Market and competition

The floorcovering market is made up of manufacturers, distributors, retailers and installers. It is the strategy of the Group to become a national distributor in the market. The UK flooring market is worth c. £2 billion split between residential, commercial, public and industrial markets. It is the strategy of the Group to focus on the residential and commercial areas of the market.

 

Key performance indicators

 

The Board consider the following as financial key performance indicators (KPIs) for the Group: revenue, adjusted profit before tax and operating cash flow. The Board members review these for each of the businesses on a monthly basis. Individual subsidiaries have additional key performance indicators specific to their operations. Sales and margin are also monitored against budget on a daily basis by the executive management team. Key performance indicators were as follows:

 

Currency: £m	Year ended 31 December 2023 £	Year ended 31 December 2022  £	Increase %
Revenue	139.5	123.6	12.9%
Adjusted profit before tax	2.3	2.6	(9.0%)
Operating cash flow	6.1	(1.3)	556.5%

The above adjusted profit before tax figure is stated after adding back:

 

Currency: £m	Year ended 31 December 2023 £	Year ended 31 December 2022 £
Acquisition fees & related costs	‑	2.3
Loss from new operations*	0.1	0.5
Exceptional investment in point of sale	0.3	0.5
Amortisation of intangibles	0.4	0.4
Share based payments	0.3	0.3
Strategic relocation and establishment costs	1.2	‑

*Losses from new operations relate to costs incurred in the initial start‑up phase whilst the business is in its initial development phase and therefore not generating significant returns.

Exceptional investment in point of sale relate to accelerated expenses incurred in increasing the Group's market presence from providing heavily discounted in‑store displays to retailers in order to accelerate the growth in market share. This amount relates to specific strategic stand placements over and above what is incurred in the ordinary course of business recognised in the Consolidated Statement of Profit or Loss.

Strategic relocation and establishment costs relate to costs incurred in the relocation and establishment of the new 47,000 sq. ft. high bay Distribution Hub in Glasgow for Likewise Scotland, the relocation and establishment of the Likewise London business to new facilities in Sidcup, the commencement of costs incurred in the forthcoming closure of the A&A Manchester facility as this looks forward to moving to brand new facilities in June 2024 and closure costs incurred for H&V's small warehouse facility in Muelebeke, Belgium.

The Board additionally monitors the square footage of available warehouse space as a non financial KPI. The warehouse capacity as at 31 December 2023 was 499,250 square feet (2022 ‑ 519,000 square feet). This has slightly reduced since 2022 following the closure of the underutilised H&V Muelebeke site.

 

The following tables show a reconciliation of the adjusted results.

Currency: £m		2023				2022*
		Underlying	Non-underlying**	Total		Underlying	Non-underlying**	Total
Revenue		139.5	-	139.5		123.6	-	123.6
Cost of sales		(97.3)		(97.3)		(86.3)	-	(86.3)
Gross profit		42.2		42.2		37.3	-	37.3
Other operating income		-	-	-		-	-	-
Admin costs		(20.6)	(1.9)	(22.5)		(16.8)	(3.1)	(19.9)
Distribution costs		(17.8)	(0.2)	(18.0)		(17.0)	-	(17.0)
Impairment loses on trade receivables		(0.3)	-	(0.3)		(0.2)	-	(0.2)
Profit/(loss) from operations		3.5	(2.0)	1.5		3.4	(3.1)	0.2
Finance income		0.1	-	0.1		0.0	-	0.0
Finance costs		(1.3)	(0.2)	(1.5)		(0.8)	-	(0.8)
Gain/(Loss) on revaluation		-	0.1	0.1		-	(0.8)	(0.8)
Profit/(loss) before tax		2.3	(2.1)	0.2		2.6	(3.9)	(1.4)
Taxation		0.7	-	0.7		0.6	-	0.6
Profit/(loss) for the year		3.1	(3.9)	0.8		3.1	(3.9)	(0.8)

 

* As restated to align treatment with that of the year-end financial statements.

 

**Non‐underlying values are exceptional items, which include share based payment transactions, acquisition costs, amortisation of acquisition intangibles and strategic project costs. Adjusted results are non‐GAAP metrics used by management and are not an IFRS disclosure. Details of these charges can be seen in note 7 in the accounts below.

 

 

Financial Results and Ordinary Dividend

The results of the Group are shown in the Consolidated Statement of Profit or Loss and Other Comprehensive Income.

An interim dividend of 0.10p per ordinary share was paid on 17 November 2023 to shareholders on the register as at 13 October 2023.

A final dividend, in relation to the year ended 31 December 2022, of 0.20p per share was paid on 7th July 2023 to shareholders on the register at the close of business on 2nd June 2023, the ex‑dividend date being 1st June 2023.

The directors propose to pay a final dividend of 0.25p per ordinary share in respect of the financial year ended 31 December 2023. This to be subject to shareholder approval at the forthcoming AGM.

If approved, the total dividend payable for 2023 will be 0.35p per ordinary share.

The final dividend, if approved by shareholders at the AGM will be paid on 5 July 2024 to shareholders on the register at the close of business on 31 May 2024, the ex‑dividend date being 30 May 2024.

The last day for investors to elect for the Dividend Re‑Investment Plan (DRIP) will be 14 June 2024.

 

Consolidated statement of profit and loss and other comprehensive income for the year ended 31 December 2023

							As restated
						2023	2022
					Note	£	£
Revenue				6		139,538,014	123,642,673
Cost of sales						(97,306,471)	(86,309,299)
Gross profit						42,231,543	37,333,374
Administrative expenses						(22,481,980)	(19,914,378)
Distribution expenses						(17,989,409)	(16,956,934)
Impairment losses on trade receivables						(266,087)	(238,201)
Profit from operations						1,494,067	223,861
Finance income				10		52,330	5,043
Finance expense				10		(1,487,716)	(796,843)
Gain/(loss) on revaluation of consideration on acquisition						129,750	(846,380)
Profit/(loss) before tax						188,431	(1,414,319)
Taxation				11		655,594	578,015
Profit/(loss) for the year						844,025	(836,304)
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Revaluation of land and buildings				14		24,389	309,957
Actuarial loss on defined benefit schemes				33		-	(5,000)
Tax relating to revaluation of land and buildings				11		(6,097)	-
						18,292	304,957
Items that will or may be reclassified to profit or loss:
Exchange (losses)/gains arising on translation on foreign operations						(7,015)	16,138
Total comprehensive income						855,302	(515,209)

 

The total basic profit per share attributable to the ordinary equity holders of the Company was 0.3p (2022 ‑ loss of 0.3p). The total diluted profit per share attributable to the ordinary equity holders of the Company was 0.3p (2022 ‑ loss of 0.3p). The restatement of the 2022 comparative figures has no impact to the loss reported for the year ended 31 December 2022. Please see note two for further information.

 

 

 

Consolidated statement of financial position as at 31 December 2023

 

		2023	2022
Note		£	£
Assets
Non‑current assets
Property, plant and equipment	14	48,385,689	47,300,221
Other intangible assets	15	3,938,497	4,208,884
Goodwill	16	5,624,284	5,624,284
		57,948,470	57,133,389
Current assets
Inventories	18	20,253,799	18,388,527
Trade and other receivables	19	17,679,986	15,573,303
Cash and cash equivalents	20	5,709,229	5,913,155
		43,643,014	39,874,985
Total assets		101,591,484	97,008,374
Liabilities
Non‑current liabilities
Trade and other liabilities	21	-	4,380,365
Loans and borrowings	22	20,743,819	20,222,050
Deferred tax liability	11	1,866,950	2,496,677
		22,610,769	27,099,092
Current liabilities
Trade and other liabilities	21	29,765,971	22,970,426
Loans and borrowings	22	9,647,060	7,777,512
Provisions	25	45,103	50,075
		39,458,134	30,798,013
Total liabilities		62,068,903	57,897,105
Net assets		39,522,581	39,111,269

 

Share capital	28	2,439,645	2,438,360
Share premium	29	17,396,190	17,384,625
Share option reserve	34	903,295	628,454
Revaluation reserve		2,626,976	2,662,384
Foreign exchange reserve		(47,502)	(40,487)
Warrant reserve		128,170	128,170
Retained earnings		16,075,807	15,909,763
Total equity		39,522,581	39,111,269

 

 

 

Consolidated statement of changes in equity for the year ended 31 December 2023

 

 

	Share capital	Share premium	Share option reserve	Revaluation reserve	Foreign exchange reserve	Warrant reserve	Retained earnings	Total attributable to equity holders of parent	Total equity
	£	£	£	£	£	£	£	£	£
At 1 January 2023	2,438,360	17,384,625	628,454	2,662,384	(40,487)	128,170	15,909,763	39,111,269	39,111,269
Profit for the year	-	-	-	-	-	-	844,025	844,025	844,025
Other comprehensive income (see note 32)	-	-	-	(35,408)	(7,015)	-	53,700	11,277	11,277
Total comprehensive income for the year	-	-	-	(35,408)	(7,015)	-	897,725	855,302	855,302
Dividends	-	-	-	-	-	-	(731,681)	(731,681)	(731,681)
Shares options exercised	1,285	11,565	-	-	-	-	-	12,850	12,850
Share options and warrants issued	-	-	274,841	-	-	-	-	274,841	274,841
Total contributions by and distributions to owners	1,285	11,565	274,841	-	-	-	(731,681)	(443,990)	(443,990)
At 31 December 2023	2,439,645	17,396,190	903,295	2,626,976	(47,502)	128,170	16,075,807	39,522,581	39,522,581

 

 

 

 

Consolidated statement of changes in equity for the year ended 31 December 2022

 

 

	Share capital	Share premium	Share option reserve	Revaluation reserve	Foreign exchange reserve	Warrant reserve	Retained earnings	Total attributable to equity holders of parent	Total equity
	£	£	£	£	£	£	£	£	£
At 1 January 2022	1,923,742	22,458,816	308,776	2,406,127	(56,625)	128,170	(4,815,043)	22,353,963	22,353,963
Loss for the year	-	-	-	-	-	-	(836,304)	(836,304)	(836,304)
Other comprehensive income (see note 32)	-	-	-	256,257	16,138	-	48,700	321,095	321,095
Total comprehensive income for the year	-	-	-	256,257	16,138	-	(787,604)	(515,209)	(515,209)
Dividends	-	-	-	-	-	-	(487,590)	(487,590)	(487,590)
Issue of share capital	512,143	17,425,358	-	-	-	-	-	17,937,501	17,937,501
Share options exercised	2,475	22,550	-	-	-	-	-	25,025	25,025
Transfer to retained earnings	-	-	-	-	-	-	22,000,000	22,000,000	22,000,000
Reduction in share premium	-	(22,000,000)	-	-	-	-	-	(22,000,000)	(22,000,000)
Share issue costs	-	(522,099)	-	-	-	-	-	(522,099)	(522,099)
Share options	-	-	319,678	-	-	-	-	319,678	319,678
Total contributions by and distributions to owners	514,618	(5,074,191)	319,678	-	-	-	21,512,410	17,272,515	17,272,515
At 31 December 2022	2,438,360	17,384,625	628,454	2,662,384	(40,487)	128,170	15,909,763	39,111,269	39,111,269

 

 

 

Consolidated statement of cash flows for the year ended 31 December 2023

 

					2023	2022
					£	£
Cash flows from operating activities
Profit/(loss) for the year					844,025	(836,304)
Adjustments for
Depreciation and amortisation				14/15	4,924,947	3,633,356
Revaluation of consideration					(129,750)	846,380
Taxation				11	(655,594)	(578,015)
Finance income				10	(52,330)	(5,043)
Finance costs				10	1,487,716	796,843
Amendments to property, plant and equipment					(107,072)	-
Gain on sale of property, plant and equipment					(110,898)	(35,193)
Defined benefit pension contributions				33	-	(5,000)
Decrease in provisions				25	(4,972)	(152,601)
Share options issued				34	274,841	319,678
Net foreign exchange (gain)/loss					(7,015)	15,429
					6,463,898	3,999,530
Movements in working capital:
Increase in trade and other receivables					(2,106,683)	(3,624,487)
Increase in inventories					(1,865,272)	(4,437,276)
Increase in trade and other payables					3,544,930	3,249,449
Cash generated from operations					6,036,873	(812,784)
Corporation taxes received/(paid)					19,770	(514,040)
Net cash from/(used in) operating activities					6,056,643	(1,326,824)
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired					-	(13,541,050)
Purchases of property, plant and equipment					(1,895,323)	(2,001,322)
Proceeds from disposal of property, plant and equipment					206,965	76,424
Purchase of intangibles				15	(133,983)	-
Deferred consideration paid					(1,000,000)	-
Interest received				10	52,330	5,043
Net cash used in investing activities					(2,770,011)	(15,460,905)
Cash flows from financing activities
Interest paid				10	(449,168)	(225,834)
Consideration for new shares					12,850	16,025,026
Costs of share issue					-	(522,099)
Repayment of lease liabilities					(3,886,917)	(2,448,536)
Increase in invoice discounting					766,116	2,029,473
Repayment of loans					(1,696,758)	(117,106)
New bank loans					2,495,000	-
Dividends paid to the holders of the parent				13	(731,681)	(487,590)
Net cash (used in)/from financing activities					(3,490,558)	14,253,334
Net decrease in cash and cash equivalents					(203,926)	(2,534,395)
Cash and cash equivalents at the beginning of year					5,913,155	8,447,550
Cash and cash equivalents at the end of the year					5,709,229	5,913,155

 

 

Cash and cash equivalents at 31 December 2023 of £5,709,229 (2022 ‑ £5,913,155) comprised of cash and cash equivalents of £5,709,229 (2022 ‑ £5,913,155) less bank overdrafts of £Nil (2022 ‑ £Nil).

 

 

Notes to the consolidated financial statements for the year ended 31 December 2023

 

 

1.

General information

The Company is a public company limited by shares, registered in England and Wales and listed on the Alternative Investment Market (AIM). The registered company number is 08010067 and the address of the registered office is Unit 4 Radial Park, Radial Way, Birmingham Business Park, Solihull, England, B37 7WN.

The principal activity of the Group is the wholesale distribution of floorcoverings and associated products.

 

2.	Restatement of prior period

Management have restated the prior period comparatives within the subsidiary companies Valley Wholesale Carpets Limited and Likewise Floors Limited to ensure that classification of cost of sales, distribution expenses and administrative expenses are in line with the classifications of Likewise Group Plc.

The impact of this has been to:

‑ decrease cost of sales by £863,145 from £87,172,444 to £86,309,299
‑ increase administrative expenses by £944,768 from £18,969,610 to £19,914,378
‑ decrease distribution expenses by £81,623 from £17,038,557 to £16,956,934

There have been no amendments to the prior period Statement of Financial Position as a result of these reclassifications.

 

3.	Basis of preparation

These financial statements consolidate those of the Company and its subsidiaries (together referred to as the "Group"). The Parent Company financial statements present information about the Company as a separate entity.

The financial information is presented in pounds sterling, which is the functional currency of the entity and rounded to the nearest £. The financial statements are prepared on the historical cost basis unless otherwise specified within these accounting policies.

Both the Company and consolidated financial statements have been prepared and approved by the directors in accordance with UK adopted International Accounting Standards. On publishing the Company financial statements here together with the consolidated financial statements, the Company is taking advantage of the exemption in s408 of the Companies Act 2006 not to present its individual income statement and statement of comprehensive income and related notes.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

 

 

4.       Accounting policies

 

4.1

Going concern

The consolidated financial statements for the Group have been prepared on a going concern basis.

The Group continues to utilise invoice financing arrangements in some subsidiaries and has the option to draw on additional authorised facilities to support working capital requirements. The Group has operated within these facilities throughout the year and continues to do so in 2024. The directors are confident that the Group will be able to operate within the finance facilities available to us.

The Board have also undertaken assessments of going concern by building a cash flow model through to December 2025, based on 2023 actuals, 2024 budget and forecast performance for 2025. These cashflows indicate that the business has adequate resources to continue to operate for the foreseeable future and within the current financing arrangements in place.

Overall, given the strength of the Group's balance sheet, significant cash reserves on hand, availability of financing arrangements and the strong forecast performance of the Group, this provides the directors with sufficient assurance on the Group's ability to continue as a going concern, and therefore adopt the going concern basis of accounting in preparing the financial statements.

 

4.2

Basis of consolidation

Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an investee so as to obtain benefits from its activities, has exposure, or rights, to variable returns and can use its power to affect those returns. In assessing control, potential voting rights that are currently exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

 

4.3

Impact of new international reporting standards

There were a number of narrow scope amendments to existing standards which were effective from 1 January 2023. None of these had an impact on the Group.

Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2023 reporting periods and have not been early adopted by the Group. These standards, amendments or interpretations are not expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.

 

4.4

Revenue

Revenue comprises sales of goods to customers outside the Group, less an appropriate deduction for discounts, and is stated at the fair value of the consideration net of value added tax and other sales taxes.

Revenue and receivables are recognised when performance obligations are satisfied and the goods are delivered to customers as this is the point in time that the consideration is unconditional, control of goods has passed and only the passage of time is required before the payment is due.

 

4.5

Finance income and costs

Interest income and expense is recognised using the effective interest method which calculates the amortised cost of a financial asset or liability and allocates the interest income or expense over the relevant period.

 

4.6

Property, plant and equipment

Property, plant and equipment under the cost model are stated at historical cost less depreciation less any recognised impairment losses. Cost includes expenditure that is directly attributable to the acquisition or construction of these items. Subsequent costs are included in the asset's carrying amount only when it is probable that future economic benefits associated with the item will flow to the company and the costs can be measured reliably. All other costs, including repairs and maintenance costs, are charged to the Income Statement in the period in which they are incurred.

Depreciation is provided on all property, plant and equipment and is calculated as follows:

Freehold property ‑ 2% straight line
Leasehold improvements ‑ straight line over the term of the lease
Plant and machinery ‑ 10% ‑ 33% straight line
Motor vehicles ‑ 20% ‑ 50% straight line
Fixtures, fittings and computer equipment ‑ 10% ‑ 33% straight line

 

Depreciation is provided on cost less residual value. The residual value, depreciation methods and useful lives are annually reassessed.

Each asset's estimated useful life has been assessed with regard to its own physical life limitations and to possible future variations in those assessments. Estimates of remaining useful lives are made on a regular basis for all machinery and equipment, with annual reassessments for major items. Changes in estimates are accounted for prospectively.

The gain or loss arising on disposal or scrapping of an asset is determined as the difference between the sales proceeds, net of selling costs, and the carrying amount of the asset and is recognised in the Income Statement.

 

4.7

Revaluation of property

Individual properties are carried at current year value at fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Consolidated Statement of Financial Position date.

Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in Other Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the Income Statement.

The difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset's original cost is transferred from revaluation reserve to retained earnings at the end of each reporting period. Any remaining revaluation surplus included in equity is transferred directly to retained earnings when the asset is disposed of.

 

4.8

Impairment of non‑financial assets (excluding Goodwill)

At each reporting date, the directors review the carrying amounts of the Group's non current assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where the asset does not generate cash flows that are independent from other assets, the directors estimate the recoverable amount of the cash generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash generating unit is reduced to its recoverable amount. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit.

An impairment loss is recognised as an expense immediately.

 

Where an impairment loss on non financial assets subsequently reverses, the carrying amount of the asset or cash generating unit is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset or cash generating unit in prior periods. A reversal of an impairment loss is recognised in the Income Statement immediately.

 

4.9

Inventories

Inventory is valued at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, inventories are assessed for impairment. If inventories are impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement.

 

4.10

Cash and cash equivalents

Cash at bank comprise cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less from inception.

 

4.11

Financial instruments

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument.

Financial assets and financial liabilities are measured initially at fair value plus transactions costs. Financial assets and financial liabilities are measured subsequently as described below.

Cash equivalents comprise short‑term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. An investment with a maturity of three months or less is normally classified as being short‑term.

Derivatives, including forward foreign exchange contracts, are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re‑measured at their fair value. Changes in the fair value of derivatives are recognised in the Income Statement in finance costs or income as appropriate.

 

4.12

Financial assets

Trade and other receivables are recorded initially at transaction price and subsequently measured at amortised cost. This results in their recognition at nominal value less an allowance for any doubtful debts. This allowance for expected credit losses (ECL) may be established where evidence of credit deterioration is observed. In order to assess credit deterioration, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on its historical experience and informed credit assessment, that includes forward‑looking information. An additional reserve is established, where required, when a loss is both probable and the amount is known.

ECLs are a probability‑weighted estimate of lifetime credit losses. Under the ECL model, the Group calculates the allowance for credit losses by considering on a discounted basis the cash shortfalls it would incur in various default scenarios for prescribed future periods and multiplying the shortfalls by the probability of each scenario occurring. The allowance is the sum of these probability weighted outcomes. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Group expects to receive) with a discount factor applied to such overdue amounts. The discount matrix ("ECL Matrix") below is applied to derive an ECL for overdue amounts:

Past due (days)                         31‑60           61‑90           90‑120          120‑250     Over 250
Discount to Amounts Overdue   0%               0%               5%               50%           100%

 

The Group exercises its discretion in the application of discounts outside of the ECL Matrix based on extenuating circumstances that may apply from time to time to the Group's trade receivables (see note 19). An example of such an extenuating circumstance may occur when it is known that an overdue amount will be collected post a reporting or measurement date.

 

4.13

Financial liabilities

The Group's financial liabilities include trade and other payables and borrowings.

Interest bearing bank loans and overdrafts are initially recorded at fair value, which equals the proceeds received, net of direct interest costs. They are subsequently held at amortised cost. Finance charges, including premiums payable on settlement or redemption are accounted for using an effective interest rate method and are added to or deducted from the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost. Generally, this results in their recognition at their nominal value.

 

4.14

Foreign currency

The presentation currency for the Group's financial information is pounds sterling.

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Any gain or loss on translation of monetary foreign currency assets and liabilities arising from a movement in exchange rates subsequent to initial measurement is included as an exchange gain or loss in the Consolidated Statement of Profit or Loss.

The assets and liabilities of overseas subsidiary undertakings are translated at the closing exchange rate. Income Statements and cash flows of such subsidiaries are translated into Sterling at the average rates of exchange. The adjustments to period end rates are taken to foreign exchange reserve in equity and reported in the Other Comprehensive Income.

 

4.15

Taxation

Current taxation
Current taxation is based on the local taxable income at the local statutory tax rate enacted or substantively enacted at the reporting date and includes adjustments to tax payable or recoverable in respect of previous periods.                                                                                          

 

Deferred taxation
Deferred taxation is calculated using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the historical financial information. However, if the deferred tax arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences, it is not accounted for. No deferred tax is recognised on initial recognition of goodwill or on investment in subsidiaries. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the year end date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax liabilities are provided in full, and are not discounted.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the Income Statement, except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority where there is an intention to settle the balances on a net basis.

 

4.16

Business combination

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:

‑ fair values of the assets transferred
‑ liabilities incurred to the former owners of the acquired business
‑ equity interests issued by the Group
‑ fair value of any asset or liability resulting from a contingent consideration arrangement, and
‑ fair value of any pre‑existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.

Acquisition related costs are expensed as incurred.

The excess of the consideration transferred and acquisition date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognised directly in the Income Statement as a bargain purchase.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in the Income Statement.

 

4.17

Goodwill

Goodwill is initially recognised and measured as set out above.

Goodwill not attributed to a specific intangible asset is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to each of the Group's cash generating units expected to benefit from the synergies of the combination. If the recoverable value of the cash generating unit is less than the carrying amount of goodwill, the impairment loss is recognised. An impairment loss recognised for goodwill is not reversed in a subsequent period.

On disposal of a cash generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

 

		4.18	Intangible assets
	Other intangible assets

Goodwill attributable to the brand name of acquired subsidiaries or customer base is initially recognised
and measured as set out above. Licences are initially recognised at cost.

Amortisation is provided on all other intangible assets and is calculated as follows:

 

		Brand name	10 ‑ 15 years straight line
		Customer base	10 ‑ 15 years straight line
		Software	10 years straight line

 

The useful lives of intangible assets are annually reassessed and all assets are reviewed for impairment at least annually. On disposal of a subsidiary, the attributable amount of intangible assets is included in the determination of the profit or loss on disposal.

 

4.19

Employment benefits

Provision is made in the financial statements for all employee benefits. Liabilities for wages and salaries, including non monetary benefits and annual leave obliged to be settled within 12 months of the reporting date, are recognised in accruals.

Contributions to defined contribution pension plans are charged to the Statement of Profit or Loss in the year to which the contributions relate.

Likewise Floors Limited, a subsidiary of the Group operates a defined benefit pension plan for certain employees.

The amount recognised in the Consolidated Statement of Financial Position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the Group engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

Where the calculation results in a benefit to the Group, the asset recognised is limited to the present value of any future refunds from the plan or reductions in future contributions to the plan.

 

4.20

Leases

The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right‑of‑use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short‑term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Group recognises the lease payments as an operating expense on a straight line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

Right‑of‑use assets are depreciated over the shorter period of lease term and useful life of the underlying asset.

 

4.21

Borrowing costs

Borrowing costs are recognised in the Statement of Profit or Loss in the year in which they are incurred.

 

4.22

Share based payments

The fair value of equity instruments granted to employees is charged to the Statement of Comprehensive Income, with a corresponding increase in equity. The fair value of share options is measured at grant date using the Black‑Scholes pricing model and spread over the period during which the employee becomes unconditionally entitled to the award. The charge is adjusted to reflect the number of shares or options that vest.

 

4.23

Invoice discounting

The Group has an invoice discounting arrangement. The amount owed by customers to the Group are included within trade receivables and the amount owed to the invoice discounting company is included within borrowings. The amount owed to the invoice discounting company represents the difference between the amounts advanced by the invoice discounting company and the invoices discounted. The interest element of the invoice discounting charges and other related costs are recognised as they accrue and are included in the Income Statement with other finance costs.

 

4.24

Segment reporting

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses related to transactions with other components of the same entity), whose operating results are regularly reviewed by the entity's Chief Operating Decision Maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Chief Operating Decision Maker has been identified as the board of executive directors, at which level strategic decisions are made.

Details of the Group's reporting segments are provided in note 6.

 

4.25

Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

 

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

 

5.	Judgements and key sources of estimation uncertainty

         

The preparation of the financial statements, in conformity with adopted IFRSs requires management to make judgements, estimates and assumptions that affect the carrying amounts of assets and liabilities at the date of these financial statements and the reported amount of revenues and expenses during the period. These judgements, estimates and assumptions are continually evaluated by management and are based upon historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The key assumptions concerning the future and other key sources of estimation uncertainty at the statement of financial position date, that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are as follows:

 

          Contingent consideration

 

Contingent consideration may be payable in respect of acquisitions and is calculated with reference to the Likewise Group Plc share price at a future determination date. The fair value of contingent consideration at the date of acquisition and subsequent remeasurement dates requires significant judgements and estimates and is sensitive to share price changes.

 

          Intangible assets

 

The Group recognises identifiable intangible assets, such as brands and customer relationships, at fair value on acquisition of the relevant subsidiaries. Any excess paid over the value of net assets acquired is recognised as Goodwill in the Consolidated Statement of Financial Position and is allocated to the appropriate business.

The annual amortisation charge and useful life is based on the period over which management expects to benefit from the intangible assets, based on past experience and knowledge of the business acquired.

 

          Goodwill

 

Goodwill is recognised on acquisition of subsidiaries. This value is the excess paid over the net assets acquired which cannot be separately identified as an intangible asset. Goodwill is not amortised but is subject to an annual impairment review.

The impairment assessment compares the carrying value of Goodwill with its recoverable amount. The recoverable amount is determined by performing a discounted cash flow (DCF) analysis of the Cash Generating Unit (CGU) with reference to divisional budgets prepared by management. To prepare the DCF, management are required to use estimates and judgement for the parameters applied to the model of growth and termination growth rate percentages along with the discount factor. The percentages used to calculate the growth rates are based on prior performance along with budgets for the coming year. The discount factor is based on the proportion of the company's cost of capital weighted between the use of debt and equity finance.

 

          Impairment of trade receivables

 

Trade and other receivables are recognised at nominal value less an allowance for doubtful debts. This allowance for expected credit losses (ECL) may be established where evidence of credit deterioration is observed. In order to assess credit deterioration, the directors use reasonable and supportable information that is relevant and available without undue cost or effort. This includes the directors assessment of both quantitative and qualitative information and analysis, based on its historical experience and informed credit assessment, that includes forward‑looking information. An additional reserve is established, where required, when the directors consider that a loss is both probable and the amount is known. See notes 4.12 and 19 for further information.

 

          Inventory valuation

 

Inventories are stated at the lower of cost and the estimated selling price less costs to complete and sell.

Inventory provisions are recognised to provide for short length stock dependant on its length and using the directors judgement of likely future sale to calculate it's likely realisable value. In addition, a provision is recognised for any aged stock, on an increasing basis, once it's been held in inventory for at least one year.

A significant shift in consumer market or customer demand may result in the directors inclusion of an additional specific provision based on their assessment of likely future sale.

 

          Valuation of land and buildings

 

The Group carries its land and buildings at fair value, with changes in fair value being recognised in Other Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the Income Statement. The Group engaged independent valuation specialists to determine fair value. Significant changes in the commercial property market may impact the valuation of the Group's property. See note 14 for further information.

 

6.	Segmental reporting
	For the purposes of segmental reporting, the Group's Chief Operating Decision Maker (CODM) is considered to be the executive board of directors. The board has not identified any separate operating segments within the business. The board reviews revenue and expenses for the business as a whole and makes decisions about resources and assesses performance based on this information. Revenue arises entirely through the wholesale of goods. 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:
					2023	2022
					£	£
	Sale of goods				139,538,014	123,642,673
					139,538,014	123,642,673

 

	The Group generates revenue from both the UK and overseas as detailed below:
					2023	2022
					£	£
	United Kingdom				139,297,993	123,432,273
	Rest of Europe				229,533	182,417
	Rest of the world				10,488	27,983
					139,538,014	123,642,673

 

7.	Operating profit
	Operating profit is stated after charging:
					2023	2022
					£	£
	Depreciation of property, plant and equipment				1,496,198	1,217,258
	Depreciation of right‑of‑use assets				3,024,379	2,049,591
	(Profit)/loss on foreign exchange				(331)	31,229
	Short term lease expense:
	‑ plant				172,446	174,539
	‑ property				188,500	150,000
	Amortisation of intangible assets				404,370	366,507
	Share based payments				274,841	319,678
	Loss from new operations				95,466	497,968
	Exceptional investment in point of sale				283,933	486,536
	Strategic location and establishment costs				852,200	-
	Acquisition fees and related costs				-	1,455,992

 

Losses from new operations relate to costs incurred in the initial start‑up phase whilst the business is in its initial development phase and therefore not generating significant returns. Exceptional investment in point of sale relate to accelerated expenses incurred in increasing the Group's market presence from providing heavily discounted in‑store displays to retailers in order to accelerate the growth in market share. This amount relates to specific strategic stand placements over and above what is incurred in the ordinary course of business recognised in the Consolidated Statement of Profit or Loss. Strategic relocation and establishment costs relate to costs incurred in the relocation and establishment of the new 47,000 sq. ft. high bay Distribution Hub in Glasgow for Likewise Scotland, the relocation and establishment of the Likewise London business to new facilities in Sidcup, the commencement of costs incurred in the forthcoming closure of the A&A Manchester facility as this looks forward to moving to brand new facilities in June 2024 and closure costs incurred for H&V's small warehouse facility in Muelebeke, Belgium. Additionally, extra depreciation costs of £144,845 and extra interest costs of £213,005 were incurred bringing total strategic relocation and establishment costs to £1,210,050 as noted in the Strategic Report. Acquisition costs related to the acquisition of Valley Wholesale Carpets and Delta Carpets in the prior year.

 

8.	Auditors' remuneration
					2023	2022
					£	£
	Fees payable to the Group's auditors for the audit of the Group's financial statements				150,000	150,000
	Fees payable to the Group's auditors:
	‑ taxation advisory services				-	500
	‑ work in respect of acquisition due diligence				-	62,000
9.	Directors and employees
	Group
					2023	2022
					£	£
	Employee benefit expenses (including directors) comprise:
	Wages and salaries				18,215,855	16,289,890
	National insurance				1,946,475	1,722,647
	Defined contribution pension cost				513,550	500,267
	Compensation for loss of office				-	15,541
	Share based payment expenses				274,841	319,678
					20,950,721	18,848,023

 

	Key management personnel compensation   Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the directors of the Company listed on page 1, and other senior management.
					2023	2022
					£	£
	Salary				1,159,356	1,703,375
	Social security costs				147,521	214,322
	Group pension contribution to defined contribution schemes				61,350	61,350
	Share based payments				68,462	82,468
					1,436,689	2,061,515

 

	As at 31 December 2023, 1,285,714 share options remained active under the Group's SAYE scheme (2022 ‑ 1,285,714). During the year no options were granted to key management personnel, no options lapsed and no options were exercised. These options may be exercised between March and October 2024. Post year end, 300,000 of these options were exercised during March 2024. As at 31 December 2023, 5,900,000 share options remained active under the Group's EMI scheme (2022 ‑ 5,900,000). During the year no options were granted to key management personnel, no options lapsed and no options were exercised. These options may be exercised from January 2024. No options have yet been exercised up to the date of this publication.
	Group
	The monthly average number of persons, including the directors, employed by the Group during the year was as follows:
					2023	2022
					No.	No.
	Directors				5	5
	Other employees				462	450
					467	455

 

	The monthly average number of persons, including the Directors, employed by the Company during the year was 8 (2022 - 12).
					2023	2022
					£	£
	Remuneration of directors
	Remuneration				649,972	939,327
	Social security costs				79,465	107,188
	Group pension contribution to defined contribution schemes				25,600	25,600
	Share based payments				12,869	14,418
					767,906	1,086,533

 

	In addition, fees of £Nil (2022 ‑ £Nil) were paid to non‑executive directors in the year. The highest paid director received remuneration in the year of £292,368 (2022 ‑ £488,780) and pension contributions were made of £Nil (2022 ‑ £Nil).
					2023	2022
					No.	No.
	Directors accruing benefits under money purchase pension schemes				1	1
					1	1

 

2,700,000 share options were granted to directors during 2019 at an exercise price of £0.10 per share. There have been no options exercised or additional options granted since this time. These options may be exercised between January and March 2024.

 

10.	Finance income and expense
	Recognised in profit or loss
					2023	2022
					£	£
Finance income
	Interest on:
	Bank deposits				52,330	-
	Other interest receivable				-	5,043
	Total finance income				52,330	5,043
	Finance expense
	Bank interest payable				164,269	74,575
	Interest on lease liabilities				1,038,548	571,009
	Other interest payable				304	22,283
	Invoice discounting facility interest payable				284,595	128,976
	Total finance expense				1,487,716	796,843
	Net finance expense recognised in profit or loss				(1,435,386)	(791,800)

 

11.	Taxation on ordinary activities
	11.1 Income tax recognised in profit or loss
					2023	2022
					£	£
	Current tax
	Adjustments in respect of prior years				(19,770)	(70,812)
	Total current tax				(19,770)	(70,812)
	Deferred tax expense
	Origination and reversal of timing differences				(635,824)	(699,135)
	Effect of change in tax rates				-	191,932
	Total deferred tax				(635,824)	(507,203)
	Total tax credit				(655,594)	(578,015)

 

	The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to profits for the year are as follows:
					2023	2022
					£	£
	Profit/(loss) for the year				844,025	(836,304)
	Income tax expense/(credit)				(655,594)	(578,015)
	Profit/(loss) before income taxes				188,431	(1,414,319)
	Tax using the Company's domestic tax rate of 23.5% (2022:19%)				44,281	(268,721)
	Fixed asset differences				86,308	391,971
	(Income)/expenses not deductible for tax purposes				(19,092)	345,325
	Adjustments to tax charge in respect of prior periods				(19,770)	(70,812)
	Non‑taxable consolidation adjustments				3,774	(2,619)
	Remeasurement of deferred tax				12,383	(30,975)
	Movement in deferred tax not recognised				(767,116)	(932,774)
	Chargeable losses				(18,245)	-
	Other differences leading to an increase/(decrease) in the tax charge				21,883	(9,410)
	Total tax credit				(655,594)	(578,015)

 

 

          Changes in tax rates and factors affecting the future tax charges

 

At 31 December 2023, the Group has tax losses of £13,955,031 (2022 ‑ £11,539,175) which are available for offset against future taxable profits.

The main rate of corporation tax changed on 1 April 2023 from 19% to 25% (with marginal rate relief available for companies with small profits). As the current financial year includes periods before and after the change in tax rate, the effective rate applicable to profits generated in the year ended 31 December 2023 is 23.5%.

 

	11.2 Deferred tax balances
	The following is the analysis of deferred tax assets/(liabilities) presented in the consolidated statement of financial position:
					2023	2022
					£	£
	Deferred tax liabilities				(1,866,950)	(2,496,677)

 

	A deferred tax asset of £1,318,295 (2022 ‑ £1,577,985) has not been recognised in the financial statements in relation to tax losses. In addition a deferred tax asset of £162,970 (2022 ‑ £Nil) has not been recognised in the financial statements in relation to the future tax benefit on the future exercise of employee share options. A deferred tax asset has not been recognised in the year where it is uncertain that the asset will crystallise in the foreseeable future. A deferred tax asset of £903,116 (2022 ‑ £348,793) has been recognised for the Company. This primarily related to losses carried forward which are expected to be utilised in future periods.
		Opening balance		Recognised in profit or loss		Recognised in other comprehensive income	Closing balance
		£		£		£	£
2023
	Fixed asset timing differences	(1,303,975)		(267,323)		-	(1,571,298)
	Arising from business combinations	(1,052,221)		98,217		-	(954,004)
	Capital gains	(1,569,838)		25,489		(6,097)	(1,550,446)
	Short term timing differences	122,548		(84,213)		-	38,335
	Losses and other deductions	1,306,809		863,654		-	2,170,463
		(2,496,677)		635,824		(6,097)	(1,866,950)
		Opening balance		Recognised in profit or loss		Acquisition/ disposals	Closing balance
		£		£		£	£
2022
	Fixed asset timing differences		(653,904)	(381,332)	(268,739)		(1,303,975)
	Arising from business combinations		(880,249)	91,627	(263,599)		(1,052,221)
	Capital gains		(502,946)	-	(1,066,892)		(1,569,838)
	Short term timing differences		19,366	103,182	-		122,548
	Losses and other deductions		613,083	693,726	-		1,306,809
			(1,404,650)	507,203	(1,599,230)		(2,496,677)

 

12.	Earnings per share
	(i) Basic and diluted loss per share
	The total basic profit per share attributable to the ordinary equity holders of the Company was £0.003 (2022 ‑ loss of £0.003). The total diluted profit per share attributable to the ordinary equity holders of the Company was £0.003 (2022 ‑ loss of £0.003).
					2023		2022
					Pence		Pence
	From continuing operations attributable to the ordinary equity holders of the Company					0.3		(0.3)
	Total basic earnings per share attributable to the ordinary equity holders of the Company					0.3		(0.3)

 

	(ii) Reconciliation of earnings used in calculating earnings per share
					2023	2022
					£	£
	Profit/(loss) attributable to the ordinary equity holders of the Company used in calculating basic earnings per share:
	Used in calculating basic and diluted earnings per share				844,025	(836,304)

 

	(iii) Weighted average number of shares used as the denominator
					2023	2022
					Number	Number
	Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share				243,884,066	241,979,322
	Adjustments for calculation of diluted earnings per share:
	Options				4,413,734	23,640,830
	Warrants				2,900,000	2,800,000
	Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share				251,197,800	268,420,152

 

13.	Dividends
					2023	2022
					£	£
	Final dividend of £0.002 paid per Ordinary Share in the year (2022 ‑ £Nil) in relation to the prior year results				487,717	-
	Interim dividend of £0.001 paid per Ordinary Share in the year (2022 ‑ £0.002).				243,964	487,590
					731,681	487,590

 

The directors are proposing a final dividend of £0.0025 per share (2022 ‑ £0.002). The dividend has not been accrued in the consolidated statement of financial position.

 

 

14.	Property, plant and equipment
	Group
		Land and buildings - freehold and long leasehold	Right of use assets ‑ leasehold property	Leasehold improvements	Plant and machinery	Motor vehicles	Fixtures, fittings & computer equipment	Right of use assets ‑ other	Total
		£	£	£	£	£	£	£	£
Cost or valuation
At 1 January 2022		5,785,000	8,976,689	298,719	1,928,736	657,796	1,161,407	3,870,997	22,679,344
Additions		517,757	8,172,355	18,692	1,543,168	202,306	983,331	2,577,922	14,015,531
Acquisition of subsidiary		15,966,907	-	-	102,981	810,247	42,071	-	16,922,206
Disposals		-	(434,574)	(10,219)	-	(105,735)	(40,469)	(301,273)	(892,270)
Foreign exchange movements		-	-	-	-	836	-	-	836
At 31 December 2022		22,269,664	16,714,470	307,192	3,574,885	1,565,450	2,146,340	6,147,646	52,725,647
Additions		38,208	-	-	1,339,637	1,119,665	500,083	2,702,800	5,700,393
Disposals		-	(324,440)	(1,502)	(48,319)	(293,093)	(3,034)	(148,766)	(819,154)
Transfers between classes		-	-	-	7,739	-	(7,739)	-	-
Revaluations		(183,043)	-	-	-	-	-	-	(183,043)
At 31 December 2023		22,124,829	16,390,030	305,690	4,873,942	2,392,022	2,635,650	8,701,680	57,423,843
		Land and buildings - freehold and long leasehold	Right of use assets ‑ leasehold property	Leasehold improvements	Plant and machinery	Motor vehicles	Fixtures, fittings & computer equipment	Right of use assets ‑ other	Total
		£	£	£	£	£	£	£	£
Accumulated depreciation and impairment
At 1 January 2022		-	997,305	30,719	248,735	410,439	327,114	946,311	2,960,623
Charge for the year		309,957	-	30,096	297,108	341,492	238,605	-	1,217,258
Charge for right‑of‑use assets		-	962,408	-	-	-	-	1,087,183	2,049,591
Transfer intra group		-	-	-	5,636	-	(5,636)	-	-
Disposals		-	(145,960)	(10,219)	-	(53,089)	(1,405)	(281,543)	(492,216)
On revalued assets		(309,957)	-	-	-	-	-	-	(309,957)
Exchange adjustments		-	-	-	(612)	836	(97)	-	127
At 31 December 2022		-	1,813,753	50,596	550,867	699,678	558,581	1,751,951	5,425,426
Charge for the year		309,389	-	30,719	438,768	402,058	315,264	-	1,496,198
Charge for right‑of‑use assets		-	1,224,103	-	-	-	-	1,800,276	3,024,379
Disposals		-	(324,440)	-	(40,158)	(206,689)	(11,515)	(117,615)	(700,417)
On revalued assets		(207,432)	-	-	-	-	-	-	(207,432)
At 31 December 2023		101,957	2,713,416	81,315	949,477	895,047	862,330	3,434,612	9,038,154
Net book value
At 1 January 2022		5,785,000	7,979,384	268,000	1,680,001	247,357	834,293	2,924,686	19,718,721
At 31 December 2022		22,269,664	14,900,717	256,596	3,024,018	865,772	1,587,759	4,395,695	47,300,221
At 31 December 2023		22,022,872	13,676,614	224,375	3,924,465	1,496,975	1,773,320	5,267,068	48,385,689

 

If the freehold and long leasehold property had not been included at valuation, it would have been included under the historical cost convention as follows:

 

Cost of £19,622,872 (2022  £19,584,664)

Depreciation of £704,974 (2022  £449,285)

Net book value of £18,917,898 (2022  £19,135,379)

 

 

	14.1. Assets held under leases
	The net book value of owned and leased assets included as "Property, plant and equipment" in the Consolidated Statement of Financial Position is as follows:
		31 December 2023	31 December 2022
		£	£
	Property, plant and equipment owned	29,442,007	28,003,809
	Right‑of‑use assets	18,943,682	19,296,412
		48,385,689	47,300,221

 

	Information about right‑of‑use assets is summarised below:   Net book value
				31 December 2023	31 December 2022
				£	£
	Property			13,676,614	14,900,717
	Motor vehicles & plant and machinery			5,267,068	4,395,695
				18,943,682	19,296,412

 

	Depreciation charge for the year ended
				31 December 2023	31 December 2022
				£	£
	Property			1,224,103	962,408
	Motor vehicles & plant and machinery			1,800,276	1,087,183
				3,024,379	2,049,591