LOVECRAFTS GROUP LIMITED

Company number

07193527

Status

Active

Incorporation

2010-03-17

Last accounts made up

2024-03-31

Account category

GROUP

Primary SIC

47910

Hubs

UK Consumer / DTC

Accounting basis

FRS 102

Reporting scope

Consolidated (group)

Auditor

HaysMac LLP

Audit opinion

Unqualified (clean)

Going concern

Material uncertainty disclosed

“In summary, the directors have concluded that the requirement for continued funding from MSQ and other external sources as a path to profitability, represents a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern and to realise its assets and discharge its liabilities in the normal course of business. The board is however confident that there is a reasonable probability of funding being secured, and therefore has a reasonable expectation that the Group will have adequate resources to continue in operational existence for the period at least twelve months from the date of approval of this report. On this basis, the directors continue to adopt the going concern basis in preparing these financial statements. Accordingly, these financial statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would result if the Group were unable to continue as a going concern.”

Subsidiaries

• Lovecrafts Makers Limited · 100% held · United Kingdom · Retail
• Lovecrafts Inc · 100% held · USA · Retail
• Valley Fibers Corporation · 100% held · USA · Retail
• Lovecrafts Ukraine LLC · 100% held · Ukraine · Business services
• Debbie Bliss Limited · 100% held · United Kingdom · Dormant

Significant events

• “After the financial year end, a growth capital facility of £1,000,000 was granted by Triplepoint LLC in four equal tranches of £250,000 each. Of this, two tranches amounting to £500,000 were made available post year end and the remaining tranches were to be made available subject to approval from Triple Point LLC. Furthermore, the growth capital facility was extended by an additional £200,000. The repayment date of all facilities with Triplepoint Capital LLC was extended from 31 May 2024 to 31 December 2024. These funding packages were to finance a sale of the business.”
• “On 20 September 2024, Lovecrafts Group Limited was acquired by Creative Fiber Holdings Inc., an entity incorporated in United States of America. As of this date, Creative Fiber Holdings Inc. became the ultimate parent undertaking of the group.”
• “As consequence of the acquisition, the following updates were made to the Group: Growth capital, revolving inventory finance and acquisition loan facilities held with Triplepoint Capital LLC were written off and restated to a value of $12,100,000. The warrants associated with these facilities were cancelled. The repayment of this debt is subject to EBITDA thresholds. The deferred consideration in relation to the amounts due from the acquisition of Valley Fibers Corporation in prior years was written down to a value equivalent to $300,000. The unsecured deeply discounted convertible loan notes and unsecured deep discounted optionally convertible loan notes were written off. All share options issued to employees of the group were cancelled. Share capital in Lovecrafts Group Limited was consolidated into a single share class.”
• “The company is now being supported by Missouri Star Quilt (MSQ) a company related to, Creative Fiber Holdings Inc, by virtue of common ownership. Under new ownership, further cost savings have been made and £3,500,000 of funding support has been provided to Lovecrafts Group Ltd by MSQ since the acquisition date.”

Auditor / going-concern / subsidiary information is extracted from the PDF version of the latest annual accounts and is not tagged in iXBRL. About these numbers