Notes to the Consolidated Financial Statements for the year ended 31 December 2022 (continued)
4 Critical accounting judgements and estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstance. Going Concern The financial statements have been prepared on the going concern basis, which assumes the Group will have sufficient funds available to enable it to continue to trade for the foreseeable future. Please refer to note 3 under basis of preparation on page 47 for more details on the judgements involved. Provisions Provision is made for impairment of fixed assets. These provisions require management’s best estimate of the costs that will be incurred based on legislative and contractual requirements. In addition, the timing of the cash flows and the discount rates used to establish net present value of the obligations require management’s judgement. The adequacy of provisions is reviewed monthly. Goodwill The Group considers whether intangible assets and/or goodwill are impaired. Where an indication of impairment is identified the estimation of recoverable values is required. This requires estimation of the future cashflows and also selection of appropriate discount rates in order to calculate the net present value of those cashflows. Impairment of trade debtors The Group makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 17 for the net carrying amount of the debtors and the associated impairment provision. Deferred Tax Management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with an assessment of the net effect of future tax planning strategies. 5 Turnover The Group’s turnover is derived from the provision of delivery and fulfilment services within the UK. The turnover and profit before tax are attributable to the principal activity of the company. An analysis of turnover is given below:
2022 £’000
2021 £’000
648,499 78,894 42,750 770,143
Mail, Parcels and International (letters and parcels of various sizes)
700,484 80,280 42,480 823,244
Fulfilment
E-Commerce Marketing
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Whistl Annual Report 2022
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