Company registration number 09808066 (England and Wales)
HOMETREE MARKETPLACE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
HOMETREE MARKETPLACE LIMITED
COMPANY INFORMATION
Directors
S Phelan
D Edgerley
D Maclean
R Parekh
(Appointed 6 September 2023)
T Breen
(Appointed 8 November 2023)
P Tanday
(Appointed 23 October 2024)
M Dill
(Appointed 27 August 2024)
Company number
09808066
Registered office
Hamilton House
4 Mabledon Place
King's Cross
London
WC1H 9BB
Auditor
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
HOMETREE MARKETPLACE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 10
Group profit and loss account
11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 43
HOMETREE MARKETPLACE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Principal activities

Hometree Marketplace Limited (“the Company”) is the ultimate parent company of the Hometree Group (“the Group”), comprising of 10 companies operating in the residential energy services market. The Group’ strategic aim is to pave the way for a brighter future by making renewable home energy hardware accessible to millions of homeowners. Our growing portfolio of businesses and partners make it easier for homeowners to install, finance and maintain their home energy hardware, helping them run their homes in a carbon-neutral way.

Business review

During the year the Group generated revenues of £14,889,650 (2023: £11,659,810). The Group made a loss for the year of £7,578,918 (2023: £7,686,904). The net assets of the Group as at 31 March 2024 were £19,822,319 (2023: £27,123,455).

 

The Company focused on customer acquisition activity in the year, which can be seen in the increase in Sales and Marketing costs. The Company also focused on acquisitions to support the wider group strategy of delivering financing options to homeowners. The Company also continued to prioritise customer satisfaction which can be seen in the increase in the Trustpilot score 4.7 (2023: 4.5).

Key performance indicators

The Group uses a number of financial and non-financial key performance indicators ("KPIs") to assess business performance. The primary financial KPIs used by the Group are

 

Financial

Turnover: The Group continued investment in growth in the Homecover business unit by growing the customer base and the acquisition of the Financing business unit, achieving growth in turnover from £11.7m (2023) to £14.9m (2024).

 

Gross profit margin: The Group focused on key operational improvements to drive efficiency in the Homecover business unit, achieving improvements in the gross profit margin from 37% (2023) to 46% (2024).

 

Operating loss / EBITDA: Improvements achieved in the gross profit efficiency were offset by new investment in developing the finance offering and preparation for the future growth of the group, resulting in operating loss growing from £7.6m (2023) to £8m (2024). EBITDA slipped slightly from a loss of £7m (2023) to a loss of £7.1m (2024).

 

Non-financial

Average number of employees: 130 (2024) vs 106 (2023)

 

Trustpilot score: 4.7 (2024) vs 4.5 (2023)

 

The non-financial metrics, the Group focuses on customer satisfaction and measure employee growth to support the wider activities of the business, both of which have improved year-on-year in line with expectations.

HOMETREE MARKETPLACE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties

Strategic risks:

 

Integration of acquired business into the Group

The Group seeks to make acquisitions that complement its core business activities and that will contribute to the overall success of the Group for its stakeholders. However, there is a risk that the Group fails to achieve this objective on future acquisitions.

 

The Group undertakes a robust due diligence exercise on all potential acquisitions which involves the engagement of specialist external advisers as well as senior members of the Group’s management team. For all acquisitions, a full report is prepared for the board to consider whether or not the transaction should proceed.

 

Competition in our markets

The Group operates in a competitive market environment and the introduction of new products is key to their success.

 

The group strategy to provide a full lifecycle proposition to customers, combined with great service, creates longer-term customer relationships.

 

Financial risks:

 

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due.

 

The Group management team uses short and long-term cash flow forecasts to manage liquidity risk. Forecasts are supplemented by sensitivity analysis which is used to assess funding adequacy.

 

Credit risk

Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual obligations. The Company’s principal financial assets are trade and other debtors. The amounts presented in the balance sheet are net of expected credit losses, and the carrying amount of financial assets represents the maximum exposure.

 

The group has a robust credit risk framework for financing products, and continuously monitors key indicators to ensure any emerging credit risk trends can be dealt with rapidly.

 

Operational risks:

 

Legal and regulatory

The Group operates in highly regulated environments and there is a risk of failing to comply with regulations, information security or data protection standards or other legal requirements. This could be damaging to the business as it may result in a loss of trust or restrictions on what trade can be carried out.

 

The group has built risk and compliance processes and employs highly experienced people to ensure that our approach is appropriate and robust. It continues to invest in internal teams that provide monitoring and oversight to act as an effective mitigant to this risk.

 

Systems risk

The company offers products and services through a sophisticated technology platform. There is a risk of system failure preventing the business from operating or causing negative customer experiences.

 

The company has invested in its technology team to continually enhance systems and processes and build a robust environment.

 

People risk

People risk reflects the risk of key person dependencies, attrition risk and the risk of not being able to hire new team members quickly enough.

 

The group has invested significantly in subject matter expertise and leadership roles, reducing key dependencies and mitigating the risk of attrition in key roles.

HOMETREE MARKETPLACE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Group strategy and future outlook

Hometree is a UK based residential energy services company operating across the entire home decarbonisation lifecycle - from installing and financing renewable hardware to ongoing maintenance and servicing. We are on our mission to decarbonise 1m UK homes by 2030.

 

Today, we run our business in three business units, which benefit from shared expertise and experience.

 

Our Home Cover business unit helps homeowners prevent, mitigate and solve home emergency breakdowns. Our comprehensive cover plans offer peace of mind with annual boiler servicing, ongoing maintenance and repairs, including a wide range of other home emergencies, all carried out by trusted local expert engineers.

 

Our Renewable Installation business unit assesses our customers’ homes and helps them decide to install the home energy hardware that best suits their needs and budgets. Our leading regional based installers, which become part of the Hometree Group through our buy & build M&A model, are able to install all renewable hardware and ancillary products, from heat pumps, solar, batteries to A-grade energy-efficient boilers and underfloor heating. As mentioned in the accounting notes below, in the current financial year we acquired our first installer in the North East (Geowarmth Heat Pumps Limited).

 

Our Financing business unit offers point of sale financing to our customers. Our innovative payment options are tailored to the green retrofit industry, and available through our own installers and trusted local installation partners.

 

We made tremendous progress in the year successfully growing the Home Cover business unit, in addition to completing and integrating two acquisitions in each of the Renewable Installation and Financing business units, this allowed us to reach a run rate revenue at year end of £18.4m.

 

Post year end we have continued to make great strides with a further three acquisitions in the North and South of England of profitable companies in the Renewable Installation business unit, increasing our revenue run rate to exceed £40m, significantly increasing the scale of the Group and bringing us closer to profitability. Within the Financing business unit we have introduced the first ever UK Asset Backed securitisation facility on renewable hardware with Barclays for £250m which will allow us to offer point of sale financing to tens of thousands of homeowners across the UK to decarbonise their homes. And in the Homecover business unit we reached over 100,000 customers following the acquisition of a book of insurance customers in June.

On behalf of the board

S Phelan
Director
17 March 2025
HOMETREE MARKETPLACE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

S Phelan
D Sims
(Resigned 6 September 2023)
D Edgerley
N Moosa
(Resigned 27 August 2024)
D Maclean
C Gallardo
(Resigned 6 September 2023)
A Rendel
(Resigned 23 October 2024)
R Parekh
(Appointed 6 September 2023)
T Breen
(Appointed 8 November 2023)
P Tanday
(Appointed 23 October 2024)
M Dill
(Appointed 27 August 2024)
Auditor

The auditors, Moore Kingston Smith LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting in accordance with section 485 of the Companies Act 2006.

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.

HOMETREE MARKETPLACE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
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 auditor of the company is 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 auditor of the company is aware of that information.

Going concern

The Group recorded net assets of £19.8m (2023 - £27.1m) and a loss for the year of £7.6m (2023 - £7.7m). The Group focused on investment in growth initiatives, which can be seen as the group revenues increased by 28% to £14.9m (2023 - £11.7m). Going forward the group will continue to benefit from these investments and significantly increase the scale of the group while bringing us closer to profitability. Given this, and for the reasons set out below, the financial statements have been prepared on a going concern basis, which the Directors consider to be appropriate.

 

Post year end, as outlined in Note 29, the Group completed three acquisitions continuing the expansion into the renewable installation space. The acquisitions were in part financed by the existing debt facility which was further drawn post year end. In order to prepare for future acquisition opportunities and growth, the Group issued a Convertible Loan Note for the sum of £13.8m. Lastly, to facilitate the growth of the financing business unit, the group entered into a £250m asset-backed debt facility with Barclays, which will be used to finance over 28,000 residential solar panel systems, batteries and heat pumps across the UK over the next two years.

 

The Directors of the Group have prepared forecasts of future profitability, cash-flow and capital adequacy of the Group for the period up to 31 March 2026 to assess whether the Group has sufficient funds to meet its liabilities as they fall due for that period. These forecasts included the modelling of scenarios including consideration of:

 

 

The Directors also prepared forecasts in relation to the Company reviewing positive indicators such as launching new sales channels and products and gains in operational efficiencies, all of which are drivers expected to drive 25% annualised growth in 2025 and 2026. The Directors considered negative indicators such as competition in the market which could impact customer acquisition and retention.

 

Based on the information available, considering the above factors, and after making appropriate enquiries, the Directors conclude that there is a reasonable expectation that the Group and parent company have adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, and for at least 12 months from the date of signing of these financial statements. The Directors consider there are no material uncertainties that would lead to significant doubt upon the Group's or parent company's ability to continue as a going concern and will continue to closely monitor the financial position and performance of the Group and parent company. Accordingly, the Directors have adopted the going concern basis in preparation of these financial statements.

HOMETREE MARKETPLACE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of credit risk, liquidity risk, competitive risk, systems and people risk, regulatory and compliance risk and future developments.

 

Qualifying third party indemnity provision

The Group maintained liability insurance for its directors and officers during the period under review and up to the date of signing the financial statements. This is a qualifying third-party indemnity provision for the purposes of the Companies Act 2006.

On behalf of the board
S Phelan
Director
17 March 2025
HOMETREE MARKETPLACE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HOMETREE MARKETPLACE LIMITED
- 7 -
Opinion

We have audited the financial statements of Hometree Marketplace Limited (the ‘parent company’) and its subsidiaries (the ’group’) for the year ended 31 March 2024 which comprise the Group Profit and Loss Account, 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 FRS 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 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 there is 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.

HOMETREE MARKETPLACE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HOMETREE MARKETPLACE LIMITED
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

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 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.

HOMETREE MARKETPLACE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HOMETREE MARKETPLACE LIMITED
- 9 -
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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

HOMETREE MARKETPLACE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HOMETREE MARKETPLACE LIMITED
- 10 -
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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.

Other matters

The figures included within these financial statements for the comparative accounting period were not audited as the Group and Company did not require a statutory audit under the Companies Act 2006 in the prior year.

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.

Jonathan Roberts
Senior Statutory Auditor
For and on behalf of Moore Kingston Smith LLP
21 March 2025
Chartered Accountants
Statutory Auditor
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
HOMETREE MARKETPLACE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Unaudited
Notes
£
£
Turnover
3
14,889,650
11,659,810
Cost of sales
(8,039,773)
(7,396,326)
Gross profit
6,849,877
4,263,484
Sales, marketing & growth costs
(4,007,353)
(4,398,632)
Administrative expenses
(10,812,597)
(7,556,704)
Other operating income
-
61,331
Operating loss
4
(7,970,073)
(7,630,521)
Interest receivable and similar income
8
686,842
266,096
Interest payable and similar expenses
9
(129,251)
(227,588)
Fair value movement on financial instruments
(154,174)
-
Exceptional costs
(57,333)
(93,579)
Loss before taxation
(7,623,989)
(7,685,592)
Tax on loss
10
45,071
(1,312)
Loss for the financial year
(7,578,918)
(7,686,904)
Loss for the financial year is all attributable to the owners of the parent company.
HOMETREE MARKETPLACE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Unaudited
£
£
Loss for the year
(7,578,918)
(7,686,904)
Other comprehensive income
-
-
Total comprehensive income for the year
(7,578,918)
(7,686,904)
Total comprehensive income for the year is all attributable to the owners of the parent company.
HOMETREE MARKETPLACE LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 13 -
2024
2023
Unaudited
Notes
£
£
£
£
Fixed assets
Goodwill
11
7,326,245
5,354,076
Other intangible assets
11
662,776
1,111
Total intangible assets
7,989,021
5,355,187
Tangible assets
12
4,050,491
138,426
12,039,512
5,493,613
Current assets
Stocks
16
16,965
-
Debtors
17
3,120,765
852,195
Cash at bank and in hand
18,118,542
25,546,642
21,256,272
26,398,837
Creditors: amounts falling due within one year
18
(4,819,694)
(4,747,810)
Net current assets
16,436,578
21,651,027
Total assets less current liabilities
28,476,090
27,144,640
Creditors: amounts falling due after more than one year
19
(8,417,781)
-
Provisions for liabilities
Deferred tax liability
21
(235,990)
(21,185)
(235,990)
(21,185)
Net assets
19,822,319
27,123,455
Capital and reserves
Called up share capital
23
98,854
95,352
Share premium account
56,245,479
56,157,245
Options reserve
24
31,872
-
0
Other reserves
25/27
154,174
-
0
Profit and loss reserves
(36,708,060)
(29,129,142)
Total equity
19,822,319
27,123,455
The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
17 March 2025
S Phelan
Director
Company registration number 09808066 (England and Wales)
HOMETREE MARKETPLACE LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 14 -
2024
2023
Unaudited
Notes
£
£
£
£
Fixed assets
Tangible assets
12
67,572
82,207
Investments
13
1,815,506
2
1,883,078
82,209
Current assets
Debtors
17
10,790,697
5,730,064
Cash at bank and in hand
16,086,732
24,453,476
26,877,429
30,183,540
Creditors: amounts falling due within one year
18
(3,276,090)
(2,618,613)
Net current assets
23,601,339
27,564,927
Total assets less current liabilities
25,484,417
27,647,136
Creditors: amounts falling due after more than one year
19
(4,800,444)
-
Provisions for liabilities
Deferred tax liability
21
(15,656)
(19,315)
(15,656)
(19,315)
Net assets
20,668,317
27,627,821
Capital and reserves
Called up share capital
23
98,854
95,352
Share premium account
56,245,479
56,157,245
Options reserve
24
31,872
-
0
Other reserves
25/27
154,174
-
0
Profit and loss reserves
(35,862,062)
(28,624,776)
Total equity
20,668,317
27,627,821

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £7,237,286 (2023 - £7,124,722 loss).

The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
17 March 2025
S Phelan
Director
Company registration number 09808066 (England and Wales)
HOMETREE MARKETPLACE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
Share capital
Share premium account
Options reserve
Growth share reserve
Warrants reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
£
Balance at 1 April 2022
40,815
21,422,545
-
0
-
0
-
(21,442,238)
21,122
Period ended 31 March 2023:
Loss and total comprehensive income
-
-
-
-
-
(7,686,904)
(7,686,904)
Issue of share capital
23
54,537
34,734,700
-
-
-
-
34,789,237
Balance at 31 March 2023
95,352
56,157,245
-
0
-
0
-
(29,129,142)
27,123,455
Year ended 31 March 2024:
Loss and total comprehensive income
-
-
-
-
-
(7,578,918)
(7,578,918)
Issue of share capital
23
3,502
88,234
-
-
-
-
91,736
Other movements
24/25/27
-
-
31,872
11,284
142,890
-
186,046
Balance at 31 March 2024
98,854
56,245,479
31,872
11,284
142,890
(36,708,060)
19,822,319
HOMETREE MARKETPLACE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
Share capital
Share premium account
Options reserve
Growth share reserve
Warrants reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
£
Balance at 1 April 2022
40,815
21,422,545
-
0
-
0
-
(21,500,054)
(36,694)
Period ended 31 March 2023:
Loss and total comprehensive income for the period
-
-
-
-
-
(7,124,722)
(7,124,722)
Issue of share capital
23
54,537
34,734,700
-
-
-
-
34,789,237
Balance at 31 March 2023
95,352
56,157,245
-
0
-
0
-
(28,624,776)
27,627,821
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
-
-
(7,237,286)
(7,237,286)
Issue of share capital
23
3,502
88,234
-
-
-
-
91,736
Other movements
24/25/27
-
-
31,872
11,284
142,890
-
186,046
Balance at 31 March 2024
98,854
56,245,479
31,872
11,284
142,890
(35,862,062)
20,668,317
HOMETREE MARKETPLACE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
2024
2023
Unaudited
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
32
(8,523,000)
(6,443,498)
Interest paid
(129,251)
(227,588)
Income taxes paid
(26,380)
(49,063)
Net cash outflow from operating activities
(8,678,631)
(6,720,149)
Investing activities
Purchase of intangible assets
-
(16,206)
Purchase of tangible fixed assets
(2,761,735)
(70,090)
Purchase of subsidiaries, net of cash acquired
(1,822,993)
(4,674,410)
Interest received
686,842
266,096
Net cash used in investing activities
(3,897,886)
(4,494,610)
Financing activities
Proceeds from issue of shares
17,337
34,789,237
Payment of deferred consideration
(1,100,000)
-
Loans received
7,380,000
1,000,000
Loans repaid
(1,156,945)
(793,333)
New finance leases obligations
8,025
-
Net cash generated from financing activities
5,148,417
34,995,904
Net (decrease)/increase in cash and cash equivalents
(7,428,100)
23,781,145
Cash and cash equivalents at beginning of year
25,546,642
1,765,497
Cash and cash equivalents at end of year
18,118,542
25,546,642
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
1
Accounting policies
Company information

Hometree Marketplace Limited (“the company”) is a private limited company limited by shares, domiciled and incorporated in England and Wales. The registered office is Hamilton House, 4 Mabledon Place, King's Cross, London, WC1H 9BB.

 

The group consists of Hometree Marketplace 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 £.

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

 

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following permitted exemptions;

 

The Group has taken advantage of the disclosure exemptions in respect of the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d) in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Hometree Marketplace Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The Group recorded net assets of £19.8m (2023 - £27.1m) and a loss for the year of £7.6m (2023 - £7.7m). The Group focused on investment in growth initiatives, which can be seen as the group revenues increased by 28% to £14.9m (2023 - £11.7m). Going forward the group will continue to benefit from these investments and significantly increase the scale of the group while bringing us closer to profitability. Given this, and for the reasons set out below, the financial statements have been prepared on a going concern basis, which the Directors consider to be appropriate.

 

Post year end, as outlined in Note 29, the Group completed three acquisitions continuing the expansion into the renewable installation space. The acquisitions were in part financed by the existing debt facility which was further drawn post year end. In order to prepare for future acquisition opportunities and growth, the Group issued a Convertible Loan Note for the sum of £13.8m. Lastly, to facilitate the growth of the financing business unit, the group entered into a £250m asset-backed debt facility with Barclays, which will be used to finance over 28,000 residential solar panel systems, batteries and heat pumps across the UK over the next two years.

 

The Directors of the Group have prepared forecasts of future profitability, cash-flow and capital adequacy of the Group for the period up to 31 March 2026 to assess whether the Group has sufficient funds to meet its liabilities as they fall due for that period. These forecasts included the modelling of scenarios including consideration of:

 

 

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -

The Directors also prepared forecasts in relation to the Company reviewing positive indicators such as launching new sales channels and products and gains in operational efficiencies, all of which are drivers expected to drive 25% annualised growth in 2025 and 2026. The Directors considered negative indicators such as competition in the market which could impact customer acquisition and retention.

 

Based on the information available, considering the above factors, and after making appropriate enquiries, the Directors conclude that there is a reasonable expectation that the Group and parent company have adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, and for at least 12 months from the date of signing of these financial statements. The Directors consider there are no material uncertainties that would lead to significant doubt upon the Group's or parent company's ability to continue as a going concern and will continue to closely monitor the financial position and performance of the Group and parent company. Accordingly, the Directors have adopted the going concern basis in preparation of these financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Revenue from cover sales is recognised on a straight line basis over the period of cover provided.

Revenue from contracts for the provision of installation services is recognised by reference to the value of work completed, which is assessed and agreed with the customer. At period ends, income is accrued or deferred accordingly. Costs incurred to date are also recognised as incurred and accrued as appropriate to match the recognition of revenue.

 

Revenue under the Heating and Solar Plan model consists of an operating lease which is recognised over the life of the lease in accordance with the payment schedule for each lease.

 

Revenue recognised for each service line is as follows:

 

 

 

 

Revenue from interest on loans is calculated using the effective interest rate method which allocates any interest, fees and subsidies receivable over the expected life of the asset and represents the return on credit risk faced by the entity. The effective interest method required the Group to estimate future cash flows, in some cases based on experience of behaviour, the terms of the loan agreement and the expected lives of the receivables. The effective interest rate is calculated at the time of initiating the loan facility and the calculation is based on estimating future cash flows over the contractual life of the loan.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

 

Goodwill has arisen in the year in the acquisition of shares of Companies as noted in the Business Combination note below and is being amortised evenly over its estimated useful life of 10 years.

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:

Software
20% straight line
Trademarks
20% straight line
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.

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:

Leasehold land and buildings
straight line over the life of the lease
Computer and office equipment
33% straight line
Computer and office equipment
25% straight line
Computer and office equipment
25% reducing balance
Motor vehicles
25% straight line
Boiler and solar equipment
straight line over the useful life of the asset

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.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
1.9
Fixed asset investments

Fixed asset investments are measured at cost. Any impairment is written off to the profit and loss account when identified. Fixed asset investments are measured annually for impairment by the directors.

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.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Borrowing costs

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

1.11
Impairment of fixed assets

At each reporting period end date, the company 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).

An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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. Bank overdrafts are shown within borrowings in current liabilities.

 

Cash is also inclusive of cash equivalents held by the company on behalf of other parties, inclusive of client money accounts, whereby cash is held but does not belong to the company or any member of the same group.

1.14
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.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
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.

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.

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. Fees paid on establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. The fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility of which it relates to 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.

Derecognition of financial liabilities

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

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 24 -
1.15
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.

1.16
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.

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.

1.17
Provisions

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

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.18
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.

1.19
Retirement benefits

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

1.20
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 25 -

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.21
Leases

The Group acts as a lessor for Heat & Solar leases offered under the Hometree Finance brand. These leases are classified and accounted for as operating leases, and are 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, 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.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

 

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

1.22

Deferred Income

The company recognises deferred revenue when consideration for the goods and services have been transferred but the risks and rewards of ownership have not been transferred, or the service has been provided to the buyer.

Deferred income is measured at the fair value of the consideration received or receivable for goods to be supplied and services to be rendered, and is shown net VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume discounts.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make estimates, judgments and assumptions that affect the amounts reported in the group financial statements and accompanying notes. If, in the future, such estimates and assumptions, which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. The Group evaluates on an ongoing basis its assumptions, including those related to these items.

 

In preparing these financial statements, the following key judgements and/or sources of estimation, which have, or could have, a material impact on the financial statements are relevant:

 

Operating leases and revenue recognition

Since acquiring BeWarm in September 2023, Hometree has provided home energy equipment to its customers via leases under the regulated consumer hire framework. These leases enable the customer to benefit from a working boiler or solar energy system in their home.

 

Hometree has determined that the lease product, which enables customers to benefit from a working boiler or solar energy system in their home, should be accounted for as one combined performance obligation and as an operating lease. There are two key judgements supporting this determination:

 

Intangible assets, goodwill and impairment

Determine whether intangible assets acquired in business combinations meet the criteria for separate recognition, and if so, judgements have been applied in determining the value of individually recognised intangible assets. Intangible assets are amortised over their estimated useful life on a straight line basis. The useful life of intangible assets, including goodwill, has been determined based on management's best estimate, considering the period the intangible assets are expected to contribute to the Group's future cash flows. management's judgement has been used in determining factors such as typical product life cycles, technical obsolescence, market demand, and expected usage of the intangible asset. This judgement affects the amortisation period and, consequently, the annual amortisation charge.

 

Determine whether there are indicators of impairment of the Group's tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

 

Share based payments and warrants

Determine the fair value of share-based payments by selecting an appropriate valuation model, and judgement in estimating various input parameters, such as volatility, risk free rates, forfeiture rate, discount rates, and growth factors, to ensure appropriate for the recognition of share-based payments and warrants.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Service and Repair
12,610,925
9,956,727
Insurance
2,199,350
1,703,083
Renewable Installations
79,375
-
14,889,650
11,659,810
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
14,889,650
11,659,810
2024
2023
£
£
Other revenue
Interest income
686,842
266,096

Revenue in relation to leasing is included in Service and Repair turnover on the basis of the directors considering it commercially sensitive at this stage of development.

4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging:
Exchange losses
7,481
2,265
Fees payable for the audit of the company's financial statements
54,000
-
Depreciation of owned tangible fixed assets
136,302
60,995
(Profit)/loss on disposal of tangible fixed assets
-
872
Amortisation of intangible assets
782,880
655,029
(Profit)/loss on disposal of intangible assets
-
86,076
Share-based payments
31,872
-
Operating lease charges
267,784
209,198
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
Audit of the financial statements of the group and company
90,500
-
Audit-related assurance services
-
48,500
90,500
48,500
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration and internal development
39
31
27
21
Sales and business development
11
11
10
8
Operations and delivery
80
64
47
42
Total
130
106
84
71

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,305,973
4,652,664
4,830,824
3,738,901
Social security costs
645,192
519,024
559,048
445,917
Pension costs
73,915
137,743
61,646
43,935
7,025,080
5,309,431
5,451,518
4,228,753
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
451,186
257,500
Social security costs
59,221
34,581
Pension contributions
2,642
1,728
513,049
293,809
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
231,250
182,500
Social security costs
30,657
24,649
Pension contributions
1,321
1,508
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
686,842
266,096
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
128,725
227,588
Other finance costs:
Other interest
526
-
Total finance costs
129,251
227,588
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(3,717)
-
0
Adjustments in respect of prior periods
23,186
17,317
Total current tax
19,469
17,317
Deferred tax
Origination and reversal of timing differences
(64,540)
(16,005)
Total tax (credit)/charge
(45,071)
1,312
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 30 -

The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(7,623,989)
(7,685,592)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(1,905,997)
(1,460,262)
Tax effect of expenses that are not deductible in determining taxable profit
220,359
129,282
Adjustments in respect of prior years
23,186
17,317
Depreciation on assets not qualifying for tax allowances
27,640
11,589
General provisions adjustment
(60)
398
Loss on disposal of fixed assets
-
0
166
Trade capital allowances
(14,207)
(18,194)
Losses arising in period carried forward
1,668,548
1,337,021
Deferred tax adjustment
(64,540)
(16,005)
Taxation (credit)/charge
(45,071)
1,312

The company has tax losses of £24,529,877 (2023: £18,352,899) available for carry forward. There are additional losses of £1,696,820 (2023: £300,138) available elsewhere within the group.

11
Intangible fixed assets
Group
Goodwill
Software
Other
Total
£
£
£
£
Cost
At 1 April 2023
5,948,973
-
0
1,944
5,950,917
Additions - separately acquired
2,666,714
-
0
-
0
2,666,714
Additions - business combinations
-
0
750,000
-
0
750,000
At 31 March 2024
8,615,687
750,000
1,944
9,367,631
Amortisation and impairment
At 1 April 2023
594,897
-
0
833
595,730
Amortisation charged for the year
694,545
87,500
835
782,880
At 31 March 2024
1,289,442
87,500
1,668
1,378,610
Carrying amount
At 31 March 2024
7,326,245
662,500
276
7,989,021
At 31 March 2023
5,354,076
-
0
1,111
5,355,187
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Computer and office equipment
Motor vehicles
Boiler and solar equipment
Total
£
£
£
£
£
Cost
At 1 April 2023
48,006
170,228
-
0
-
0
218,234
Additions
-
0
43,012
-
0
2,718,723
2,761,735
Business combinations
-
0
4,003
15,671
1,296,638
1,316,312
Disposals
-
0
-
0
-
0
(31,330)
(31,330)
At 31 March 2024
48,006
217,243
15,671
3,984,031
4,264,951
Depreciation and impairment
At 1 April 2023
10,812
68,996
-
0
-
0
79,808
Depreciation charged in the year
10,812
62,120
649
62,721
136,302
Eliminated in respect of disposals
-
0
-
0
-
0
(1,650)
(1,650)
At 31 March 2024
21,624
131,116
649
61,071
214,460
Carrying amount
At 31 March 2024
26,382
86,127
15,022
3,922,960
4,050,491
At 31 March 2023
37,194
101,232
-
0
-
0
138,426
Company
Computer and office equipment
£
Cost
At 1 April 2023
139,494
Additions
34,349
At 31 March 2024
173,843
Depreciation and impairment
At 1 April 2023
57,287
Depreciation charged in the year
48,984
At 31 March 2024
106,271
Carrying amount
At 31 March 2024
67,572
At 31 March 2023
82,207
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,815,506
2
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
2
Additions
1,815,504
At 31 March 2024
1,815,506
Carrying amount
At 31 March 2024
1,815,506
At 31 March 2023
2
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Company number
% Held
Direct
Indirect
Hometree Services Limited
Hamilton House, 4 Mabledon Place, London, England, WC1H 9BB
12535561
100.00
-
Hometree Group Limited
Hamilton House, 4 Mabledon Place, London, England, WC1H 9BB
14007024
100.00
-
Yourcare Repairs Ltd
The Mill Congleton Road, Talke, Stoke-On-Trent, Staffordshire, England, ST7 1NE
12097804
-
100.00
Yourcare Services Ltd
The Mill Congleton Road, Talke, Stoke-On-Trent, Staffordshire, England, ST7 1NE
09699907
-
100.00
Your Repair Limited
The Mill Congleton Road, Talke, Stoke-On-Trent, Staffordshire, England, ST7 1NE
09133480
-
100.00
Geowarmth Heat Pumps Limited
3 Neptune Court, Orion Business Park, North Shields, England, NE29 7UW
06071914
-
100.00
Home Infrastructure Technology Limited
Lower Third Floor Evelyn Suite, Quantum House 22-24 Red Lion Court, London, England, EC4A 3ED
11686638
100.00
-
HTG Finance Limited
Hamilton House, 4 Mabledon Place, London, England, WC1H 9BB
11357988
100.00
-
HTG Finance 1 Limited
Hamilton House, 4 Mabledon Place, London, England, WC1H 9BB
12606496
-
100.00

All subsidiaries referenced above, held directly or indirectly, are exempt from statutory audit by virtue of a guarantee pursuant to section 479A of the Companies Act 2006, with exception of Your Repair Limited which is dormant.

15
Cash

The Group holds £336,777 of restricted cash, presented within cash and cash equivalents, which is held in a trust account on behalf of the Underwriters and cannot be used for the Company's operations.

16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
16,965
-
0
-
0
-
0
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
904,035
394,765
278,460
100,435
Unpaid share capital
40
40
40
40
Corporation tax recoverable
5,887
5,887
-
0
-
0
Amounts owed by group undertakings
-
-
8,721,275
5,309,001
Other debtors
1,725,157
176,592
1,618,533
176,492
Prepayments and accrued income
440,062
272,218
172,389
144,096
3,075,181
849,502
10,790,697
5,730,064
Amounts falling due after more than one year:
Deferred tax asset (note 21)
45,584
2,693
-
0
-
0
Total debtors
3,120,765
852,195
10,790,697
5,730,064

The other debtors balance contains cash of £1,036,205 which has a maturity greater than 90 days.

18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
535,504
1,150,000
529,556
1,150,000
Obligations under finance leases
2,835
-
0
-
0
-
0
Trade creditors
835,986
746,868
277,755
473,551
Amounts owed to group undertakings
-
0
-
0
1,347,677
314,565
Other taxation and social security
731,436
302,141
207,755
137,393
Other creditors
1,026,108
1,563,421
72,672
49,579
Accruals and deferred income
1,687,825
985,380
840,675
493,525
4,819,694
4,747,810
3,276,090
2,618,613
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
7,869,893
-
0
4,800,444
-
0
Obligations under finance leases
5,190
-
0
-
0
-
0
Other creditors
542,698
-
0
-
0
-
0
8,417,781
-
4,800,444
-
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
8,405,397
1,150,000
5,330,000
1,150,000
Payable within one year
535,504
1,150,000
529,556
1,150,000
Payable after one year
7,869,893
-
0
4,800,444
-
0

During the year the company entered into a secured loan agreement with Kreos Capital VII (UK) Limited. The loan provides the company with the facility to drawdown up to £7.5m and, as at 31 March 2024, the company had drawn down £5.5m, which is secured over the assets of the company. The loan matures in June 2027 and interest is payable on a monthly basis, current at the rate of 11.5% per annum. The loan contains a financial covenant which is monitored on a monthly basis, and the company was in compliance with this under the terms of the loan as of 31 March 2024.

 

In addition, the Group (through HTG Finance 1 Limited) has a £3m revolving credit facility with Conister Finance & Leasing Limited. The facility provides the Group with a revolving credit facility of £100,000, plus up to £4.9m in additional commitments. The facility matures in December 2027 and interest accrued is payable on a monthly basis, currently at the rate of 9.5% per annum.

 

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
237,227
21,484
3,774
2,693
Tax losses
-
-
41,571
-
Retirement benefit obligations
(1,237)
(299)
239
-
235,990
21,185
45,584
2,693
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
15,656
19,315
-
-
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Deferred taxation
(Continued)
- 36 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
18,492
19,315
Credit to profit or loss
(64,540)
(3,659)
Acquired on business combinations
236,454
-
Liability at 31 March 2024
190,406
15,656
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
73,915
137,743

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 37 -
23
Share capital
Group and company
2024
2023
Preference share capital
£
£
Issued and fully paid
189,947 Deferred shares of £0.001 each
190
190
14,498,281 New preference shares of £0.001 each
14,498
14,498
242,808 Series A shares of £0.001 each
243
243
645,503 Seed preferred shares of £0.001 each
646
646
14,262,785 Series A+1 shares of £0.001 each
14,263
14,263
54,053,734 Series B+1 shares of £0.001 each
54,054
54,054
1,001,717 Series B+2 shares of £0.001 each
1,002
1,002
1,135,526 Growth shares of £0.001 each
1,136
-
86,032
84,896
Preference share capital
Issued and not fully paid
39,600 Deferred shares of £0.001 each
40
40
40
40
2024
2023
Ordinary share capital
£
£
Issued and paid
6,920,349 A Ordinary shares of £0.001 each
6,920
6,920
4,757,419 Ordinary shares of £0.001 each
4,757
2,391
1,104,969 Series A+2 shares of £0.001 each
1,105
1,105
12,782
10,416

The Ordinary Shares each carry one voting right and are eligible for dividends and liquidation preference in the order and priority as defined in the Distribution Preference below.

 

The Preference Shares each carry one voting right and are eligible for dividends and liquidation preference in the order and priority as defined in the Distribution Preference below.

 

The Deferred Shares carry no voting rights and dividends are distributed in the order and priority as defined in the Distribution Preference below.

Distribution Preference -

  1. Holders of Deferred Shares and Unvested Growth Shares rank first and are paid a total of £1.00 for the entire class of shares.

  2. Holders of Series B+1 and Series B+2 shares rank second.

  3. Holders of Series A+1, Series A+2, New Preference and A Ordinary shares rank third.

  4. Holders of Ordinary Shares, Seed Preferred Shares, Series A Shares, and Vested Growth Shares rank last.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 38 -
24
Share-based payment transactions
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from equity settled share based payment transactions
31,872
-
31,872
-

The company operates an equity settled share based payment plan for certain employees using the Enterprise Management Incentive (EMI) scheme framework.

 

Each employee in the scheme has been awarded an option to acquire ordinary shares in the company over a vesting period. The conditions of the agreement require the employee to remain employed by the company throughout this period. The maximum term of the options is 10 years from the grant date.

 

At the start of the period, options over 10,037,286 shares were outstanding. During the period, 5,518,489 options were granted, 767,493 options were forfeited/cancelled and 878,296 options were exercised, leaving a total of 13,909,986 options outstanding at the balance sheet date. 9,187,172 of these options were exercisable at the balance sheet date. The weighted average exercise price for each event was £0.017.

 

The underlying shares were subject to a valuation agreement process with HMRC. Prior to March 2023 the company had agreed a nominal value of the shares with HMRC of £0.001. For options granted in year, the company agreed a market value of £0.05 and £0.07 with HMRC.

 

The company also operates two non-tax advantaged share based payment arrangements for non-employees and employees who do not qualify for the EMI share option scheme. Each individual has been awarded an option to acquire ordinary shares in the company over a vesting period. The conditions of the option agreements require the individuals to continue providing services to the company throughout this period. The maximum term of the options is 10 years from the grant date.

 

At the start of the period, options over 975,203 options were outstanding across both schemes. During the period, no further options were granted, no options were forfeited/cancelled and no options were exercised, leaving a total of 975,203 options outstanding at the balance sheet date. All 975,203 of these options were exercisable at the balance sheet date. The weighted average exercise price for each event was £0.001.

 

The fair value of the services provided by these individuals cannot be estimated reliably, so the fair value has been measured with reference to the fair value of the underlying shares. These shares were not subject to a valuation agreement process with HMRC, however due to the proximity of the option grant dates to recent share issues the directors consider the market value of the share options to be £0.001 - the par value of the shares.

                        

25
Warrants reserve

The company agreed to issue up to 1,082,501 warrants to a third party as part of a deal to take £7.5m of venture debt. As such, the company has recognised a provision amounting to £142,890, based on 793,834 warrants at a fair value of £0.18.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 39 -
26
Acquisition of a business

On 13 September 2023, the Company acquired 100% of the ordinary share capital of BeWarm Group Limited, BeWarm Limited, and Home Infrastructure Technology Limited (“BeWarm”) for a total consideration of £1,574,399 consisting of cash and share based consideration all paid upfront. BeWarm has operated as a specialist provider in boiler leases, having developed a bespoke lending platform allowing it to enter the green leasing space.

 

The intangibles of £750,000 is attributable to the bespoke leasing software developed by BeWarm which will be used for the future scaling of the business as well as introduction of new products. Management has estimated the useful life of this intangible to be 5 years.

 

The goodwill of £1,548,476 arising from the acquisition is attributable to the expertise and experience of the workforce and economies of scale that will arise from combining the operations into the group. Management has estimated the useful life of this goodwill to be 10 years.

 

The following amounts of assets, liabilities, and contingent liabilities were recognised at the acquisition date:

 

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
-
750,000
750,000
Property, plant and equipment
1,293,987
-
1,293,987
Trade and other receivables
268,584
-
268,584
Cash and cash equivalents
145,534
-
145,534
Loans
(1,702,341)
-
(1,702,341)
Trade and other payables
(329,365)
-
(329,365)
Deferred tax
(46,871)
(187,500)
(234,371)
Total identifiable net assets
(370,472)
562,500
192,028
Goodwill
1,548,476
Total consideration
1,740,504
The consideration was satisfied by:
£
Cash and Issue of shares
1,574,399
Directly attributable fees
166,105
1,740,504
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
472,227
Loss after tax
(477,122)
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
26
Acquisition of a business
(Continued)
- 40 -

On 28 February 2024, the Company, through its wholly owned subsidiary Hometree Group Limited, acquired 100% of the ordinary share capital of Geowarmth Heat Pumps Limited (“Geowarmth”) for a total consideration of £1,384,000, with £430,000 paid upfront, and £953,000 due in deferred consideration. Geowarmth has operated as a heat pump and solar installer since 2007 and brings specialist installation experience into the Group, increasing the geographic footprint of the Group to the North-West of England. The goodwill of £1,118,240 arising from the acquisition is attributable to the expertise and experience of the workforce and economies of scale that will arise from combining the operations into the group. Management has estimated the useful life of this goodwill to be 10 years.

 

The following amounts of assets, liabilities, and contingent liabilities were recognised at the acquisition date:

 

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
19,674
-
19,674
Trade and other receivables
266,574
-
266,574
Cash and cash equivalents
241,617
-
241,617
Lease liabilities
(8,261)
-
(8,261)
Trade and other payables
(139,790)
-
(139,790)
Deferred tax
(569)
-
(569)
Total identifiable net assets
379,245
-
379,245
Goodwill
1,118,240
Total consideration
1,497,485
The consideration was satisfied by:
£
Cash
430,668
Deferred consideration <1 year
410,748
Deferred consideration >1 year
542,698
Directly attributable fees
113,371
1,497,485
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
79,374
Loss after tax
(17,203)
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 41 -
27
Growth shares

The company issued 1,135,526 growth shares in September 2023. These were issued at nominal value and are due to vest over a 48 month period, subject to share price hurdles.

 

The company has recognised a cost of £11,284 in respect of these growth shares.

28
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
£
£
£
£
Within one year
241,091
105,459
122,774
45,459
Between two and five years
200,945
60,000
56,722
-
In over five years
57,500
-
-
-
499,536
165,459
179,496
45,459
Lessor

The Group provides leases ("Heat Plan" and "Solar Plan") for customers ranging from 3 - 20 years in duration. These leases are classified and accounted for as operating leases in these accounts. The lease payments are collected on a monthly basis and increase in accordance with RPI, or 2.5% depending on the lease product.

At the reporting end date the group had contracted with customers for the following minimum lease payments:

Group
Company
2024
2023
2024
2023
£
£
£
£
Between one and five years
3,470,860
-
-
-
In over five years
5,516,787
-
-
-
8,987,647
-
-
-
HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 42 -
29
Events after the reporting date

Acquisitions:

 

 

These acquisitions enhance the Group's ability to provide these services to customers in these areas. The Group paid an aggregate consideration of £12.8m, with further deferred consideration due in each case in subsequent periods post-acquisition. The exercise to identify the fair value of the assets acquired has not yet been completed.

 

Capital and financing:

 

30
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
1,200,256
837,379

Under FRS102 section 33.6, key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director of the entity.

 

Key management totalled 8 (2023: 5).

Other information

The company has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

 

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

31
Controlling party

The company was controlled throughout the period by the directors acting in concert.

HOMETREE MARKETPLACE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 43 -
32
Cash absorbed by group operations
2024
2023
£
£
Loss for the year after tax
(7,578,918)
(7,686,904)
Adjustments for:
Taxation (credited)/charged
(45,071)
1,312
Finance costs
129,251
227,588
Interest receivable
(686,842)
(266,096)
(Gain)/loss on disposal of tangible fixed assets
29,680
872
(Gain)/loss on disposal of intangible assets
-
86,076
Amortisation and impairment of intangible assets
782,880
655,029
Depreciation and impairment of tangible fixed assets
136,302
60,995
Equity settled share based payments
31,872
-
Growth share-based payment charge
11,284
-
Warrants provision movement
142,890
-
Movements in working capital:
Increase in stocks
(16,965)
-
(Increase)/decrease in debtors
(1,860,521)
1,758,993
Increase/(decrease) in creditors
401,158
(1,281,363)
Cash absorbed by operations
(8,523,000)
(6,443,498)
33
Analysis of changes in net funds - group
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
25,546,642
(7,428,100)
-
18,118,542
Borrowings excluding overdrafts
(1,150,000)
(7,255,397)
-
(8,405,397)
Obligations under finance leases
-
-
(8,025)
(8,025)
24,396,642
(14,683,497)
(8,025)
9,705,120
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