Introduction
The director presents the strategic report for the year ended 31 December 2025.
Valley Wholesale Carpets Limited is a distributor of floor coverings and associated products to independent flooring retailers and contractors.
Trading performance
Given the unprecedented changes and restructuring within the floorcovering market, along with the subdued trading conditions experienced throughout 2024 and continuing into 2025, the Director is satisfied that the Company’s revenue has increased to £40,943,377 for the year to 31 December 2025 from £40,365,689 in 31 December 2024 reflecting an encouraging improvement.
Overall, the Company has seen a slight reduction in profitability to £1,340,677 at 31 December 2025 from a profit after tax of £1,733,646 in 31 December 2024, largely as a result of cost increases and the strategic investment in the Newport Distribution Centre and the newly acquired Ivybridge site, both of which are still in their early stages and therefore not yet delivering a meaningful contribution to the business yet.
Gross profit % has increased from 32.6% in 2024 to 33.2% driven by improved supplier pricing and strengthened sales initiatives, including the introduction of the first point‑of‑sale stands into retailers and the launch of new product ranges.
Despite a challenging market backdrop for the wider flooring sector and UK economy, Valley has continued to demonstrate strong resilience and adaptability. Although overall profitability in 2025 was slightly lower year on year, the business remains significantly ahead of the declines seen across the sector. As a well established and mature business, Valley’s relative outperformance showcases its solid operational foundations and the proactive strategic measures implemented to support sustainable future growth.
A key driver of Valley's resilience has been the continued emphasis on geographic expansion and product development.
Ongoing investment in Erith, the extension of the Derby Distribution Centre, and the successful opening of the previously unused Newport Distribution Centre in 2024 have expanded the Company’s reach into new markets and strengthened regional service levels. This positive momentum continued into 2025 with the acquisition of a new £1.2 million freehold logistics centre in Ivybridge, Plymouth. This strategic addition further enhances the Company’s distribution infrastructure and supports long‑term regional growth.
Valley has also taken significant steps to diversify and strengthen its product portfolio. Historically focused on residential carpet and domestic vinyl, the business delivered major product development initiatives in 2024, culminating in the launch of an expanded range in early 2025. This includes new additions of laminate flooring ranges, broadening Valley’s offering and creating new revenue opportunities.
In 2026, the Company will introduce Luxury Vinyl Tiles (LVT), further expanding Valley’s product portfolio and diversifying its market offering.
Supporting this expansion, the business has launched its first dedicated in store display stands, which has rolled out across key retail locations. This marks an important milestone in raising brand visibility, enhancing customer experience, and increasing engagement at the point of sale.
Valley remains confident in its long-term outlook. Continued investment in new products, infrastructure, and in point of sale capabilities positions the business to navigate current market pressures effectively, while laying strong foundations for sustained growth. This strategic focus ensures Valley is well placed to capitalise on emerging opportunities as the market begins to recover.
The Director considers the following as key performance indicators (KPls) for the Company: revenue and operating profit. The Director reviews these on a monthly basis. Sales and orders are also monitored against budget on a daily basis by the executive management team for the wider Likewise Group.
Key performance indicators were as follows:
The Director continually assesses and monitors the key risks in the business. Below sets out the principal risks and uncertainties that could have a material impact on the Company's performance and prospects and the mitigating activities designed to reduce the impact or likelihood of a major risk materialising. The Director recognises, however, that it will not always be possible to eliminate risk.
The Company’s operations may be disrupted by events such as a major fire or the failure of key suppliers. Such incidents could result in the temporary cessation of activity or disruption to facilities, limiting operational capacity and the ability to deliver products to customers, which could adversely affect financial performance.
The Director mitigates the risk of supplier failure by maintaining a broad and diversified supplier base, with established alternative sources, as well as holding appropriate levels of stock.
In the event of disruption, the Company can utilise undisrupted sites within Valley Wholesale Carpets and the wider group to support stock availability and maintain operations. The investment in the Derby cutting table provides additional cutting capacity and enhances resilience across both the Company and the wider Group should this be required.
The Company also maintains insurance to cover business interruption and property damage arising from such events.
As a distribution business, exposure to changes in product preferences and market trends is limited to stock held at any given time. Product range changes are typically implemented when stock levels are low, and any required discounting is incorporated into the overall business model.
Cyber Securities & IT systems
The Company recognises that the risk of cyber‑attacks, data breaches, and other forms of unauthorised digital intrusion continues to increase across the wider business environment. A successful cyber‑attack could disrupt operations, compromise sensitive commercial or customer information, and lead to financial loss or reputational damage.
To mitigate these risks, the Company employs a range of technical and organisational measures, including robust IT security controls, system monitoring and regular data back‑ups. The Company also maintains disaster recovery arrangements designed to ensure operational resilience and rapid restoration of systems in the event of a cyber‑security incident. Further enhancement in 2025 include migration of the Company's IT infrastructure to a cloud serve to provide improved cyber resilience and enabled the latest security measure.
Economic Conditions
The Company is dependent on the level of activity in various markets and is therefore susceptible to any changes in economic conditions. Lower levels of activity in key markets in which the Company operates could reduce sales volumes adversely, thus affecting the Company’s financial results. The Company monitors trends in the key industries and markets it operates in. As a distribution and selling business the Company is well placed to react to changes relatively quickly and implement changes to the business model and practices.
Fluctuations in Input Prices
Adverse fluctuations in raw material and commodity prices, including global oil and fuel costs, could affect the profitability of the Company. Increases in oil prices can have a direct and indirect impact on the cost of goods, given their influence on manufacturing, transportation, and logistics costs. While such increases often affect the industry as a whole and can typically be passed on to customers through corresponding sales price adjustments, there may be timing differences that temporarily affect margins.
In addition, increases in freight and shipping costs, often driven by changes in global fuel and oil markets can raise the cost of goods obtained from overseas suppliers. Short‑term increases are mitigated through maintaining sufficient stock levels, while sustained cost rises are reflected in future price adjustments passed on to customers.
A director of a company must act in the way he/she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
The likely consequences of any decision in the long term
The interests of the company’s employees
The need to foster the company’s business relationships with suppliers, customers and others
The impact of the company’s operations on the community and the environment
The desirability of the company maintaining a reputation for high standards of business conduct, and
The need to act fairly as between members of the company.
The Director considers it crucial that the Company maintains a reputation for the highest standards of business conduct and are responsible for setting, reviewing and upholding the culture, values, standards, ethics and reputation of the Company to ensure obligations to key stakeholders are met. By using the core values of the business, we seek to sustain and develop strong, stable, profitable partnerships with all our customers, employees and suppliers by providing outstanding products.
During the year ended 31 December 2025, the Director considers that he has at all times acted in a way that would most likely promote the success of the Company and for the benefit of its members as a whole, and in making those decisions have had particular regard the points outlined above.
The engagement with key stakeholders is summarised as follows:
Our people
Our employees foster strong relationships with both customers and suppliers and are integral in delivering the Group’s strategy. As such the Company is committed to attracting talent, developing individuals, and ensuring employees are rewarded for their contribution to the growth of the business. The Board ensure that information and decisions of interest or concern to employees are shared at all levels.
The Board is committed to improving the Company's focus on diversity and inclusion to ensure all employees are treated fairly. Furthermore, the Company is committed to recruiting, training and rewarding individuals based on merit and performance whilst providing opportunities for all our employees.
Our shareholders
The shareholders of the wider Group have helped us build the business to where we are today. As we continue on our growth trajectory the Group ensures shareholders are regularly updated on the latest developments. Announcements are shared on the parent company’s investor website.
Should shareholders of the wider Group have further questions, the parent company AGM promotes the opportunity for questions to be put to the Board or alternatively they are welcome to contact the Board via the investor website to raise queries important to them.
Business relationships
Relationships with our customers are at the heart of what we do. The Company is committed to developing lasting relationships by providing great products, service and value for our customers.
With the help of our employees, customers have been visited regularly to drive the quality of our service offering whilst also providing the opportunity to obtain timely feedback on products, service and any changes in consumer trends that help us develop our business to continue to meet their expectations.
Strong relationships have also been developed with suppliers which continue to allow us to exceed customer expectations. Regular dialogue with suppliers provides mutually beneficial feedback on products whilst exploring new ranges that may be of interest to our customers.
Community and environment
We try to be a positive influence in the life of the communities in which we operate and strive to minimise our impact on the environment as much as possible.
This report was approved by the board and signed on its behalf.
The director presents his annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 12.
Profit for the year has been included in these accounts for 31 December 2025 is £1,340,677 (2024: Profit of £1,733,646).
Ordinary dividends were paid amounting to £476,323. The director does not recommend payment of a final dividend.
The Director's who held office during the year and up to the date of signature of the financial statements were as follows:
As Valley Wholesale Carpets Limited is a large company and has consumed more than 40,000 kWh of energy within the UK during the period, it is required to disclose the annual quantity of greenhouse gas emissions, energy consumption and energy efficiency actions within the Directors report.
Valley Wholesale Carpets Limited is a subsidiary of Valley Wholesale Carpets (2004) Limited whom is a subsidiary of Likewise Group PLC, the ultimate parent. Likewise Group PLC is required to comply with the Streamlined Energy and Carbon Reporting (SECR) framework. As such, the energy consumption of Valley Wholesale Carpets Limited has been consolidated within the group-level energy and carbon disclosure provided by Likewise Group PLC.
The consolidated financial statements of Likewise Group PLC are available to the public and may be obtained from Companies House, Cardiff CF14 3UZ.
The key risks the company monitors are interest rate risk and credit risk.
The Director reviews and sets policies for managing these risks. These are summarised below:
Interest rate risk
The Company finances its operations primarily through retained profits, resulting in a limited exposure to interest rate volatility. Interest earned on cash and cash equivalents, as well as any interest incurred on short‑term trade loans arranged by the Company, is reviewed periodically to ensure rates remain competitive and appropriate. The Company continues to monitor market conditions to assess any potential impact on future financing requirements.
Credit risk
The Company is exposed to credit risk arising from its trading activities with customers. To mitigate this risk, the creditworthiness of significant customers is monitored on a regular basis, and credit limits are set and reviewed in line with the Company’s credit control procedures.
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Valley Wholesale Carpets Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 director 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 director is 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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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.
Our assessment focused on key laws and regulations the entity has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation
We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:
we obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity complied with that framework, including a review of legal and professional nominal codes;
we made enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud;
we obtained an understanding of the entity’s policies and procedures and how the entity has complied with these;
we obtained an understanding of the entity’s risk assessment process, including the risk of fraud;
we designed our audit procedures to respond to our risk assessment; and
we performed audit testing over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
we agreed financial statement disclosures to underlying supporting documentation;
we read the minutes of meetings of those charged with governance;
we enquired of management as to actual and potential litigation and claims; and
we reviewed correspondence with relevant and associated parties.
Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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.
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.
The notes on pages 15 to 28 form part of these financial statements.
The notes on pages 15 to 28 form part of these financial statements.
The notes on pages 15 to 28 form part of these financial statements.
Valley Wholesale Carpets Limited is a private company limited by shares incorporated in England and Wales. The registered company number is 01652883 and the address of the registered office and principal place of business is C/O Likewise Group PLC, Unit 4 Radial Park, Radial Way, Birmingham Business Park, Solihull, Birmingham, B37 7WN.
The principal activity of the company continued to be that of the wholesale distribution of floorcoverings and associated products.
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 £.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
inclusion of an explicit and unreserved statement of compliance with IFRS;
presentation of a statement of cash flows and related notes;
disclosure of the objectives, policies and processes for managing capital;
disclosure of key management personnel compensation;
disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
the effect of financial instruments on the statement of comprehensive income;
comparative period reconciliations for the number of shares outstanding and the carrying amounts of property, plant and equipment, intangible assets, investment property and biological assets;
disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;
a reconciliation of the number and weighted average exercise prices of share options, how the fair value of share-based payments was determined and their effect on profit or loss and the financial position;
comparative narrative information;
related party disclosures for transactions with the parent or wholly owned members of the group.
Where required, equivalent disclosures are given in the group accounts of Likewise Group PLC. The group accounts of Likewise Group PLC are available to the public and can be obtained as set out in note 24.
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:
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.
Individual freehold and long-leasehold properties are carried at fair value, determined at the date of revaluation, less any subsequent accumulated depreciation and impairment losses. The Company’s freehold properties are revalued by independent third parties on a three-yearly cycle, along with other properties within the group. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from the fair value at the reporting date.
Third parties engaged are independent professional valuers with appropriate qualifications and experience. In the intervening years between revaluations, management conducts an internal review of property values, referencing market and industry data, to identify any material changes in fair value. Should significant fluctuations in the market be identified, management will consider whether a fair value adjustment is necessary to reflect the most accurate and up-to-date values of the properties.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. 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.
Once an impairment loss has been recognised, the carrying amount of the asset (or cash-generating unit) is not increased in subsequent periods, even if the recoverable amount of the asset subsequently increases. Reversals of previously recognised impairment losses are not permitted and are not recognised in profit or loss or as revaluation increases.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
The tax expense represents the sum of the tax currently payable and deferred tax.
The fair value of equity instruments in the parent company Likewise Group Plc, granted to its employees is charged to the Statement of Comprehensive Income with a corresponding increase in equity, within the profit and loss account, as a capital contribution from the parent company.
The fair value of share options is measured at grant date using the Black-Scholes pricing model and spread over the period during which the employee becomes unconditionally entitled to the award. The charge is adjusted to reflect the number of shares or options that vest.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
In the application of the company’s accounting policies, the director is 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
The Company carries it property at fair value, with changes in fair value recognised in Other Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the Income Statement. The Company engaged independent valuation specialists to determine fair value. Significant changes in the commercial property market may impact the valuation of the Company's property - see note 11 for further information.
The fees payable to the Company's auditor for the audit of the financial statements were borne in the current and prior period by the ultimate parent company, Likewise Group Plc.
The average monthly number of persons employed by the company during the year was:
Their aggregate remuneration comprised:
Included in those figures above is a share based payment credit of (£7,384) in the year (31 December 2024 - share based payment charge - £20,363). See note 19 for more details.
The charge for the year can be reconciled to the profit per the profit and loss account as follows:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
Tangible fixed assets includes right-of-use assets, as follows:
Included in freehold land and buildings is land valued at £1,909,479 (2024 - £1,722,179). Included in long-term leasehold land and buildings is land valued at £3,844,728 (2024 - £3,844,728).
During the financial year, a new freehold property was purchased in Plymouth, further strengthening the footprint of Valley and the Group. Prior to completion, the property was independently valued by Chartered Surveyors Cooke & Arkwright. Based on the valuation report, together with an uplift derived from available market data and consideration of improvements made to the property during the year, the directors believe that the net book value of the property as at the balance sheet date is reflective of its market value.
Management have also undertaken an assessment of the valuation of the long-leasehold property and the remaining freehold properties. Using prior independent valuations and current external market data, management believe that the fair value of these properties do not materially differ from the values recognised in the financial statements.
Prior valuations have been performed by Cooke & Arkwright, BNP Paribas Real Estate and Gerald Eve LLP, all of whom are chartered surveyors and property consultants independent from the company, holding appropriate qualifications and recent experience in the fair value measurement of properties in the relevant locations. The valuation reports were prepared in accordance with the Royal Institution of Chartered Surveyors (“RICS”) Valuation – Global Standards (incorporating the IVSC International Valuation Standards) issued in November 2021 and effective from 31 January 2022, together with the UK National Supplement effective from 14 January 2019, collectively referred to as the “Red Book”.
The amount of stock impaired during the period was £97,187 (31 December 2024 - £53,075).
Trade debtors are stated after a charge to the expected credit loss provision recognised within the profit and loss account of £(652) (31 December 2024 - £19,611).
The £10,173,863 (£10,027,115 - 2024) included within amounts owed by group undertakings are balances that are unsecured, interest‑free and have no fixed date of repayment. These amounts are repayable on demand; however, repayment is considered unlikely to occur within the next twelve months.
Included within loans and borrowings is a short‑term trade loan secured by a fixed and floating charge over the company’s assets. This loan was fully repaid subsequent to the year end.
Lease liabilities relate to assets acquired under hire purchase arrangements. During the year, the outstanding liability was fully settled and legal ownership of the asset transferred to the company. At the balance sheet date, there are no remaining lease liabilities or outstanding commitments.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Equity settled share option plan
Likewise Group Plc, the ultimate parent company, has a Savings-Related Share Option Plan ("SAYE") for all employees of the Group. In accordance with the terms of the plan, as approved by shareholders, employees of the Group may be granted options to purchase ordinary shares in Likewise Group Plc. There are no performance criteria for the SAYE and options are issued to participants in accordance with HMRC rules. Vesting is conditional on continuity of service.
As at 31 December 2024, 954,612 options remained active. During the year, 170,417 new options were issued and 243,026 options lapsed on employees leaving the Company. No options were exercised in the year. The contractual life of the remaining 882,003 options is approximately 2 years.
In addition, as at 31 December 2024, 1,500,000 options remained active which were granted to management under a Company Share Option Plan ("CSOP"). During the year no new options were issued and 300,000 options lapsed on employees leaving the Group. No options were exercised during the year. The contractual life of the remaining 1,200,000 CSOP options is approximately 0.25 years.
Share options are valued using the Black-Scholes model. The inputs to the model are the option price and share price at date of grant, expected volatility (20 / 44%/ 45% dependant on the scheme), expected dividend rate (0% / 1.56% dependant on the scheme) and risk-free rate of return (4-5%). The model has been adjusted for expected behavioral considerations.
The resulting fair value is expensed through the Statement of Comprehensive Income over the vesting period of each scheme. The total charge/(credit) recognised for the year was:
This represents the nominal value of shares that have been issued.
Revaluation reserve comprises all current and prior period gains on property held at valuation.
This includes all current and prior period gains and losses and is a distributable reserve.
The Company has taken advantage of the exemption to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
The ultimate parent company is Likewise Group PLC, a company incorporated in England, who produce consolidated financial statements for the group. The registered office of Likewise Group PLC is Unit 4, Radial Way, Birmingham Business Park, Solihull, Birmingham, B37 7WN.
Copies of the accounts can be obtained from Companies House, Cardiff, CF14 3UZ.