2022 £m
2021 £m
Change £m
Cash Flow
Underlying EBITDA 1
7.2
15.6 (8.4)
Change in net working capital
(8.0) (0.8) (1.0) (1.8) (0.2) (4.0) (0.1) (1.2) (7.3) (1.0)
0.8
(8.8)
Cash Flow from Operating activities before exceptional items
16.4 (17.2)
Exceptional Costs
(4.0)
3.0
Net Cash Flow from Operating activities
12.4 (14.2)
Tax (paid)/received
(0.1)
(0.1)
Net Investment in fixed assets Acquisitions (net of cash acquired)
(13.6) (5.7) (2.5) (9.5)
9.6 5.6
Other (including payment of deferred consideration)
1.3
Operating Free Cash Flow
2.2
Net interest paid Loan repayments
(1.0)
-
- -
(17.8)
17.8
Repayment of obligations under finance leases Movement in cash (decrease)/ increase
(0.1)
0.1
(8.3) (28.4)
20.1
Opening Cash Closing Cash
40.8 69.2 (28.4)
32.5 40.8
(8.3)
Financial Position & Liquidity Cash reduced by £8.3m to £32.5m due to the remaining unwinding of the Government Covid-19 VAT Payment Deferral Scheme, other movements in net working capital, investments in fixed assets as well as settlement of all remaining liabilities in relation to historic acquisitions. These outflows were partially offset by cash inflows from underlying trading. Net assets and shareholder’s equity reduced by £10.1m due mainly to the non-cash amortisation of goodwill of £10.6m. Whistl’s policy is to amortise goodwill over 10 years and is in accordance with the FRS102 accounting standard. In addition to cash at hand, Whistl’s liquidity is further supported by our fully committed irrevocable £75m funding line provided by HSBC which is divided into a credit and working capital facility and a supplier guarantee facility. Whistl’s policy is to maintain a high level of liquidity headroom which together with our strong balance sheet, cashflow and credit rating gives us financial flexibility to invest and grow. The net book value of tangible fixed assets and software reduced to £23.2m (2021: £24.0m) due to depreciation charges and disposals exceeding capex investment. Debtors increased by £9.9m (11.6%) to £94.9m (2021: £85.0m) despite the fall in full year revenue from £823.2m to £770.1m due to monthly phasing of
trading activity, a change in product mix as well as an average increase in debtor days. Debtor days in the Downstream Access and Parcels division increased from 27.9 days to 28.8 days between 2021 and 2022. Creditors due in less than one year decreased by £3.6m to £165.6m (2021: £169.2m). The remaining unwinding of Whistl’s participation in the Coronavirus VAT Payment Deferral Scheme partially offset a £2.0m increase in trade creditors, accruals and deferred income which increased in line with trade debtors and accrued income due to the monthly phasing of trading activity and a change in product mix. Creditors due in more than one year increased by £3.8m to £8.9m (2021: £5.1m) due to rent free period accruals on warehouses and hubs. Provision for liabilities of £1.3m (2021: £1.2m) relate to onerous leases for unutilised office accommodation. Cash flow Cash Flow from Operating activities before exceptional items was (£0.8m) in 2022 (2021: £16.4m). The decline was caused by a £8.4m reduction in EBITDA 1 and £8.8m increase in Net Working Capital. Net Working Capital cash outflow included an increase in Trade Debtors of £7.2m, partially offset by an increase of Trade Creditors of £2.3m.
The change in Net Working Capital also included £3.3m cash outflow due to repayments under the HMRC Covid VAT Deferral Payment Scheme (2021: £22.7m) which were included within Taxation and Social Security liabilities on the balance sheet. All remaining deferred VAT was paid to HMRC at the start of 2022 in accordance with the scheme rules. The net decrease in cash of £8.3m was after deducting £1.0m in relation to exceptional costs, £4.0m in relation to purchase of fixed assets and £1.1m in relation to deferred considerations on historic acquisitions. Credit and working capital management The Board of Management closely monitors credit and liquidity risks and is continually looking for improvements to working capital management. Days of trading in accounts receivable and accrued income, a key measure of debtor performance in Downstream Access and Parcels, increased from 27.9 to 28.8 days between 2021 and 2022. 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.
1 Underlying EBITDA represents operating profit before interest, tax and exceptional items adjusted for the depreciation and amortisation charge for the year.
Whistl Annual Report 2022
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