RE: 2023 Annual Report & Accounts14 Feb 2024 19:57
Stokey you cant pay dividend unless you have accumulated positive reserves. In effect have to reverse all historic losses before this can happen. End of june 23 the deficit was 167m so need to make this amount of statutory profit before a penny can be distributed as dividend.
Lottie to an extent historic losses will help although can only offset first 5m of profits with brought forward losses, 50% thereafter so more than 5m taxable profit you still pay tax. In addition significant restiction on interest deductibility when computing taxable income. Can only offset interest expense to the extent of 30%ebitda. Therefore can make a statutory loss but still pay tax. For this reason i would expect tax losses brought forward to be nuch less than the sum of historic statutory losses. 25% tax rate is a stinger.