Business
Final Results
Final Results.
About this update from Likewise Group Plc
[{"type":"text","content":"\n \n 12 May 2025 \n \n Likewise Group plc \n \n (\"Likewise\", the \"Company\" or the \"Group\") \n \n Audited Final Results for the year ended 31 December 2024 \n \n Significant progress in last eight months as Group accelerates \n towards £200 million sales revenue \n \n 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\"). \n \n Financial Highlights \n \n · Group Sales increased 7.4% to £149.8 million (FY23: £139.5 million). Sales in Likewise Floors increased 15.5% \n \n · Gross margin increase of 0.4% to 30.7% in 2024 (2023: 30.3%) \n \n · Underlying EBITDA of £8.8 million (FY23: £7.9 million) \n \n · Adjusted Profit Before Tax was £2.0 million (FY23: £2.3 million) reflecting additional investment, particularly in H1 2024 \n \n · Positive cash generation from Operating Activities of £7.2m (2023: £6.1m) \n \n · Proposed final dividend of 0.25 pence per Ordinary Share, bringing the total dividend in FY24 to 0.375 pence per Ordinary Share \n \n · 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 \n \n · Monthly revenues now consistently annualise to £170 million, with months exceeding £13 million to £14 million revenue driving improved operational gearing and profitability \n \n \n Operational Highlights \n \n · 12 Distribution and Logistics Centres expanded with total capacity at c.15 million cubic feet \n \n · 87 Suppliers across key flooring products \n \n · 96 Customer focused Management and Sales Executives \n \n · 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 \n \n Chairman and Chief Executive Statement \n 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%. \n \n Adjusted Profit Before Tax was £2.0 million reflecting additional investment, particularly in H1 2024. \n \n More importantly is the progress the Group has made in H2 2024 which has continued strongly into H1 2025. \n \n 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%. \n \n 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. \n \n 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. \n \n 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. \n \n \n Investment \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n \n Operations \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n From its Sudbury base Likewise South East has made excellent progress over the last two years. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n \n Infrastructure \n \n 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. \n \n 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. \n \n \n Dividend \n \n 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). \n \n 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. \n \n Shareholders can also take advantage of the Dividend Reinvestment Plan (\"DRIP\") by registering their intentions with the Company's registrar by 20 June 2025. \n \n Share Buy Back \n \n 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. \n \n Outlook \n \n 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. \n \n Tony Brewer, Chief Executive of Likewise Group plc, said: \n \n \"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. \n \n The quality of the Management, Sales Teams and Staff throughout the business is extremely important to the future aspirations of the Group. \n \n 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. \n \n 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. \n \n 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.\" \n \n \n \n \n \n \n For further information, please contact: \n \n \n \n \n \n \n \n Likewise Group plc \n Tony Brewer, Chief Executive \n \n \n Tel: +44 (0) 121 817 2900 \n \n \n \n \n Zeus (Nominated Adviser and Joint Broker) \n Jordan Warburton / David Foreman / James Edis (Investment Banking) \n Dominic King / Fraser Marshall (Corporate Broking) \n \n \n Tel: +44 (0) 20 3829 5000 \n \n \n \n \n Ravenscroft (Joint Broker) \n Semelia Hamon (Corporate Finance) \n \n \n Tel: +44 (0) 1481 735 340 \n \n \n \n \n \n CAUTIONARY STATEMENT \n \n \n 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. \n \n \n Strategic Report \n \n Introduction \n \n The directors present their Strategic Report and the audited financial statements of the Group for the financial year ended 31 December 2024. \n \nBusiness Overview \n 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. \n \n 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. \n 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 \n \n § 96 experienced Sales Representatives and Management \n § 144 Commercial Vehicles offering a next day service \n § Dedicated B2B websites offering 24/7 ordering \n § Continued Investment in Point of Sale to drive future growth \n \n Group strategy \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n Key performance indicators \n 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. \n Underlying PBT - 2024: £2,006,853 \n - 2023: £2,327,321 \n \n Revenue £m - 2025: £150 \n - 2024: £140 \n - 2023: £124 \n - 2022: £60 \n - 2021: £47 \n \n Operating cash flow - 2024: £7,216,861 \n - 2023: £6,043,888 \n \n OUR PURPOSE AND BUSINESS MODEL \n Product development, market presence and efficient service \n 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 . \n \n Underlying Results \n Underlying Results For the year ended 31 December 2024 \n \n \n \n \n \n \n \n Underlying \n perform ance \n (adjusted) \n \n \n \n Loss from new operation / \nacquisi-tion related costs \n \n \n Invest- ment in point of sale \n \n \n \n Strategic relocation & restructuring cost \n \n \n Amort'n \n of \n intangibles \n \n \n \n Share \n related \n costs/ \n(credit) \n \n \n Except-ional bad debt and customers exit costs \n \n \n Reported \n \n \n \n \n \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n \n \n Revenue \n \n \n 149,793,661 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 149,793,661 \n \n \n \n \n Cost of sales \n \n \n (103,777,804) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (103,777,804) \n \n \n \n \n Gross profit \n \n \n 46,015,857 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 46,015,857 \n \n \n \n \n Distribution costs \n \n \n (19,054,217) \n \n \n \n \n \n \n \n \n (57,812) \n \n \n \n \n \n \n \n \n \n \n \n (19,112,029) \n \n \n \n \n Admin costs \n \n \n (23,173,462) \n \n \n (133,993) \n \n \n (349,050) \n \n \n (716,246) \n \n \n (464,121) \n \n \n 26,034 \n \n \n (223,054) \n \n \n (25,033,892) \n \n \n \n \n Profit/(loss) from operations \n \n \n 3,788,178 \n \n \n (133,993) \n \n \n (349,050) \n \n \n (774,058) \n \n \n (464,121) \n \n \n 26,034 \n \n \n (223,054) \n \n \n 1,869,936 \n \n \n \n \n Finance income \n \n \n 24,027 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 24,027 \n \n \n \n \n Finance costs \n \n \n (1,805,352) \n \n \n \n \n \n \n \n \n (44,259) \n \n \n \n \n \n \n \n \n \n \n \n (1,849,611) \n \n \n \n \n Loss on revaluation \n \n \n - \n \n \n (18,885) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (18,885) \n \n \n \n \n Profit/(loss) before tax \n \n \n 2,006,853 \n \n \n (152,878) \n \n \n (349,050) \n \n \n (818,317) \n \n \n (464,121) \n \n \n 26,034 \n \n \n (223,054) \n \n \n 25,467 \n \n \n \n \n \n Underlying Results For the year ended 31 December 2023 \n \n \n \n \n \n \n \n Underlying \n performance \n (adjusted) \n \n \n Loss \n from new \n operation/Acq. Related costs \n \n \n Invest- \n ment in \n point of \n sale \n \n \n Strategic \n relocation \n costs \n \n \n Amort'n \n of \n intang- \n ibles \n \n \n Share \n related \n costs \n \n \n Reported \n \n \n \n \n \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n \n \n Revenue \n \n \n 139,538,014 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 139,538,014 \n \n \n \n \n Cost of sales \n \n \n (97,306,471) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (97,306,471) \n \n \n \n \n Gross profit \n \n \n 42,231,543 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 42,231,543 \n \n \n \n \n Distribution costs \n \n \n (17,799,967) \n \n \n \n \n \n \n \n \n (189,442) \n \n \n \n \n \n \n \n \n (17,989,409) \n \n \n \n \n Admin costs \n \n \n (20,881,874) \n \n \n (95,446) \n \n \n (283,933) \n \n \n (807,603) \n \n \n (404,370) \n \n \n (274,841) \n \n \n (22,748,067) \n \n \n \n \n Profit/(loss) from operations \n \n \n 3,549,702 \n \n \n (95,446) \n \n \n (283,933) \n \n \n (997,045) \n \n \n (404,370) \n \n \n (274,841) \n \n \n 1,494,067 \n \n \n \n \n Finance income \n \n \n 52,330 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 52,330 \n \n \n \n \n Finance costs \n \n \n (1,274,711) \n \n \n \n \n \n \n \n \n (213,005) \n \n \n \n \n \n \n \n \n (1,487,716) \n \n \n \n \n Gain on revaluation \n \n \n - \n \n \n 129,750 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 129,750 \n \n \n \n \n Profit/(loss) before tax \n \n \n 2,327,321 \n \n \n 34,304 \n \n \n (283,933) \n \n \n (1,210,050) \n \n \n (404,370) \n \n \n (274,841) \n \n \n 188,431 \n \n \n \n \n \n Adjusted Results \n 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. \n \n These costs include: \n \n Loss from New Operations & Acquisition Related Costs \n 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. \n 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. \n \n \n \n \n Exceptional Investment in Point of Sale \n 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. \n \n Strategic Relocation & Restructuring Costs \n 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. \n 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. \n \n Bad Debt & Customer Transition Cost \n 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. \n \n Non-financial KPIs \n 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). \n \n 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. \n \n \n \n 13B CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND \nOTHER COMPREHENSIVE INCOME \n For the year ended 31 December 2024 \n \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n Note \n \n \n £ \n \n \n £ \n \n \n \n \n \n \n \n \n \n Revenue \n \n \n 3 \n \n \n 149,793,661 \n \n \n 139,538,014 \n \n \n \n \n Cost of sales \n \n \n \n \n \n (103,777,804) \n \n \n (97,306,471) \n \n \n \n \n Gross profit \n \n \n \n \n \n \n 46,015,857 \n \n \n \n 42,231,543 \n \n \n \n \n Distribution costs \n \n \n \n \n \n (19,112,029) \n \n \n (17,989,409) \n \n \n \n \n Administrative expenses \n \n \n \n \n \n (25,033,892) \n \n \n (22,748,067) \n \n \n \n \n Operating profit \n \n \n 4 \n \n \n \n 1,869,936 \n \n \n \n 1,494,067 \n \n \n \n \n Interest income \n \n \n 8 \n \n \n 24,027 \n \n \n 52,330 \n \n \n \n \n Finance costs \n \n \n 9 \n \n \n (1,849,611) \n \n \n (1,487,716) \n \n \n \n \n Revaluation of deferred consideration \n \n \n 10 \n \n \n (18,885) \n \n \n 129,750 \n \n \n \n \n Profit before taxation \n \n \n \n \n \n \n 25,467 \n \n \n \n 188,431 \n \n \n \n \n Income tax (charge)/credit \n \n \n 11 \n \n \n 749,135 \n \n \n 655,594 \n \n \n \n \n Profit for the year \n \n \n 35 \n \n \n \n 774,602 \n \n \n \n 844,025 \n \n \n \n \n \n Other comprehensive income: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Items that will not be reclassified to profit or loss \n Revaluation of property, plant and equipment \n \n \n 16 \n \n \n \n 308,659 \n \n \n \n 24,389 \n \n \n \n \n Actuarial gain on defined benefit pension scheme \n \n \n 26 \n \n \n 450,000 \n \n \n - \n \n \n \n \n Tax relating to items not reclassified \n \n \n 11 \n \n \n (220,924) \n \n \n (6,097) \n \n \n \n \n Total items that will not be reclassified to profit or loss \n \n \n \n \n \n \n 537,735 \n \n \n \n 18,292 \n \n \n \n \n Items that may be reclassified to profit or loss \n Currency translation differences: \n - Exchange losses arising on translation of foreign operations \n \n \n \n \n \n \n \n \n (11,936) \n \n \n \n \n \n (7,015) \n \n \n \n \n Total items that may be reclassified to profit or loss \n \n \n \n \n \n \n (11,936) \n \n \n \n (7,015) \n \n \n \n \n Total other comprehensive income for the year \n \n \n \n \n \n \n 525,799 \n \n \n \n 11,277 \n \n \n \n \n Total comprehensive income for the year \n \n \n \n \n \n 1,300,401 \n \n \n 855,302 \n \n \n \n \n \n Profit for the financial year is all attributable to the owners of the parent company. \n \n Total comprehensive income for the year is all attributable to the owners of the parent company. \n \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n Note \n \n \n Pence per share \n \n \n Pence per share \n \n \n \n \n \n \n \n \n \n Earnings per share \n \n \n 13 \n \n \n \n \n \n \n \n \n \n \n Basic \n \n \n \n \n \n 0.3 \n \n \n 0.3 \n \n \n \n \n Diluted \n \n \n \n \n \n 0.3 \n \n \n 0.3 \n \n \n \n \n CONSOLIDATED STATEMENT OF FINANCIAL POSITION \n As at 31 December 2024 \n \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n Note \n \n \n £ \n \n \n £ \n \n \n \n \n \n \n \n \n \n Non-current assets \n Goodwill \n \n \n \n 15 \n \n \n \n 5,624,284 \n \n \n \n 5,624,284 \n \n \n \n \n Intangible assets \n \n \n 15 \n \n \n 3,776,896 \n \n \n 3,938,497 \n \n \n \n \n Property, plant and equipment \n \n \n 16 \n \n \n 48,601,857 \n \n \n 48,385,689 \n \n \n \n \n Retirement benefit obligations \n \n \n 26 \n \n \n 450,000 \n \n \n - \n \n \n \n \n \n \n \n \n \n \n 58,453,037 \n \n \n 57,948,470 \n \n \n \n \n Current assets \n Inventories \n \n \n \n 18 \n \n \n \n20,042,078 \n \n \n \n 20,253,799 \n \n \n \n \n Trade and other receivables \n \n \n 19 \n \n \n 19,235,903 \n \n \n 17,679,986 \n \n \n \n \n Cash and cash equivalents \n \n \n \n \n \n 2,199,078 \n \n \n 5,709,229 \n \n \n \n \n \n \n \n \n \n \n 41,477,059 \n \n \n 43,643,014 \n \n \n \n \n Current liabilities \n Trade and other payables \n \n \n \n 22 \n \n \n \n26,773,525 \n \n \n \n \n 29,765,971 \n \n \n \n \n Current tax liabilities \n \n \n 11 \n \n \n 15,107 \n \n \n - \n \n \n \n \n Borrowings \n \n \n 21 \n \n \n 7,108,326 \n \n \n 5,273,300 \n \n \n \n \n Lease liabilities \n \n \n 23 \n \n \n 4,642,269 \n \n \n 4,373,760 \n \n \n \n \n Provisions \n \n \n 25 \n \n \n - \n \n \n 45,103 \n \n \n \n \n \n \n \n \n \n \n 38,539,227 \n \n \n 39,458,134 \n \n \n \n \n Net current assets \n \n \n \n \n \n 2,937,832 \n \n \n 4,184,880 \n \n \n \n \n Non-current liabilities \n Borrowings \n \n \n \n 21 \n \n \n \n 2,235,997 \n \n \n \n 2,342,222 \n \n \n \n \n Lease liabilities \n \n \n 23 \n \n \n 18,140,677 \n \n \n 18,401,597 \n \n \n \n \n Deferred tax liabilities \n \n \n 24 \n \n \n 1,337,048 \n \n \n 1,866,950 \n \n \n \n \n \n \n \n \n \n \n 21,713,722 \n \n \n 22,610,769 \n \n \n \n \n Net assets \n \n \n \n \n \n 39,677,147 \n \n \n 39,522,581 \n \n \n \n \n \n Equity \n Called up share capital \n \n \n \n \n 27 \n \n \n \n \n 2,474,835 \n \n \n \n \n 2,439,645 \n \n \n \n \n Share premium account \n \n \n 28 \n \n \n 17,677,390 \n \n \n 17,396,190 \n \n \n \n \n Revaluation reserve \n \n \n 29 \n \n \n 2,777,172 \n \n \n 2,626,976 \n \n \n \n \n Treasury shares \n \n \n 31 \n \n \n (58,584) \n \n \n - \n \n \n \n \n Share option reserve \n \n \n 32 \n \n \n 610,698 \n \n \n 903,295 \n \n \n \n \n Warrant reserve \n \n \n 33 \n \n \n 128,170 \n \n \n 128,170 \n \n \n \n \n Foreign exchange reserve \n \n \n 34 \n \n \n (59,438) \n \n \n (47,502) \n \n \n \n \n EBT reserve \n \n \n 30 \n \n \n (375,060) \n \n \n - \n \n \n \n \n Retained earnings \n \n \n 35 \n \n \n 16,501,964 \n \n \n 16,075,807 \n \n \n \n \n Total equity \n \n \n \n \n \n 39,677,147 \n \n \n 39,522,581 \n \n \n \n \n \n \n \n COMPANY STATEMENT OF FINANCIAL POSITION \n As at 31 December 2024 \n \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n Note \n \n \n £ \n \n \n £ \n \n \n \n \n \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Intangible assets \n \n \n 15 \n \n \n 353,746 \n \n \n 122,480 \n \n \n \n \n Property, plant and equipment \n \n \n 16 \n \n \n 4,894,020 \n \n \n 5,249,063 \n \n \n \n \n Investments \n \n \n 17 \n \n \n 42,240,552 \n \n \n 42,309,385 \n \n \n \n \n Deferred tax assets \n \n \n 24 \n \n \n - \n \n \n 903,116 \n \n \n \n \n \n \n \n \n \n \n 47,488,318 \n \n \n 48,584,044 \n \n \n \n \n Trade and other receivables \n \n \n 19 \n \n \n 4,436,932 \n \n \n 6,949,853 \n \n \n \n \n Cash and cash equivalents \n \n \n \n \n \n 131,676 \n \n \n 182,420 \n \n \n \n \n \n \n \n \n \n \n 4,568,608 \n \n \n 7,132,273 \n \n \n \n \n Current liabilities \n Trade and other payables \n \n \n \n 22 \n \n \n \n 10,576,604 \n \n \n \n 15,044,263 \n \n \n \n \n Borrowings \n \n \n 21 \n \n \n 105,816 \n \n \n 118,168 \n \n \n \n \n Lease liabilities \n \n \n 23 \n \n \n 500,193 \n \n \n 376,067 \n \n \n \n \n \n \n \n \n \n \n 11,182,613 \n \n \n 15,538,498 \n \n \n \n \n Net current assets \n \n \n \n \n \n (6,614,005) \n \n \n (8,406,225) \n \n \n \n \n Non-current liabilities \n Borrowings \n \n \n \n 21 \n \n \n \n 2,235,997 \n \n \n \n 2,342,222 \n \n \n \n \n Lease liabilities \n \n \n 23 \n \n \n 5,034,804 \n \n \n 5,187,733 \n \n \n \n \n \n \n \n \n \n \n 7,270,801 \n \n \n 7,529,955 \n \n \n \n \n Net assets \n \n \n \n \n \n 33,603,512 \n \n \n 32,647,864 \n \n \n \n \n \n Equity \n Called up share capital \n \n \n \n \n 27 \n \n \n \n \n 2,474,835 \n \n \n \n \n 2,439,645 \n \n \n \n \n Share premium account \n \n \n 28 \n \n \n 17,707,900 \n \n \n 17,396,190 \n \n \n \n \n Treasury shares \n \n \n 31 \n \n \n (58,584) \n \n \n - \n \n \n \n \n Share option reserve \n \n \n 32 \n \n \n 524,840 \n \n \n 903,295 \n \n \n \n \n Warrant reserve \n \n \n 33 \n \n \n 128,170 \n \n \n 128,170 \n \n \n \n \n Foreign exchange reserve \n \n \n 34 \n \n \n (78,224) \n \n \n (38,124) \n \n \n \n \n Retained earnings \n \n \n 35 \n \n \n 12,818,717 \n \n \n 11,818,688 \n \n \n \n \n Total equity \n \n \n \n \n \n 33,603,512 \n \n \n 32,647,864 \n \n \n \n \n \n \n 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). \n \n \n \n \n CONSOLIDATED STATEMENT OF CHANGES IN EQUITY \n For the year ended 31 December 2024 \n \n \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n Share premium account \n \n \n Revaluation Reserve \n \n \n EBT \nreserve \n \n \n Treasury \nShares \n \n \n Share \noption reserve \n \n \n Warrant reserve \n \n \n Foreign exchange reserve \n \n \n Retained earnings \n \n \n Total attributable to equity holders of parent \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Balance at 1 January 2024 \n \n \n \n \n \n 2,439,645 \n \n \n 17,396,190 \n \n \n 2,626,976 \n \n \n - \n \n \n - \n \n \n 903,295 \n \n \n 128,170 \n \n \n (47,502) \n \n \n 16,075,807 \n \n \n 39,522,581 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Year ended 31 December 2024 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 774,602 \n \n \n 774,602 \n \n \n \n \n Other comprehensive income for the year: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Revaluation of property, plant and equipment \n \n \n \n \n \n - \n \n \n - \n \n \n 308,659 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 308,659 \n \n \n \n \n Actuarial gains on pensions scheme \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 450,000 \n \n \n 450,000 \n \n \n \n \n Currency translation differences \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (11,936) \n \n \n - \n \n \n (11,936) \n \n \n \n \n Tax relating to other comprehensive income \n \n \n \n \n \n - \n \n \n - \n \n \n (108,424) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (112,500) \n \n \n (220,924) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive income for the year \n \n \n \n \n \n - \n \n \n - \n \n \n 200,235 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (11,936) \n \n \n 1,112,102 \n \n \n 1,300,401 \n \n \n \n \n Dividends \n \n \n 12 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (916,688) \n \n \n (916,688) \n \n \n \n \n Share options exercised \n \n \n 27 \n \n \n 35,190 \n \n \n 311,710 \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n - \n \n \n 346,900 \n \n \n \n \n Transfer to retained earnings \n \n \n \n \n \n - \n \n \n - \n \n \n (50,039) \n \n \n - \n \n \n - \n \n \n (180,704) \n \n \n - \n \n \n - \n \n \n 230,743 \n \n \n - \n \n \n \n \n Share options exercised \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (26,035) \n \n \n - \n \n \n - \n \n \n - \n \n \n (26,035) \n \n \n \n \n Cash in lieu of settlement of options \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (85,858) \n \n \n - \n \n \n - \n \n \n - \n \n \n (85,858) \n \n \n \n \n \n \n \n Purchase of own shares \n \n \n \n \n \n - \n \n \n (30,510) \n \n \n - \n \n \n (375,060) \n \n \n (58,584) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (464,154) \n \n \n \n \n \n \n \n Total contributions by and distributions to owners \n \n \n \n \n \n 35,190 \n \n \n 281,200 \n \n \n (50,039) \n \n \n (375,060) \n \n \n (58,584) \n \n \n (292,597) \n \n \n - \n \n \n - \n \n \n (685,945) \n \n \n (1,145,835) \n \n \n \n \n Balance as at 31 December 2024 \n \n \n \n \n \n 2,474,835 \n \n \n 17,677,390 \n \n \n 2,777,172 \n \n \n (375,060) \n \n \n (58,584) \n \n \n 610,698 \n \n \n 128,170 \n \n \n (59,438) \n \n \n 16,501,964 \n \n \n 39,677,147 \n \n \n \n \n \n \n \n \n \n \n \n \n 5B CONSOLIDATED STATEMENT OF CHANGES IN EQUITY \n For the year ended 31 December 2023 \n \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n Share premium account \n \n \n Revalu-ation Reserve \n \n \n EBT \nreserve \n \n \n Treas-ury \nShares \n \n \n Share \noption reserve \n \n \n Warrant reserve \n \n \n Foreign ex-change reserve \n \n \n Retained earnings \n \n \n Total attributable to equity holders of parent \n \n \n \n \n Note \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n \n \n Balance at 1 January 2023 \n \n \n \n \n \n 2,438,360 \n \n \n 17,384,625 \n \n \n 2,662,384 \n \n \n - \n \n \n - \n \n \n 628,454 \n \n \n 128,170 \n \n \n (40,487) \n \n \n 15,909,763 \n \n \n 39,111,269 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Year ended 31 December 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit for the year \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 844,025 \n \n \n 844,025 \n \n \n \n \n \n \n \n Other comprehensive income for the year \n \n \n \n \n \n - \n \n \n - \n \n \n (35,408) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (7,015) \n \n \n 53,700 \n \n \n 11,277 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive income for the year \n \n \n \n \n \n - \n \n \n - \n \n \n (35,408) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (7,015) \n \n \n 897,725 \n \n \n 855,302 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Dividends \n \n \n 12 \n \n \n - \n \n \n - \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (731,681) \n \n \n (731,681) \n \n \n \n \n \n \n \n Share options exercised \n \n \n \n \n \n 1,285 \n \n \n 11,565 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 12,850 \n \n \n \n \n \n \n \n Share options and warrants issued \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 274,841 \n \n \n - \n \n \n - \n \n \n - \n \n \n 274,841 \n \n \n \n \n Total contributions by and distributions to owners \n \n \n \n \n \n 1,285 \n \n \n 11,565 \n \n \n - \n \n \n - \n \n \n - \n \n \n 274,841 \n \n \n - \n \n \n - \n \n \n (731,681) \n \n \n (443,990) \n \n \n \n \n \n \n \n Balance as at 31 December 2023 \n \n \n \n \n \n 2,439,645 \n \n \n 17,396,190 \n \n \n 2,626,976 \n \n \n - \n \n \n - \n \n \n 903,295 \n \n \n 128,170 \n \n \n (47,502) \n \n \n 16,075,807 \n \n \n 39,522,581 \n \n \n \n \n \n \n \n \n COMPANY STATEMENT OF CHANGES IN EQUITY \n For the year ended 31 December 2024 \n \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n Share premium account \n \n \n Treasury \nshares \n \n \n Share option reserve \n \n \n Warrant reserve \n \n \n Foreign exchange reserve \n \n \n Retained earnings \n \n \n Total \nequity \n \n \n \n \n \n \n \n Note \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n \n \n \n \n \n \n \n Balance at 1 January 2024 \n \n \n \n \n \n 2,439,645 \n \n \n 17,396,190 \n \n \n - \n \n \n 903,295 \n \n \n 128,170 \n \n \n (38,124) \n \n \n 11,818,688 \n \n \n 32,647,864 \n \n \n \n \n Year ended 31 December 2024 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1,767,354 \n \n \n 1,767,354 \n \n \n \n \n \n \n \n Other comprehensive income for the year \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Translation in relation to foreign subsidiary \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (40,100) \n \n \n - \n \n \n (40,100) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive income for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (40,100) \n \n \n 1,767,354 \n \n \n 1,727,254 \n \n \n \n \n \n \n \n Transactions with owners: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share options exercised \n \n \n 27 \n \n \n 35,190 \n \n \n 311,710 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 346,900 \n \n \n \n \n \n \n \n Dividends \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (916,689) \n \n \n (916,689) \n \n \n \n \n \n \n \n Share options issued \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n (26,035) \n \n \n - \n \n \n - \n \n \n - \n \n \n (26,035) \n \n \n \n \n \n \n \n Cash settlement in lieu of share exercise \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n (85,858) \n \n \n - \n \n \n - \n \n \n - \n \n \n (85,858) \n \n \n \n \n \n \n \n Own shares acquired \n \n \n \n \n \n - \n \n \n - \n \n \n (58,584) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (58,584) \n \n \n \n \n \n \n \n Transfer to retained earnings \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n (180,704) \n \n \n - \n \n \n - \n \n \n 149,364 \n \n \n (31,340) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Balance as at 31 December 2024 \n \n \n \n \n \n 2,474,835 \n \n \n 17,707,900 \n \n \n (58,584) \n \n \n 610,698 \n \n \n 128,170 \n \n \n (78,224) \n \n \n 12,818,717 \n \n \n 33,603,512 \n \n \n \n \n \n * 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. \n \n \n \n \n COMPANY STATEMENT OF CHANGES IN EQUITY \n For the year ended 31 December 2023 \n \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n Share premium account \n \n \n Treasury \nshares \n \n \n Share option reserve \n \n \n Warrant reserve \n \n \n Foreign exchange reserve \n \n \n Retained earnings \n \n \n Total \nEquity \n \n \n \n \n \n \n \n Note \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n \n \n \n \n \n \n \n Balance at 1 January 2023 \n \n \n \n \n \n 2,438,360 \n \n \n 17,384,625 \n \n \n - \n \n \n 628,454 \n \n \n 128,170 \n \n \n (17,962) \n \n \n 14,062,939 \n \n \n 34,624,586 \n \n \n \n \n Year ended 31 December 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loss for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1,512,570) \n \n \n (1,512,570) \n \n \n \n \n \n \n \n Other comprehensive income for the year: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (20,162) \n \n \n \n \n \n \n \n Translation in relation to foreign subsidiary \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (20,162) \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive income for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (20,162) \n \n \n (1,512,570) \n \n \n (1,532,732) \n \n \n \n \n \n \n \n Transactions with owners: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Dividends \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (731,681) \n \n \n (731,681) \n \n \n \n \n \n \n \n Share options \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n 274,841 \n \n \n - \n \n \n - \n \n \n - \n \n \n 274,841 \n \n \n \n \n \n \n \n Share options exercised \n \n \n \n \n \n 1,285 \n \n \n 11,565 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 12,850 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Balance as at 31 December 2023 \n \n \n \n \n \n 2,439,645 \n \n \n 17,396,190 \n \n \n - \n \n \n 903,295 \n \n \n 128,170 \n \n \n (38,124) \n \n \n 11,818,688 \n \n \n 32,647,864 \n \n \n \n \n \n \n \n \n \n \n \n 16B CONSOLIDATED STATEMENT OF CASH FLOWS \n For the year ended 31 December 2024 \n \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n Note \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit for the year before taxation \n \n \n \n \n \n 25,467 \n \n \n \n \n \n 188,431 \n \n \n \n \n Adjustments for: \n Finance costs \n \n \n \n1,849,611 \n \n \n \n \n \n \n1,487,716 \n \n \n \n \n \n \n \n Finance income \n \n \n (24,027) \n \n \n \n \n \n (52,330) \n \n \n \n \n \n \n \n Gain on disposal of property, plant and equipment \n \n \n (20,634) \n \n \n \n \n \n (110,898) \n \n \n \n \n \n \n \n Amendments of property, plant and equipment \n \n \n - \n \n \n \n \n \n (107,072) \n \n \n \n \n \n \n \n Amortisation and impairment of intangible assets \n \n \n 464,121 \n \n \n \n \n \n 404,370 \n \n \n \n \n \n \n \n Depreciation and impairment of property, plant and equipment \n \n \n 5,050,181 \n \n \n \n \n \n 4,520,577 \n \n \n \n \n \n \n \n Foreign exchange gains on cash equivalents \n \n \n 10,522 \n \n \n \n \n \n - \n \n \n \n \n \n \n \n Revaluation of consideration \n \n \n 18,885 \n \n \n \n \n \n (129,750) \n \n \n \n \n \n \n \n Equity settled share based payment expense/(credit) \n \n \n (26,034) \n \n \n \n \n \n 274,841 \n \n \n \n \n \n \n \n Decrease in provisions \n \n \n (45,103) \n \n \n \n \n \n (4,972) \n \n \n \n \n \n \n \n Movements in working capital: \n Decrease/(increase) in inventories \n \n \n \n211,721 \n \n \n \n \n \n \n(1,865,272) \n \n \n \n \n \n \n \n Increase in trade and other receivables \n \n \n (1,555,918) \n \n \n \n \n \n (2,106,683) \n \n \n \n \n \n \n \n Increase in trade and other payables \n \n \n 1,258,069 \n \n \n \n \n \n 3,544,930 \n \n \n \n \n \n \n \n Cash generated from operations \n \n \n 40 \n \n \n \n \n \n 7,216,861 \n \n \n \n \n \n 6,043,888 \n \n \n \n \n Income taxes refunded \n \n \n \n \n \n \n \n \n 13,416 \n \n \n \n \n \n 19,770 \n \n \n \n \n Net cash inflow from operating activities \n \n \n \n \n \n \n \n \n 7,230,277 \n \n \n \n \n \n 6,063,658 \n \n \n \n \n Investing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Purchase of intangible assets \n \n \n \n \n \n (302,520) \n \n \n \n \n \n (133,983) \n \n \n \n \n \n \n \n Purchase of property, plant and equipment \n \n \n \n \n \n (1,392,423) \n \n \n \n \n \n (1,895,323) \n \n \n \n \n \n \n \n Proceeds from disposal of property, plant and equipment \n \n \n \n \n \n \n 117,898 \n \n \n \n \n \n \n 206,965 \n \n \n \n \n \n \n \n Interest received \n \n \n \n \n \n 24,027 \n \n \n \n \n \n 52,330 \n \n \n \n \n \n \n \n Cash settlement in lieu of share exercise \n \n \n \n \n \n (85,858) \n \n \n \n \n \n - \n \n \n \n \n \n \n \n Deferred consideration paid \n \n \n \n \n \n (4,269,400) \n \n \n \n \n \n (1,000,000) \n \n \n \n \n \n \n \n Net cash used in investing activities \n \n \n \n \n \n \n \n \n (5,908,276) \n \n \n \n \n \n (2,770,011) \n \n \n \n \n Financing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Proceeds from issue of shares \n \n \n \n \n \n 346,900 \n \n \n \n \n \n 12,850 \n \n \n \n \n \n \n \n Purchase of treasury shares \n \n \n \n \n \n (58,584) \n \n \n \n \n \n - \n \n \n \n \n \n \n \n Purchase of shares via EBT \n \n \n \n \n \n (405,570) \n \n \n \n \n \n - \n \n \n \n \n \n \n \n Increase in invoice discounting \n \n \n \n \n \n 1,847,378 \n \n \n \n \n \n 766,116 \n \n \n \n \n \n \n \n Proceeds from new bank loans \n \n \n \n \n \n - \n \n \n \n \n \n 2,495,000 \n \n \n \n \n \n \n \n Repayment of bank loans \n \n \n \n \n \n (118,577) \n \n \n \n \n \n (1,826,801) \n \n \n \n \n \n \n \n Payment of lease liabilities \n \n \n \n \n \n (4,718,625) \n \n \n \n \n \n (3,886,917) \n \n \n \n \n \n \n \n Interest paid \n \n \n \n \n \n (785,928) \n \n \n \n \n \n (319,125) \n \n \n \n \n \n \n \n Dividends paid to equity shareholders \n \n \n \n \n \n (916,688) \n \n \n \n \n \n (731,681) \n \n \n \n \n \n \n \n Net cash used in financing activities \n \n \n \n \n \n \n \n \n (4,809,694) \n \n \n \n \n \n (3,490,558) \n \n \n \n \n Net decrease in cash and cash equivalents \n \n \n \n \n \n \n \n \n (3,487,693) \n \n \n \n \n \n (196,911) \n \n \n \n \n Cash and cash equivalents at beginning of year \n \n \n \n \n \n \n \n \n 5,709,229 \n \n \n \n \n \n 5,913,155 \n \n \n \n \n Effect of foreign exchange rates \n \n \n \n \n \n \n \n \n (22,458) \n \n \n \n \n \n (7,015) \n \n \n \n \n Cash and cash equivalents at end of year \n \n \n \n \n \n \n \n \n 2,199,078 \n \n \n \n \n \n 5,709,229 \n \n \n \n \n \n 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. \n \n 17B NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS \n For the year ended 31 December 2024 \n \n 1 20B Accounting policies \n 21B Company information \n 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. \n \n The group consists of Likewise Group PLC and all of its subsidiaries. \n \n 1.1 22B Accounting convention \n 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. \n \n 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 £. \n \n 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. \n \n 1.2 Basis of consolidation \n 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). \n \n 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. \n \n 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. \n \n Subsidiaries are consolidated in the group's financial statements from the date that control commences until the date that control ceases. \n \n 1.3 Going concern \n The consolidated financial statements for the Group have been prepared on a going concern basis. \n \n 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. \n \n 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. \n \n 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. \n \n \n \n 1.4 25B Revenue \n 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. \n \n 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. \n \n 1.5 26B Goodwill \n 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. \n \n 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. \n \n Goodwill is not amortised but is reviewed for impairment at least annually. \n \n 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. \n \n 1.6 27B Intangible assets other than goodwill \n Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. \n \n 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. \n \n 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: \n \n · Brand name 10 - 15 years straight line \n · Customer base 10 - 15 years straight line \n · Software 3 years straight line \n \n 1.7 28B Property, plant and equipment \n Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. \n \n 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: \n \n Freehold land and buildings 2% straight line \n Long Leasehold land and buildings 2% straight line \n Leasehold improvements 10% straight line \n Fixtures, fittings and computer equipment 10% - 33% straight line \n Plant and equipment 10% - 33% straight line \n Motor vehicles 16% - 33% straight line \n Right of use assets - Leasehold property Over the term of the lease \n Right of use assets - Other Over the term of the lease \n \n 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. \n \n \n \n \n \n \n 1.8 Non-current investments \n 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. \n \n 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. \n \n 1.9 30B Impairment of tangible and intangible assets \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 1.10 31B Inventories \n 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. \n \n 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. \n \n 1.11 32B Cash and cash equivalents \n 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. \n \n 1.12 33B Financial assets \n 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. \n \n 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. \n \n \n 71B Financial assets at fair value through profit or loss \n 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. \n \n 72B Impairment of financial assets \n Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date. \n 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 t h at affect the expected collectability of the future cash flows of the instrument. \n \n 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. \n \n 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. \n The discount matrix (\"ECL Matrix\") below is applied to derive an ECL for overdue amounts: 31 - 60 days overdue 0% discount \n 61 - 90 days overdue 0% discount \n 91 - 120 days overdue 5% discount \n Over 120 days overdue 50% discount \n \n 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. \n \n 73B Derecognition of financial assets \n 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. \n \n 1.13 34B Financial liabilities \n 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'. \n \n 74B Other financial liabilities \n 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. \n 75B \n Derecognition of financial liabilities \n Financial liabilities are derecognised when, and only when, the group's obligations are discharged, cancelled, or they expire. \n \n 1.14 35B Equity instruments \n 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. \n \n 1.15 36B Taxation \n The tax expense represents the sum of the tax currently payable and deferred tax. \n \n 76B Current tax \n 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. \n \n 77B Deferred tax \n 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. \n \n 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. \n \n 1.16 37B Provisions \n 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. \n \n 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. \n \n 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. \n \n 1.17 38B Employee benefits \n 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. \n The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. \n \n 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. \n \n 1.18 39B Retirement benefits \n Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 1.19 40B Share-based payments \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 1.20 41B Leases \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 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. \n \n 1.21 42B Invoice discounting \n 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. \n \n 2 43B Critical accounting estimates and judgements \n 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. \n \n 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. \n \n 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. \n \n 46B Deferred Tax \n 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 \n 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. \n \n 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. \n \n 44B Intangible assets \n 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. \n 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. \n \n 45B Goodwill \n 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. \n \n 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. \n \n 46B Inventory valuation \n 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. \n \n 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. \n \n Valuation of land and buildings \n 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. \n Revenue \n \n 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: \n \n \n \n \n \n \n \n 2024 \n £ \n \n \n 2023 \n £ \n \n \n \n \n Revenue analysed by class of business \n \n \n \n \n \n \n \n \n \n \n Sale of goods \n \n \n 149,793,661 \n \n \n 139,538,014 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2024 \n £ \n \n \n 2023 \n £ \n \n \n \n \n Revenue analysed by geographical market \n \n \n \n \n \n \n \n \n \n \n United Kingdom \n \n \n 149,671,433 \n \n \n 139,297,993 \n \n \n \n \n Rest of Europe \n \n \n 122,228 \n \n \n 229,533 \n \n \n \n \n Rest of the World \n \n \n - \n \n \n 10,488 \n \n \n \n \n \n \n \n \n 149,793,661 \n \n \n \n 139,538,014 \n \n \n \n \n \n 4 49B Operating profit \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n £ \n \n \n £ \n \n \n \n \n Operating profit for the year is stated after charging/(crediting): \n \n \n \n \n \n \n \n \n \n \n Exchange losses/(gains) \n \n \n 10,522 \n \n \n (331) \n \n \n \n \n Depreciation of property, plant and equipment \n \n \n 5,050,181 \n \n \n 4,520,577 \n \n \n \n \n Profit on disposal of property, plant and equipment \n \n \n (20,634) \n \n \n (110,898) \n \n \n \n \n Amortisation of intangible assets (included within administrative expenses) \n \n \n 464,121 \n \n \n 404,370 \n \n \n \n \n Cost of inventories recognised as an expense \n \n \n 103,777,804 \n \n \n 97,306,471 \n \n \n \n \n Share-based payments/(credit) \n \n \n (26,034) \n \n \n 274,841 \n \n \n \n \n Loss from new operations \n \n \n 133,993 \n \n \n 95,466 \n \n \n \n \n Exceptional investment in point of sale \n \n \n 349,050 \n \n \n 283,933 \n \n \n \n \n Strategic relocation and restructuring costs* \n \n \n 686,090 \n \n \n 852,500 \n \n \n \n \n Exceptional bad debt and customer exit costs \n \n \n 223,054 \n \n \n - \n \n \n \n \n \n Losses from new operations \n 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. \n \n Exceptional investment in point of sale \n 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. \n \n Strategic relocation and restructuring costs \n 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. \n \n 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. \n \n *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. \n \n Exceptional bad debt and customer transition costs \n 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. \n \n \n 5 51B Auditor's remuneration \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n £ \n \n \n £ \n \n \n \n \n Fees payable to the company's auditor and associates: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For audit services \n \n \n \n \n \n...
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