LOVECRAFTS GROUP LIMITED

• ⚠

  Annual accounts overdue

  Due 2026-03-31.

• ⚠

  Material uncertainty over going concern

  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.

• ◆

  1 PSC ceased in last 24 months

  Significant control changed hands — see the Ownership section.

Values shown as filed in the company's annual accounts. — indicates the figure wasn't present under that line item in that period. About these numbers

• Turnover

  -20.2%

  £47,747,587 → £38,083,735

• Cash

  -78.2%

  £1,948,097 → £424,102

• Net assets

  -138.8%

  -£13,765,121 → -£32,864,665

• Employees

  -21.5%

  242 → 190

• Operating profit

  +14.6%

  -£8,630,457 → -£7,368,021

• Profit before tax

  -50%

  -£13,905,805 → -£20,857,978

• Wages

  -20.9%

  £9,706,886 → £7,681,835

Each % is (latest − prior) ÷ |prior| for the line item as filed. The comparison is only shown when the latest and prior accounts cover broadly equal-length periods — short or long stubs (typical around incorporation or a year-end change) are suppressed rather than misrepresented. Lines a company doesn't report are omitted. About these numbers

Margins divide P&L lines by turnover. Gearing is liabilities over total assets. Current ratio is current assets over creditors falling due within one year. Interest cover is operating profit over absolute finance costs. Sector-distribution context coming next.

1. LOVECRAFTS GROUP LIMITED 2019-06-17 → present
2. LOVECRAFTS COLLECTIVE LIMITED 2015-02-09 → 2019-06-17
3. BROADMARGINS LIMITED 2010-03-17 → 2015-02-09

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.”

Group structure

1. LOVECRAFTS GROUP LIMITED · parent
   1. Lovecrafts Makers Limited 100% · United Kingdom · Retail
   2. Lovecrafts Inc 100% · USA · Retail
   3. Valley Fibers Corporation 100% · USA · Retail
   4. Lovecrafts Ukraine LLC 100% · Ukraine · Business services
   5. Debbie Bliss Limited 100% · 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 and subsidiary information is drawn from the narrative of the latest annual accounts. About these numbers

Filings

2

last 12 months

Capital events

2

last 24 months

Officers appointed

0

last 12 months

Officers resigned

0

last 12 months

Direct counts from the register. No score, no rating — see the Filing timeline for the underlying events.