Company registration number 08647181 (England and Wales)
PAVERS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 FEBRUARY 2024
PAVERS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr S D Paver
Mr J M Paver
Company number
08647181
Registered office
Catherine House
Northminster Business Park
Upper Poppleton
York
North Yorkshire
YO26 6QU
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
PAVERS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 36
PAVERS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 1 -

The directors present the strategic report for the period ended 3 February 2024.

Fair review of the business

We are pleased to report continued sales growth in the year as our retail and digital businesses both expanded. We believe the increased revenue is the outcome of our ongoing investment in satisfying our customers through good product, good value, and good customer service. Our staff continue to be highly engaged with the business and their hard work, combined with positive relationships with our suppliers and stakeholders, is at the heart of our success.

 

Operationally our performance stabilised significantly, which resulted in an improved level of profitability relative to last year.  However, there is still a lot of work to do, particularly regarding our systems and our data.

 

We closed the year with an increased cash balance and an increase in underlying net assets after paying a dividend to shareholders.  We are cautiously optimistic regarding future growth across all of our channels.

 

We are delighted to have donated nearly £250k to our Foundation in the year to support causes of importance to our colleagues and shareholders.

 

The group's key financial and other performance indicators during the period were as follows:

 

 

Unit

2024

2023

Turnover

£'000

176,282

155,023

Net current assets

£'000

33,006

27,817

Net assets

£'000

77,668

74,132

 

Principal risks and uncertainties

The risks and uncertainties faced by the business are those typical to the retail industry. The directors consider the principal risks and uncertainties to be the current economic climate in the UK, competition from other retailers, rising costs, maintaining the brand, the retention of key staff.

Pavers Holdings Limited: Stakeholder Engagement - Section 172(1) statement

As the Board of Pavers Holdings Ltd, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider to be most likely to promote the company’s success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a Board carry out this responsibility.

 

Promoting the company’s success for its members

Pavers Holdings Ltd history dates back to its founding in 1971 by Catherine Kinloch Paver, today the business is Chaired by Stuart Paver (Cathy’s son) and is run by Managing Director, Jason Paver (Stuart’s Son). We’re proud of the ways in which, over 50 years, the group has provided employment, training and financial reward for its owners and employees.

 

We make strategic decisions based on long-term objectives. In particular this has meant significant recent capital investment in shop fits, our warehouse, and IT infrastructure. This will enable us to continue to grow in the future and will ensure that we can serve more customers more effectively.

PAVERS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 2 -

Engaging with stakeholders

Our key stakeholders, and the ways in which we engage with them, are as follows:

 

Our employees

We rely on a team of loyal and committed people to ensure our business is run efficiently and effectively, many of whom have been with us many years.

 

Recruitment and retention of staff is therefore a critical business activity. We engage with team members by:

 

 

 

 

Our customers and suppliers

We look for long term relationships with our suppliers, many of whom we have dealt with for many years. We have built, and will maintain, a reputation for loyalty and fairness in our interaction with customers and suppliers.

 

Our community

We are a family owned group who support charitable causes through the Pavers Foundation. The Foundation was launched in 2017 by the family following the sad loss of our founder Cathy Paver. This employee led Foundation supports worthy causes in three main areas: health, education and community. In addition, employees select a national or significant charity each year which then goes on to receive a substantial donation.

 

The group contributes a % of its profits each year, together with the carrier bag levy, to the Foundation, who then distribute this to worthy causes.

 

Our planet

We take our responsibility to the planet seriously. We have invested in Solar PV on the roof of our Head Office and we have extended our Head Office using Green Materials wherever possible. We aim to eliminate or recycle waste materials and continue to invest in lower energy consumption lighting. We are looking to use less packaging and we recycle and re-use where possible. We are constantly looking at all ways to reduce our Carbon Footprint.

 

On behalf of the board

Mr S D Paver
Chairman
8 October 2024
PAVERS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 3 -

The directors present their annual report and financial statements for the period ended 3 February 2024.

 

Information relating to fair review of the business, principal risks and uncertainties and future developments is included in the strategic report.

Principal activities

The principal activity of the group is the retailing of shoes.

 

The principal activity of the company is that of a holding company with property.

Results and dividends

The results for the period are set out on page 10.

Ordinary dividends were paid amounting to £6,000,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr S D Paver
Mr J M Paver
Financial instruments

The group's principal financial instruments comprise bank balances, trade debtors, trade creditors and bank overdrafts.

 

The main purpose of these instruments is to raise funds for the group's operations and to finance the group's activities.

 

The group's approach to managing the risks applicable to the financial instruments concerned is shown below.

 

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of bank overdraft facilities.

 

The group makes use of money market facilities when funds are available.

 

Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

 

Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.

 

Employee involvement

 

The group continues to involve staff in the decision making process and communicates regularly with them during the year.

 

The group's aim for all its staff and applicants for employment is to fit the qualifications, aptitude and ability of each individual to the appropriate job and to provide equal opportunity, regardless of sex, religion or ethnic origin.

 

The group does all that is practicable to meet its responsibilities towards the employment and training of disabled people. Where an employee becomes disabled, every effort is made to provide continuity of employment in the same job or a suitable alternative.

PAVERS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 4 -
Disabled persons

The group does all that is practicable to meet its responsibilities towards the employment and training of disabled people. Where an employee becomes disabled, every effort is made to provide continuity of employment in the same job or a suitable alternative.

Employee involvement

The group continues to involve staff in the decision making process and communicates regularly with them during the year.

 

The group's aim for all its staff and applicants for employment is to fit the qualifications, aptitude and ability of each individual to the appropriate job and to provide equal opportunity, regardless of sex, religion or ethnic origin.

 

The group does all that is practicable to meet its responsibilities towards the employment and training of disabled people. Where an employee becomes disabled, every effort is made to provide continuity of employment in the same job or a suitable alternative.

Auditor

In accordance with the company's articles, a resolution proposing that BHP LLP be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

The group sets out below their energy consumption and emissions, which includes relevant entities in the group that meet the reporting requirements:

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
4,097,208
3,872,291
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
78.00
87.00
- Fuel consumed for owned transport
261.00
358.00
339.00
445.00
Scope 2 - indirect emissions
- Electricity purchased
517.00
595.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
70.00
53.00
Total gross emissions
926.00
1,093.00
Intensity ratio
tCO2/annual turnover (£)
0.0000465
0.00008757
PAVERS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 5 -
Quantification and reporting methodology

The company has followed the 2019 HM Government Environmental Reporting Guidelines and GHG Reporting Protocol - Corporate Standard. They have also used the 2023 UK Government's Conversion Factors for Company Reporting. We have used an operational approach to define our boundary and scopes.

 

The primary source for energy consumption is invoices and supplier interval data. Where invoices are not in line with the financial year, a pro rata calculation has been used to estimate the usage for the reporting period.

 

Electricity and gas data has been recorded over a 12 month period from February 2023 to January 2024. Data was collated directly from monthly invoices generated by suppliers.

 

Company transport data was generated over the course of the mentioned supply period. Transport has been displayed by the total mileage for all vehicles owned by the company.

Intensity measurement

The group has used annual turnover to calculate the intensity metric. The formula used to calculate this is tCO2/annual turnover (£).

Measures taken to improve energy efficiency

The company have increased the fleet of electric vehicles in the year and continued to include energy efficient features within new stores and refurbishment programmes.

The figures above relate to the energy consumption of Pavers Limited and Pavers Holdings Limited. The report does not include data in relation to the subsidiaries, Herring Shoes Limited and Norwich Footwear Limited, as they are exempt from the disclosure requirements due to the companies having no requirement to report.

Statement of directors' responsibilities

The directors are responsible 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 company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

PAVERS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 6 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the group’s auditors are unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditors are aware of that information.

Charitable donations

During the period the group made charitable donations of £232k.

On behalf of the board
Mr S D Paver
Chairman
8 October 2024
PAVERS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PAVERS HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of Pavers Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 3 February 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

PAVERS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PAVERS HOLDINGS LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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 by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of client's operation of controls within the year, in particular, in particular, revenue, expenditure and payroll, review of provisions, in particular stock provisions, and review of expenses, such as legal costs. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

PAVERS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PAVERS HOLDINGS LIMITED
- 9 -

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.

Ann Brown (Senior Statutory Auditor)
For and on behalf of BHP LLP
11 October 2024
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
PAVERS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 10 -
53 weeks
52 weeks
ended
ended
3 February
28 January
2024
2023
Notes
£'000
£'000
Turnover
3
176,282
155,023
Cost of sales
(129,663)
(115,757)
Gross profit
46,619
39,266
Distribution costs
(15,160)
(18,702)
Administrative expenses
(18,605)
(14,211)
Other operating income
203
382
Operating profit
4
13,057
6,735
Income from other fixed asset investments
8
74
48
Interest receivable and similar income
8
214
37
Interest payable and similar expenses
9
(51)
(144)
Charitable donations
(232)
(360)
Fair value gains and losses on foreign exchange contracts
150
(363)
Profit before taxation
13,212
5,953
Tax on profit
10
(3,676)
(327)
Profit for the financial period
9,536
5,626
Total comprehensive income for the period is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

 

The group has no recognised gains or losses for the period other than the results above.

PAVERS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 3 FEBRUARY 2024
03 February 2024
- 11 -
3 February 2024
28 January 2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Goodwill
13
26,522
27,612
Other intangible assets
13
575
575
Total intangible assets
27,097
28,187
Tangible assets
14
18,309
18,750
Investments
24
2,022
1,937
47,428
48,874
Current assets
Stocks
16
26,916
35,379
Debtors
17
9,716
14,901
Cash at bank and in hand
17,425
7,841
54,057
58,121
Creditors: amounts falling due within one year
18
(21,051)
(30,304)
Net current assets
33,006
27,817
Total assets less current liabilities
80,434
76,691
Creditors: amounts falling due after more than one year
19
(2,103)
(1,978)
Provisions for liabilities
Deferred tax liability
21
663
581
(663)
(581)
Net assets
77,668
74,132
Capital and reserves
Called up share capital
23
25
25
Profit and loss reserves
77,643
74,107
Total equity
77,668
74,132
The financial statements were approved by the board of directors and authorised for issue on 8 October 2024 and are signed on its behalf by:
08 October 2024
Mr S D Paver
Chairman
Company registration number 08647181 (England and Wales)
PAVERS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 3 FEBRUARY 2024
03 February 2024
- 12 -
3 February 2024
28 January 2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
13
575
575
Tangible assets
14
12,479
12,437
Investments
24
64,001
64,923
77,055
77,935
Current assets
Debtors
17
1,612
1,587
Cash at bank and in hand
789
104
2,401
1,691
Creditors: amounts falling due within one year
18
(4,405)
(4,578)
Net current liabilities
(2,004)
(2,887)
Total assets less current liabilities
75,051
75,048
Creditors: amounts falling due after more than one year
19
(450)
(450)
Net assets
74,601
74,598
Capital and reserves
Called up share capital
23
25
25
Profit and loss reserves
74,576
74,573
Total equity
74,601
74,598

As permitted by s408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes. The Company’s profit for the year was £6,003k (2023 - £7,583k).

The financial statements were approved by the board of directors and authorised for issue on 8 October 2024 and are signed on its behalf by:
08 October 2024
Mr S D Paver
Chairman
Company registration number 08647181 (England and Wales)
PAVERS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
Balance at 30 January 2022
25
74,481
74,506
Period ended 28 January 2023:
Profit and total comprehensive income
-
5,626
5,626
Dividends
11
-
(6,000)
(6,000)
Balance at 28 January 2023
25
74,107
74,132
Period ended 3 February 2024:
Profit and total comprehensive income
-
9,536
9,536
Dividends
11
-
(6,000)
(6,000)
Balance at 3 February 2024
25
77,643
77,668
PAVERS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
Balance at 30 January 2022
25
72,990
73,015
Period ended 28 January 2023:
Profit and total comprehensive income for the period
-
7,583
7,583
Dividends
11
-
(6,000)
(6,000)
Balance at 28 January 2023
25
74,573
74,598
Period ended 3 February 2024:
Profit and total comprehensive income
-
6,003
6,003
Dividends
11
-
(6,000)
(6,000)
Balance at 3 February 2024
25
74,576
74,601
PAVERS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 15 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
27,229
(7,910)
Interest paid
(51)
(144)
Income taxes paid
(1,990)
(1,025)
Net cash inflow/(outflow) from operating activities
25,188
(9,079)
Investing activities
Purchase of tangible fixed assets
(2,665)
(2,707)
Proceeds from disposal of tangible fixed assets
-
1,503
Purchase of subsidiaries, net of cash acquired
-
(1,007)
Net assets acquired on acquisition
-
5
Investment in unlisted investments
(85)
-
Interest received
214
37
Other income received from investments
74
48
Net cash used in investing activities
(2,462)
(2,121)
Financing activities
Proceeds from borrowings
-
6,488
Repayment of bank loans
(7,142)
(1,359)
Dividends paid to equity shareholders
(6,000)
(6,000)
Net cash used in financing activities
(13,142)
(871)
Net increase/(decrease) in cash and cash equivalents
9,584
(12,071)
Cash and cash equivalents at beginning of period
7,841
19,912
Cash and cash equivalents at end of period
17,425
7,841
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 16 -
1
Accounting policies
Company information

Pavers Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Catherine House, Northminster Business Park, Upper Poppleton, York, North Yorkshire, YO26 6QU.

 

The group consists of Pavers Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

1.2
Business combinations

The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 3 February 2024.

 

Subsidiary undertakings are included using the acquisitions method of accounting. Under this method the group profit and loss account and statement of cashflows include the results and cashflows of subsidiaries from the date of acquisition and to the date of sale outside the group in the case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Pavers Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 3 February 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover represents amounts invoiced, net of value added tax, in respect of the sale of goods to customers.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

 

If a subsidiary, associate or business is subsequently sold or closed, any goodwill arising on acquisition that was written off directly to reserves or that has not been amortised through the profit and loss account is taken into account in determining the profit or loss on sale or closure.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Trademarks
over 1 year
Website development costs
over 3 years
Intellectual property
10%/50% straight line or straight line over the term of the lease or less, based on store KPIs
Intellectual Property
over 2 to 5 years commencing the year after acquisition
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses (unless held at fair value as discussed below).

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Short leasehold premiums
Straight line over the term of the lease
Fixtures and fittings
20% or 33.33% straight line
Computers
50% reducing balance
Motor vehicles
33.33% or 50% of cost

The assets held by Pavers Holdings Limited are measured using the fair value model and are stated at their fair value as at the reporting end date.

 

Although this accounting policy is in accordance with the applicable accounting standard, FRS 102 "The Financial Reporting Standard", it is a departure from the general requirement of the Companies Act 2006 for all tangible fixed assets to be depreciated.

 

The accounting policy adopted is necessary for the financial statements to give a true and fair view. Depreciation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.

 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.11
Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks.

1.12
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 21 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

 

Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.20

Retail outlet fixturing grants

Grants received in excess of costs incurred are written off to the profit and loss account immediately. The balance of these grants and grants received of a lessor amount than costs incurred are written off to the profit and loss account in equal instalments over the relevant outlet lease.

PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock

Stock is valued at the lower of cost and net realisable value. Included within stock there are various provisions for obsolete and slow moving stocks, The directors must ascertain that the provisions included have been properly calculated and reflect the true recoverable stock value as at the period end. When calculating the stock provisions, management considers the saleability of stock items.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£'000
£'000
Turnover analysed by geographical market
UK and Eire
171,611
151,845
Rest of World
4,671
3,178
176,282
155,023
2024
2023
£'000
£'000
Other revenue
Interest income
214
37
4
Operating profit
2024
2023
£'000
£'000
Operating profit for the period is stated after charging/(crediting):
Exchange gains
(19)
(1,647)
Depreciation of owned tangible fixed assets
2,470
2,442
Impairment of owned tangible fixed assets
30
-
Profit on disposal of tangible fixed assets
-
(253)
Amortisation of intangible assets
1,086
157
Impairment of intangible assets
4
-
0
Operating lease charges
13,442
11,767
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 23 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
8
3
Audit of the financial statements of the company's subsidiaries
49
49
57
52
For other services
Taxation compliance services
12
9
All other non-audit services
7
7
19
16
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration and support
368
347
-
-
Sales
1,536
1,409
-
-
Management
5
5
-
-
Total
1,909
1,761
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Wages and salaries
28,154
25,761
-
0
-
0
Social security costs
1,972
2,015
-
-
Pension costs
236
307
-
0
-
0
30,362
28,083
-
0
-
0
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 24 -
7
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
629
501
Company pension contributions to defined contribution schemes
49
48
678
549
The number of directors for whom retirement benefits are accring under defined contribution schemes amounted to 1 (2023 - 1).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
333
290
Company pension contributions to defined contribution schemes
49
48
8
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Interest on bank deposits
143
3
Other interest income
71
34
Total interest revenue
214
37
Income from fixed asset investments
Income from other fixed asset investments
74
48
Total income
288
85
2024
2023
Investment income includes the following:
£'000
£'000
Interest on financial assets not measured at fair value through profit or loss
143
3
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 25 -
9
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
11
12
Other finance costs:
Other interest
40
132
Total finance costs
51
144
10
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
3,571
852
Adjustments in respect of prior periods
(26)
8
Total current tax
3,545
860
Deferred tax
Origination and reversal of timing differences
131
(533)
Total tax charge
3,676
327

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£'000
£'000
Profit before taxation
13,212
5,953
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
3,175
1,131
Tax effect of expenses that are not deductible in determining taxable profit
436
42
Tax effect of income not taxable in determining taxable profit
-
0
(24)
Change in unrecognised deferred tax assets
(6)
-
0
Adjustments in respect of prior years
(24)
(776)
Effect of change in corporation tax rate
2
61
Other permanent differences
95
(107)
Other tax adjustments
(2)
-
0
Taxation charge
3,676
327
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 26 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£'000
£'000
Interim paid
6,000
6,000
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£'000
£'000
In respect of:
Goodwill
13
4
-
Property, plant and equipment
14
30
-
Recognised in:
Administrative expenses
34
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 27 -
13
Intangible fixed assets
Group
Goodwill
Trademarks
Website development costs
Intellectual property
Intellectual Property
Total
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 29 January 2023 and 3 February 2024
30,657
10
249
195
700
31,812
Amortisation and impairment
At 29 January 2023
3,045
10
249
195
125
3,625
Amortisation charged for the period
1,086
-
0
-
0
-
0
-
1,086
Impairment losses
4
-
0
-
0
-
0
-
4
At 3 February 2024
4,136
10
249
195
125
4,715
Carrying amount
At 3 February 2024
26,522
-
0
-
0
-
0
575
27,097
At 28 January 2023
27,612
-
0
-
0
-
0
575
28,186
Company
Intellectual property
£'000
Cost
At 29 January 2023 and 3 February 2024
575
Amortisation and impairment
At 29 January 2023 and 3 February 2024
-
0
Carrying amount
At 3 February 2024
575
At 28 January 2023
575
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 28 -
14
Tangible fixed assets
Group
Land
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
Cost
At 29 January 2023
12,929
11
25,584
46
38,570
Additions
42
-
0
2,483
140
2,665
Disposals
-
0
-
0
(606)
-
0
(606)
At 3 February 2024
12,971
11
27,461
186
40,629
Depreciation and impairment
At 29 January 2023
268
9
19,500
43
19,820
Depreciation charged in the period
-
0
1
2,461
8
2,470
Impairment losses
-
0
-
0
30
-
0
30
At 3 February 2024
268
10
21,991
51
22,320
Carrying amount
At 3 February 2024
12,703
1
5,470
135
18,309
At 28 January 2023
12,661
2
6,084
3
18,750
Company
Land
Fixtures and fittings
Total
£'000
£'000
£'000
Cost
At 29 January 2023
12,436
1
12,437
Additions
42
-
0
42
At 3 February 2024
12,478
1
12,479
Depreciation and impairment
At 29 January 2023 and 3 February 2024
-
0
-
0
-
0
Carrying amount
At 3 February 2024
12,478
1
12,479
At 28 January 2023
12,436
1
12,437

 

PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 29 -
15
Financial instruments
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
150
-
-
-
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
-
363
-
-
16
Stocks
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Finished goods and goods for resale
26,916
35,379
-
0
-
0
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
1,281
1,724
402
328
Corporation tax recoverable
-
0
523
-
0
-
0
Amounts owed by group undertakings
-
-
1,008
1,008
Derivative financial instruments
150
-
-
-
Other debtors
4,893
9,851
-
0
-
0
Prepayments and accrued income
3,237
2,600
47
48
9,561
14,698
1,457
1,384
Amounts falling due after more than one year:
Deferred tax asset (note 21)
155
203
155
203
Total debtors
9,716
14,901
1,612
1,587
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 30 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Bank loans
20
-
0
7,142
-
0
-
0
Trade creditors
7,153
10,013
5
27
Amounts owed to group undertakings
-
0
-
0
4,144
2,884
Corporation tax payable
1,255
222
35
125
Other taxation and social security
4,527
3,932
63
23
Derivative financial instruments
-
0
363
-
0
-
0
Other creditors
621
2,864
-
0
1,511
Accruals and deferred income
7,495
5,768
158
8
21,051
30,304
4,405
4,578
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Other creditors
2,103
1,978
450
450
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Bank loans
-
0
7,142
-
0
-
0
Payable within one year
-
0
7,142
-
0
-
0

There is a debenture in place creating a fixed and floating charge over the undertaking and assets of the group.

Bank loan interest is charged per annum at 2%.

PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 31 -
21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£'000
£'000
£'000
£'000
Accelerated capital allowances
699
674
155
203
Short term timing differences
(36)
(93)
-
-
663
581
155
203
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£'000
£'000
£'000
£'000
Accelerated capital allowances
-
-
155
203
Group
Company
2024
2024
Movements in the period:
£'000
£'000
Liability/(Asset) at 29 January 2023
378
(203)
Charge to profit or loss
130
48
Liability/(Asset) at 3 February 2024
508
(155)

Of the deferred tax liability set out above, £540k is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature in the same period.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
233
304
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 32 -
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
18,221
18,221
19
19
Ordinary 'B' shares of £1 each
1,164
1,164
1
1
Ordinary 'C' shares of £1 each
4,847
4,847
5
5
24,232
24,232
25
25

Ordinary shares

Ordinary shares carry the rights to participate in dividends and capital distributions whether on a winding up or otherwise. The ordinary shares are not redeemable.

 

Ordinary 'B' shares

Ordinary 'B' shares are entitled to vote but the number of votes shall be limited to either (I) 3% of all voting rights or (II) the % of voting rights equal to the number of B ordinary shares then in issue. They carry the rights to dividend payments or any other distribution subject to Article 5 and to participate in a distribution arising from a winding up of the company subject to Article 4. The ordinary shares are not redeemable.

 

Ordinary 'C' shares

Ordinary 'C' shares are entitled to receive notice of, attend at and vote at general meetings of the Company but the number of votes allocated to the Ordinary C shares shall be reduced in proportion to the percentage of C Ordinary shares which are note vested at the relevant time. The holders of the C Ordinary Shares are entitled to receive exit proceeds subject to the provisions of Article 4. After the second anniversary of the Class C issues date, each C Ordinary share will be entitled to participate in dividends subject to the provisions of Article 5. The shares are non-redeemable.

24
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
25
-
0
-
0
63,412
64,419
Unlisted investments
2,022
1,937
589
504
2,022
1,937
64,001
64,923
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
24
Fixed asset investments
(Continued)
- 33 -
Movements in fixed asset investments
Group
Shares in subsidiaries
Other investments
Total
£'000
£'000
£'000
Cost or valuation
At 29 January 2023
3,878
10,189
14,067
Additions
-
85
85
At 3 February 2024
3,878
10,274
14,152
Impairment
At 29 January 2023 and 3 February 2024
3,878
8,252
12,130
Carrying amount
At 3 February 2024
-
2,022
2,022
At 28 January 2023
-
1,937
1,937
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£'000
£'000
£'000
Cost or valuation
At 29 January 2023
64,419
504
64,923
Additions
-
85
85
At 3 February 2024
64,419
589
65,008
Impairment
At 29 January 2023
-
-
-
Impairment losses
1,007
-
1,007
At 3 February 2024
1,007
-
1,007
Carrying amount
At 3 February 2024
63,412
589
64,001
At 28 January 2023
64,419
504
64,923
PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 34 -
25
Subsidiaries

Details of the company's subsidiaries at 3 February 2024 are as follows:

Name of undertaking
Nature of business
Class of
% Held
shares held
Direct
Indirect
Pavers Limited
Retailing of shoes
Ordinary shares
100.00
-
Shoe-Shop.com Limited
Dormant
Ordinary shares
-
100.00
Herring Shoes Limited
Retailing of shoes
Ordinary shares
100.00
-
Jones Bootmaker Limited
Dormant
Ordinary shares
100.00
-
Norwich Footwear Limited
Retail of shoes
Ordinary shares
100.00
-

The registered office is Catherine House Harwood Road, Northminster Business Park, Upper Poppleton, York, England, YO26 6QU for all companies listed above with the exception of Herring Shoes Limited and Norwich Footwear Limited.

 

The registered office for Herring Shoes Limited is Unit 6 Station Yard Industrial Estate, Kingsbridge, Devon, TQ7 1ES.

 

The registered office for Norwich Footwear Limited is Riverside House, Irwell Street, Manchester, United Kingdom, M3 5EN.

The financial period end of Shoe-Shop.Com Limited is 31 January. The profit for the financial period of Shoe-Shop.Com Limited was £nil and the aggregate amount of capital and reserves at the end of the period was £122k.

 

The results of the other subsidiary undertakings are included in the consolidated accounts for the group on a comparable period.

26
Financial commitments, guarantees and contingent liabilities

There is an unlimited multilateral guarantee dated 19 May 2020 given by Pavers Holdings Limited, Pavers Limited and Herring Shoes Limited in respect of the bank borrowings.

 

A debenture is present including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future, and First Floating Charge over all assets and undertaking both present and future dated 4 May 1999 and 29 October 2013.

 

A guarantee dated 13 January 2005 is present in favour of HMRC in relation to Pavers Limited.

 

The group is party to a trade finance agreement with the bank in relation to letters of credit. As at 3 February 2024, the maximum liability was £100k.

PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 35 -
27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Within one year
6,589
7,358
-
-
Between two and five years
11,761
12,364
-
-
In over five years
1,743
1,784
-
-
20,093
21,506
-
-
28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, which include the Board of Directors and Senior Management, is as follows.

2024
2023
£'000
£'000
Aggregate compensation
1,185
959

Controlling party

The company is controlled by the Directors.

 

PAVERS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 36 -
29
Cash generated from/(absorbed by) group operations
2024
2023
£'000
£'000
Profit for the period after tax
9,536
5,626
Adjustments for:
Taxation charged
3,676
327
Finance costs
51
144
Charitable donations
232
360
Investment income
(288)
(85)
Gain on disposal of tangible fixed assets
-
(253)
Amortisation and impairment of intangible assets
1,090
157
Depreciation and impairment of tangible fixed assets
2,236
2,442
Movements in working capital:
Decrease/(increase) in stocks
8,462
(13,612)
Decrease/(increase) in debtors
4,764
(2,583)
Decrease in creditors
(2,530)
(433)
Cash generated from/(absorbed by) operations
27,229
(7,910)
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