Final Results

Lords, a leading distributor of building materials in the UK, announces its annual results for the year ended 31 December 2021 (‘FY21’ or the ‘period’).
 FY21 FY20 Change (%)
Revenue 363.3m 287.6m +26.3%
Gross profit 62.7m 47.2m +32.8%
EBITDA 20.1m 15.4m +31.0%
Adjusted EBITDA(1) 22.3m 15.9m +40.1%
Adjusted EBITDA margin 6.1% 5.5% +10.9%
Profit before tax 8.0m 3.6m +122.1%
Adjusted Profit before tax (2) 10.2m 4.1m +149.0%
Basic earnings per share 3.73p 1.94p +95.3%
Adjusted earnings per share (3) 5.48p 3.46p +58.4%
Return On Capital Employed (ROCE) 27.0% 18.8% +8.2%
Dividend per share 1.89p 0.0p  
Net cash/(debt) 6.3m (22.9m) +127.5%
Net cash/(debt) less lease liabilities (30.1m) (57.5m) +47.7%


1Adjusted EBITDA is calculated in the consolidated statement of comprehensive income.
2Adjusted profit before tax (basic) is defined as profits before tax before amortisation of goodwill.
3Adjusted earnings per share is calculated in note 11.

Financial Highlights

  • Strong performance across the Group, with all businesses demonstrating financial and operational progress
  • Record revenues, increasing 26.3% to £363.3 million (FY: £287.6 million) driven by the Group’s enhanced customer proposition and continued deployment of strategic initiatives
  • Like-for-like revenue grew by 18.1% and was 20.8% ahead of 2019 showing a swift rebound and acceleration post pandemic
  • Strong Adjusted EBITDA up 40.1% to £22.3 million (FY20: £15.9 million restated)
  • Adjusted EBITDA margin rising to 6.1% (FY20: 5.5% restated) as the Group remains focused on delivering further margin expansion across the business
  • Adjusted earnings per share of 5.48 pence, up 58.4% (FY20: 3.46 pence)
  • Maiden dividend declared of 1.89 pence per share reflecting the Group’s confidence in delivering consistent and growing shareholder returns
  • Successful IPO with admission to AIM on 20 July 2021, raising gross proceeds of £52.0 million (£30.0 million for the Company and £22.0 million for existing shareholders)

Operational Highlights

  • Customer and colleague satisfaction scores remain excellent, at 4.7 out of 5.0 in both instances, reflecting the Group focus on colleague engagement and customer service
  • Further progress with our people, plant and premises organic growth strategy, including our digital platforms with all eight of our transactional websites developed and managed in-house
  • Digital revenue grew 31% in FY21 and now represents 6.3% of Group revenue
  • Good progress with sustainability programme, as Lords continues to reduce its environmental footprint, invest in its people, enhance the Group’s health and safety whilst supporting worthwhile projects in its communities

 Current Trading and Outlook

  • Four acquisitions since year end, enhancing the Group’s geographical presence and offering scope for further growth through extended product ranges
  • Robust pipeline of acquisition opportunities underpins the inorganic growth potential
  • Confident in Lords ability to fulfil objective to be a £500.0 million revenue business by 2024 and to achieve a 1.5% increase in Adjusted EBITDA margin over the medium term
  • Demand in (‘RMI’) sector focused product offering remain strong, Merchanting division has continued to deliver growth in line with management expectation
  • Customer demand remained strong across Heating and Plumbing division (‘H&P’). However, APP Wholesale Limited affected by industry wide boiler supply constraints, impacting division’s revenues throughout Q1 2022
  • The supply issues are expected to ease moving into H2 2022, and therefore the Group’s revenues continue to trade largely in line with market expectations and adjusted profit before tax is in line with expectations of approximately £16.0 million

Shanker Patel, CEO of Lords, commented: “We are delighted to report such a strong set of maiden full year results where Lords has delivered record revenue and earnings growth, and demonstrated our ability to deliver against our strategic and financial objectives set out at IPO.  First and foremost, I would like to thank our colleagues across the UK, who without their fantastic commitment and support for our vision, these results would not have been achieved.

“Due to the fragmented nature of the market in which we operate, Lords has a unique opportunity to deliver both organic and acquisitive growth and we are excited to successfully demonstrate this today.  As we build our size, reach and product range, we will be able to further enhance our excellent service to our customers and this underpins our exciting growth strategy.  Our industry has not been immune to the widespread challenges caused by price inflation and supply issues, the latter of which has recently affected the supply of boilers in our AAP business.  We have taken all the necessary steps to ensure that we continue to achieve our growth and profit forecasts and with the current boiler issue, where demand remains strong, we will take every possible action to protect the strength of our business.

“Progress in the new financial year has continued to be strong, our four new value accretive acquisitions are performing in line with our expectations and we look forward with confidence as we aim to deliver sustainable and growing returns to our shareholders.”

Analyst Briefing

There will be a conference call for analysts at 0930hrs today, which will be hosted by Shanker Patel (CEO) and Chris Day (CFO).  Please contact Buchanan at [email protected] if you would like to receive details.

The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.  Upon the publication of this announcement, this inside information is now considered to be in the public domain.



Chairman’s statement

This was an excellent year of financial and operational progress for the Group.  We delivered record revenue and earnings growth and made significant strategic headway alongside the completion of a successful IPO, which saw the Company’s shares admitted to trading on AIM in July 2021.  I want to thank the team and all our colleagues across the Group for their efforts in the year, which enabled us to achieve these results during an extremely busy period and against the backdrop of the continued challenges posed by the pandemic.

Admission to AIM

The share issue that accompanied the IPO was oversubscribed, reflecting the attraction to investors of our strategy and growth prospects.  This was particularly pleasing given the competition for investor attention in 2021, which the London Stock Exchange has reported as being the strongest year for IPO capital raising since 2007.  The placing raised gross proceeds of £30.0 million for the Company, giving us a strong balance sheet to pursue our strategic objectives.


From a financial perspective, the Group delivered record revenues and profits, with strong two year like-for-like growth in both divisions with Merchanting 20.4% and Plumbing and Heating 21.0%.  This reflects the benefits of our ‘People Plant Premises’ organic growth strategy, including the rapid expansion of our ecommerce revenues.  The integration of our recently acquired businesses has also gone well and they provide a robust platform for further growth, as we invest in them to realise their full potential.  The performance in the year reflects the continued resilience of our sector and in particular the repairs, maintenance and improvement market (‘RMI’), which generates around 80% of our revenue.


In light of this financial performance, the Board declared an interim dividend of 0.63 pence per share and has recommended a final dividend of 1.26 pence, to give a total dividend for the year of 1.89 pence per share.  As outlined at IPO, we have adopted a progressive dividend policy and therefore expect to deliver growth from this base over the coming years.

People and culture

Our people and culture are among the Group’s key strengths. Our employee surveys during the year showed exceptional levels of employee engagement, which are a credit to the management team and the positive, people-oriented culture they have nurtured.  In turn, this helps us to achieve equally high levels of customer satisfaction.  This obsession with delivering for the customer and investing to further improve our offer to them is at the heart of our growth strategy.

We believe that giving employees a feeling of ownership will help to maintain our strong culture, so all colleagues with continuous service of at least six months received 2,105 shares in the Company at the IPO.  In 2022, we will seek to offer an all-employee share scheme, so they can participate in the Group’s success as we grow.

Post-IPO, the Group’s management team has retained a sizeable shareholding in the business.  This reflects their strong belief in our prospects and ensures they are highly incentivised to deliver for all shareholders, and our stakeholders more generally.

Environmental, social and governance (ESG)

We recognise the importance of being a responsible business and meeting the growing expectations of our stakeholders.  There are numerous activities under way across the Group, with the aim of enhancing the way we support our people, ensuring high standards of health and safety, minimising our environmental footprint and benefiting our wider communities.  We are currently working with specialist ESG consultants to formalise our approach into a detailed five-year strategy, which will help us to focus on the areas where we can make the most difference and measure our progress.

The Group has long understood the importance of strong governance and has developed its governance framework over several years, including appointing independent non-executive directors well ahead of the IPO and adopting the QCA Corporate Governance Code.  The Board is well-balanced, with the right mix of skills and experience to execute the Group’s strategy.

Looking forward

The business has many strengths that give us a competitive advantage across our markets.  We have a highly experienced and knowledgeable management team, supported by customer-obsessed colleagues achieving excellent levels of customer satisfaction.  The long-term drivers of our market are favourable and we believe we have the right growth strategy to take further market share, both organically and inorganically.  The Board is therefore confident in its ability to execute the strategy we set out at IPO and demonstrate further progress in 2022.



Gary O’Brien
Independent Non-Executive Chairman
23 May 2022

Chief Executive Officer’s review

This was a landmark year for Lords and I am proud of all that our team has achieved.  Our performance demonstrated our continued strategic progress, while our prospects for further growth underpinned the success of our IPO.  I want to thank all my colleagues across the Group for their continued dedication and hard work during 2021.

Lords has always been a dynamic and entrepreneurial business and we have grown our national presence and service range rapidly in recent years, in particular through acquisition.  At the same time, the business is based on solid principles.  We always act ethically and professionally, are measured in the risks we accept and take care to consider our stakeholders, as a business built on the strength of all of our relationships.  By focusing on our customers, colleagues and suppliers, we create value for our shareholders.  We are continuing to embed sustainability into the way we work, benefiting our communities and wider society, while helping to reduce our costs.


We experienced strong revenue growth in the year totalling £363.3 million (2020: £287.6 million), up 26.3%.  On a two-year basis, which looks through the impact of COVID-19 on 2020 revenues, our like-for-like revenue growth since 2019 is 20.8%.  Revenue in 2021 was ahead of our budget set at the start of the year, reflecting positive market conditions, leading to an upgrade of our annual expectations for the year in May 2021, ahead of the IPO.  Both Group divisions, and all the companies within them, performed above expectations and contributed to this out-performance. Ecommerce sales continued to grow rapidly and were 31% or £5.3 million higher in 2021, in line with our strategy to leverage the investment in technology pre-IPO and grow digital sales as a proportion of Group revenue.

Adjusted EBITDA was £22.3 million (2020: £15.9 million restated), representing a margin of 6.1%, up 60 basis points on the 5.5% achieved in 2020.  We remain focused on margin expansion, driven by our focus on driving operational improvement, and expect to make further progress in 2022.

Cash flow was robust, with adjusted cash generated by operating activities of £21.7 million (2020: £15.5 million) while free cash flow was £19.5 million (2020: £13.7 million).  Free cash flow1 conversion (Free cash flow/ EBITDA) was of 87.4% (2020: 86.2%).  Coupled with our strong balance sheet, which had net cash of £6.3 million at the year end, we have the financial resources we need to continue to implement our strategy, which has contributed to further acquisitions post year end.

1 Free cash flow defined as cashflow from operating activities, less capital expenditures, exceptional items and interest paid.


The organic growth element of our strategy is designed to further improve our customer offer, by investing in our people, plant and premises.  We were delighted with our progress in 2021, which will continue to benefit us in the coming year.

Lords’ three Ps


Our people are a particular focus and this is reflected in our consistently high engagement scores and employee retention.  Over the last twelve months, we have expanded the team in key areas, to accommodate the growth of our business.  The expansion of Lords also creates opportunities for our colleagues to take on new roles and we are proud that all of our managing directors have come up through the business.  Enabling our people to grow is supported by our approach to learning and development, which included starting an apprenticeship programme in 2021, which we will expand in 2022.

Integrating colleagues who join us through the businesses we acquire is a priority.  We go above and beyond to ensure they settle into the Group and to offer them opportunities for personal development.


On the plant side, we are using digital technology to make our customer experience even better and to make our business more efficient and profitable.  For example, we have invested in an electronic point of sale (EPOS) system in our Mr Central Heating branches, which allows customers to move seamlessly between online and instore in their purchasing journey.  We are also implementing new systems to significantly streamline stock management in APP’s warehouses, while further improving the customer experience around deliveries.

Across the industry, customers are increasingly transacting with merchants both online and in person.  To support our digital sales strategy, we have formed a division-wide team in Merchanting and are further developing several of our websites, improving the customer journey and giving customers the confidence to transact online.  We have also invested heavily in a team to follow up web orders with phone calls and emails, keeping customers updated on their orders while creating opportunities to upsell, which is proving very effective.  The Condell business we acquired during the year has a very strong web presence, and we have utilised space in one of our existing premises to create a distribution hub for digital sales to customers in London.


We have also been actively investing in premises.  This includes relocating two Plumbing and Heating branches, opening a new branch of Lords Builders Merchants, to extend our coverage in West London, and starting the complete refurbishment of our Beaconsfield site.


During 2021 we acquired three businesses, adding geographical coverage, product range and new customers to our Merchanting division.  All three are performing in line with our expectations and the integrations are proceeding to plan, giving us a platform for further growth.  Since the end of the year, we have also acquired a business specialising in roofing materials, which will allow us to implant branches into existing Merchanting locations, starting with Beaconsfield.  We have also extended our geographical reach into the North of England with the purchase of A.W. Lumb, a specialist drylining and insulation distributor to the new build market alongside a general merchant offering.  On 31 March 2022, the Group acquired a Merchanting branch in Sudbury alongside a DH&P Counters / HRP Trade which are complementary to the Plumbing and Heating division with regards geography, customer base and product range.  We are excited by the prospects for these businesses and welcome our new colleagues to the Group.  All acquisitions were funded via existing facilities.


We see excellent opportunities to grow our business, both organically and through acquisition.  Our objective is to be a £500 million revenue Group by 2024 and we are confident we will achieve that, while furthering our EBITDA margin by 1.5% over the medium term.  We will continue to invest in our people, plant and premises and, with our robust pipeline of acquisition opportunities, to further enhance our geographic, product and channel diversity. 

As announced on 26 April 2022, post year end has seen demand for the Group’s repairs, maintenance and improvement (‘RMI’) sector focused product offering remain strong and, notwithstanding inflationary pressures and the current global macro-economic and geo-political outlook, the Group’s Merchanting division has continued to deliver growth in line with management expectations during Q1 and the beginning of Q2 2022.  Customer demand has also remained strong across the Group’s Heating and Plumbing division (‘H&P’).

APP Wholesale Limited has not been immune to industry wide boiler supply constraints on account of boiler component shortages and the limited boiler supply has had a progressively negative effect on the division’s revenues throughout Q1 2022, with Q1 H&P 2022 division revenues approximately 12.0% below the same period last year.  The supply issues are expected to ease moving into H2 2022, and therefore the Group’s revenues continue to trade largely in line with market expectations of approximately £438.0 million and as a result of management actions taken, adjusted profit before tax is in line with current market expectations of approximately £16.0 million.



Shanker Patel
Chief Executive Officer
23 May 2022

Financial review

The Group delivered an excellent financial performance in 2021, with strong growth in revenue and profits underpinned by strong cash conversion, supporting our ability to invest for further growth and to reward shareholders through dividends.

Supporting our growth strategy through careful capital allocation

The Group has a wide range of potential investment opportunities, both organic and inorganic.  It is therefore important that we take a rigorous approach to allocating capital between these opportunities.  We carefully review the investment case for each proposal, to ensure the planned returns are deliverable and that risks have been effectively mitigated, and look for all investments we make to generate a return on investment of at least 20%. Successful implementation of this strategy has contributed to our strong and profitable growth in 2021.


Group revenue was £363.3 million in 2021 (2020: £287.6 million), representing growth of 26.3%.  Excluding acquisitions, like-for-like (LFL) growth was 18.1%.

The impact of the COVID-19 pandemic affected our revenue performance in 2020, with the result that 2019 provides a more meaningful comparator for revenue growth.  LFL growth between 2019 and 2021 was 20.8%.

The table below shows revenue performance by division:

 2021 2020
 £m £m Growth LFL growth LFL growth
Plumbing and Heating 232.8 203.6 14.3% 14.3% 21.0%
Merchanting and other services 130.5 84.0 55.4% 27.6% 20.4%
Total Group 363.3 287.6 26.3% 18.1% 20.8%

Both divisions have demonstrated strong LFL revenue growth over the last two years.

Gross profit

Gross profit for the year was £62.7 million (2020: £47.2 million), up 32.8%.  The gross profit margin was 17.3% (2020: 16.4%).  We expect continued improvement through pricing and mix initiatives.


Overheads, which are defined as distribution costs, administrative expenses and other operating income before exceptional items and share‑based payments, increased from £31.3 million (restated) in 2020 to £40.4 million in 2021.  This reflected growth in the business, including acquisitions in the period. Cost to serve, which is defined as overheads as a percentage of revenue, increased to 11.1% (2020: 10.9% restated).  We continue to focus on operational leverage and expect further efficiency through scale in due course.

Depreciation and amortisation

Depreciation and amortisation increased to £9.4 million (2020: £8.5 million restated), reflecting acquisitions made in 2021 and continued capital expenditure, as we invest in the Group’s people, plant and premises programme.  £5.9 million of the depreciation and amortisation relates to right of use assets (2020: £5.6 million restated), £2.1 million to intangible assets (2020: £1.9 million) and £1.4 million to property plant and equipment (2020: £1.0 million).

Exceptional items

Exceptional costs in 2021 totalled £2.1 million.  These comprised costs associated with our admission to AIM (£1.8 million), the costs incurred in relation to acquisitions in the year (£0.5 million) less a reduction in contingent consideration of £0.2 million.

Exceptional items in 2020 totalled a net cost of £0.5 million.  This was the net of exceptional costs of £0.3 million for restructuring and £1.7 million for deferred remuneration, less Government grants under the Job Retention Scheme (£1.2 million) and small business retail grants (£0.3 million).

EBITDA and adjusted EBITDA

EBITDA is defined as earnings before interest, tax, depreciation and amortisation on an IFRS basis.

Adjusted EBITDA, which also excludes the exceptional items set out above and share-based payments was £22.3 million up 40.1% from £15.9 million (restated) in 2020.  The adjusted EBITDA margin improved to 6.1% (2020: 5.5% restated).  EBITDA for 2021 was £20.1 million (2020: £15.4 million restated).

The table below shows adjusted EBITDA by division:

 2021 2021 2020
 £m margin £m margin
Plumbing and Heating 10.3 4.4% 9.1 4.5%
Merchanting and other services 12.0 9.2% 6.8 8.1%
Total Group 22.3 6.1% 15.9 5.5%


Interest on bank loans and overdrafts

Interest on bank loans and overdrafts reduced to £0.5 million (2020: £1.0 million), reflecting the reduction in average net debt during the year and lower cost of capital post IPO.

Profit before tax and adjusted profit before tax

Adjusted profit before tax, which excludes exceptional items and share-based payments, was £10.2 million (2020: £4.1 million restated).  The Group generated a profit before tax for the year of £8.0 million (2020: £3.6 million restated).

Contingent liabilities

In May 2020, the Group discovered that APP Wholesale Limited had been receiving cash payments for goods from customers, in contravention of a regulation related to money laundering.  The Group reported this to HMRC and is seeking an agreed outcome.  The breaches occurred over a ten-year period from August 2010, cumulatively amounting to up to £2,927,635 (which represents 0.2% of turnover in the same period within APP).  The directors are confident that any potential fine levied would be covered by the warranties contained in the sale and purchase agreement for APP when the Group acquired it in December 2019, with regard to any penalties relating to the period prior to the acquisition.

Prior year adjustment

In October 2021, the Group undertook a review of the property lease accounting under IFRS 16 included within the admission document for AIM.  Several errors were identified, the most material of which were four leases where step increases in rentals were a contractual obligation within the lease and should have been reflected in the valuation of right-of-use assets and the lease liabilities, but they had not been included.

In addition, one subsidiary hires vehicle on a three-year lease term but which can be terminated free of charge at any time.  The view at the time of the admission document was that these were short-term leases.  A subsequent review of the leases indicates that while the subsidiary does not have an obligation to hold the vehicles for a defined period, it usually holds the majority for a period, of around three years.

The errors have been corrected by restating each of the affected financial statement line items for the prior period.  Full details can be found in note 3.

Cash flow

Adjusted cash generated by operating activities was £21.7 million (2020: £15.5 million) while free cash flow was £19.5 million (2020: £13.7 million).  Free cash flow conversion (Free cash flow/ EBITDA was of 87.4% (2020: 86.2%).

Admission to AIM

On 20 July 2021, Lords Group Trading plc announced the admission of its entire issued share capital to trading on the AIM market of the London Stock Exchange.

Prior to admission and to facilitate the IPO, the Company completed a capital reorganisation and converted all shares in existence on 30 June 2021 into 125,925,000 new ordinary shares with a nominal value of 0.5 pence.

In conjunction with admission, gross proceeds of £52.0 million were successfully raised by way of an oversubscribed placing with institutional investors of 54,736,839 new and existing ordinary shares at a price of 95 pence per share.  This comprised a primary placing to raise £30.0 million (before expenses) for the Company and a secondary placing to raise £22.0 million (before expenses) for certain existing shareholders.

Restructuring of financing

On 20 July 2021, the Group used the funds raised in the placing to repay its loan under the Coronavirus Business Interruption Loan Scheme, its revolving loan facility, its term loans and invoice financing.

We replaced these facilities with the following arrangements from HSBC UK Bank plc:

  1. An invoice financing facility of £10.0 million, attracting an interest rate of 1.80%.
  2. A revolving credit facility (RCF) of £30.0 million, repayable after three years and attracting a base interest rate of 2.25% with fixed tiers up to 3.00%, based on leverage.

The loans are secured by fixed and floating charges over the land, tangible assets, insurances and shares in subsidiary undertakings.

In March 2022, we agreed with HSBC to increase the facilities, with the RCF increasing to £50.0 million and the invoice financing facility increasing to £20.0 million to support our growth plans.

Balance sheet and liquidity

As a result of the Group’s cash flows and the proceeds of the placing, we had net cash of £6.3 million at 31 December 2021 (2020: net debt of £22.9 million).  Our cash balance plus the £34.9 million of undrawn facilities with HSBC gave us liquidity of £46.3 million at the year end.

Right-of-use assets increased by £1.3 million to £33.3 million at the year end (31 December 2020: £32.0 million restated), while property, plant and equipment rose by £3.7 million to £8.1 million (31 December 2020: £4.4 million).  These movements were primarily the acquisitions of Condell, MAP and the Nu-Line branch.

Inventory reduced by £1.2 million, from £40.0 million at 31 December 2020 to £38.8 million at the year end, as the Plumbing and Heating division began to see the benefits of its investment in a new stock management system.

Trade and other payables were £4.7 million higher at £70.8 million (31 December 2020: £66.1 million), while trade and other receivables rose by £5.1 million to £57.7 million (31 December 2020: £52.6 million).  This was the result of the acquisitions in the year and the Group’s organic growth, through the ordinary course of business.

Earnings per share and adjusted earnings per share

Basic earnings per share was 3.73 pence.  The comparable figure in 2020 was 1.94 pence.  Adjusted earnings per share (as defined in note 11) was 5.48 pence (2020: 3.46 pence).


The Board has recommended a final dividend of 1.26 pence per share.  Combined with the interim dividend of 0.63 pence per share, this gives a total dividend for the year of 1.89 pence per share.

The final dividend will be paid on 7 July 2022 to shareholders on the register at the close of business on 6 June 2022.  The Company’s ordinary shares will therefore be marked ex-dividend on 1 June 2022.


Chris Day
Chief Financial Officer
23 May 2022

Consolidated statement of comprehensive income
for the year ended 31 December 2021

  2021 (restated)
 Note £’000 £’000
Revenue  363,289 287,565
Cost of sales  (300,569) (240,382)
Gross profit  62,720 47,183
Other operating income 5 696 436
Distribution expenses  (3,536) (2,785)
Administrative expenses  (37,576) (28,916)
Adjusted EBITDA2  22,304 15,918
Share-based payments  (96)
Exceptional expenses 6 (2,085) (519)
EBITDA1  20,123 15,399
Depreciation  (1,340) (1,033)
Amortisation  (8,021) (7,481)
Operating profit 7 10,762 6,885
Finance income 8 2
Finance expense 9 (2,741) (3,276)
Profit before taxation  8,021 3,611
Taxation 10 (2,377) (985)
Profit for the year  5,644 2,626
Other comprehensive income  
Total comprehensive income  5,644 2,626
Total comprehensive income for the year attributable to:    
Owners of the parent company  5,231 2,441
Non-controlling interests  413 185
  5,644 2,626
Total comprehensive income for the year attributable to owners of the parent    
Continuing operations  5,231 2,441
Discontinuing operations  
  5,231 2,441
Earnings per share for profit from continuing operations attributable to the ordinary equity holders of the Company:
Basic earning per share (pence) 11 3.73 1.94
Diluted earning per share (pence) 11 3.40 1.77

The results for the year arise solely from continuing activities.

1 EBITDA is defined as earnings before interest, tax, depreciation and amortisation.
2 Adjusted EBITDA is EBITDA but also excluding exceptional items and share-based payments.


Consolidated statement of financial position
as at 31 December 2021

   2020 2019
  2021 (restated) (restated)
 Note £’000 £’000 £’000
Non-current assets     
Intangible assets  22,673 18,198 20,015
Property, plant and equipment  8,050 4,417 5,054
Right-of-use assets 12 33,271 32,087 35,838
Other receivables  304 78 265
Investments  84 4 4
  64,382 54,784 61,176
Current assets     
Inventories  38,781 40,004 40,679
Trade and other receivables 13 57,744 52,633 44,219
Cash and cash equivalents  11,402 16,342 3,361
  107,927 108,979 88,259
Total assets  172,309 163,763 149,435
Current liabilities     
Trade and other payables 14 (70,459) (65,674) (58,871)
Borrowings 15 (2,783) (20,738) (21,782)
Lease liabilities 12 (5,114) (4,180) (4,339)
Current tax liabilities  (2,014) (1,055) (395)
Total current liabilities  (80,370) (91,647) (85,387)
Non-current liabilities     
Trade and other payables 14 (3,621) (2,840) (2,107)
Borrowings 15 (2,125) (18,522) (11,016)
Lease liabilities 12 (31,518) (30,373) (33,050)
Other provisions  (987) (817) (778)
Deferred tax  (2,940) (2,433) (2,662)
Total non-current liabilities  (41,191) (54,985) (49,613)
Total liabilities  (121,561) (146,632) (135,000)
Net assets  50,748 17,131 14,435
Share capital  788 19,990 19,990
Share premium  28,293
Merger reserve  (9,980) (9,980) (12,480)
Capital redemption reserve   2,500
Share-based payment reserve  96
Retained earnings  27,214 3,622 1,181
Equity attributable to owners of the parent company  46,411 13,632 11,191
Non-controlling interests  4,337 3,499 3,244
Total equity  50,748 17,131 14,435

Consolidated statement of changes in equity
for the year ended 31 December 2021

 Called up share capital £’000 Share premium £’000 Merger reserve
Capital redemption reserve
Share-based payments reserve
Retained earnings
Equity attributable to owners of parent company £’000 Non-controlling interests
As at 1 January 2020  
Correction of error (net of tax)  
Restated total equity at the beginning of the financial year  
Profit for the financial period and total comprehensive income (restated)  
Reclassification of capital redemption reserve  
Capital contribution by non-controlling interests  
As at 31 December 2020  


 Called up share capital £’000 Share premium £’000 Merger reserve
Capital redemption reserve
Share-based payments reserve
Retained earnings
Equity attributable to owners of parent company £’000 Non-controlling interests
As at 1 January 2021 as originally presented  
Correction of error (net of tax)  
Restated total equity at the beginning of the financial year  
Profit for the financial period and total comprehensive income  
Share-based payments  
Share capital issued  
Costs of capital raise  
Non-controlling interests share of acquisitions  
Capital reorganisation  
Dividends paid (999) (999) (999)
As at 31 December 2021  

Consolidated statement of cash flows
for the year ended 31 December 2021

 2021 (restated)
 £’000 £’000
Cash flows from operating activities  
Profit before taxation 8,021 3,611
Adjusted for:  
Depreciation of property, plant and equipment 1,340 1,033
Amortisation of intangibles 2,087 1,841
Amortisation of right-of-use assets 5,934 5,640
Loss on disposal of property, plant and equipment 2
Share based payment expense 96
Finance income (2)
Finance expense 2,741 3,276
Operating cash flows before movements in working capital 20,219 15,401
Decrease in inventories 2,837 675
Increase in trade and other receivables (1,791) (8,227)
Increase in trade and other payables 3 7,725
Cash generated by operations 21,268 15,574
Corporation tax paid (1,751) (555)
Net cash generated by operating activities 19,517 15,019
Cash flows from investing activities  
Purchase of intangible assets (648) (24)
Business acquisitions (net of cash acquired) (6,225)
Deferred consideration paid (875) (200)
Purchase of property, plant and equipment (1,297) (418)
Purchase of investments (77)
Interest received 2
Net cash used in investing activities (9,122) (640)
Cash flows from financing activities  
Principal paid on lease liabilities (6,750) (6,565)
Issue of share capital 30,000
Costs of capital raise (1,549)
Dividends (999)
Non-controlling interests cash contribution 70
Proceeds from borrowings 4,908 6,461
Repayment of borrowings (40,081)
Bank interest paid (529) (1,003)
Interest on financial liabilities (335) (361)
Net cash outflow from financing activities (15,335) (1,398)
Net (decrease) / increase in cash and cash equivalents (4,940) 12,981
Cash and cash equivalents at the beginning of the period 16,342 3,361
Effect of foreign exchange rates
Cash and cash equivalents at the end of the period 11,402 16,342