Tile Mountain Limited - Limited company accounts 23.2
Tile Mountain Limited - Limited company accounts 23.2
| REGISTERED NUMBER: 08335002 (England and Wales) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| FOR |
| TILE MOUNTAIN LIMITED |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the Year Ended 31 December 2022 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 7 |
| Consolidated Statement of Comprehensive Income | 11 |
| Consolidated Balance Sheet | 12 |
| Company Balance Sheet | 13 |
| Consolidated Statement of Changes in Equity | 14 |
| Company Statement of Changes in Equity | 16 |
| Consolidated Cash Flow Statement | 18 |
| Notes to the Consolidated Cash Flow Statement | 19 |
| Notes to the Consolidated Financial Statements | 21 |
| TILE MOUNTAIN LIMITED |
| COMPANY INFORMATION |
| for the Year Ended 31 December 2022 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditor |
| Chartered Accountants |
| Douglas Bank House |
| Wigan Lane |
| Wigan |
| Lancashire |
| WN1 2TB |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| GROUP STRATEGIC REPORT |
| for the Year Ended 31 December 2022 |
| The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
| Principal activity |
| The principal activity of the company during the period was the retail sale of tiles, stone, and accessories. |
| REVIEW OF BUSINESS |
| The group continues to produce strong financial results. |
| Tile Mountain's turnover maintained a level in excess of £30m with an EBITDA of 9.0%. Consolidated Group turnover grew to £86.5m and EBITDA increased by £1.4m. |
| More details about the trading performance can be found on pages 11 to 44. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Identifying and minimising risk is a key objective of the Company's board. The Key risks to be are considered to |
| be: |
| General Economic Risk |
| The company faces the same global economic factors that challenge its competitors. However, given its strong trading history and significant online presence, it is well placed to handle economic turbulence. The board proactively seek to identify risks and deal with them proactively. |
| Foreign Exchange Risk |
| A significant proportion of the product purchases are settled in foreign currencies. As a result, there is potential for currency gains or losses. However, the board's foreign exchange strategy is considered sufficient to ensure this risk is minimised. |
| Liquidity Risk |
| The company has sought to minimise any potential cash flow issues by obtaining sufficient structured debt products necessary to ensure there is sufficient liquidity in the balance sheet. |
| Future development and outlook |
| The Group is forecasting continued growth in sales and profit. This will be achieved by organically increasing the volume of trade from existing websites and the continued new store opening programme. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| GROUP STRATEGIC REPORT |
| for the Year Ended 31 December 2022 |
| SECTION 172(1) STATEMENT |
| The company's Board meet regularly to discuss performance and plan future strategy. The directors have overall responsibility for the operations of the business. |
| The Directors and senior management teams meet weekly, to review KPI's, discuss commercial opportunities, risks, operational activities, compliance, employee matters and H&S. The availability of high quality, timely information is a key reason for the success of these meetings. This enables the group to make proactive decisions, in the best interest of stakeholders. |
| Understanding the market, customer expectations, providing the right product, at the right price, on a timely basis and with good service is a fundamental operating ethos across the Group. The group operates in both the retail and wholesale markets. A bespoke approach to each market is implemented. |
| The Group seeks to engage with the local communities in which we operate, both in the UK and in the overseas offices. Throughout the year we have supported charities and sponsored youth sports teams. |
| The development and skills of our workforce are essential factors in achieving our growth aspirations. The board continues to place employee development at the centre of our future growth. |
| Operating systems and IT are other essential tool in the organisation. We utilise the resources of selected outsourced IT specialists along with a strong team of internal IT staff to create, implement, maintain and develop strong operating systems across all aspects of the group. These include website trading, stock management, finance and KPI's and transport. |
| The group's board and senior management team have significant experience in the global procurement of tiles and bathroom products with industry leading manufacturers. These relationships are based on long standing personal relationships which are maintained through ongoing interaction. |
| Another key stakeholder of the group is our transport partners. In relation to both carriage in and out. These business relationships are also built on several years of positive trading. |
| ON BEHALF OF THE BOARD: |
| 27 September 2023 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| REPORT OF THE DIRECTORS |
| for the Year Ended 31 December 2022 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of retail sale of tiles, stone, and accessories. |
| DIVIDENDS |
| An interim dividend of 0.0831 per share was paid on . The directors recommend that no final dividend be paid. |
| The total distribution of dividends for the year ended 31 December 2022 will be £ 500,000 . |
| EVENTS SINCE THE END OF THE YEAR |
| Information relating to events since the end of the year is given in the notes to the financial statements. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
| CHARITABLE DONATIONS |
| During the year the company made charitable donations totalling £4,988. The donations were as follows: |
| One Tribe Tree Protection £3,388 - tree planting charity to help offset carbon emissions |
| Charity football tournament donation £1,000 |
| Lillah Foundation £250 |
| Miscellaneous small donations £350 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| REPORT OF THE DIRECTORS |
| for the Year Ended 31 December 2022 |
| ENGAGEMENT WITH EMPLOYEES |
| The Group believes in clear communication and engagement with its employees. Employee communication is |
| achieved through regular senior management meetings, with senior staff communicating as necessary to |
| employees in their respective teams. Communication is also provided by the online HR system and throughout |
| the workplace on notice boards. |
| The Group holds departmental meetings, which provide a platform for employees to discuss matters they |
| consider relevant to their own interests or broader matters throughout the Group. |
| To engage employees with the financial success of the Group, a performance related bonus scheme is in |
| operation. Bonuses are payable when KPI’s are met. |
| Disabled employees |
| The Group fully considers applications of employment of disabled persons. Equal consideration is given to all |
| applicants and their capability to undertake the role. |
| In the event a member of staff becomes disabled whilst in employment of the Group, every effort is made to |
| ensure they remain employed by the Group, either in the same role or an alternative role which may be more |
| suitable to any specific needs. Additional support or training is provided as necessary. |
| The employment, training and career development of disabled persons and non-disabled persons are |
| considered. |
| The Group is committed to creating a culture in which diversity and equality of opportunity are promoted actively |
| and in which unlawful discrimination is not tolerated. The Group recognizes the real business benefits of having |
| a diverse community of staff and to this end, our aim is to ensure that individuals are treated fairly and equally. |
| This policy supports The Group objective of providing a working environment free from all forms of |
| discrimination |
| BUSINESS RELATIONSHIPS |
| Business relationships are discussed within the Strategic Report on page 2, in accordance with the provisions of s172(1)(c) of the Companies Act 2006. |
| STREAMLINED ENERGY AND CARBON REPORTING |
| Greenhouse gas emissions, energy consumption and energy efficiency action |
| The Group’s primary energy consumption is vehicle fuel used across both the commercial vehicle and car fleets. |
| Energy consumed to heat and light the warehouse portfolio also represents a significant proportion of the overall |
| usage. |
| The Group's greenhouse gas emissions and energy consumption are as follows: |
| 2022 | 2021 |
| Emissions resulting from activities for which the Group is responsible involving the combustion of gas or oil (in tonnes of CO2 equivalent) |
10 |
8 |
| Emissions resulting from activities for which the Group is responsible involving the combustion of fuel (in tonnes of CO2 equivalent) |
945 |
540 |
| Emissions resulting from the purchase of the electricity by the Group for its ownuse, including the purposes of transport (in tonnes of CO2 equivalent) |
190 |
169 |
| The increased emissions in 2022 relate to new store openings and full year trade for new companies joining the Group in 2021 (part year only 2021) |
| The utility emissions stated above have been calculated based on information provided by our energy suppliers, |
| applied to a Government energy emissions conversion factor. The vehicle emissions stated above have been |
| calculated by our in house transport team, based on actual miles travelled multiplied by standard transport |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| REPORT OF THE DIRECTORS |
| for the Year Ended 31 December 2022 |
| industry emissions data. |
| With a view to reducing our carbon footprint and saving costs, the Group continues to implement energy saving |
| measures. Including the installation of sensor lighting, centralised and automated air conditioning / heating to |
| operate when required during working hours only. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| AUDITORS |
| The auditors, Fairhurst, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TILE MOUNTAIN LIMITED |
| Opinion |
| We have audited the financial statements of Tile Mountain Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TILE MOUNTAIN LIMITED |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TILE MOUNTAIN LIMITED |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Extent to which the audit was considered capable of detecting irregularities including fraud |
| We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
| In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
| - | The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
| - | We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we have identified included Companies Act 2006, Tax legislation, data protection, employment, environmental and health & safety legislation. |
| - | We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing minutes of meetings and inspecting legal correspondence. |
| In assessing the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur; |
| - | We gained an understanding of the controls that management have in place to prevent and detect fraud. We enquired of management about any instances of fraud that had taken place during the year. |
| To address the risk of fraud through management bias and override of controls; |
| - | We performed analytical procedures to identify any unusual or unexpected relationships; |
| - | We tested journal entries to identify unusual transactions; and |
| - | We assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. |
| Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TILE MOUNTAIN LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Statutory Auditor |
| Chartered Accountants |
| Douglas Bank House |
| Wigan Lane |
| Wigan |
| Lancashire |
| WN1 2TB |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| CONSOLIDATED |
| STATEMENT OF COMPREHENSIVE |
| INCOME |
| for the Year Ended 31 December 2022 |
| 2022 | 2021 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 4 | 86,576,756 | 71,954,036 |
| Cost of sales | 43,329,522 | 37,641,264 |
| GROSS PROFIT | 43,247,234 | 34,312,772 |
| Distribution costs | 21,847,835 | 18,290,825 |
| Administrative expenses | 18,303,084 | 12,931,346 |
| 40,150,919 | 31,222,171 |
| 3,096,315 | 3,090,601 |
| Other operating income | 5 | 1,367,831 | 1,132,593 |
| OPERATING PROFIT | 7 | 4,464,146 | 4,223,194 |
| Interest receivable and similar income | 9 | 5,999 | 168 |
| 4,470,145 | 4,223,362 |
| Interest payable and similar expenses | 10 | 641,792 | 281,221 |
| PROFIT BEFORE TAXATION | 3,828,353 | 3,942,141 |
| Tax on profit | 11 | 841,388 | 1,056,532 |
| PROFIT FOR THE FINANCIAL YEAR |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| CONSOLIDATED BALANCE SHEET |
| 31 December 2022 |
| 2022 | 2021 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 15 | 16,982,556 | 18,345,673 |
| Tangible assets | 16 | 30,537,561 | 26,319,785 |
| Investments | 17 | - | - |
| 47,520,117 | 44,665,458 |
| CURRENT ASSETS |
| Stocks | 18 | 14,296,445 | 17,523,244 |
| Debtors | 19 | 2,615,632 | 3,262,926 |
| Cash at bank | 20 | 2,643,239 | 908,168 |
| 19,555,316 | 21,694,338 |
| CREDITORS |
| Amounts falling due within one year | 21 | 13,435,876 | 17,537,116 |
| NET CURRENT ASSETS | 6,119,440 | 4,157,222 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
53,639,557 |
48,822,680 |
| CREDITORS |
| Amounts falling due after more than one year |
22 |
(21,311,084 |
) |
(19,982,756 |
) |
| PROVISIONS FOR LIABILITIES | 25 | (1,550,934 | ) | (494,000 | ) |
| NET ASSETS | 30,777,539 | 28,345,924 |
| CAPITAL AND RESERVES |
| Called up share capital | 26 | 6,016,680 | 6,022,930 |
| Share premium | 27 | 4,235,435 | 4,235,435 |
| Capital redemption reserve | 27 | 769,071 | 706,571 |
| Merger reserve | 27 | 15,347,633 | 14,953,883 |
| Retained earnings | 27 | 4,408,720 | 2,427,105 |
| SHAREHOLDERS' FUNDS | 30,777,539 | 28,345,924 |
| The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2023 and were signed on its behalf by: |
| J P Harris - Director |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| COMPANY BALANCE SHEET |
| 31 December 2022 |
| 2022 | 2021 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 15 |
| Tangible assets | 16 |
| Investments | 17 |
| CURRENT ASSETS |
| Stocks | 18 |
| Debtors | 19 |
| Cash at bank | 20 |
| CREDITORS |
| Amounts falling due within one year | 21 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
22 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 25 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 26 |
| Share premium | 27 |
| Capital redemption reserve | 27 |
| Merger reserve | 27 |
| Retained earnings | 27 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 1,631,904 | 2,995,906 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| for the Year Ended 31 December 2022 |
| Called up |
| share | Retained | Share |
| capital | earnings | premium |
| £ | £ | £ |
| Balance at 1 January 2021 | 4,169,566 | 1,602,771 | 4,445,624 |
| Changes in equity |
| Profit for the year | - | 2,885,609 | - |
| Total comprehensive income | - | 2,885,609 | - |
| Shares issued during the year | 2,206,117 | - | - |
| Company purchase of own shares | - | (2,311,499 | ) | - |
| Shares cancelled | (352,753 | ) | 250,224 | - |
| Shares redeemed during the year | - | - | (210,189 | ) |
| Balance at 31 December 2021 | 6,022,930 | 2,427,105 | 4,235,435 |
| Changes in equity |
| Profit for the year | - | 2,986,965 | - |
| Total comprehensive income | - | 2,986,965 | - |
| Dividends | - | (500,000 | ) | - |
| Shares issued during the year | 56,250 | - | - |
| Company purchase of own shares | (62,500 | ) | (505,350 | ) | - |
| Total transactions with owners, recognised directly in equity |
(6,250 |
) |
(1,005,350 |
) |
- |
| Balance at 31 December 2022 | 6,016,680 | 4,408,720 | 4,235,435 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - continued |
| for the Year Ended 31 December 2022 |
| Capital |
| redemption | Merger | Total |
| reserve | reserve | equity |
| £ | £ | £ |
| Balance at 1 January 2021 | 393,854 | - | 10,611,815 |
| Changes in equity |
| Profit for the year | - | - | 2,885,609 |
| Total comprehensive income | - | - | 2,885,609 |
| Shares issued during the year | - | - | 2,206,117 |
| Company purchase of own shares | - | - | (2,311,499 | ) |
| Shares cancelled | 312,717 | - | 210,188 |
| Shares redeemed during the year | - | - | (210,189 | ) |
| Acquisition of subsidiary | - | 14,953,883 | 14,953,883 |
| Balance at 31 December 2021 | 706,571 | 14,953,883 | 28,345,924 |
| Changes in equity |
| Profit for the year | - | - | 2,986,965 |
| Total comprehensive income | - | - | 2,986,965 |
| Dividends | - | - | (500,000 | ) |
| Shares issued during the year | - | - | 56,250 |
| Company purchase of own shares | 62,500 | - | (505,350 | ) |
| Acquisition of subsidiary | - | 393,750 | 393,750 |
| Total transactions with owners, recognised directly in equity |
62,500 |
393,750 |
(555,350 |
) |
| Balance at 31 December 2022 | 769,071 | 15,347,633 | 30,777,539 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| for the Year Ended 31 December 2022 |
| Called up |
| share | Retained | Share |
| capital | earnings | premium |
| £ | £ | £ |
| Balance at 1 January 2021 |
| Changes in equity |
| Profit for the year | - | 2,995,906 | - |
| Total comprehensive income | - | - |
| Shares issued during the year | 2,206,117 | - | - |
| Company purchase of own shares | - | (2,311,499 | ) | - |
| Shares cancelled | (352,753 | ) | 250,224 | - |
| Shares redeemed during the year | - | - | (210,189 | ) |
| Balance at 31 December 2021 |
| Changes in equity |
| Profit for the year | - | 1,631,904 | - |
| Total comprehensive income | - | - |
| Dividends | - | ( |
) | - |
| Shares issued during the year | 56,250 | - | - |
| Company purchase of own shares | (62,500 | ) | (505,350 | ) | - |
| Balance at 31 December 2022 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| COMPANY STATEMENT OF CHANGES IN EQUITY - continued |
| for the Year Ended 31 December 2022 |
| Capital |
| redemption | Merger | Total |
| reserve | reserve | equity |
| £ | £ | £ |
| Balance at 1 January 2021 |
| Changes in equity |
| Profit for the year | - | - | 2,995,906 |
| Total comprehensive income |
| Shares issued during the year | - | - | 2,206,117 |
| Company purchase of own shares | - | - | (2,311,499 | ) |
| Shares cancelled | 312,717 | - | 210,188 |
| Shares redeemed during the year | - | - | (210,189 | ) |
| Acquisition of subsidiary | - | 14,953,883 | 14,953,883 |
| Balance at 31 December 2021 |
| Changes in equity |
| Profit for the year | - | - | 1,631,904 |
| Total comprehensive income |
| Dividends | - | - | ( |
) |
| Shares issued during the year | - | - | 56,250 |
| Company purchase of own shares | 62,500 | - | (505,350 | ) |
| Acquisition of subsidiary | - | 393,750 | 393,750 |
| Balance at 31 December 2022 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| CONSOLIDATED CASH FLOW STATEMENT |
| for the Year Ended 31 December 2022 |
| 2022 | 2021 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 8,346,623 | (1,763,960 | ) |
| Corporation tax paid | (1,247,021 | ) | (478,199 | ) |
| Net cash from operating activities | 7,099,602 | (2,242,159 | ) |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | (691,244 | ) | (440,122 | ) |
| Purchase of tangible fixed assets | (3,705,535 | ) | (4,201,044 | ) |
| Purchase of fixed asset investments | (3,850 | ) | (334,714 | ) |
| Sale of tangible fixed assets | 206,986 | 68,467 |
| Acquisition of subsidiaries | 44,792 | 839,000 |
| HP interest paid | (5,047 | ) | (6,076 | ) |
| Interest received | 5,999 | 168 |
| Net cash from investing activities | (4,147,899 | ) | (4,074,321 | ) |
| Cash flows from financing activities |
| New loans in year | 6,750,000 | 13,000,000 |
| Loan repayments in year | (6,209,421 | ) | (8,130,917 | ) |
| Repayments to participating interests | (43,000 | ) | (350,000 | ) |
| Repayment of finance leases | (72,116 | ) | (112,711 | ) |
| Share buyback | (505,350 | ) | (2,311,574 | ) |
| Equity dividends paid | (500,000 | ) | - |
| Interest paid | (636,745 | ) | (275,145 | ) |
| Net cash from financing activities | (1,216,632 | ) | 1,819,653 |
| Increase/(decrease) in cash and cash equivalents | 1,735,071 | (4,496,827 | ) |
| Cash and cash equivalents at beginning of year |
2 |
908,168 |
5,404,995 |
| Cash and cash equivalents at end of year | 2 | 2,643,239 | 908,168 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| for the Year Ended 31 December 2022 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2022 | 2021 |
| £ | £ |
| Profit before taxation | 3,828,353 | 3,942,141 |
| Depreciation charges | 3,167,494 | 1,997,893 |
| (Profit)/loss on disposal of fixed assets | (7,613 | ) | 10,741 |
| Movement in amounts owed by associates | 1,050,000 | (1,055,098 | ) |
| Movement in amounts owed to groups | (1,308,402 | ) | (2,651,572 | ) |
| Finance costs | 641,792 | 281,221 |
| Finance income | (5,999 | ) | (168 | ) |
| 7,365,625 | 2,525,158 |
| Decrease/(increase) in stocks | 3,226,803 | (2,411,540 | ) |
| (Increase)/decrease in trade and other debtors | (318,204 | ) | 761,262 |
| Decrease in trade and other creditors | (1,927,601 | ) | (2,638,840 | ) |
| Cash generated from operations | 8,346,623 | (1,763,960 | ) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 December 2022 |
| 31/12/22 | 1/1/22 |
| £ | £ |
| Cash and cash equivalents | 2,643,239 | 908,168 |
| Year ended 31 December 2021 |
| 31/12/21 | 1/1/21 |
| £ | £ |
| Cash and cash equivalents | 908,168 | 5,404,995 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| for the Year Ended 31 December 2022 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| Acquisition |
| of |
| At 1/1/22 | Cash flow | subsidiary | At 31/12/22 |
| £ | £ | £ | £ |
| Net cash |
| Cash at bank | 908,168 | 1,690,279 | 44,792 | 2,643,239 |
| 908,168 | 1,690,279 | 44,792 | 2,643,239 |
| Debt |
| Finance leases | (120,241 | ) | 72,116 | - | (48,125 | ) |
| Debts falling due |
| within 1 year | (1,331,892 | ) | 357,518 | - | (974,374 | ) |
| Debts falling due |
| after 1 year | (16,891,571 | ) | (898,097 | ) | - | (17,789,668 | ) |
| (18,343,704 | ) | (468,463 | ) | - | (18,812,167 | ) |
| Total | (17,435,536 | ) | 1,221,816 | 44,792 | (16,168,928 | ) |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the Year Ended 31 December 2022 |
| 1. | STATUTORY INFORMATION |
| Tile Mountain Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3). |
| The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. |
| The following principal accounting policies have been applied: |
| Disclosure exemptions |
| The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102: |
| (a) Disclosures in respect of each class of share capital have not been presented. |
| (b) No cash flow statement has been presented for the company. |
| (c) Disclosures in respect of financial instruments have not been presented. |
| (d) No disclosure has been given for the aggregate remuneration of key management personnel. |
| Basis of consolidation |
| The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
| The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates. value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
| Sale of Goods |
| Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
| - | the Group has transferred the significant risks and rewards of ownership to the buyer; |
- |
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
| - | the amount of revenue can be measured reliably; |
| - | it is probable that the Group will receive the consideration due under the transaction; and |
| - | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
| Rendering of Services |
| Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
| - | the amount of revenue can be measured reliably; |
| - | it is probable that the Company will receive the consideration due under the contract; |
| - | the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
| - | the costs incurred and the costs to complete the contract can be measured reliably. |
| Goodwill |
| Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life. |
| The estimated useful lives range as follows: |
| Goodwill | - | 10 years |
| Intangible assets |
| Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. |
| The estimated useful lives range as follows: |
| Software development | - | 3 years |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
| Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows: |
| Depreciation is provided on the following basis: |
| Freehold property | - | Not depreciated |
| Short leasehold | - | 33% and 20% on cost |
| Plant and machinery | - | 25% on reducing balance |
| Fixtures and fittings | - | 25% on reducing balance |
| Motor vehicles | - | 25% on cost |
| Computer equipment | - | 25% on cost |
| There is no depreciation charged on freehold assets as the assessed residual value is equal to or more than the cost. |
| The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
| Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. |
| Impairment of fixed assets and goodwill |
| Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased. |
| Government grants |
| Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. |
| Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure. |
| Stocks |
| Stocks are stated at the lower of cost and net reliable 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. Finished goods does not include labour but does include attributable overheads. |
| At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
| Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. |
| Investments in non-derivative instruments that are equity to the issuer are measured: |
| - | At fair value with changes recognised in the Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably; |
| - | At cost less impairment for all other investments. |
| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
| For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
| For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date. |
| Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
| Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives 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 profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives. |
| Taxation |
| The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
| The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: |
| - | The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other further taxable profits; |
| - | Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and |
| - | Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. |
| Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax and laws that have been enacted or substantively enacted by the reporting date. |
| Foreign currency translation |
| Functional and presentation currency |
| The Company's functional and presentational currency is GBP. |
| Transactions and balances |
| Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
| At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and on-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
| Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. |
| Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. |
| On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Operating Leases: the Group as lessor |
| Rental income from operating leases is credited to profit and loss on a straight-line basis over the lease term. |
| Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished. |
| Operating leases: the Group as leasee |
| Rentals paid under operating leases are charged to the profit and loss on a straight-line basis over the lease term. |
| Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern on the lessee's benefit from the use of the leased asset. |
| Pension costs and other post-retirement benefits |
| The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. |
| The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds. |
| Interest income |
| Interest income is recognised in profit or loss using the effective interest method. |
| Finance costs |
| Finance costs are charged to profit or loss items over the term of the debt using effective interest methods so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Debtors |
| Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
| Cash and cash equivalents |
| Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
| In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management. |
| Creditors |
| Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially fair value, net of transaction costs and are measured subsequently at amortised cost using the effective interest method. |
| Provisions for liabilities |
| Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
| Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
| When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position. |
| Dividends |
| Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
| The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
| Significant judgements |
| Management do not feel that there are any judgements (apart from those involving estimations) that have been made in the process of applying the entity's accounting policies which have a significant effect on the amounts recognised in the financial statements. |
| Key sources of estimation uncertainty. |
| Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year as follows: |
| Estimated useful life and residual value of fixed assets. |
| Depreciation of tangible fixed assets have been based on the estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives and residual values, as evidenced by disposals during current and prior accounting periods. |
| Stock provisions |
| The company sells tiles and is subject to consumer demand and design trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provision required. When calculation the stock provision, management considers the nature and condition of stock, as well as applying assumptions around anticipated saleability of the various stock types. |
| Impairment of debtors |
| The company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade debtors, management include factors including the current credit rating of the debtor, the ageing profile of the debtors and historic experience. |
| Investments |
| Investments in subsidiaries are valued at cost. The directors annually consider the need for any impairment and provide as appropriate. |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by class of business is as follows: |
| 2022 | 2021 |
| £ | £ |
| Sale of Goods | 86,576,756 | 71,954,036 |
| 86,576,756 | 71,954,036 |
| The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 5. | OTHER OPERATING INCOME |
| 2022 | 2021 |
| £ | £ |
| Discounts and rebates received | 1,339,161 | 957,298 |
| Sundry receipts | 28,670 | 35,295 |
| Management recharge income | - | 140,000 |
| 1,367,831 | 1,132,593 |
| 6. | EMPLOYEES AND DIRECTORS |
| 2022 | 2021 |
| £ | £ |
| Wages and salaries | 7,998,995 | 6,245,294 |
| Social security costs | 723,648 | 581,716 |
| Other pension costs | 125,769 | 115,152 |
| 8,848,412 | 6,942,162 |
| The average number of employees during the year was as follows: |
| 2022 | 2021 |
| Distribution staff | 252 | 224 |
| Administration staff | 41 | 47 |
| IT Support | 117 | 75 |
| Management staff | 13 | 13 |
| During the year, staff costs of £612,324 (2021: £358,000) were paid relating to the support staff located in Pakistan. The staff costs are included in intangible fixed assets, and are not reflected in the staff costs table presented above. |
| 2022 | 2021 |
| £ | £ |
| Directors' remuneration | 135,000 | 187,500 |
| Directors' pension contributions to money purchase schemes | 1,321 | 1,000 |
| Benefits in kind to the directors totalling £8,782 (2021 - £9,000) are not included in the above table. |
| The highest paid director received remuneration of £100,000 (2021: £111,000) |
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the |
| highest paid director amounted to £1,321 (2021: £1,000) |
| Directors remuneration of £97,465 (2021:£43,000) has been capitalised in the group as a software development intangible fixed asset and is not included in the table above. |
| During the year retirement benefits were accruing to 1 directors (2021 - 2) in respect of defined contribution pension schemes. |
| The board consider the directors to be the Key Management Personnel. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 7. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2022 | 2021 |
| £ | £ |
| Other operating leases | 522,473 | 359,423 |
| Depreciation - owned assets | 683,433 | 485,912 |
| Depreciation - assets on hire purchase contracts | 28,356 | 82,169 |
| (Profit)/loss on disposal of fixed assets | (7,613 | ) | 10,741 |
| Goodwill amortisation | 1,995,271 | 1,092,216 |
| Computer software amortisation | 460,434 | 337,595 |
| Foreign exchange differences | 525,086 | (170,470 | ) |
| 8. | AUDITORS' REMUNERATION |
| 2022 | 2021 |
| £ | £ |
| Fees payable to the company's auditors for the audit of the company's financial statements |
11,750 |
11,000 |
| Fees payable to the company's auditors for other services to the group: |
| The auditing of accounts of any associate of the company | 23,000 | 20,000 |
| Total audit fees | 34,750 | 31,000 |
| Taxation compliance services | 10,500 | 10,000 |
| Other non- audit services | 11,000 | 24,999 |
| Total non-audit fees | 21,500 | 34,999 |
| Total fees payable | 56,250 | 65,999 |
| 9. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| 2022 | 2021 |
| £ | £ |
| Deposit account interest | 5,999 | 168 |
| 10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2022 | 2021 |
| £ | £ |
| Bank loan interest | 616,376 | 274,924 |
| Other interest | 3,874 | - |
| Other loan interest | 16,495 | 221 |
| Hire purchase | 5,047 | 6,076 |
| 641,792 | 281,221 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 11. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2022 | 2021 |
| £ | £ |
| Current tax: |
| UK corporation tax | 228,652 | 976,442 |
| (Over)/under provision in prior year | (444,198 | ) | - |
| Total current tax | (215,546 | ) | 976,442 |
| Deferred tax | 1,056,934 | 80,090 |
| Tax on profit | 841,388 | 1,056,532 |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2022 | 2021 |
| £ | £ |
| Profit before tax | 3,828,353 | 3,942,141 |
| Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
727,387 |
749,007 |
| Effects of: |
| Expenses not deductible for tax purposes | 16,369 | 37,000 |
| Goodwill arising on consolidation | 379,102 | 205,000 |
| Other differences | (119,179 | ) | 65,525 |
| Overprovision in prior year | (162,291 | ) | - |
| Total tax charge | 841,388 | 1,056,532 |
| 12. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 13. | DIVIDENDS |
| 2022 | 2021 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim | 500,000 | - |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 14. | PRIOR YEAR ADJUSTMENT |
| Stock in transit at 31 December 2021 had not been accrued in the prior year accounts. This has no impact on the profit/loss in the prior year. The table below shows the impact of this correction on each financial statement line affected: |
| Group | Company | Group | Company |
| 2021 | 2021 | 2021 | 2021 |
| original | original | as restated | as restated |
| £ | £ | £ | £ |
| Stock | 14,013,038 | 3,201,293 | 17,523,244 | 4,557,903 |
| Accrued expenses | 1,069,402 | 400,531 | 4,579,608 | 1,757,141 |
| 15. | INTANGIBLE FIXED ASSETS |
| Group |
| Computer |
| Goodwill | software | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2022 | 19,585,471 | 2,141,426 | 21,726,897 |
| Additions | 399,490 | 691,244 | 1,090,734 |
| Disposals | - | (1,048,931 | ) | (1,048,931 | ) |
| Reclassification/transfer | - | (1,777 | ) | (1,777 | ) |
| At 31 December 2022 | 19,984,961 | 1,781,962 | 21,766,923 |
| AMORTISATION |
| At 1 January 2022 | 1,849,439 | 1,531,785 | 3,381,224 |
| Amortisation for year | 1,995,271 | 460,434 | 2,455,705 |
| Eliminated on disposal | - | (1,048,771 | ) | (1,048,771 | ) |
| Reclassification/transfer | - | (3,791 | ) | (3,791 | ) |
| At 31 December 2022 | 3,844,710 | 939,657 | 4,784,367 |
| NET BOOK VALUE |
| At 31 December 2022 | 16,140,251 | 842,305 | 16,982,556 |
| At 31 December 2021 | 17,736,032 | 609,641 | 18,345,673 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 15. | INTANGIBLE FIXED ASSETS - continued |
| Company |
| Computer |
| software |
| £ |
| COST |
| At 1 January 2022 |
| Additions |
| Disposals | ( |
) |
| At 31 December 2022 |
| AMORTISATION |
| At 1 January 2022 |
| Amortisation for year |
| Eliminated on disposal | ( |
) |
| At 31 December 2022 |
| NET BOOK VALUE |
| At 31 December 2022 |
| At 31 December 2021 |
| 16. | TANGIBLE FIXED ASSETS |
| Group |
| Freehold | Short | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| COST |
| At 1 January 2022 | 23,859,051 | 830,448 | 709,148 |
| Additions | 1,438,354 | 826,735 | 2,438,943 |
| Disposals | - | (3,915 | ) | (22,946 | ) |
| Reclassification/transfer | 593,297 | 194,257 | 535,609 |
| At 31 December 2022 | 25,890,702 | 1,847,525 | 3,660,754 |
| DEPRECIATION |
| At 1 January 2022 | 4,666 | 157,267 | 186,502 |
| Charge for year | - | 249,493 | 120,005 |
| Eliminated on disposal | - | (1,064 | ) | (19,567 | ) |
| Reclassification/transfer | 398,220 | 58,355 | 359,663 |
| At 31 December 2022 | 402,886 | 464,051 | 646,603 |
| NET BOOK VALUE |
| At 31 December 2022 | 25,487,816 | 1,383,474 | 3,014,151 |
| At 31 December 2021 | 23,854,385 | 673,181 | 522,646 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 16. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2022 | 2,113,122 | 475,583 | - | 27,987,352 |
| Additions | 93,076 | 173,821 | 159,860 | 5,130,789 |
| Disposals | (119,636 | ) | (291,836 | ) | (92,615 | ) | (530,948 | ) |
| Reclassification/transfer | (1,757,856 | ) | (22,453 | ) | 471,385 | 14,239 |
| At 31 December 2022 | 328,706 | 335,115 | 538,630 | 32,601,432 |
| DEPRECIATION |
| At 1 January 2022 | 1,061,049 | 258,083 | - | 1,667,567 |
| Charge for year | 191,051 | 73,452 | 77,788 | 711,789 |
| Eliminated on disposal | (102,841 | ) | (116,678 | ) | (88,245 | ) | (328,395 | ) |
| Reclassification/transfer | (991,859 | ) | (27,646 | ) | 216,177 | 12,910 |
| At 31 December 2022 | 157,400 | 187,211 | 205,720 | 2,063,871 |
| NET BOOK VALUE |
| At 31 December 2022 | 171,306 | 147,904 | 332,910 | 30,537,561 |
| At 31 December 2021 | 1,052,073 | 217,500 | - | 26,319,785 |
| The total carrying value tangible fixed assets are pledged by way of a fixed and floating charge as security for the Group's bank loans. |
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows: |
| 2022 | 2021 |
| £ | £ |
| Plant and machinery | 33,093 | 42,604 |
| Motor vehicles | - | 37,571 |
| 33,093 | 80,175 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 16. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Freehold | Short | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| COST |
| At 1 January 2022 |
| Additions |
| Disposals | ( |
) | ( |
) |
| Reclassification/transfer |
| At 31 December 2022 |
| DEPRECIATION |
| At 1 January 2022 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| Reclassification/transfer |
| At 31 December 2022 |
| NET BOOK VALUE |
| At 31 December 2022 |
| At 31 December 2021 |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2022 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
| Reclassification/transfer | ( |
) |
| At 31 December 2022 |
| DEPRECIATION |
| At 1 January 2022 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
| Reclassification/transfer | ( |
) |
| At 31 December 2022 |
| NET BOOK VALUE |
| At 31 December 2022 |
| At 31 December 2021 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 17. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2022 |
| Additions |
| At 31 December 2022 |
| NET BOOK VALUE |
| At 31 December 2022 |
| At 31 December 2021 |
| Subsidiary undertakings |
| The following were subsidiary undertakings of the Company: |
Name |
Class of shares |
Holding |
| Walls and Floors Limited | Ordinary | 100% |
| Eurorad Limited | Ordinary | 100% |
| Highgate 2 Limited | Ordinary | 100% |
| Highgate 3 Limited | Ordinary | 100% |
| 18. | STOCKS |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Stocks | 14,296,445 | 17,523,244 |
| Group stock is stated net of provisions of £815,084 (2021:£1,020,122). Company stock is stated net of provisions of £243,460 (2021:£294,491). |
| Stock in transit, at the end of the reporting period for the Group, totalling £3,182,275 (2021: £3,510,206) is included in the above table. Stock in transit, at the end of the reporting period for the Company, totalling £1,149,639 (2021: £1,356,610) is included in the above table. |
| There has been a prior year adjustment in respect of stock in transit as at 31 December 2021 please see note 14 for further details. |
| The total carrying amount of stock is pledged by way of a fixed and floating charge as security for the group's bank loans. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 19. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Trade debtors | 710,339 | 832,059 |
| Amounts owed by group undertakings | - | - |
| Amounts owed by associates | - | 1,050,000 |
| Other debtors | 48,782 | 63,244 |
| Prepayments and accrued income | 1,856,511 | 1,317,623 |
| 2,615,632 | 3,262,926 |
| The total carrying amount of debtors is pledged by way of a fixed and floating charge as security for the Group's bank loans. |
| 20. | CASH AT BANK |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Bank account no. 1 | 2,539,133 | 849,454 | 502,675 | 183,924 |
| Bank account no. 2 | 104,106 | 58,714 | 93,837 | 52,304 |
| 2,643,239 | 908,168 | 596,512 | 236,228 |
| 21. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 23) | 974,374 | 1,331,892 |
| Hire purchase contracts (see note 24) | 48,125 | 64,439 |
| Trade creditors | 5,218,357 | 6,468,969 |
| Amounts owed to group undertakings | - | 900 |
| Amounts owed to participating interests | - | 49,598 | - | - |
| Tax | (282,002 | ) | 1,153,763 | ( |
) |
| Social security and other taxes | 2,185,295 | 2,319,165 |
| Other creditors | 1,323,676 | 1,568,782 |
| Accrued expenses | 3,968,051 | 4,579,608 |
| 13,435,876 | 17,537,116 |
| Hire purchase agreements are secured over the assets to which they relate. |
| Group bank loans of £974,374 (2021: £1,331,892) and Company bank loans of £607,707(2021: £466,666) are secured via a fixed and floating charge over the assets of the Group. |
| There has been a prior year adjustment in respect of the accrual for stock in transit as at 31 December 2021 please see note 14 for further details. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 22. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Bank loans (see note 23) | 17,789,668 | 16,891,571 |
| Hire purchase contracts (see note 24) | - | 55,802 |
| Other creditors | 3,521,416 | 3,035,383 |
| 21,311,084 | 19,982,756 |
| Hire purchase agreements are secured over the assets of the company. |
| Group bank loans of £17,789,668 (2021: £16,891,571) and Company bank loans of £12,928,993 (2021:£12,317,973) are secured via a fixed and floating charge over the assets of the Group. |
| 23. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank loans | 974,374 | 1,331,892 |
| Amounts falling due between one and two | years: |
| Bank loans - 1-2 years | 6,984,829 | 13,200,462 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 2,875,001 | 3,691,109 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more 5 yr by instal | 7,929,838 | - | 4,535,831 | - |
| 24. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2022 | 2021 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 48,125 | 64,439 |
| Between one and five years | - | 55,802 |
| 48,125 | 120,241 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 24. | LEASING AGREEMENTS - continued |
| Group |
| Non-cancellable operating | leases |
| 2022 | 2021 |
| £ | £ |
| Within one year | 805,419 | 606,000 |
| Between one and five years | 2,166,032 | 1,251,000 |
| In more than five years | 1,494,042 | 927,000 |
| 4,465,493 | 2,784,000 |
| The total future minimum lease payments receivable under non-cancellable operating leases are as follows: |
| Group | Group |
| 2022 | 2021 |
| £ | £ |
| Within one year | 1,125 | 14,000 |
| Between one and five years | - | 54,000 |
| In more than five years | - | 16,000 |
| 1,125 | 84,000 |
| Operating lease commitments payable for the company are as follows |
| Company |
| Non-cancellable operating | leases |
| 2022 | 2021 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| 25. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Deferred tax | 1,550,934 | 494,000 | 506,766 | 372,610 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2022 | 494,000 |
| Charge to Statement of Comprehensive Income during year | 1,056,934 |
| Balance at 31 December 2022 | 1,550,934 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 25. | PROVISIONS FOR LIABILITIES - continued |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2022 |
| Charge to Income Statement during year |
| Balance at 31 December 2022 |
| 26. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2022 | 2021 |
| value: | £ | £ |
| Ordinary | £1 | 6,016,680 | 6,022,930 |
| During the year, the following changes to share capital took place: |
| (1) The company repurchased 62,500 of its own ordinary shares (nominal value £1) for £8 each |
| (2) The company allotted 56,250 new ordinary shares (nominal value £1) at £8 each in exchange for shares in Highgate 3 Ltd. The consideration above the nominal value has been recognised in the merger reserve |
| 27. | RESERVES |
| Group |
| Capital |
| Retained | Share | redemption | Merger |
| earnings | premium | reserve | reserve | Totals |
| £ | £ | £ | £ | £ |
| At 1 January 2022 | 2,427,105 | 4,235,435 | 706,571 | 14,953,883 | 22,322,994 |
| Profit for the year | 2,986,965 | - | - | - | 2,986,965 |
| Dividends | (500,000 | ) | - | - | - | (500,000 | ) |
| Company purchase of own shares | (505,350 | ) | - | 62,500 | - | (442,850 | ) |
| Acquisition of subsidiary | - | - | - | 393,750 | 393,750 |
| At 31 December 2022 | 4,408,720 | 4,235,435 | 769,071 | 15,347,633 | 24,760,859 |
| Company |
| Capital |
| Retained | Share | redemption | Merger |
| earnings | premium | reserve | reserve | Totals |
| £ | £ | £ | £ | £ |
| At 1 January 2022 | 22,216,574 |
| Profit for the year | - | - | - |
| Dividends | ( |
) | - | - | - | ( |
) |
| Company purchase of own shares | (505,350 | ) | - | 62,500 | - | (442,850 | ) |
| Acquisition of subsidiary | - | - | - | 393,750 | 393,750 |
| At 31 December 2022 | 23,299,378 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 27. | RESERVES - continued |
| Share premium account |
| This reserve records the amount above the nominal value received for shares sold, less transaction costs. |
| Capital redemption reserve |
| This reserve records the nominal value of shares repurchased by the company. |
| Merger reserve |
| This reserve records the merger relief available upon the acquisition of shares in the subsidiary companies. |
| Profit and loss account |
| This reserve records retained earnings. |
| 28. | CONTINGENT LIABILITIES |
| There is an existing cross guarantee between Tile Mountain Limited, Walls and Floors Limited, Eurorad Limited, Highgate 2 Limited and Highgate 3 Limited. The group's bank loans are secured via a fixed and floating charge over the group's assets. The group bank loans total £18,764,042 (2021: £12,784,640). |
| 29. | CAPITAL COMMITMENTS |
| 2022 | 2021 |
| £ | £ |
| Contracted but not provided for in the |
| financial statements | 18,701,334 | 14,639,460 |
| At the period end date, Tile Mountain Limited was committed to purchasing a newly constructed warehouse on Canal Lane in Stoke-On-Trent for a further consideration of £14,252,305. The construction completed in March 2023. |
| At the period end date, Eurorad Limited, a subsidiary undertaking had entered into a contract to construct an automatic racking system for a further consideration of £4,449,029. |
| 30. | RELATED PARTY DISCLOSURES |
| Key management personnel of the entity or its parent (in the aggregate) |
| 2022 | 2021 |
| £ | £ |
| Interest paid on loan | 16,495 | 221 |
| Amount due to related party | 931,914 | 982,973 |
| Amounts due to related parties above are recognised within other creditors due after one year. |
| Other related parties |
| 2022 | 2021 |
| £ | £ |
| Amount due to related party | 2,589,502 | 2,589,502 |
| Amounts due to other related parties above are recognised within other creditors due after one year. |
| 31. | POST BALANCE SHEET EVENTS |
| In relation to Eurorad Limited a subsidiary company, on 27 March 2023 an industrial incident occurred outside the Canal Lane Warehouse involving an external contractor, the incident is currently under review by the HSE. |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| 32. | BUSINESS COMBINATIONS |
| The fair value of amounts recognised at the acquisition date in relation to the various acquisitions in the period are as follows: |
| Acquisition of Eurorad Limited |
| Recognised amounts of identifiable assets acquired and liabilities assumed |
| Cost/fair value £ |
| Fixed Assets |
| Tangible | 424,081 |
| Intangible | 44,753 |
| 468,834 |
| Current Assets |
| Stocks | 8,745,933 |
| Debtors | 2,334,230 |
| Cash at bank and in hand | 839,073 |
| Total Assets | 12,388,070 |
| Creditors |
| Due within one year | (8,252,594 | ) |
| Due after more than one year | (1,750,000 | ) |
| Deferred taxation | (27,945 | ) |
| Total Identifiable net assets | 2,357,531 |
| Goodwill | 12,722,157 |
| Total purchase consideration | 15,079,688 |
| Consideration |
| £ |
| Cash | 79,688 |
| Equity instruments | 15,000,000 |
| Total purchase consideration | 15,079,688 |
| Cash outflow on acquisition |
| £ |
| Directly attributable costs | 79,688 |
| 79,688 |
| Less: Cash and cash equivalents acquired | (839,073 | ) |
| Net cash outflow on acquisition | (759,385 | ) |
| The results of Eurorad Limited in the period from acquisition to 31 December 2021 are as follows: |
| Current period since acquisition £ |
| Turnover | 12,615,194 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| Profit net of tax for the period since the acquisition | 460,923 |
| Acquisition of Highgate 2 Limited |
| Recognised amounts of identifiable assets acquired and liabilities assumed |
| Cost/fair value £ |
| Fixed Assets |
| Tangible | 6,272,572 |
| 6,272,572 |
| Current Assets |
| Debtors | 1,447,951 |
| Total Assets | 7,720,522 |
| Creditors |
| Due within one year | (5,851,074 | ) |
| Due after more than one year | (1,759,321 | ) |
| Total Identifiable net assets | 110,127 |
| Goodwill | 2,303,441 |
| Total purchase consideration | 2,413,568 |
| Consideration |
| £ |
| Cash | 253,568 |
| Equity instruments | 2,160,000 |
| Total purchase consideration | 2,413,568 |
| Cash outflow on acquisition |
| £ |
| Purchase consideration settled in cash, as above | 240,000 |
| Directly attributable costs | 13,568 |
| 253,568 |
| Net cash outflow on acquisition | 253,568 |
| The results of Highgate 2 Limited in the period from acquisition to 31 December 2021 are as follows: |
| Current period since acquisition £ |
| Turnover | 104,167 |
| Profit net of tax for the period since the acquisition | 111,791 |
| TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 December 2022 |
| Acquisition of Highgate 3 Limited |
| Recognised amounts of identifiable assets acquired and liabilities assumed |
| Cost/fair value £ |
| Fixed Assets |
| Tangible | 1,425,256 |
| 1,425,256 |
| Current Assets |
| Debtors | 143,390 |
| Total Assets | 1,568,646 |
| Creditors |
| Due within one year | (108,308 | ) |
| Due after more than one year | (1,405,978 | ) |
| Total Identifiable net assets | 54,360 |
| Goodwill | 399,490 |
| Total purchase consideration | 453,850 |
| Consideration |
| £ |
| Cash | 3,850 |
| Equity instruments | 450,000 |
| Total purchase consideration | 453,850 |
| Cash outflow on acquisition |
| £ |
| Directly attributable costs | 3,850 |
| 3,850 |
| Net cash outflow on acquisition | 3,850 |
| The results of Highgate 3 Limited since acquisition are as follows: |
| Current period since acquisition £ |
| Turnover | 30,000 |
| Profit net of tax for the period since the acquisition | 20,952 |