RNS Number : 2323I
Likewise Group PLC
12 May 2025
12 May 2025
Likewise Group plc
("Likewise", the "Company" or the "Group")
Audited Final Results for the year ended 31 December 2024
Significant progress in last eight months as Group accelerates
towards £200 million sales revenue
Likewise Group (AIM:LIKE), the fast growing UK flooring distributor, is pleased to announce its audited Final Results for the year ended 31 December 2024 ("FY24").
Financial Highlights
· Group Sales increased 7.4% to £149.8 million (FY23: £139.5 million). Sales in Likewise Floors increased 15.5%
· Gross margin increase of 0.4% to 30.7% in 2024 (2023: 30.3%)
· Underlying EBITDA of £8.8 million (FY23: £7.9 million)
· Adjusted Profit Before Tax was £2.0 million (FY23: £2.3 million) reflecting additional investment, particularly in H1 2024
· Positive cash generation from Operating Activities of £7.2m (2023: £6.1m)
· Proposed final dividend of 0.25 pence per Ordinary Share, bringing the total dividend in FY24 to 0.375 pence per Ordinary Share
· Group Sales Revenue in the first four months of FY25 has progressively increased each month from January to April by 10.2% against the corresponding period last year and by 11.5% on a like for like basis given one less working day in FY25 verses FY24
· Monthly revenues now consistently annualise to £170 million, with months exceeding £13 million to £14 million revenue driving improved operational gearing and profitability
Operational Highlights
· 12 Distribution and Logistics Centres expanded with total capacity at c.15 million cubic feet
· 87 Suppliers across key flooring products
· 96 Customer focused Management and Sales Executives
· The Group owns the freehold of five of its twelve Operating Centres valued at £23.5 million with only £2.3 million of fixed debt against the one property
Chairman and Chief Executive Statement
Group Sales Revenue for FY24 was £149.8 million an increase of 7.4% over the previous year. Sales in Likewise Floors increased by 15.5%.
Adjusted Profit Before Tax was £2.0 million reflecting additional investment, particularly in H1 2024.
More importantly is the progress the Group has made in H2 2024 which has continued strongly into H1 2025.
Group Sales Revenue in the first four months of FY25 has progressively increased each month from January to April culminating in a total increase of 10.2% against the corresponding period last year. However with one less working day in FY25 verses FY24 the like for like growth is higher at 11.5%.
Whilst Group Sales Revenue for 2024 was £149.8 million, the Group is now consistently producing individual months that annualised would approach £170 million. Months with sales in excess of £13 million to £14 million create operational gearing and subsequently a much higher level of profitability than previously achieved.
This provides the Board with confidence to achieve the current market forecasts for FY25 with Sales Revenue progressing quickly towards £200 million over the next few years.
The Group owns the freehold of five of its twelve Operating Centres valued at £23.5 million with only £2.3 million of fixed debt against the one property.
Investment
This performance has been achieved through the strategic decisions to increase operating capacity by investing since 2021 in new Distribution Hubs in Birmingham, Leeds and Glasgow, plus new Logistics Centres in London, Newbury, Manchester and Newcastle. This, combined with the acquisition of Valley Wholesale Carpets Limited ("Valley") in January 2022 with Distribution Centres in London, Derby and Newport has transformed the Groups operating capability in the last four years. More recently the Plymouth Logistics Centre purchased earlier in 2025 completes the Groups geographical coverage of the UK.
Combined with the Logistics investment, the Group, through its two principal sales and marketing activities, Likewise Floors and Valley, is continually developing new products with the leading UK, European, Turkish and Far East flooring producers to ensure our customers, Independent Flooring Retailers and Contractors have a daily offering of the latest flooring products. This is further enhanced by a three way investment between the manufacturer, retailer and ourselves to position extensive new Point of Sale Displays.
The Group also increases its market presence through A&A, Delta, H&V, Floors by Lewis Abbott Premium Carpet, plus the activities of Likewise Rugs and Matting including the Dura and Dandy brands.
Our Sales Team of now 96 Executives are absolutely focussed on providing the best customer service having developed excellent relationships with our customers over many years.
The Group prides itself on having an outstanding Management Team who have developed their skills through learning the business encompassing, IT and Logistics, Product knowledge and most importantly Supplier and Customer relationships. This includes management in their 20's, 30's and 40's who have exciting careers ahead notwithstanding the vast experience of some our more senior management. It is vitally important that all management have a thorough understanding of each aspect of the business.
Operations
The Glasgow Distribution Hub, established in the Spring of 2023 is becoming increasingly important to the Likewise Logistics Network. During April 2025 we have doubled the cutting and processing capability which will accelerate the business growth in Scotland in addition to providing extra capacity for England and Wales.
Likewise North East in Newcastle is very much established as the leading distributor of residential and commercial flooring in its geographical area. Similarly, Likewise North based in Leeds has taken advantage of the many opportunities to become a prominent flooring distributor in the North of England.
A&A moved into a new Logistics Centre in Manchester in July 2024. It now has every opportunity to maximise residential business in North West England, in addition to the new opportunity presented by investing in a Sales Team to capitalise on the commercial flooring opportunities in the North West. Furthermore the A&A trade brand has extended its presence into the Midlands.
Likewise Midlands in Birmingham was only created in 2022, but is now a very important part of the Group. Both the scale of the sales revenue produced in just a few years and its location in the centre of the UK makes Likewise Midlands a key contributor as the epicentre of the Likewise Logistics Network.
Likewise Wales in Newport, established in January 2024 and has quickly become an important source of residential and commercial flooring. We are currently in the later stages of our planning application to extend the current Freehold Distribution Centre by 60%, which will provide the Likewise Wales business with significant opportunities for growth and enlarge the capabilities for both Valley and Likewise.
In Plymouth, the recently acquired Freehold Logistics Centre is now operational, providing scope for both Likewise South West and Valley to take advantage of many opportunities in Devon and Cornwall.
Likewise South, located in Newbury has become an established provider of particularly residential flooring to retailers across the South of England and Likewise London an important source of residential and commercial flooring within the M25 and Southern Counties.
From its Sudbury base Likewise South East has made excellent progress over the last two years.
Delta Carpets has consistently achieved its objectives since the late Autumn last year. In H&V Carpets the product range has been restructured and with four further products to be launched in the late Spring it is poised for a successful year and a much improved base for the future. Floors by Lewis Abbott launched seven new products and one important revamp late last year. Further new products are being developed to enable Floors by Lewis Abbott to take increased share of the Premium Carpet market.
The acquisition of Valley in 2022 was a particularly important strategic step for the Group. The market position of Valley compliments the Group as a whole. Valley has extended its core Carpet and Residential Vinyl product range to include Laminate and in the future other resilient flooring. Furthermore, Valley has been significantly increasing market presence in retailers through numerous Display Stand initiatives and exciting plans for innovative new products in H2 2025.
Valley has also meaningfully enlarged its geographical reach to include South Wales, Bristol and South West England. It has been a very important contributor to profitability during the Group's formative years and the free cash flow generated assists in the various capital projects, particularly in Derby, Newport and Plymouth.
Likewise Rugs & Matting continues to develop its product range in DIY, Garden Centres, Hardware Stores and Independent Retailers. The unique Dura woven in Sudbury for the Marquee industry plus the established Dandy brand provides the business with distinct differentiation.
Infrastructure
The investment made to establish the comprehensive infrastructure combined with the commitments over the next 12 months can certainly take the Group through £200 million sales revenue and it will benefit from further operational gearing. Therefore the Board is considering the next 3 to 5 year investments to provide the capacity to take advantage of the extensive opportunities before us.
As previously stated the capital projects during 2025 in Plymouth and Newport will be funded from internal cash flow. The Group has support from its principal bankers and continues to operate well within the facilities provided. The confidence is reflected in the Board's commitment to purchase capital equipment and trucks whenever possible which is more cost effective and continues to strengthen the Group Balance Sheet.
Dividend
The Group continues to follow its progressive policy and the Board is therefore proposing a Final Dividend payment of 0.25 pence per ordinary share (FY23: 0.25 pence per ordinary share).
This makes the total dividend paid in respect of the year 0.375 pence per ordinary share (2023: 0.35 pence per ordinary share). This is a 7.1% increase on the Total Dividend in respect of FY23, an encouraging reflection of the financial performance in 2024. The final dividend, if approved by shareholders at the AGM, will be paid on 11 July 2025 to shareholders on the register at the close of business on 6 June 2025, the ex-dividend date being 5 June 2025.
Shareholders can also take advantage of the Dividend Reinvestment Plan ("DRIP") by registering their intentions with the Company's registrar by 20 June 2025.
Share Buy Back
Following the successful implementation earlier in the year, the Group will launch a further Share Buyback Programme today of up to £250,000. Comprehensive details will be provided in a separate announcement to be released shortly. Following the completion of this Programme the Board will keep future Share Buybacks under review.
Outlook
The Group has made a strong start to 2025. The trajectory gives the Board confidence in achieving the objectives before us, including the current market forecasts. There are many opportunities to continue to gain market share and it is very encouraging that increased profitability and subsequent improved return on investment is beginning to be achieved.
Tony Brewer, Chief Executive of Likewise Group plc, said:
"The Group really has made significant progress over the last four years. The logistics infrastructure has been transformed from that which originally initiated the business in 2020.
The quality of the Management, Sales Teams and Staff throughout the business is extremely important to the future aspirations of the Group.
We have a clear focus on creating the best flooring distribution business and whilst only part way along that journey we have certainly created the structure to achieve our current goals.
The next one, three, five years are really exciting as we are absolutely committed to investing in our people, infrastructure and market presence to deliver that ambition.
On behalf of the Board I extend our thanks to all employees for their contributions in addition to the support from suppliers, customers and shareholders. We appreciate the contribution from all stakeholders to the ongoing development of the Group."
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 / Fraser Marshall (Corporate Broking)
Tel: +44 (0) 20 3829 5000
Ravenscroft (Joint Broker) Semelia Hamon (Corporate Finance)
Tel: +44 (0) 1481 735 340
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
Introduction
The directors present their Strategic Report and the audited financial statements of the Group for the financial year ended 31 December 2024.
Business Overview
Likewise Group plc is a leading wholesale distributor of floorcoverings, rugs and matting products serving customers throughout the UK. Having established the business in 2018, the Group has continued its growth strategy through accretive acquisitions of regional wholesale distribution businesses as well as establishing new distribution centres and hubs throughout the UK.
With a management team that has significant experience and knowledge of the sector, the Group has been able to successfully develop an extensive distribution network and leverage the trade brand name to rapidly grow the business over the past number of years.
From one site in 2018, the Group now operates from 12 locations servicing the entire UK Flooring market. For more information with regards the Group's trading locations, please visit www.likewiseplc.com
§ 96 experienced Sales Representatives and Management
§ 144 Commercial Vehicles offering a next day service
§ Dedicated B2B websites offering 24/7 ordering
§ Continued Investment in Point of Sale to drive future growth
Group strategy
The Group continues to focus on its strategic plan to realise value creation for suppliers, customers and shareholders by creating a National Supplier and Distributor of Floorcovering products in the UK. As the Group continues on its plan to realise a £200m turnover business, the Board is looking ahead to outline its strategic objectives to achieve a £250m business in the medium term.
Whilst acquisitions helped realise meaningful growth opportunities for the Group in the formative investment phase, the Board have focused more recently on organic growth of existing businesses and expanding the geographic footprint of the Group via new start-up locations.
Benefitting from the wider logistics network, leveraging the Group trade brand names and investing in experienced, knowledgeable sales personnel have all contributed to the Group's ability to rapidly grow meaningful businesses in these new territories. Following the recent purchase of a Freehold Distribution Centre in February 2025 near Plymouth, the Group has completed the initial footprint required to service the whole of the UK floorcovering market.
Whilst acquisitions were no doubt integral to the rapid establishment of the Group's logistics network and growth in the formative phase, it is now committed to increasing its operational gearing and continues to consider opportunities where they are accretive to the Group, achieving synergistic savings by delivering the incremental turnover via the Group's current infrastructure. The Board is committed to realising benefits for shareholders and does not believe significant payments for goodwill are in the interest of the Group, nor its investors.
2024 marked the completion of the final planned site relocations, with A&A moving from an 1980's industrial unit that was no longer fit for purpose to a brand-new facility, benefitting operations and more importantly, A&A's employees. Site moves are costly and disruptive to the business and aside from costs associated with the establishment of the new South West facility, 2025 brings about the first year where all current operations will be in newly built or refurbished sites leading to both operational and logistical efficiencies. As a result, the major phase of capital investment is largely complete, and the business is well-positioned to benefit from improved profitability and enhanced operational gearing going forward.
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. These are the key metrics used by the Board to assess the Group's performance and to ensure realisation of the Group strategic objectives.
Underlying PBT - 2024: £2,006,853
- 2023: £2,327,321
Revenue £m - 2025: £150
- 2024: £140
- 2023: £124
- 2022: £60
- 2021: £47
Operating cash flow - 2024: £7,216,861
- 2023: £6,043,888
OUR PURPOSE AND BUSINESS MODEL
Product development, market presence and efficient service
Our purpose is to provide quality flooring to independent retailers and contractors, supported by an extensive business model, providing quality service to our customers, underpinned by product development, first class flooring marketing and professional distribution, as well as, sales excellence, by building and developing long-term relationships.
Underlying Results
Underlying Results
For the year ended 31 December 2024
Underlying performance (adjusted)
Lossfrom newoperation/ acquisi-tion related costs
Invest-ment in point ofsale
Strategic relocation & restructuring cost
Amort'n of intangibles
Share related costs/ (credit)
Except-ional bad debt and customers exit costs
Reported
£
£
£
£
£
£
£
£
Revenue
149,793,661
149,793,661
Cost of sales
(103,777,804)
(103,777,804)
Gross profit
46,015,857
46,015,857
Distribution costs
(19,054,217)
(57,812)
(19,112,029)
Admin costs
(23,173,462)
(133,993)
(349,050)
(716,246)
(464,121)
26,034
(223,054)
(25,033,892)
Profit/(loss)fromoperations
3,788,178
(133,993)
(349,050)
(774,058)
(464,121)
26,034
(223,054)
1,869,936
Finance income
24,027
24,027
Finance costs
(1,805,352)
(44,259)
(1,849,611)
Loss on revaluation
-
(18,885)
(18,885)
Profit/(loss)before tax
2,006,853
(152,878)
(349,050)
(818,317)
(464,121)
26,034
(223,054)
25,467
Underlying Results
For the year ended 31 December 2023
Underlying performance (adjusted)
Loss from new operation/Acq. Related costs
Invest- ment in point of sale
Strategic relocation costs
Amort'n of intang- ibles
Share related costs
Reported
£
£
£
£
£
£
£
Revenue
139,538,014
139,538,014
Cost of sales
(97,306,471)
(97,306,471)
Gross profit
42,231,543
42,231,543
Distribution costs
(17,799,967)
(189,442)
(17,989,409)
Admin costs
(20,881,874)
(95,446)
(283,933)
(807,603)
(404,370)
(274,841)
(22,748,067)
Profit/(loss)fromoperations
3,549,702
(95,446)
(283,933)
(997,045)
(404,370)
(274,841)
1,494,067
Finance income
52,330
52,330
Finance costs
(1,274,711)
(213,005)
(1,487,716)
Gain on revaluation
-
129,750
129,750
Profit/(loss)before tax
2,327,321
34,304
(283,933)
(1,210,050)
(404,370)
(274,841)
188,431
Adjusted Results
The adjusted results summary, presents a detailed comparison between underlying and non-underlying profit, highlighting exceptional items that management has identified as non-recurring costs. These items are separated to provide a clearer understanding of the company's financial performance, excluding these exceptional expenses that do not reflect the ongoing operational efficiency of the business that should be used as the basis for expected future performance. This approach ensures a more accurate representation of the company's underlying profitability and more importantly its potential in the future.
These costs include:
Loss from New Operations & Acquisition Related Costs
As the Group looks ahead to its medium-term aspirations, there has inherently been further investments to be made to establish new businesses in new geographies in line with the Group's strategic model. 2024 losses included the establishment losses incurred in respect of the new division in Wales for both Likewise and Valley Wholesale Carpets, and in 2023 Likewise South. The high-up front investment required, particularly with regards sales personnel, take time to establish in order to generate the Group's expected returns which will be accretive to the Group's bottom line in future years, but inherently are loss making enterprises in the first 12 months of inception.
Acquisition related costs includes costs relating to the final contingent consideration payment made in respect of the Delta Carpets acquisition paid in April 2024. Following settlement of all deferred and contingent consideration payments in respect of both the Valley and Delta acquisitions in 2024, all acquisition related obligations have now been fulfilled.
Exceptional Investment in Point of Sale
These costs relate to expenses incurred in increasing the Group's market presence by providing heavily discounted in-store retail displays to retailers to accelerate the Group's 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. These display units are used for sales and marketing purposes. Accordingly, the Board has adopted a prudent approach by recognising the cost as an expense in the profit or loss statement, rather than capitalising these displays as assets and incurring depreciation charges in future periods.
Strategic Relocation & Restructuring Costs
Strategic relocation and restructuring costs incurred relate to non-recurring expenses recognised to realise the Group's strategic plan to streamline operations and strengthen organisational efficiency while positioning the Group for further growth.
In July 2024, the Group successfully completed the relocation and consolidation of the A&A business into new, significantly improved premises as part of the strategic investment to support future growth. This move resulted in exceptional relocation and restructuring costs, including the settlement of dilapidations associated with the exited property. In addition, dual running costs were incurred due to the continued operation of the former Scotland facility until the lease expiry at the end of 2024. These costs reflect the Group's proactive approach to securing a modern, larger site for the growing Scotland business whilst aligning to the business's long-term capacity needs. With the expiry of the original Scotland lease and the closure of the last of the old acquired sites there will be no such recurring costs in 2025.
Bad Debt & Customer Transition Cost
While the Group acknowledges that bad debt costs are a normal aspect of trading, 2024 included exceptional circumstances that led to significant exit costs. These arose from the administration of a larger customer within the Rugs and Matting division, as well as the strategic withdrawal of a retailer from the floorcovering market. The administration resulted in an exceptional bad debt write-off, whilst the market exit led to additional exceptional costs, with significantly reduced trade in the first half of the year and no trade in the second half, limiting the Group's ability to offset the financial impact.
Non-financial KPIs
The Board additionally monitors the square footage of available warehouse space as a non-financial KPI. The warehouse capacity as at 31 December 2024 was 474,995 square feet (2023 - 499,250).
The reduction in 2024 was due to the strategic relocation of A&A Carpets into a new facility in Manchester. Whilst smaller, the new site provides greater operational efficiency while leveraging the wider Likewise network to realise cost synergies.
13B CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For the year ended 31 December 2024
2024
2023
Note
£
£
Revenue
3
149,793,661
139,538,014
Cost of sales
(103,777,804)
(97,306,471)
Gross profit
46,015,857
42,231,543
Distribution costs
(19,112,029)
(17,989,409)
Administrative expenses
(25,033,892)
(22,748,067)
Operating profit
4
1,869,936
1,494,067
Interest income
8
24,027
52,330
Finance costs
9
(1,849,611)
(1,487,716)
Revaluation of deferred consideration
10
(18,885)
129,750
Profit before taxation
25,467
188,431
Income tax (charge)/credit
11
749,135
655,594
Profit for the year
35
774,602
844,025
Other comprehensive income:
Items that will not be reclassified to profit or loss Revaluation of property, plant and equipment
16
308,659
24,389
Actuarial gain on defined benefit pension scheme
26
450,000
-
Tax relating to items not reclassified
11
(220,924)
(6,097)
Total items that will not be reclassified to profit or loss
537,735
18,292
Items that may be reclassified to profit or loss Currency translation differences: - Exchange losses arising on translation of foreign operations
(11,936)
(7,015)
Total items that may be reclassified to profit or loss
(11,936)
(7,015)
Total other comprehensive income for the year
525,799
11,277
Total comprehensive income for the year
1,300,401
855,302
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
2024
2023
Note
Pence per share
Pence per share
Earnings per share
13
Basic
0.3
0.3
Diluted
0.3
0.3
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
2024
2023
Note
£
£
Non-current assets Goodwill
15
5,624,284
5,624,284
Intangible assets
15
3,776,896
3,938,497
Property, plant and equipment
16
48,601,857
48,385,689
Retirement benefit obligations
26
450,000
-
58,453,037
57,948,470
Current assets Inventories
18
20,042,078
20,253,799
Trade and other receivables
19
19,235,903
17,679,986
Cash and cash equivalents
2,199,078
5,709,229
41,477,059
43,643,014
Current liabilities Trade and other payables
22
26,773,525
29,765,971
Current tax liabilities
11
15,107
-
Borrowings
21
7,108,326
5,273,300
Lease liabilities
23
4,642,269
4,373,760
Provisions
25
-
45,103
38,539,227
39,458,134
Net current assets
2,937,832
4,184,880
Non-current liabilities Borrowings
21
2,235,997
2,342,222
Lease liabilities
23
18,140,677
18,401,597
Deferred tax liabilities
24
1,337,048
1,866,950
21,713,722
22,610,769
Net assets
39,677,147
39,522,581
Equity Called up share capital
27
2,474,835
2,439,645
Share premium account
28
17,677,390
17,396,190
Revaluation reserve
29
2,777,172
2,626,976
Treasury shares
31
(58,584)
-
Share option reserve
32
610,698
903,295
Warrant reserve
33
128,170
128,170
Foreign exchange reserve
34
(59,438)
(47,502)
EBT reserve
30
(375,060)
-
Retained earnings
35
16,501,964
16,075,807
Totalequity
39,677,147
39,522,581
COMPANY STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
2024
2023
Note
£
£
Non-current assets
Intangible assets
15
353,746
122,480
Property, plant and equipment
16
4,894,020
5,249,063
Investments
17
42,240,552
42,309,385
Deferred tax assets
24
-
903,116
47,488,318
48,584,044
Trade and other receivables
19
4,436,932
6,949,853
Cash and cash equivalents
131,676
182,420
4,568,608
7,132,273
Current liabilities Trade and other payables
22
10,576,604
15,044,263
Borrowings
21
105,816
118,168
Lease liabilities
23
500,193
376,067
11,182,613
15,538,498
Net current assets
(6,614,005)
(8,406,225)
Non-current liabilities Borrowings
21
2,235,997
2,342,222
Lease liabilities
23
5,034,804
5,187,733
7,270,801
7,529,955
Net assets
33,603,512
32,647,864
Equity Called up share capital
27
2,474,835
2,439,645
Share premium account
28
17,707,900
17,396,190
Treasury shares
31
(58,584)
-
Share option reserve
32
524,840
903,295
Warrant reserve
33
128,170
128,170
Foreign exchange reserve
34
(78,224)
(38,124)
Retained earnings
35
12,818,717
11,818,688
Totalequity
33,603,512
32,647,864
As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company's profit for the year was £1,767,354 (2023 - £1,512,570 loss).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
Share capital
Share premium account
Revaluation Reserve
EBT reserve
Treasury Shares
Share option reserve
Warrant reserve
Foreign exchange reserve
Retained earnings
Total attributable to equity holders of parent
Balance at 1 January 2024
2,439,645
17,396,190
2,626,976
-
-
903,295
128,170
(47,502)
16,075,807
39,522,581
Year ended 31 December 2024
Profit for the year
-
-
-
-
-
-
-
-
774,602
774,602
Other comprehensive income for the year:
Revaluation of property, plant and equipment
-
-
308,659
-
-
-
-
-
-
308,659
Actuarial gains on pensions scheme
-
-
-
-
-
-
-
-
450,000
450,000
Currency translation differences
-
-
-
-
-
-
-
(11,936)
-
(11,936)
Tax relating to other comprehensive income
-
-
(108,424)
-
-
-
-
-
(112,500)
(220,924)
Total comprehensive income for the year
-
-
200,235
-
-
-
-
(11,936)
1,112,102
1,300,401
Dividends
12
-
-
-
-
-
-
-
-
(916,688)
(916,688)
Share options exercised
27
35,190
311,710
-
-
-
346,900
Transfer to retained earnings
-
-
(50,039)
-
-
(180,704)
-
-
230,743
-
Share options exercised
-
-
-
-
-
(26,035)
-
-
-
(26,035)
Cash in lieu of settlement of options
-
-
-
-
-
(85,858)
-
-
-
(85,858)
Purchase of own shares
-
(30,510)
-
(375,060)
(58,584)
-
-
-
-
(464,154)
Total contributions by and distributions to owners
35,190
281,200
(50,039)
(375,060)
(58,584)
(292,597)
-
-
(685,945)
(1,145,835)
Balance as at 31 December 2024
2,474,835
17,677,390
2,777,172
(375,060)
(58,584)
610,698
128,170
(59,438)
16,501,964
39,677,147
5BCONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2023
Share capital
Share premium account
Revalu-ation Reserve
EBT reserve
Treas-ury Shares
Share option reserve
Warrant reserve
Foreign ex-change reserve
Retained earnings
Total attributable to equity holders of parent
Note
£
£
£
£
£
£
£
£
£
£
Balance at 1 January 2023
2,438,360
17,384,625
2,662,384
-
-
628,454
128,170
(40,487)
15,909,763
39,111,269
Year ended 31 December 2023
Profit for the year
-
-
-
-
-
-
-
844,025
844,025
Other comprehensive income for the year
-
-
(35,408)
-
-
-
-
(7,015)
53,700
11,277
Total comprehensive income for the year
-
-
(35,408)
-
-
-
-
(7,015)
897,725
855,302
Dividends
12
-
-
-
-
-
-
-
(731,681)
(731,681)
Share options exercised
1,285
11,565
-
-
-
-
-
-
-
12,850
Share options and warrants issued
-
-
-
-
-
274,841
-
-
-
274,841
Total contributions by and distributions to owners
1,285
11,565
-
-
-
274,841
-
-
(731,681)
(443,990)
Balance as at 31 December 2023
2,439,645
17,396,190
2,626,976
-
-
903,295
128,170
(47,502)
16,075,807
39,522,581
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
Share capital
Share premium account
Treasury shares
Share option reserve
Warrant reserve
Foreign exchange reserve
Retained earnings
Total equity
Note
£
£
£
£
£
£
£
£
Balance at 1 January 2024
2,439,645
17,396,190
-
903,295
128,170
(38,124)
11,818,688
32,647,864
Year ended 31 December 2024
Profit for the year
-
-
-
-
-
-
1,767,354
1,767,354
Other comprehensive income for the year
Translation in relation to foreign subsidiary
-
-
-
-
-
(40,100)
-
(40,100)
Total comprehensive income for the year
-
-
-
-
-
(40,100)
1,767,354
1,727,254
Transactions with owners:
Share options exercised
27
35,190
311,710
-
-
-
-
-
346,900
Dividends
-
-
-
-
-
-
(916,689)
(916,689)
Share options issued
-
-
-
(26,035)
-
-
-
(26,035)
Cash settlement in lieu of share exercise
-
-
-
(85,858)
-
-
-
(85,858)
Own shares acquired
-
-
(58,584)
-
-
-
-
(58,584)
Transfer to retained earnings
-
-
-
(180,704)
-
-
149,364
(31,340)
Balance as at 31 December 2024
2,474,835
17,707,900
(58,584)
610,698
128,170
(78,224)
12,818,717
33,603,512
*Share option charges released to retained earnings represent the cumulative charges recognised up to the relevant option holders vesting period that have subsequently lapsed, been exercised or have since expired. Once crystallised the balance held within the share based payment reserve has been transferred to retained earnings with no impact on equity reserves. An amount of £31,340 was released from the share-based payment reserve during the period, in respect of options in the Company's shares held by employees of subsidiary companies. These options have been exercised by these employees and as such released from the Share Based Payment Reserve. The corresponding reduction is recognised within investment in subsidiaries.
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2023
Share capital
Share premium account
Treasury shares
Share option reserve
Warrant reserve
Foreign exchange reserve
Retained earnings
Total Equity
Note
£
£
£
£
£
£
£
£
Balance at 1 January 2023
2,438,360
17,384,625
-
628,454
128,170
(17,962)
14,062,939
34,624,586
Year ended 31 December 2023
Loss for the year
-
-
-
-
-
-
(1,512,570)
(1,512,570)
Other comprehensive income for the year:
(20,162)
Translation in relation to foreign subsidiary
-
-
-
-
-
(20,162)
-
Total comprehensive income for the year
-
-
-
-
-
(20,162)
(1,512,570)
(1,532,732)
Transactions with owners:
Dividends
-
-
-
-
-
-
(731,681)
(731,681)
Share options
-
-
-
274,841
-
-
-
274,841
Share options exercised
1,285
11,565
-
-
-
-
-
12,850
Balance as at 31 December 2023
2,439,645
17,396,190
-
903,295
128,170
(38,124)
11,818,688
32,647,864
16BCONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2024
2024
2023
Note
£
£
£
£
Profit for the year before taxation
25,467
188,431
Adjustments for: Finance costs
1,849,611
1,487,716
Finance income
(24,027)
(52,330)
Gain on disposal of property, plant and equipment
(20,634)
(110,898)
Amendments of property, plant and equipment
-
(107,072)
Amortisation and impairment of intangible assets
464,121
404,370
Depreciation and impairment of property, plant and equipment
5,050,181
4,520,577
Foreign exchange gains on cash equivalents
10,522
-
Revaluation of consideration
18,885
(129,750)
Equity settled share based payment expense/(credit)
(26,034)
274,841
Decrease in provisions
(45,103)
(4,972)
Movements in working capital: Decrease/(increase) in inventories
211,721
(1,865,272)
Increase in trade and other receivables
(1,555,918)
(2,106,683)
Increase in trade and other payables
1,258,069
3,544,930
Cash generated from operations
40
7,216,861
6,043,888
Income taxes refunded
13,416
19,770
Net cash inflow from operating activities
7,230,277
6,063,658
Investing activities
Purchase of intangible assets
(302,520)
(133,983)
Purchase of property, plant and equipment
(1,392,423)
(1,895,323)
Proceeds from disposal of property, plant and equipment
117,898
206,965
Interest received
24,027
52,330
Cash settlement in lieu of share exercise
(85,858)
-
Deferred consideration paid
(4,269,400)
(1,000,000)
Net cash used in investing activities
(5,908,276)
(2,770,011)
Financing activities
Proceeds from issue of shares
346,900
12,850
Purchase of treasury shares
(58,584)
-
Purchase of shares via EBT
(405,570)
-
Increase in invoice discounting
1,847,378
766,116
Proceeds from new bank loans
-
2,495,000
Repayment of bank loans
(118,577)
(1,826,801)
Payment of lease liabilities
(4,718,625)
(3,886,917)
Interest paid
(785,928)
(319,125)
Dividends paid to equity shareholders
(916,688)
(731,681)
Net cash used in financing activities
(4,809,694)
(3,490,558)
Net decrease in cash and cash equivalents
(3,487,693)
(196,911)
Cash and cash equivalents at beginning of year
5,709,229
5,913,155
Effect of foreign exchange rates
(22,458)
(7,015)
Cash and cash equivalents at end of year
2,199,078
5,709,229
The movement in trade in other payables included within cash generated from operations excludes movements in deferred and contingent consideration of £4,250,515 disclosed within cash used in investing activities within the Consolidated Statement of Cash Flows.
17BNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
1 20BAccounting policies
21BCompany information
Likewise Group PLC is a public company limited by shares incorporated in England and Wales and listed on the Alternative Investment Market (AIM). The registered office is Unit 4 Radial Park, Radial Way, Birmingham Business Park, Solihull, Birmingham, B37 7WN. The principal activity of the Group is the wholesale distribution of floorcoverings and associated products. Further information on the nature of its operations are disclosed in the strategic and directors' report.
The group consists of Likewise Group PLC and all of its subsidiaries.
1.1 22BAccounting convention
Both the Company and consolidated financial statements have been prepared in accordance with UK adopted international accounting standards (IFRS) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, except for properties held under the revaluation model. The principal accounting policies adopted are set out below.
1.2 Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Likewise Group PLC together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group's financial statements from the date that control commences until the date that control ceases.
1.3 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 2025. 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 2026, based on 2024 actuals, 2025 budget and forecast performance for 2026. 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 Consolidated Statement of Financial Position, 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.
1.4 25BRevenue
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.
1.5 26BGoodwill
Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.
Any gain on a bargain purchase is recognised in profit or loss in the period of the acquisition where the fair value of assets acquired is in excess of the consideration paid.
Goodwill is not amortised but is reviewed for impairment at least annually.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, 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 on the basis of the carrying amount of each asset in the unit. In accordance with IAS 36, an impairment loss recognised for goodwill is not reversed in subsequent periods, even if the recoverable amount of the cash-generating unit increases in a later period.
1.6 27BIntangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
· Brand name 10 - 15 years straight line
· Customer base 10 - 15 years straight line
· Software 3 years straight line
1.7 28BProperty, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings 2% straight line
Long Leasehold land and buildings 2% straight line
Leasehold improvements 10% straight line
Fixtures, fittings and computer equipment 10% - 33% straight line
Plant and equipment 10% - 33% straight line
Motor vehicles 16% - 33% straight line
Right of use assets - Leasehold property Over the term of the lease
Right of use assets - Other Over the term of the lease
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the Statement of Profit or Loss.
1.8 Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the parent company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9 30BImpairment of tangible and intangible assets
At each reporting end date, the group reviews the carrying amounts of its tangible and intangible 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 it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell 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. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss 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 years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10 31BInventories
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 Statement of Profit or Loss.
1.11 32BCash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12 33BFinancial assets
Financial assets are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
71BFinancial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets are not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the Statement of Comprehensive Income for the reporting period in which it arises.
72BImpairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
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: 31 - 60 days overdue 0% discount
61 - 90 days overdue 0% discount
91 - 120 days overdue 5% discount
Over 120 days overdue 50% discount
The Group reserves the right to exercise 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 Company's trade debtors. An example of such an extenuating circumstance may occur when an overdue amount has been collected post a reporting or measurement date.
73BDerecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.13 34BFinancial liabilities
The group recognises financial debt when the group becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
74BOther financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
75B
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the group's obligations are discharged, cancelled, or they expire.
1.14 35BEquity instruments
Equity instruments issued by the parent company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer payable at the discretion of the company.
1.15 36BTaxation
The tax expense represents the sum of the tax currently payable and deferred tax.
76BCurrent tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Profit or Loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
77BDeferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the Statement of Profit or Loss except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.16 37BProvisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event and it is probable that the group will be required to settle that 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 reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where 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 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.
1.17 38BEmployee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18 39BRetirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.19 40BShare-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.
When the share-based payment awards vest, the Company issues new equity instruments to employees in settlement of the granted awards. The amount equal to the employees fair value of share options vested and issued is released to retained earnings.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.20 41BLeases
At inception, the group assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the group recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the group's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the group is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the group's estimate of the amount expected to be payable under a residual value guarantee; or the group's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.21 42BInvoice 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 Statement of Profit or Loss with other finance costs.
2 43BCritical accounting estimates and judgements
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
46BDeferred Tax
The recognition of deferred tax assets, particularly those arising from unused tax losses, requires significant management judgement. Deferred tax assets are only recognised to the extent that it is
probable that future taxable profits will be available against which the losses can be utilised. This assessment involves evaluating both the timing and the likelihood of future profitability, taking into account factors such as historical performance, forecasted earnings, industry trends, and the impact of any planned strategic initiatives.
In making this judgement, the Group has prudently only considered it's two-year financial forecasts, the nature and timing of expected income streams, and any expiry limitations associated with the tax losses. A deferred tax asset will be recognised up to the total of the forecast taxable profits for the two-year period of assessment as well as any deferred tax liabilities that these losses could be offset against at the date of the Statement of Financial Position. Changes in these assumptions or in the tax environment may result in adjustments to the amount of deferred tax assets recognised. At the reporting date, deferred tax assets have been recognised only where the Group considers it probable that sufficient taxable profits will arise to allow the benefit of the losses to be utilised.
44BIntangible 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.
45BGoodwill
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.
46BInventory 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 16 for further information.
Revenue
Revenue arises entirely through the wholesale and distribution of floor coverings and associated products. Segmental analysis is therefore not presented. The Group is not reliant on any one customer and no customer exceeds 10% of total annual turnover. The following is an analysis of the Group's revenue for the year from continuing operations:
2024 £
2023 £
Revenue analysed by class of business
Sale of goods
149,793,661
139,538,014
2024 £
2023 £
Revenue analysed by geographical market
United Kingdom
149,671,433
139,297,993
Rest of Europe
122,228
229,533
Rest of the World
-
10,488
149,793,661
139,538,014
4 49BOperating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
10,522
(331)
Depreciation of property, plant and equipment
5,050,181
4,520,577
Profit on disposal of property, plant and equipment
(20,634)
(110,898)
Amortisation of intangible assets (included within administrative expenses)
464,121
404,370
Cost of inventories recognised as an expense
103,777,804
97,306,471
Share-based payments/(credit)
(26,034)
274,841
Loss from new operations
133,993
95,466
Exceptional investment in point of sale
349,050
283,933
Strategic relocation and restructuring costs*
686,090
852,500
Exceptional bad debt and customer exit costs
223,054
-
Losses from new operations
Losses from new operations relate to costs incurred in the initial start-up phase of new business divisions as the Group continues to expand in line with its strategic model. These operations require significant upfront investment, particularly in relation to sales personnel, and are not expected to generate meaningful returns during their first 12 months of trading.
Exceptional investment in point of sale
Exceptional investment in point of sale relates to accelerated expenses incurred in increasing the Group's market presence through the provision of heavily discounted in-store display stands to key retail partners. These costs were targeted at expanding brand visibility and accelerating market share growth, and relate specifically to strategic stand placements made over and above those typically incurred in the normal course of business. These amounts have been recognised in the Consolidated Statement of Profit or Loss.
Strategic relocation and restructuring costs
Strategic relocation and restructuring costs incurred relate to non-recurring expenses recognised to realise the Group's strategic plan to streamline operations and strengthen organisational efficiency while positioning the Group for further growth.
In July 2024, the Group successfully completed the relocation and consolidation of the A&A business into new, significantly improved premises as part of the strategic investment to support future growth. This move resulted in exceptional relocation and restructuring costs, including the settlement of dilapidations associated with the exited property. In addition, dual running costs were incurred due to the continued operation of the former Scotland facility until the lease expiry at the end of 2024.
*The difference between the figure disclosed in the operating profit note above and the adjusted results on page 13, relating to strategic relocation and restructuring costs, is due to the exclusion of depreciation under IFRS 16, which is already included within the depreciation of right-of-use assets line.
Exceptional bad debt and customer transition costs
While the Group acknowledges that bad debt costs are a normal aspect of trading, 2024 include exceptional circumstances that led to significant exit costs. These arose from the administration of a larger customer within the Rugs and Matting division, as well as the strategic withdrawal of a retailer from the floorcovering market. The administration resulted in an exceptional bad debt write-off, whilst the market exit led to additional exceptional costs, with significantly reduced trade in the first half of the year and no trade in the second half, limited the Group's ability to offset the financial impact.
5 51BAuditor's remuneration
2024
2023
£
£
Fees payable to the company's auditor and associates:
For audit services
Audit of the financial statements of the group and company
150,000
150,000
No non-audit services were provided by the company's auditor in the year ended 31 December 2024 (2023: nil).
6 52BEmployees
The average monthly number of persons (including directors) employed by the group during the year was:
2024 Number
2023 Number
Directors
4
5
Other employees
503
462
Total
507
467
Their aggregate remuneration comprised:
2024 £
2023 £
Wages and salaries
20,581,935
18,215,855
Social security costs
2,156,661
1,946,475
Pension costs
567,015
513,550
Share based payments
(26,034)
274,841
23,279,577
20,950,721
The average monthly number of persons (including directors) employed by the company during the year was 11 (2023 - 8).
7
Directors' remuneration
2024 £
2023 £
Remuneration for qualifying services
521,644
649,972
Social security costs
63,329
79,465
Company pension contributions to defined contribution schemes
6,400
25,600
Share based payments
9,406
12,869
600,779
767,906
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024 £
2023 £
Remuneration for qualifying services
304,974
292,368
There were no fees paid to non-executive directors in the current or preceding year.
The number of directors accruing benefits under money purchase pension schemes during the year amounts to nil (2023 - 1).
8
Interest income
2024 £
2023 £
Financial instruments measured at amortised cost:
Bank deposits
24,027
52,330
9
Finance costs
2024 £
2023 £
Interest on bank overdrafts and loans
184,466
164,269
Interest on lease liabilities
1,201,163
1,038,548
Interest on invoice discount facilities
463,982
284,595
Other interest payable
-
304
Totalinterest expense
1,849,611
1,487,716
10
Revaluation of deferred consideration
2024 £
2023 £
Gain/(Loss) on revaluation of deferred consideration
(18,885)
129,750
11
Income tax expense
2024£
2023 £
Current tax
UK corporation tax on profits for the current period Adjustments in respect of prior periods
9,377 (7,686)
- (19,770)
Total UK current tax
1,691
(19,770)
Deferred tax Origination and reversal of temporary differences
(750,826)
(635,824)
Total tax (credit)
(749,135)
(655,594)
The current year's tax charge is based on the main rate of 25%.
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 previous 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%.
The charge for the year can be reconciled to the profit per the income statement as follows:
2024 £
2023 £
Profit before taxation
25,467
188,431
Expected tax charge based on a corporation tax rate of 25.00% (2023: 23.50%)
6,367
44,281
Effect of expenses not deductible in determining taxable profit
40,534
(19,092)
Movement in deferred tax not recognised
(678,509)
(767,116)
Adjustment in respect of prior years
(7,686)
(19,770)
Effect of change in UK corporate tax rate
-
12,383
Other non-reversing timing differences
-
3,774
Fixed asset differences
53,188
86,308
Deferred tax (charge)/credited directly to OCI
(108,424)
-
Other tax adjustments, reliefs and transfers
(54,605)
-
Chargeable losses
-
(18,245)
Other differences leading to an increase/(decrease) in tax charge
-
21,883
Taxation credit for the year
(749,135)
(655,594)
In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024 £
2023 £
Deferred tax liability arising on:
Revaluation of property
108,424
6,097
Actuarial gain on defined benefit pension scheme
112,500
-
220,924
6,097
As at 31 December 2024, the Group has tax losses of £13,893,692 (31 December 2023 - £13,955,031) which are available for offset against future taxable profits.
12Dividends Amounts recognised as distributions:
2024 per share Pence
2023 per share Pence
2024 Total £
2023 Total £
Final dividend paid
0.250
0.200
610,720
487,717
Interim dividend paid
0.125
0.100
305,969
243,964
0.375
0.300
916,689
731,681
13
Earnings per share
2024
2023
Number of shares
Number
Number
Weighted average number of ordinary shares for basic earnings per share
245,580,592
243,884,066
Effect of dilutive potential ordinary shares:
- Weighted average number outstanding share options
4,034,800
4,413,734
- Warrants
2,800,000
2,900,000
Weighted average number of ordinary shares for diluted earnings per share
252,415,392
251,197,800
2024
2023
Earnings
£
£
Continuing operations
Profit for the period from continued operations
774,602
844,025
2024
2023
Pence per share
Pence per share
Earnings per share for continuing operations
Basic earnings per share
0.3
0.3
Diluted earnings per share
0.3
0.3
The diluted profit per share attributable to the ordinary equity holders of the Company has been restated for the prior year (formerly - 0.1 pence per share).
14 53BImpairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024 £
2023 £
In respect of: Financial assets -Trade and other receivables
393,128
252,534
Recognised in administrative expenses
393,128
252,534
15
Goodwill and other intangible assets
Goodwill
Software modifications
Likewise Floors Brandname
Likewise Floors Customer base
Delta Carpets Brandname
Delta Carpets Customer base
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
5,624,284
-
2,189,075
2,122,349
540,710
513,684
10,990,102
Additions
-
133,983
-
-
-
-
133,983
At 31 December 2023
5,624,284
133,983
2,189,075
2,122,349
540,710
513,684
11,124,085
Additions
-
302,520
-
-
-
-
302,520
At 31 December 2024
5,624,284
436,503
2,189,075
2,122,349
540,710
513,684
11,426,605
Amortisation and impairment
At 1 January 2023
-
-
547,268
530,587
40,553
38,526
1,156,934
Amortisation charge for the year
-
11,503
145,938
141,490
54,071
51,368
404,370
At 31 December 2023
-
11,503
693,206
672,077
94,624
89,894
1,561,304
Amortisation charge for the year
-
71,254
145,938
141,490
54,071
51,368
464,121
At 31 December 2024
-
82,757
839,144
813,567
148,695
141,262
2,025,425
Carrying amount
At 31 December 2024
5,624,284
353,746
1,349,931
1,308,782
392,015
372,422
9,401,180
At 31 December 2023
5,624,284
122,480
1,495,869
1,450,272
446,086
423,790
9,562,781
At 1 January 2023
5,624,284
-
1,641,807
1,591,762
500,157
475,158
9,833,168
15 Intangible assets (continued)
55BImpairment tests for cash generating units
Goodwill is tested annually for impairment. It is allocated to cash generating units as follows:
56B2024
57B2023
£
£
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.
The goodwill is a reflection of the benefit the acquisitions of subsidiaries will have on the Group by offering greater geographic coverage and providing the opportunity to expand this further than is currently the case. The acquisitions will benefit from the collective marketing and the enhanced product range available to all Group companies. Ultimately this will enable the acquired businesses and the existing Group members to provide an improved customer service, across a wider geographic area, with a greater product portfolio designed to help the Group to continue its development.
The Group has conducted an analysis of the sensitivity of the impairment test to changes in the key assumptions used in the supporting five year forecasts being a discount rate of 10% and growth rates ranging from 1 - 5% dependent on the specific CGU.
58BLikewise Floors Limited
The break even point of goodwill for Likewise Floors Limited is at a growth level of -174% with terminal growth factor of 2%.
59BLewis Abbott Limited
The break even point of goodwill for Lewis Abbott Limited is at a growth level of -23% with terminal growth factor of 2%.
60BH&V Carpets BVBA
The break even point of goodwill for H&V Carpets BVBA is at a growth level of -32% with terminal growth factor of 1%.
61BA. & A. Carpets Limited
The break even point of goodwill for A. & A. Carpets Limited is at a growth level of -4% with terminal growth factor of 1%.
62BValley Wholesale Carpets Limited
The break even point of goodwill for Valley Wholesale Carpets Limited is at a growth level of -11% with terminal growth factor of 1%.
63BDelta Carpets Limited
The break even point of goodwill for Delta Carpets Limited is at a growth level of -18% with terminal growth factor of 1%.
15 Intangible assets (continued) - Company
64BComputer software
£
Cost
At 31 December 2023
133,983
Additions
302,520
At 31 December 2024
436,503
Amortisation and impairment
At 31 December 2023
11,503
Charge for the year
71,254
At 31 December 2024
82,757
Carrying amount
At 31 December 2024
353,746
At 31 December 2023
122,480
16
Property, plant and equipment
Freehold land
Long
Leasehold
Plant and
Fixtures,
Motor
Right of use Right of use
Total
and buildings
Leasehold improve- ments
equipment
fittings and
vehicles
assets - assets
land and buildings
computer equipment
Leasehold property
- Other
£
£
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
11,174,936
11,094,728
307,192
3,574,885
2,146,340
1,565,450
16,714,470
6,147,646
52,725,647
Additions
31,338
6,870
-
1,339,637
500,083
1,119,665
-
2,702,800
5,700,393
Disposals
-
-
(1,502)
(48,319)
(3,034)
(293,093)
(324,440)
(148,766)
(819,154)
Revaluations
(183,043)
-
-
-
-
-
-
-
(183,043)
Transfers between classes
-
-
-
7,739
(7,739)
-
-
-
-
At 31 December 2023
11,023,231
11,101,598
305,690
4,873,942
2,635,650
2,392,022
16,390,030
8,701,680
57,423,843
Additions
25,466
25,845
-
181,438
499,371
660,303
1,759,354
1,922,459
5,074,236
Disposals
-
-
-
(160,059)
(130,000)
(228,920)
-
(268,594)
(787,573)
At 31 December 2024
11,048,697
11,127,443
305,690
4,895,321
3,005,021
2,823,405
18,149,384
10,355,545
61,710,506
Accumulated depreciation and impairment
At 1 January 2023
-
-
50,596
550,867
558,581
699,678
1,813,753
1,751,951
5,425,426
Depreciation charge for the year
164,389
145,000
30,719
438,768
315,264
402,058
1,224,103
1,800,276
4,520,577
Eliminated on disposal
-
-
-
(40,158)
(11,515)
(206,689)
(324,440)
(117,615)
(700,417)
Eliminated on revaluation
(62,432)
(145,000)
-
-
-
-
-
-
(207,432)
At 31 December 2023
101,957
-
81,315
949,477
862,330
895,047
2,713,416
3,434,612
9,038,154
Depreciation charge for the year
163,059
145,600
30,569
505,428
352,992
498,463
1,274,222
2,079,848
5,050,181
Eliminated on disposal
-
-
-
(140,646)
(89,145)
(190,531)
-
(250,705)
(671,027)
Eliminated on revaluation
(163,059)
(145,600)
-
-
-
-
-
-
(308,659)
At 31 December 2024
101,957
-
111,884
1,314,259
1,126,177
1,202,979
3,987,638
5,263,755
13,108,649
Carrying amount
At 31 December 2024
10,946,740
11,127,443
193,806
3,581,062
1,878,844
1,620,426
14,161,746
5,091,790
48,601,857
At 31 December 2023
10,921,274
11,101,598
224,375
3,924,465
1,773,320
1,496,975
13,676,614
5,267,068
48,385,689
At 1 January 2023
11,174,936
11,094,728
256,596
3,024,018
1,587,759
865,772
14,900,717
4,395,695
47,300,221
16. Property, plant and equipment (continued)
Property, plant and equipment includes right of use assets, as follows:
Right-of-use assets
2024 £
2023 £
Net values at the year end
Right of use assets - Leasehold property
14,161,746
13,676,614
Right of use assets - Other
5,091,790
5,267,068
19,253,536
18,943,682
Total additions in the year
3,681,813
2,702,800
Depreciation charge for the year
Right of use assets - Leasehold property
1,274,222
1,224,103
Right of use assets - Other
2,079,848
1,800,276
3,354,070
3,024,379
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 bank loans in place for the Group.
Fair Value Measurement
Included in land and buildings is land with a cost of £6,254,057 (2023 - £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 obtained valuations on these freehold and leasehold properties during the financial year from Gerald Eve LLP. In addition, a separate valuation was obtained in January 2025, for the freehold Sudbury property owned by Likewise Holdings Limited from Nicholas Percival, independent valuers not related to the Group.
Management have assessed the valuation and consider that the book values are not materially different to the valuations obtained. The directors have therefore decided to revalue both the freehold and long-leasehold properties to these valuations, adjusted for improvements made in the current financial year.
Gerald Eve LLP and Nicholas Percival 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 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 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 properties acquired as part of the acquisition of Valley Wholesale Carpets, consisting of two freehold units and a long-leasehold site have also been valued using the market (comparative) method of valuation.
The revaluation gain on land and buildings for 2024 of £308,659 (2023 - gain of £24,389) has been recognised within Other Comprehensive Income.
The revaluation surplus is disclosed in note 29.
Property, plant and equipment - Company
Fixtures and fittings
Motor vehicles
Right of use assets - leasehold property
Right of use assets - other
Total
£
£
£
£
£
Cost
At 1 January 2023
50,394
-
5,513,875
39,248
5,603,517
Additions
14,887
96,995
-
-
111,882
At 31 December 2023
65,281
96,995
5,513,875
39,248
5,715,399
Additions
11,068
-
-
-
11,068
At 31 December 2024
76,349
96,995
5,513,875
39,248
5,726,467
Accumulated depreciation and impairment
At 1 January 2023
23,415
-
90,531
2,186
116,132
Charge for the year
11,255
6,466
319,400
13,083
350,204
At 31 December 2023
34,670
6,466
409,931
15,269
466,336
Charge for the year
14,229
19,399
319,400
13,083
366,111
At 31 December 2024
48,899
25,865
729,331
28,352
832,447
Carrying amount
At 31 December 2024
27,450
71,130
4,784,544
10,896
4,894,020
At 31 December 2023
30,611
90,529
5,103,944
23,979
5,249,063
At 1 January 2023
26,979
-
5,423,344
37,062
5,487,385
17Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking Address Principal activities
Class of
% Held
shares held
Direct Indirect
Likewise Floors Limited
1
Wholesale distribution of floor coverings and associated products
Ordinary
100.00
-
Valley Wholesale Carpets Limited (100% subsidiary of Valley Wholesale Carpets (2004) Limited)
1
Wholesale distribution of floor coverings and associated products
Ordinary
-
100.00
Likewise Holdings Limited
1
Holding company
Ordinary
100.00-
-
H&V Carpets BVBA
2
Wholesale distribution of floor coverings and associated products
Ordinary
100.00
-
Likewise Trading Limited
1
Holding company
Ordinary
100.00
-
Valley Wholesale Carpets (2004) Limited
1
Holding company
Ordinary
100.00
-
Delta Carpets (Holdings) Limited (100% subsidiary of Likewise Floors Limited)
1
Holding company
Ordinary
-
100.00
Delta Carpets Limited (100% subsidiary of Delta Carpets (Holdings) Limited)
1
Dormant company
Ordinary
-
100.00
William Armes Limited (100% subsidiary of Likewise Holdings Limited)
1
Dormant company
Ordinary
-
100.00
A. & A. Carpets Limited
1
Dormant company
Ordinary
100.00
-
Likewise Limited
1
Dormant company
Ordinary
100.00
-
Lewis Abbott Limited (100% subsidiary of Likewise Trading Limited)
1
Dormant company
Ordinary
-
100.00
Factory Flooring Outlet Ltd (100% subsidiary of Likewise Floors Limited)
1
Dormant company
Ordinary
-
100.00
Registered office addresses:
1.Unit 4 Radial Park, Radial Way, Birmingham Business Park, Solihull, England, B37 7WN
2.Nijverheidsstraat 26, 8760 Meulebeke, Belgium
18 Inventories
2024 £
2023 £
Finished goods
20,042,078
20,253,799
The amount of inventories impaired during the year was as follows:
970,085
1,123,021
19 Trade and other receivables - Group
2024
2023
£
£
Trade receivables
14,518,173
12,802,078
Provision for impairment of trade receivables
(403,392)
(369,399)
14,114,781
12,432,679
Other receivables
3,421,566
2,938,182
Prepayments
1,699,557
2,309,125
19,235,904
17,679,986
65BFair value of trade receivables
The directors consider the carrying value of Group trade and other receivables is approximate to its fair value, after incorporating an impairment provision of £403,392 (2023 - £369,399).
Trade receivables comprise amounts due from customers for goods sold. The Group's normal trade credit terms range from 30 to 60 days and therefore all are classified as current. There are a limited number of customers who are granted extended credit terms but these are not considered material to the financial statements. Trade receivables are recognised initially at the amount of consideration that is unconditional. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost.
The Group's credit risk is primarily attributable to its trade receivables. The amounts presented in the Consolidated Statement of Financial Position are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The Group has no significant concentration of credit risk, with exposure spread over a large number of customers.
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:
2024
ECL
£
Factored receivables
9,336,680
6,873,509
Associated secured borrowing
(7,002,510)
(5,155,132)
19 Trade and other receivables (continued) - Company
2024
2023
£
£
Amount owed by fellow group undertaking
3,690,288
6,543,832
Other receivables
409,663
50,121
Prepayments
336,980
355,900
4,436,932
6,949,853
20 Allowances for doubtful debts
Expected credit loss assessment
2024
2023
Balance
Rate
Lossallowance
Balance
Rate
Lossallowance
£
%
£
£
%
£
Tradereceivables Not more than 30 days
8,097,391
-
-
7,060,259
-
-
More than 30 days but not more than 60 days
4,386,456
-
-
3,957,155
-
-
More than 60 days but not more than 90 days
916,716
-
-
773,893
-
-
More than 90 days but not more than 120 days
262,879
5
13,144
126,006
5
6,300
More than 120 days
854,729
50
427,365
884,765
50
442,383
Adjustments*
-
-
(37,117)
-
-
(79,284)
14,518,173
403,392
12,802,078
369,399
*The debtors balance to which ECL has been applied has been adjusted where there are specific payment plans in place:
Adjusted ECL calculation:
2024
ECL
£
£
More than 90 days but not more than 120 days - 5%
262,879
13,144
More than 120 days - 50% (adjusted)
579,962
289,981
Additional loss allowance
100,267
842,841
403,392
Movement in the allowance for doubtful debts
2024
2023
£
£
Balance at 1 January 2024
369,399
302,989
Additional allowance recognised
33,993
66,410
Balance at 31 December
403,392
369,399
21 Borrowings
Current
Non-current
2024 £
2023 £
2024 £
2023 £
Borrowings held at amortised cost
Bank loans
105,816
118,168
2,235,997
2,342,222
Invoice discounting
7,002,510
5,155,132
-
-
7,108,326
5,273,300
2,235,997
2,342,222
The directors consider that the carrying amount of the invoice discounting facility and bank loan approximates their fair value.
The invoice discounting facility is secured against the related trade receivable balances and by a floating charge over the assets of the Group. The facility is denominated in Sterling.
The invoice discounting facility is held by Likewise Floors Limited and has a fixed service charge of £18,000 per annum.
During 2023 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%.
This loan is at a floating interest rate and exposes the Group to interest rate risk.
On 7 June 2024, the subsidiary company, Valley Wholesale Carpets Limited, renewed a trade loan facility with Barclays Bank PLC. The renewed agreement provides the company with the facility to drawdown up to a maximum of £1,750,000 available at their request.
No funds were drawn down at 31 December 2024.
Drawdowns carry interest at a floating rate basis with interest at the Bank of England rate plus a margin of 2.2%. The facility also carries a quarterly fixed management arrangement fee.
21 Borrowings (continued) - Company
Current
Non-current
2024 £
2023 £
2024 £
2023 £
Borrowings held at amortised cost
Bank loans
105,816
118,168
2,235,997
2,342,222
There is a fixed charge over the freehold land and buildings held by the Group in respect of the bank loan.
22
Trade and other payables
2024 £
2023 £
Trade payables
23,080,542
21,638,744
Accruals
1,517,149
1,462,027
Deferred consideration
-
4,250,515
Social security and other taxation
1,819,793
1,880,688
Other payables
356,041
533,997
26,773,525
29,765,971
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.
The directors consider the carrying value of trade and other payables is approximate to its fair value due to their short term nature.
22
Trade and other payables (continued) - Company
2024 £
2023 £
Trade payables
288,114
258,587
Amounts owed to fellow group undertakings
10,026,317
10,564,144
Accruals
168,567
254,491
Deferred consideration
-
3,855,000
Social security and other taxation
88,406
110,700
Other payables
5,200
1,350
10,576,604
15,044,263
23
Lease liabilities
2024
2023
£
£
Maturity analysis Within one year
5,099,219
4,613,653
In two to five years
11,902,627
11,812,220
In over five years
12,408,443
13,109,026
Totalundiscountedliabilities
29,410,289
29,534,899
Future finance charges
(6,627,343)
(6,759,542)
Lease liabilities in the financial statements
22,782,946
22,775,357
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024 £
2023 £
Current liabilities
4,642,269
4,373,760
Non-current liabilities
18,140,677
18,401,597
22,782,946
22,775,357
2024 £
2023 £
Amounts recognised in profit or loss include the following: Interest on lease liabilities
1,201,163
1,038,548
Depreciation on lease liabilities
3,354,070
3,024,379
Profit on termination of lease liabilities
(1,393)
(18,358)
Expense relating to short-term leases
426,942
360,946
4,980,782
4,405,515
Lease liabilities - Company
2024
2023
£
£
Maturity analysis Within one year
582,645
376,067
In two to five years
2,283,452
2,295,234
In over five years
6,139,034
6,709,897
Totalundiscountedliabilities
9,005,131
9,381,198
Future finance charges
(3,470,134)
(3,817,398)
Lease liabilities in the financial statements
5,534,997
5,563,800
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024 £
2023 £
Current liabilities
500,193
376,067
Non-current liabilities
5,034,804
5,187,733
5,534,997
5,563,800
24 Deferred taxation
2024 £
2023 £
Deferred tax balances
1,337,048
1,866,950
The following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and prior reporting period.
Fixed asset timing difference
Arising from business combination
Capital gains
Short term timing differences
Losses and other deduction
Total
£
£
£
£
£
£
Asset/(Liability) at 1 January 2023
(1,303,975)
(1,052,221)
(1,569,838)
122,548
1,306,809
(2,496,677)
Deferred tax movements in prior year Charge/(credit) to profit or loss
(267,323)
98,217
25,489
(84,213)
863,654
635,824
Charge/(credit) to other comprehensive income
-
-
(6,097)
-
-
(6,097)
Asset/(Liability) at 1 January 2024
(1,571,298)
(954,004)
(1,550,446)
38,335
2,170,463
(1,866,950)
Deferred tax movements in current year
Charge/(credit) to profit or loss
(92,396)
98,217
52,592
(27,096)
719,509
750,826
Charge/(credit) to other comprehensive income
-
-
(108,424)
(112,500)
-
(220,924)
Asset/(Liability) at 31 December 2024
(1,663,694)
(855,787)
(1,606,278)
(101,261)
2,889,972
(1,337,048)
Deferred taxation (continued) - Company
Liabilities
Assets
2024
2023
2024
2023
£
£
£
£
Deferred tax balances
-
-
-
903,116
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Fixed asset timing difference
Short term timing differences
Losses and other deduction
Total
£
£
£
£
Asset at 1 January 2023
(3,321)
84,726
267,388
348,793
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(32,581)
(80,991)
667,895
554,323
Asset at 1 January 2024
(35,902)
3,735
935,283
903,116
Deferred tax movements in current year
Charge/(credit) to profit or loss
(53,677)
(1,774)
(847,665)
(903,116)
Asset at 31 December 2024
(89,579)-
1,961
87,618
-
25 Provisions for liabilities
2024
2023
£
£
Dilapidation provision
-
45,103
All provisions are expected to be settled within 12 months from the reporting date.
Movements on provisions:
Dilapidation provision
£
At 1 January 2024
45,103
Utilisation of provision
(45,103)
At 31 December 2024
-
26 Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
567,015
513,550
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Contributions made by the Group to the scheme are disclosed above.
The amount outstanding at the reported date in respect of contributions to the scheme were £78,003 (2023 - £98,970).
Defined benefit scheme
Likewise Floors Limited, a subsidiary of the Group, operates a pension scheme providing benefits based on final pensionable pay. The Scheme originated in William Armes Limited and Likewise Floors Limited became the sponsoring employer upon hive up of the trade and assets of the Matting business at the end of financial year 2021. 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 2023.
The contributions paid for the current and preceding financial year amounted to £Nil. The Group expects to contribute £Nil to the scheme in the coming financial year but will continue to pay any administrative expenses in respect of the Scheme.
Given that the defined benefit pension scheme is in surplus at 31 December 2024, there is expected to be no adverse material impact on the Group's future cash flows.
Reconciliation of defined benefit obligation and fair value of scheme assets
2024
2023
Key assumptions
%
%
Discount rate:
5.50
4.50
Salary growth rate
2.50
2.30
Mortality rates - for male/female aged 65 now
1.00
1.00
Inflation assumption (RPI)
3.10
3.00
Mortality assumptions Assumed life expectations on retirement at age 65:
Retiring today: -Males
85.6
86.2
-Females
88.1
88.6
Aged 45 now: -Males
86.6
87.3
-Females
89.3
89.7
The amounts included in the statement of financial position arising from the group's obligations in respect of defined benefit plans are as follows:
2024 £
2023 £
Present value of defined benefit obligations
1,151,000
1,231,000
Fair value of plan assets
(1,601,000)
(1,555,000)
Surplus in scheme
(450,000)
(324,000)
Asset not recognised due to asset ceiling
-
324,000
Asset recognised in statement of financial position
(450,000)
-
The retirement benefit obligation recognised in the consolidated statement of financial position represents the surplus in the defined benefit scheme. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.
The Trust Deed provides Likewise Floors Limited, the subsidiary whom operates the scheme, with an unconditional right to a refund of surplus assets assuming the full settlement of plan liabilities in the event of a plan wind-up. Furthermore, in the ordinary course of business the Trustee has no rights to unilaterally wind up, or otherwise augment the benefits due to members of, the plan. Based on these rights, any material net surplus in the plan is recognised in full.
Movements in the present value of defined benefit obligations
At 1 January
1,231,000
1,266,000
Benefits paid
(101,000)
(98,000)
Actuarial (gains) and losses
(32,000)
5,000
Interest cost
53,000
58,000
At 31 December
1,151,000
1,231,000
The defined benefit obligations arise from plans which are wholly unfunded
Movements in the fair value of plan assets
At 1 January
1,555,000
1,577,000
Interest income
53,000
58,000
Return on plan assets (excluding amounts included in net interest)
94,000
18,000
Benefits paid
(101,000)
(98,000)
At 31 December
1,601,000
1,555,000
Amounts recognised in other comprehensive income:
2024 £
2023 £
Amounts recognised in other comprehensive income Costs/(income): Actuarial changes related to plan assets
(450,000)
-
Scheme obligations would have been affected by changes in assumptions as follows:
2024 %
2023 %
A decrease in the interest rates of 0.05% would - increase
4.4
6.3
A decrease in inflation of 0.05% would - decrease
5.0
5.0
An increase in the long term rate of mortality improvement of 0.5% would - increase
1.5
1.5
27 Share capital
Consolidated and company
2024 Number
2023 Number
2024 £
2023 £
Ordinary share capital Issued and fully paidOrdinary shares of 1p each
247,483,480
243,964,480
2,474,835
2,439,645
The Company has one class of ordinary share which carry no right to fixed income.
On 18 March 2024, the Company allotted 1,044,000 new £0.01 Ordinary Shares for consideration of £0.10 per share, totaling £104,400. These shares were issued under the Company's SAYE scheme.
On 10 May 2024, the Company allotted 275,000 new £0.01 Ordinary Shares for consideration of £0.10 per share, totaling £27,500. These shares were issued under the Company's SAYE scheme.
On 8 July 2024, the Company allotted 300,000 new £0.01 Ordinary Shares for consideration of £0.10 per share, totaling £30,000. These shares were issued under the Company's SAYE scheme.
On 30 August 2024, the Company allotted 100,000 new £0.01 Ordinary Shares for consideration of £0.05 per share, totaling £5,000. These shares were issued in accordance with the exercise of warrant options granted to the broker WH Ireland.
On 6 September 2024, the Company allotted 900,000 new £0.01 Ordinary Shares for consideration of £0.10 per share, totaling £90,000. These shares were issued under the Company's EMI scheme.
On 28 October 2024, the Company allotted 900,000 new £0.01 Ordinary Shares for consideration of £0.10 per share, totaling £90,000. These shares were issued under the Company's EMI scheme.
28 Share premium account
2024
2023
£
£
At the beginning of the year
17,396,190
17,384,625
Issue of new shares
311,710
11,565
Revaluation of shares held in Trust
(30,510)
-
At the end of the year
17,677,390
17,396,190
This reflects proceeds generated on issue of shares in excess of their nominal value and is a non-distributable reserve.
29 Revaluation reserve
2024£
2023£
At the beginning of the year
2,626,976
2,662,384
Property revaluation
308,659
24,389
Deferred tax on property revaluation
(108,425)
(6,097)
Transfer to retained earnings
(50,039)
(53,700)
At the end of the year
2,777,171
2,626,976
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 gain will transfer to retained earnings upon crystallisation of the gain upon disposal of the property. The excess depreciation on revalued assets in comparison to historical cost depreciation is transferred from the revaluation reserve to retained earnings.
30 EBT reserve
2024£
2023£
At the beginning of the year
-
-
Share buyback
(375,060)
-
At the end of the year
(375,060)
-
The Group has established an Employee Benefit Trust (EBT) to facilitate the purchase and holding of the Company's shares. The EBT is legally independent from the Group but it is consolidated into the Group's financial statements due to the Group's deemed control over the trust. The shares held by the EBT may be cancelled or used to satisfy employee share option plans in the future.
31 Treasury shares
2024 £
2023 £
At the beginning of the year
-
-
Purchase of own shares
(58,584)
-
At the end of the year
(58,584)
-
On 16 July 2024, the group undertook a share buyback programme of £0.01 ordinary shares of the company. This resulted in the repurchase of 326,352 shares.
32 Share option reserve
2024 £
2023 £
At the beginning of the year
903,295
628,454
Share based payment charge/(credit)
(26,034)
274,841
Cash settlement in lieu of share exercise
(85,859)
-
Transfer to retained earnings
(266,562)
-
At the end of the year
524,840
903,295
This represents the cumulative fair value of options granted.
Equity settled share option plan
The Group has a number of Savings-Related Share Option Plans ("SAYE") available to 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 option are issued to participants in accordance with HMRC rules. Vesting is conditional on continuity of service.
As at 31 December 2023, 9,584,334 options remained active. During the financial year 8,237,413 new options were issued and 6,200,122 options lapsed on employees leaving the Company. 1,619,000 options were exercised in the year with a weighted average option price of £0.10 per share. The contractual life of the remaining 10,002,625 options is approximately 3 years.
As at 31 December 2023, 10,800,000 share options remained active which were granted to management under Enterprise Management Incentives (EMIs). During the current year no new options were issued and 75,000 options lapsed on employees leaving the Group. 1,800,000 options were exercised in the year and 2,000,000 were cancelled in lieu of a cash settlement. The contractual life of the remaining 6,925,000 options is due to expire during 2025.
As at 31 December 2023, 4,900,000 share options remained active which were granted to management under a Company Share Option Plan (CSOP). During the current year no new options were issued and 200,000 options lapsed on employees leaving the Group. No options were exercised in the year. The contractual life of the remaining 4,700,000 options is approximately 1.75 years.
Share options are valued using the Black-Scholes model. The inputs to the model are the option price and share price at the date of grant, expected volatility (20 / 45%, dependant on the scheme), expected dividend rate (0%) and risk-free rate of return (4-5%). The model has been adjusted for expected behavioural considerations.
*Share option charges released to retained earnings represent the cumulative charges recognised up to the relevant option holders vesting period that have subsequently lapsed, been exercised or have since expired. Once crystallised, the balance held within the share based payment reserve has been transferred to retained earnings with no impact on equity reserves. An amount of £31,340 was released from the share-based payment reserve during the period, in respect of options in the Company's shares held by employees of subsidiary companies. These options have been exercised by these employees and as such released from the Share Based Payment Reserve. The corresponding reduction is recognised within investment in subsidiaries.
33 Warrant reserve
2024 £
2023 £
At the beginning and end of the year
128,170
128,170
This represents the cumulative fair value of warrants granted.
34 Foreign exchange reserve
2024 £
2023 £
At the beginning of the year
(47,502)
(40,487)
Translation loss arising in the year
(11,936)
(7,015)
At the end of the year
(59,438)
(47,502)
This reflects the exchange differences on the translation of the foreign subsidiary.
35 Retained earnings
This includes all current and prior period gains and losses
36 67BCapital risk management
The Group's capital management objectives are:
§ to ensure the Group's ability to continue as a going concern; and
§ to provide long term returns to shareholders.
The Group defines and monitors capital on the basis of the carrying amount of equity plus its outstanding borrowings, less cash and cash equivalents as presented on the face of the Consolidated Statement of Financial Position as detailed below:
2024 £
2023 £
Equity
39,677,147
39,552,581
Borrowings
32,127,269
30,390,879
Cash and cash equivalents
(2,199,078)
(5,709,229)
69,605,338
64,204,231
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.
37 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 1 January 2023
5,913,155
(4,595,139)
(1,456,025)
(21,948,398)
22,086,407
Cash flows
(196,910)
-
-
-
(196,910)
Effect of foreign exchange rates
(7,015)
-
-
-
(7,015)
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)
Cash flows
(3,487,693)
-
-
-
(3,487,693)
Effect of foreign exchange rates
(22,458)
-
-
-
(22,458)
Repayment of bank loans
-
12,352
106,225
-
118,577
Interest accrued in period
-
-
-
(1,063,683)
(1,063,683)
Increase in invoice discounting facility
-
(1,847,378)
-
-
(1,847,378)
New/amended lease liabilities
-
-
-
(3,662,531)
(3,662,531)
Repayment of lease liabilities
-
-
-
4,718,625
4,718,625
At 31 December 2024
2,199,079
(7,108,326)
(2,235,997)
(22,782,946)
(29,928,190)
38 68BEvents after the reporting date
The subsidiary, Valley Wholesale Carpets Limited, purchased a freehold Logistics Centre in Ivybridge, near Plymouth, for consideration of £1.15m on 6th February 2025. This was funded from internal cash reserves.
The new logistics centre will enable the Group to develop business in the South West region of the UK not currently serviced with both Valley and Likewise operating from the site. This will provide a significant opportunity for growth in 2025 and beyond.
39 69BRelated party transactions
70BRemuneration of key management personnel
The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
2024 £
2023 £
Short-term employee benefits
974,254
1,306,877
Post-employment benefits
119,290
61,350
Share-based payments
18,105
68,462
1,111,649
1,436,689
During the financial year, the active 1,285,714 share options brought forward under the Group's SAYE scheme vested. 860,000 of the options were exercised and 125,714 lapsed. A remaining 300,000 remained under option as at the year-end date. Options over this remaining 300,000 shares were exercised post year-end.
During the financial year, the active 5,900,000 share options brought forward under the Group's EMI scheme vested. 1,800,000 of the options were exercised and 2,000,000 were cancelled in lieu of a cash settlement. The remaining 2,100,000 options can be exercised within 10 years of the grant date of the option.
No further share options were granted to key management personnel during the financial year.
Other Information
Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
All transactions between the Group were conducted in the ordinary course of business and on normal commercial terms.
No material related party transactions outside the Group occurred during the reporting period.
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FR UAUWRVOUVAAR
