Year Ended
Registration number:
Silverfish Holdings Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Silverfish Holdings Limited
Company Information
Directors |
Mr E G Gardiner Mr D G Mabbott Mr A P Metcalfe Mr M J H Osborne Mr B Dale |
Registered office |
|
Auditors |
|
Silverfish Holdings Limited
Strategic Report
Year Ended 31 October 2023
The directors present their strategic report for the year ended 31 October 2023.
Principal activity
The principal activity of the group is is that of importer and wholesaler of premium bicycles, high-end bicycle clothing, components and accessories.
Incorporation
The company was incorporated on the 12th June 2018 as ENSCO 1267 Limited. Subsequent reporting periods ended on the 30th June. The comparative period in these accounts is an extended period of 16 months ending on the 31st October 2022. During the comparative period on the 20th January 2022, the company filed a change of name notice, therefore changing its name to Silverfish Holdings Limited.
Despite the comparative numbers representing an extended period, please note the consolidated accounts only trade from 23rd December 2021, the date the Connection Capital transaction concluded. This means the comparative numbers within the consolidated profit and loss account only includes 10 months of trading, from 1st January 2022 to 31st October 2022. This explains why, for example, the comparative revenue in these consolidated accounts is only £13m compared to the £15m quoted in this strategic report and in the profit and loss account in Silverfish UK Limited, the trading subsidiary of the Silverfish Group.
Fair review of the business
The year ending October 2023 posed considerable challenges for the cycling sector, as many of the macroeconomic factors highlighted in the previous year’s accounts continued to exert a significant influence on both supply and demand. The cost-of-living crisis significantly curtailed consumer demand throughout the year at a time when much of the delayed stock ordered during the peak demand of the Covid-19 pandemic was finally manufactured and delivered. With retailers responding to reduced consumer demand by cancelling orders, this resulted in an excess of stock throughout the supply chain, and consequently high levels of discounting across most product categories to stimulate sales. Whilst its carefully curated brand portfolio helps to mitigate some of the impact of this, Silverfish has not escaped this situation, and like many of its competitors, was forced to refinance in the year to support ongoing liquidity. This process was concluded in February 2023 with over £2m of new funds injected from existing shareholders, on top of the £2m previously injected between September and December 2022, demonstrating their continued support for the business and confidence in the long-term prospects.
In addition to the new funds injected, the bank and the shareholders agreed to write down approximately £19.6m of debt, further underscoring their support and belief in the future. Bank loans were reduced by £2.5m and shareholder loan notes by £17.1m, materially improving the balance sheet, critically into a net assets position of £4.3m (Oct 2023, net liabilities -£11.4m).
As part of the refinance process, a reforecast was prepared on the assumption that the market would start to recover during the year ending October 2024. The bank loan covenants were reset to reflect this forecast, with all historical breaches waived. However, a market recovery is yet to materialise meaning it has been necessary to revisit these assumptions. Consequently, the bank agreed to waive covenants as at the end of April 24 and has reset covenants up to and including July 25.
Silverfish Holdings Limited
Strategic Report
Year Ended 31 October 2023
Silverfish sales declined by 20% year on year (2022 -14%), a performance deemed reasonable by the directors given the prevailing macroeconomic factors, highlighting the strength of Silverfish’s strategically differentiated position in the market.
Like many UK based importers and wholesalers, Silverfish continued to experience inflated import costs and consequently gross margin pressure as the strengthening of the US dollar against the UK pound made stock purchases relatively expensive. The recovery of the pound against the US dollar over the course of the year and our foreign exchange risk management policy meant much of the downside was mitigated, although the level of discounting on sales still meant there was a decline in gross margin year on year.
The market pressures on both sales and margin mean that the Silverfish Group is reporting an operating loss of -£2,210k (2022 -£1,096k). It is worth noting this loss is after accounting for £530k of goodwill amortisation (2022 £1,246k) and a £600k increase in the stock provision. The provision increase is to cover the expected losses on certain stock categories, partly in light of the market conditions but mainly due to the discontinuation of certain brands and/or product ranges.
This performance, whilst unwelcome, was not wholly unexpected and was the driving force behind the refinance process. Critically, the new funds injected have meant that there was still £2m of cash in the business at year end despite the operating loss. The directors are also comfortable with the forward-looking cash headroom considering the prevailing market conditions, which has been supported by both capital and interest repayment holidays.
Whilst the short to medium term future continues to look turbulent, the continuing strong cash headroom (£3m at July 2024), along with the bank’s willingness to reset covenants, mean the directors remain satisfied that there is no immediate threat to the going concern of the group. Participation in cycling remains at an all-time high, and the industry sentiment is that growth will return as soon as market conditions allow.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover (12 months of trading company) |
£ |
11,980,146 |
15,043,349 |
Gross profit margin |
% |
20 |
29 |
Exceptional items
The £2.5m bank loan write down has been presented as an exceptional item on the face of the P&L, although the £17.1m of shareholder loan note write down, which includes £1.5m of accrued interest, has been presented as a capital contribution in the statement of change in equity.
Silverfish Holdings Limited
Strategic Report
Year Ended 31 October 2023
Principal risks and uncertainties
Competitive markets
The group is exposed to risk and uncertainties related to supplier and customer activities and economic pressures on the retail market. This is managed by ensuring the business continues to operate at the highest level by investing into the unique distribution offering that Silverfish provides to its brands, carefully managing purchasing in line with demand, closely managing existing inventory levels, and on continually improving systems and processes. Emphasis is placed on maintaining strong commercial relationships with brands, which has been pivotal in maintaining their support during the recent challenges.
Financial risks
The Groups operations exposes it to a variety of financial risks that include the effects of credit risk, liquidity risk and exposure to adverse exchange rate movements. These are each specifically managed to minimise their impact on financial performance. Credit risk is primarily attributable to trade debtors. The company has historically had few issues with bad and doubtful debts but continues to closely monitor its outstanding debts, employing a variety of traditional controls to ensure the credit risk is minimised. Towards the end of the year a major customer was placed into administration, reflective of the economic environment. Thankfully, Silverfish was able to recover most of the money owed by working in conjunction with the administrators.
The group’s exposure to foreign exchange risk is managed using forward contracts which aim to hedge for approximately half of the forward-looking currency surpluses or deficits.
Management of liquidity risk is managed using both long and short-range cash flows, linked to financial forecasts that are periodically updated. It is these forecasts that highlighted the need for further finance, and the resulting refinance that was concluded in February 2023. The business has approximately £3m cash in bank at July 2024, which is being carefully monitored to ensure sufficient headroom for the foreseeable future. Should the directors feel that this headroom is insufficient then they are committed to taking appropriate remedial actions to improve cash flow.
Covenant compliance
The group is subject to several financial covenants associated with the bank debt in place. As part of the refinance concluded in February 2023, any historical breaches were waived, and forward-looking covenants were reset. These were all satisfied up to and including January 2024, although the prolonged market challenges meant a waiver was agreed by the bank for April 2024, and a further reset was agreed for all test points up to and including July 2025. This includes revising the minimum EBITDA covenant test point to align with latest forecasts, increasing the minimum liquidity covenant to ensure that stock reduction and stock turn is maintained and continuing to waive the debt service cover. The directors have reviewed the headroom against these covenants and are comfortable that the chance of further breach is immaterial.
Stock obsolescence
The over stocking resulting from the ongoing market conditions continues to cause the group a higher than usual stock risk. This is managed by reviewing aged stock reports and offering discounts to customers on items that are at risk of obsolescence. Strong emphasis has been placed on reducing stock levels to help maximise cash in the business, although the heavy over stocks throughout the sector is making this difficult. That said, steady progress is being made, particularly post year end.
Silverfish Holdings Limited
Strategic Report
Year Ended 31 October 2023
Legislation changes
The group can also be impacted by changes in legislation that can affect the supply and use of bicycles and associated parts. The group mitigates this risk through continued communications with brands and membership of national cycling bodies, helping to keep the business up to date with any changes.
Approved and authorised by the
......................................... |
Silverfish Holdings Limited
Directors' Report
Year Ended 31 October 2023
The directors present their report and the for the year ended 31 October 2023.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The group effectively manages its working capital through a revolving credit facility with its primary lender. To mitigate exposure to fluctuations in exchange rates, the group strategically employs foreign exchange forward contracts.
Price risk, credit risk, liquidity risk and cash flow risk
The management team undertake various strategies to address the specific operational risks the group faces. These include long term forward planning with orders, benchmarking of prices across the industry, regular credit reviews and use of credit checking facilities to enhance credit control processes. Additionally, the team employs robust cash flow modelling, conducts periodic reviews of liquidity ratios, and maintains close communication with the group's finance providers.
Silverfish Holdings Limited
Directors' Report
Year Ended 31 October 2023
Going concern
The main threat to the going concern of the group over the past year has been the turbulent market conditions associated with supply chain delays, subsequent order cancellations and a fall in demand associated to the cost-of-living crisis. Details regarding the impact of these factors on the business are outlined in the fair review of the business, included in the strategic report. Following the debt restructure in February 2023, the directors have concluded that the group is a going concern and the accounts have been prepared on this basis.
The directors considered in detail the prospects of the cycling sector in the near future, especially in conjunction with ongoing liquidity and the revised bank covenants. Given it is difficult to do this with any certainty, the directors adopted a prudent approach to ensure sufficient cash headroom for the foreseeable future. Consequently, there is an expectation of a small sales reduction in the year ending October 2024 as the cycling sector continues to normalise, but the business is forecasting a return to growth the following year. The growth in the year ending October 2025 is largely expected to come from new brands, most of which are significant bike brands, adding to the ever-growing reputation of Silverfish as the leading mountain bike distributor in the UK, and increasingly parts of the EU.
The directors' assessment of going concern has been supported by the material write down of debt at the time of refinance and the bank’s willingness to reset covenants, both at the point of refinance and subsequently in July 2024 to reflect the ongoing market challenges. This includes waiving covenants as at the end of April 2024. The existing cash headroom in the business (£3m at July 2024), along with cautious forwarding looking forecasts and the ongoing support from shareholders, bank and suppliers, collectively lead the directors to conclude that there are no material uncertainties concerning the going concern of the group.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
Silverfish Holdings Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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 group and the company 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Silverfish Holdings Limited
Independent Auditor's Report to the Members of Silverfish Holdings Limited
Opinion
We have audited the financial statements of Silverfish Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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 the parent company's affairs as at 31 October 2023 and of the group's loss 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 auditor 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 director's 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 and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.
Silverfish Holdings Limited
Independent Auditor's Report to the Members of Silverfish Holdings Limited
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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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 8, 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 is 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.
Silverfish Holdings Limited
Independent Auditor's Report to the Members of Silverfish Holdings Limited
Auditor’s 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 an auditor’s report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the sector in which it operates to identify the key laws and regulations affecting the entity. The key laws and regulations we identified were employment and health and safety legislation.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102), the Companies Act and the relevant tax compliance regulations in the UK.
As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Reviewed legal and professional costs to identify legal costs in respect of non compliance;
• Enquiries with management whether there have been any known instances, allegations or suspicions of fraud or non compliance with laws and regulations;
• Reviewed minutes of board meetings.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting. Our proceedures involved the following;
• Review of nominal journal entries for reasonableness;
• Review of significant accounting estimates for bias;
• Review of stock sales history to test completeness of the stock provision.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Silverfish Holdings Limited
Independent Auditor's Report to the Members of Silverfish Holdings 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 an auditor’s report 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.
......................................
Melville Building East
Unit 18, 23 Royal William Yard
Stonehouse
PL1 3GW
Silverfish Holdings Limited
Consolidated Profit and Loss Account
Year Ended 31 October 2023
Note |
31 October |
31 October |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating loss |
( |
( |
|
Impairment of goodwill |
- |
(8,861,764) |
|
Gain on debt write off |
|
- |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
1,025,465 |
(10,646,002) |
||
Loss before tax |
( |
( |
|
Tax on loss |
( |
|
|
Loss for the financial year |
( |
( |
|
Profit/(loss) attributable to: |
|||
Owners of the company |
( |
( |
The group has no recognised gains or losses for the year other than the results above.
Silverfish Holdings Limited
Consolidated Balance Sheet
31 October 2023
Note |
31 October |
As restated |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets/(liabilities) |
|
( |
|
Total assets less current liabilities |
|
( |
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
Net assets/(liabilities) |
|
( |
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital contribution reserve |
|
- |
|
Profit and loss account |
( |
( |
|
Equity attributable to owners of the company |
|
( |
|
Shareholders' funds/(deficit) |
|
( |
Approved and authorised by the
......................................... |
Company Registration Number: 11409967
Silverfish Holdings Limited
Balance Sheet
31 October 2023
Note |
31 October |
31 October |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
- |
|
|
|
||
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
( |
- |
|
Shareholders' funds |
|
|
The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a loss after tax for the financial year of £2 (2022 - profit of £-).
Approved and authorised by the
......................................... |
Company Registration Number: 11409967
Silverfish Holdings Limited
Consolidated Statement of Changes in Equity
Year Ended 31 October 2023
Share capital |
Capital contribution reserve |
Profit and loss account |
Total |
|
At 1 November 2022 |
|
- |
( |
( |
Loss for the year |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
New share capital subscribed |
|
- |
- |
|
Capital contribution on debt write off |
- |
17,128,502 |
- |
17,128,502 |
At 31 October 2023 |
|
|
( |
|
Share capital |
Profit and loss account |
Total |
|
At 1 July 2021 |
|
- |
|
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
New share capital subscribed |
|
- |
|
At 31 October 2022 |
|
( |
( |
Silverfish Holdings Limited
Statement of Changes in Equity
Year Ended 31 October 2023
Share capital |
Profit and loss account |
Total |
|
At 1 November 2022 |
|
- |
|
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
New share capital subscribed |
|
- |
|
At 31 October 2023 |
|
( |
|
Share capital |
Profit and loss account |
Total |
|
At 1 July 2021 |
|
- |
|
Profit/(loss) for the year |
- |
- |
- |
Total comprehensive income |
- |
- |
- |
New share capital subscribed |
|
- |
|
At 31 October 2022 |
|
- |
|
Silverfish Holdings Limited
Consolidated Statement of Cash Flows
Year Ended 31 October 2023
Note |
31 October |
|
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Impairment loss/reversal |
- |
8,861,764 |
|
Loss on disposal of tangible assets |
- |
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
( |
|
Gain on debt write off |
(2,500,000) |
- |
|
( |
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
Decrease in trade creditors |
( |
( |
|
Cash used by operations |
( |
( |
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
( |
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from issue of ordinary shares, net of issue costs |
|
|
|
Proceeds from bank borrowing draw downs |
- |
|
|
Repayment of bank borrowing |
- |
( |
|
Proceeds from other borrowing draw downs |
|
|
|
Payments to finance lease creditors |
|
( |
|
Net cash flows from financing activities |
|
|
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 November |
|
|
Silverfish Holdings Limited
Consolidated Statement of Cash Flows
Year Ended 31 October 2023
Note |
31 October |
|
|
Cash and cash equivalents at 31 October |
2,013,306 |
469,382 |
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Summary of disclosure exemptions
FRS 102 grants a qualifying entity exemptions from the full requirements of FRS 102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity.
The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and the company’s cash flows are included in the consolidated financial statements. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and other members of the Silverfish Holdings Limited Group.
The company has also taken advantage of the exemption under S408 to not prepare a company statement of profit and loss.
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 October 2023.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Going concern
The main threat to the going concern of the group over the past year has been the turbulent market conditions associated with supply chain delays, subsequent order cancellations and a fall in demand associated to the cost-of-living crisis. Details regarding the impact of these factors on the business are outlined in the fair review of the business, included in the strategic report. Following the debt restructure in February 2023, the directors have concluded that the group is a going concern and the accounts have been prepared on this basis.
The directors considered in detail the prospects of the cycling sector in the near future, especially in conjunction with ongoing liquidity and the revised bank covenants. Given it is difficult to do this with any certainty, the directors adopted a prudent approach to ensure sufficient cash headroom for the foreseeable future. Consequently, there is an expectation of a small sales reduction in the year ending October 2024 as the cycling sector continues to normalise, but the business is forecasting a return to growth the following year. The growth in the year ending October 2025 is largely expected to come from new brands, most of which are significant bike brands, adding to the ever-growing reputation of Silverfish as the leading mountain bike distributor in the UK, and increasingly parts of the EU.
The directors' assessment of going concern has been supported by the material write down of debt at the time of refinance and the bank’s willingness to reset covenants, both at the point of refinance and subsequently in July 2024 to reflect the ongoing market challenges. This includes waiving covenants as at the end of April 2024. The existing cash headroom in the business (£3m at July 2024), along with cautious forwarding looking forecasts and the ongoing support from shareholders, bank and suppliers, collectively lead the directors to conclude that there are no material uncertainties concerning the going concern of the group.
Reclassification of comparative amounts
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Judgements
Deferred tax. The group has made the significant judgement to recognise no deferred tax asset related to carried forward losses at the current time. |
Key sources of estimation uncertainty
Goodwill. Each year the Directors complete an impairment review and when necessary consider the likely recoverable amount of the Goodwill and Fixed Asset balance and whether any impairment provision is required. This is supported by an assessment of realisable value and a discounted cash-flow projection completed by management. The projection is subject to significant uncertainty regarding the key underlying assumptions such as discount rate and the future cash flows. As a result of the work completed in 2023 the Directors recognised an impairment of £Nil (2022 - £8,861,764).
Stock provision. The company estimates the stock provision based on a risk analysis of outstanding stock at the year end and an assessment of estimated realisable value of discontinued stock. This estimate is dependent on the assumption that the future pattern of stock sales accurately reflects the past history of similar stock movement. The carrying amount is £946,085 (2022 - £525,532).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
Turnover is recognised on point of despatch on sale of goods. Service work completed under warranties is recognised on point of despatch.
Foreign currency transactions and balances
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation 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 group operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Land and buildings |
2% straight line |
Plant and machinery |
10-33% straight line |
Motor vehicles (owned) |
25% reducing balance |
Motor vehicles (hire purchase) |
Over the life of the lease |
Assets under construction |
N/A |
Goodwill
Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Website and computer software costs |
25% straight line |
Goodwill |
10% straight line |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Dividends on equity securities are recognised in income when receivable.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell, the impairment loss is recognised immediately in the Profit or Loss Account.
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Other loans;
• Bank loans;
• Cash and bank balances;
• Derivative forward foreign currency contracts.
All financial instruments are classified as basic (other than the derivatives).
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Derivative financial instruments and hedging
Derivatives
Derivative financial instruments are initially measured at fair value and are subsequently measured at fair value through profit or loss. When the fair value is positive the derivatives are carried as current assets; and as current liabilities when the fair value is negative. The fair value of the forward foreign currency contracts is calculated by comparing the year end spot rate, which acts as an approximation for the fair value of the contracts, with the contracted rates.
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
31 October |
31 October |
|
Sale of goods |
|
|
The analysis of the group's Turnover for the year by market is as follows:
31 October |
31 October |
|
UK |
|
|
Europe |
|
|
|
|
Operating loss |
Arrived at after charging/(crediting)
31 October |
31 October |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Foreign exchange (gains)/losses |
( |
|
Operating lease expense - property |
|
|
Operating lease expense - plant and machinery |
|
|
Loss on disposal of property, plant and equipment |
- |
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
31 October |
31 October |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
31 October |
31 October |
|
Management |
|
|
Administration and support |
|
|
Sales |
|
|
Production |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
31 October |
31 October |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
523,520 |
259,677 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
31 October |
31 October |
|
Accruing benefits under defined benefit pension scheme |
|
|
In respect of the highest paid director:
31 October |
31 October |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Auditor's remuneration |
31 October |
31 October |
|
Audit of these financial statements |
4,080 |
3,500 |
Other interest receivable and similar income |
31 October |
31 October |
|
Interest income on bank deposits |
|
|
Interest payable and similar expenses |
31 October |
31 October |
|
Interest on bank loans |
|
|
Interest on obligations under finance leases and hire purchase contracts |
- |
|
Interest expense on directors loan |
- |
|
Interest on other loans |
|
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
Year ended 31 October 2023 |
1 July 2021 to 31 October 2022 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
( |
Tax expense/(receipt) in the income statement |
|
( |
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
31 October |
31 October |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Effect of revenues exempt from taxation |
( |
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax expense/(credit) relating to changes in tax rates or laws |
|
( |
Increase from tax losses for which no deferred tax asset was recognised |
|
- |
Decrease from effect of tax incentives |
( |
( |
Increase in UK and foreign current tax from adjustment for prior periods |
|
- |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
|
Total tax charge/(credit) |
|
( |
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Difference between accumulated depreciation, amortisation and capital allowances |
( |
- |
Tax losses carried forward |
|
- |
- |
- |
2022 |
Asset |
Liability |
Difference between accumulated depreciation, amortisation and capital allowances |
( |
- |
Tax losses carried forward |
|
- |
Other short term differences |
|
- |
|
- |
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
There are £4,182,092 of unused tax losses (2022 - £Nil) for which no deferred tax asset is recognised in the balance sheet.
Intangible assets |
Group
Goodwill |
Website and computer software |
Total |
|
Cost or valuation |
|||
At 1 November 2022 |
|
|
|
Additions acquired separately |
- |
|
|
At 31 October 2023 |
|
|
|
Amortisation |
|||
At 1 November 2022 |
|
|
|
Amortisation charge |
|
|
|
At 31 October 2023 |
|
|
|
Carrying amount |
|||
At 31 October 2023 |
|
|
|
At 31 October 2022 |
|
|
|
Amortisation of intangible assets is included within administrative expenses.
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Tangible assets |
Group
Land and buildings |
Motor vehicles |
Plant and machinery |
Total |
|
Cost or valuation |
||||
At 1 November 2022 |
|
|
|
|
Additions |
- |
- |
|
|
Disposals |
- |
( |
- |
( |
At 31 October 2023 |
|
|
|
|
Depreciation |
||||
At 1 November 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
At 31 October 2023 |
|
|
|
|
Carrying amount |
||||
At 31 October 2023 |
|
|
|
|
At 31 October 2022 |
|
|
|
|
Included within the net book value of land and buildings above is £Nil (2022 - £Nil) in respect of freehold land and buildings, £1,208,577 (2022 - £1,231,171) in respect of long leasehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
31 October |
31 October |
|
Motor vehicles |
- |
30,847 |
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
Units 3B & 3C
|
|
|
|
England and Wales |
||||
|
Units 3B & 3C
|
|
|
|
England and Wales |
||||
|
Units 3B & 3C
|
|
|
|
England and Wales |
* indicates direct investment of the company
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Subsidiary undertakings
Silverfish Group Holdings Limited The principal activity of Silverfish Group Holdings Limited is |
Silverfish UK (Holdings) Limited The principal activity of Silverfish UK (Holdings) Limited is |
Silverfish UK Limited The principal activity of Silverfish UK Limited is |
Company
31 October |
31 October |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 November 2022 |
|
At 31 October 2023 |
|
Provision |
|
At 1 November 2022 |
- |
At 31 October 2023 |
- |
Carrying amount |
|
At 31 October 2023 |
|
At 31 October 2022 |
|
Stocks |
Group |
Company |
|||
31 October |
As restated |
31 October |
|
|
Finished goods and goods for resale |
|
|
- |
- |
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Debtors |
Group |
Company |
||||
Note |
31 October |
As restated |
31 October |
|
|
Trade debtors |
|
|
- |
- |
|
Amounts due from group undertakings |
- |
- |
|
|
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
- |
- |
|
Accrued income |
- |
|
- |
- |
|
Deferred tax assets |
- |
|
- |
- |
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
31 October |
31 October |
31 October |
Period ended 31 October |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
- |
Short-term deposits |
|
|
- |
- |
|
|
|
- |
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Creditors |
Group |
Company |
||||
Note |
31 October |
31 October |
31 October |
31 October |
|
Due within one year |
|||||
Loans and borrowings |
- |
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Social security and other taxes |
|
|
- |
- |
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
Other creditors |
|
|
- |
- |
|
Accrued expenses |
|
|
- |
- |
|
|
|
- |
- |
||
Due after one year |
|||||
Loans and borrowings |
|
- |
- |
- |
Loans and borrowings |
Group |
Company |
|||
31 October |
31 October |
31 October |
Period ended 31 October |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
- |
- |
- |
Other borrowings |
|
- |
- |
- |
|
- |
- |
- |
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Group |
Company |
|||
31 October |
31 October |
31 October |
Period ended 31 October |
|
Current loans and borrowings |
||||
Bank borrowings |
- |
|
- |
- |
Hire purchase contracts |
- |
|
- |
- |
Other borrowings |
- |
|
- |
- |
- |
|
- |
- |
Group
Bank borrowings
The loan is secured by a fixed and floating charge of all property and undertakings. The chargors are the 4 constituent companies of the Silverfish Holdings Limited group. |
The loan is secured by a fixed and floating charge of all property and undertakings. The chargors are the 4 constituent companies of the Silverfish Holdings Limited group. |
The loan is secured by a fixed and floating charge of all property and undertakings. The chargors are the 4 constituent companies of the Silverfish Holdings Limited group.
|
Other borrowings
Loan notes 1 is denominated in £ with a nominal interest rate of 8%. The carrying amount at year end is £Nil (2022 - £9,084,664).
Loan notes 2 is denominated in £ with a nominal interest rate of 10%. The carrying amount at year end is £Nil (2022 - £7,608,203).
Loan notes 3 is denominated in £ with a nominal interest rate of 12%, and the final instalment is due on 22 December 2026. The carrying amount at year end is £1,588,140 (2022 - £808,153).
Loan notes 4 is denominated in £ with a nominal interest rate of 12%, and the final instalment is due on 22 December 2026. The carrying amount at year end is £3,245,230 (2022 - £Nil).
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Loan covenants
As at 31 October 2022 the group was in breach of the financial covenants on its bank loans resulting in the presentation of these liabilities as current.
On 17 February 2023 the group completed a restructure of its financing facilities. This resulted in a significant release of £2,500,00 of bank loans recognised as a gain on debt write off in the profit and loss account. It also resulted in the release of £17,128,502 of shareholder loan notes 1 and 2 recognised as a capital contribution in the statement of comprehensive income. As part of this refinance the covenants on the loans were updated and reset with all historical breaches waived.
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
31 October |
31 October |
|
Not later than one year |
- |
|
Operating leases
The total of future minimum lease payments is as follows:
31 October |
31 October |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £103,363 (2022 - £
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Share capital |
Allotted, called up and fully paid shares
31 October 2023 |
31 October 2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
4,080 |
|
4,080.00 |
|
|
1,020 |
|
1,020.00 |
|
|
3,400 |
|
3,400.00 |
|
|
1,923 |
- |
- |
|
|
374 |
- |
- |
|
|
94 |
- |
- |
|
|
226 |
- |
- |
|
|
|
|
Rights, preferences and restrictions
Ordinary A, B, C, D, E, F and G shares have the following rights, preferences and restrictions: |
Parent and ultimate parent undertaking |
The ultimate controlling party is
Financial instruments |
Group
Financial liabilities measured at fair value
Forward foreign currency contracts
The fair value of the forward foreign currency contracts is calculated by comparing the year end spot rate, which acts as an approximation for the fair value of the contracts, with the contracted rates. The group had a number of active contracts at year end but the fair value was calculated as £Nil (2022 - £Nil) and the change in value included in profit or loss is £Nil (2022 - £Nil).
The fair value is £Nil (2022 - £Nil) and the change in value included in profit or loss is £Nil (2022 - £Nil).
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Related party transactions |
Group
The company has taken advantage of the exemption provided by FRS 102 to not disclose transactions entered in to between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
The company considers that the statutory directors meet the definition of key management under FRS102 as disclosed in note 6.
Transactions with directors |
2023 |
At 1 November 2022 |
Loan notes issued to director |
Interest incurred by company payable to director |
Written off |
At 31 October 2023 |
Director 1 |
|||||
Directors loan account in Silverfish UK |
- |
- |
- |
- |
- |
Loan note 2 in Silverfish Group Holdings |
|
- |
216,199 |
(7,607,608) |
- |
Loan note 3 in Silverfish Group Holdings |
|
|
146,987 |
- |
|
8,199,562 |
633,000 |
363,186 |
(7,607,608) |
1,588,140 |
|
Other transactions with directors |
Loan notes are held by a Director of the company, their spouse and a Trust for which the Director and their spouse act as Trustees. The loan notes 2 incurred interest at 10% and were written off in year as part of the re-finance package. The loan notes 3 incur interest at 12% and are repayable in December 2026. Balances presented above include interest accrued at the balance sheet date.
Silverfish Holdings Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Transactions with directors |
2022 |
At 1 July 2021 |
Advances to director |
Loan notes issued to director |
Interest incurred by company payable to director |
At 31 October 2022 |
Director 1 |
|||||
Directors loan accounts in Silverfish UK |
|
( |
- |
- |
- |
Loan note 2 in Silverfish Group Holdings |
- |
- |
|
594,712 |
|
Loan note 3 in Silverfish Group Holdings |
- |
- |
|
8,153 |
|
3,695,713 |
(3,695,713) |
7,596,697 |
602,865 |
8,199,562 |
|
Analysis of changes in net debt |
Group
At 1 November 2022 |
Financing cash flows |
Other non-cash changes |
At 31 October 2023 |
|
Cash and cash equivalents |
||||
Cash |
469,382 |
1,543,924 |
- |
2,013,306 |
Borrowings |
||||
Long term borrowings |
- |
- |
(12,543,376) |
(12,543,376) |
Short term borrowings |
(27,217,067) |
(3,602,052) |
30,819,119 |
- |
Lease liabilities |
(33,186) |
33,186 |
- |
- |
(27,250,253) |
(3,568,866) |
18,275,743 |
(12,543,376) |
|
|
||||
( |
( |
|
( |