CFO Financial Review
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.
WHISTL REALLY UNDERSTAND OUR BUSINESS AND PRIORITIES AND HELP US ACHIEVE THEM.
CLAIRE SCHWEIDLER KIRKLEES COUNCIL
Manoj Parmar CFO
10 March 2017
Strategic Report | Whistl Annual Report 2016
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