000 |
(402,000) |
(18,000) |
293,000 |
13,000 |
114,000 |
- |
5,000 |
|
|
Employer contributions
|
-
|
-
|
-
|
(5,000)
|
-
|
-
|
-
|
(5,000)
|
|
|
Benefits paid
|
(98,000)
|
(95,000)
|
98,000
|
95,000
|
-
|
-
|
-
|
-
|
|
|
Other movements
|
(98,000) |
(95,000) |
98,000 |
90,000 |
- |
- |
- |
(5,000) |
|
|
Balance at 31 December
|
1,231,000 |
1,266,000 |
(1,555,000) |
(1,577,000) |
324,000 |
311,000 |
- |
- |
|
|
||||||
|
|
|||||
|
|
|
|
|
2023 |
2022 |
|
|
|
|
|
£ |
£ |
|
|
|
|
|
||
|
Equities / Property |
|
613,000 |
861,000 |
||
|
Cash |
|
191,000 |
76,000 |
||
|
Bonds |
|
751,000 |
640,000 |
||
|
Total plan assets |
|
1,555,000 |
1,577,000 |
|
Actuarial assumption
|
|||
|
The principal actuarial assumptions used in the determining calculating the present value of the defined benefit obligation (weighted average) include:
|
|||
|
|
|
2023 |
2022 |
|
Discount rate |
4.50 % |
4.80 % |
|
|
Future salary increases |
2.30 % |
2.50 % |
|
|
Inflation assumption (RPI) |
3.00 % |
3.30 % |
|
|
Mortality rates ‑ for male aged 65 now |
1.00 % |
1.00 % |
|
|
Mortality rates ‑ for female aged 65 now |
1.00 % |
1.00 % |
|
|
‑ Males |
86.2 years |
86.2 years |
|
|
‑ Females |
88.6 years |
88.5 years |
|
|
Longevity at retirement age (future pensioners) |
|
|
|
|
‑ Males |
87.3 years |
87.2 years |
|
|
‑ Females |
89.7 years |
89.7 years |
|
|
|
Sensitivity analysis
|
34.
|
Share‑based payments
|
Equity settled share option plan
The Company has a Savings‑Related Share Option Plan ("SAYE") for all employees of the Group. In accordance with the terms of the plan, as approved by shareholders, employees of the Group may be granted options to purchase ordinary shares. There are no performance criteria for the SAYE and options are issued to participants in accordance with HMRC rules. Vesting is conditional on continuity of service.
As at 31 December 2022, 8,140,830 share options remained active. During the current year 4,462,181 new options were issued and 2,890,177 options lapsed on employees leaving the Group. During the current year 128,500 options were exercised with a weighted average option price of £0.10 per share. The remaining contractual life of the remaining 9,584,334 options is approximately 2 years.
As at 31 December 2022, 11,350,000 share options remained active which were issued under Enterprise Management Incentives (EMIs). During the current year no new options were issued or exercised and 550,000 options lapsed on employees leaving the Group. The remaining contractual life of the remaining 10,800,000 options is approximately 0.75 years.
As at 31 December 2022, 4,150,000 share options remained active which were issued to management under a Company Share Option Plan (CSOP). During the current year 1,100,000 new options were issued, no options were exercised and 350,000 options lapsed on employees leaving the Group. The remaining contractual life of the remaining 4,900,000 options is approximately 2.75 years.
Share options are valued using the Black‑Scholes model. The inputs to the model are the option price and share price at date of grant, expected volatility (20%), expected dividend rate (0%) and risk free rate of return (4%). The model has been adjusted for expected behavioural considerations.
The cost of options is amortised to the Statement of Comprehensive Income over the service life of the option resulting in a charge of £274,841 for the year (2022 ‑ £319,678).
35.
|
Related party transactions
|
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.
A rent charge and early termination settlement of £78,179 was paid in the prior year for leased office premises from a subsidiary of REI plc, a Company controlled by the Group's non‑executive Chairman. Following the move of the Group's head office to the Radial Park facility, no further fees are payable in respect of the Group's previous head office.
36.
|
Changes in liabilities arising from financing activities
|
|||||
|
|
Cash and cash equivalents |
Borrowing due within one year |
Borrowing due after one year |
Lease liabilities |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
|
At 31 December 2021 |
8,447,550 |
(2,498,234) |
(1,640,563) |
(12,170,539) |
(7,861,786) |
|
Cash flows |
(2,534,395) |
- |
- |
- |
(2,534,395) |
|
Repayment of bank loans |
- |
(67,432) |
184,538 |
- |
117,106 |
|
Increase in invoice discounting facility |
- |
(2,029,473) |
- |
- |
(2,029,473) |
|
New /amended lease liabilities |
- |
- |
- |
(12,226,395) |
(12,226,395) |
|
Repayment of lease liabilities |
- |
- |
- |
2,448,536 |
2,448,536 |
|
At 31 December 2022 |
5,913,155 |
(4,595,139) |
(1,456,025) |
(21,948,398) |
(22,086,407) |
|
|
|
|
|
|
|
|
At 31 December 2022 |
5,913,155 |
(4,595,139) |
(1,456,025) |
(21,948,398) |
(22,086,407) |
|
Cash flows |
(203,925) |
- |
- |
- |
(203,925) |
|
Repayment of bank loans |
- |
206,123 |
1,620,678 |
- |
1,826,801 |
|
New bank loan |
- |
(118,168) |
(2,376,832) |
- |
(2,495,000) |
|
Interest accrued in period |
- |
- |
(130,043) |
(1,017,499) |
(1,147,542) |
|
Increase in invoice discounting facility |
- |
(766,116) |
- |
- |
(766,116) |
|
New / amended lease liabilities |
- |
- |
- |
(3,696,377) |
(3,696,377) |
|
Repayment of lease liabilities |
- |
- |
- |
3,886,917 |
3,886,917 |
|
At 31 December 2023 |
5,709,230 |
(5,273,300) |
(2,342,222) |
(22,775,357) |
(24,681,649) |
37.
|
Post balance sheet events
|
During January 2024, the Company paid deferred consideration of £3,855,000 to the former shareholders of Valley Wholesale Carpets (2004) Limited in satisfaction of the acquisition agreement.
On 18 March 2024, the Company allotted 1,044,000 new £0.01 Ordinary Shares for consideration of £0.10 per share, totalling £104,400. These shares were issued under the Company's SAYE scheme.
On 3 April 2024, the Group paid deferred consideration of £414,500 to the former shareholders of Delta Carpets (Holdings) Limited in satisfaction of the acquisition agreement.
On 10 May 2024, the Company allotted 275,000 new £0.01 Ordinary Shares for consideration of £0.10 per share, totalling £27,500. These shares were issued under the Company's SAYE scheme.