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Effective working capital management is essential to
the Group due to the high pass-through of third party
distribution costs and is closely monitored by the Board of
Management to manage credit exposure and liquidity risks.
A major component of working capital relates to trade
debtors. Debt turn, our key measure of cash collection,
reduced from 31.3 days to 31.1 days from 2015 to 2016.
Overdue debtors reduced from 16.5% to 12.7% of the ledger.
We are continuously looking to improve our working capital
management and this will remain a feature of the business
going forward.
Provisions for liabilities of £1.4m (2015: £2.6m) relate to
residual costs from the termination of certain operating leases.
Cash flow from operating activities was £12.7m (2015:
(£0.4m)) and has improved in comparison to 2015 due to
the closure of the final mile delivery activities in 2015 and
cash generation from profitable trading in 2016.
Corporation tax paid by the Group amounted to £0.1m as
profits generated were offset against losses carried forward
from prior years and in 2015, the Group received tax
refunds of £2.5m.
Net investments in fixed assets of £3.6m relates to fixed
asset additions.
Dividend
The Board of Management did not recommend the
payment of a dividend.
Going concern
After reviewing the Group’s forecasts and projections, the
directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for
the foreseeable future. The Group and company therefore
continues to adopt the going concern basis in preparing its
consolidated financial statements.
Key performance indicators
The directors are reliant on specific key performance
indicators such as, statistics related to market share, sales
growth and profitability to provide important guidance
as to likely activity and performance within the business.
The key performance indicators are described within this
Strategic Report.
Manoj Parmar
CFO
10 March 2017
Strategic Report
|
Whistl Annual Report 2016
WHISTL REALLY
UNDERSTAND OUR
BUSINESS AND
PRIORITIES AND HELP
US ACHIEVE THEM.
CLAIRE SCHWEIDLER
KIRKLEES COUNCIL
CFO Financial Review