REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Period 1 April 2022 to 31 December 2022 |
for |
Ox Products Group UK Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Period 1 April 2022 to 31 December 2022 |
for |
Ox Products Group UK Limited |
Ox Products Group UK Limited (Registered number: 07697065) |
Contents of the Financial Statements |
for the Period 1 April 2022 to 31 December 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 16 |
Ox Products Group UK Limited |
Company Information |
for the Period 1 April 2022 to 31 December 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Newland House |
The Point |
Weaver Road |
LINCOLN |
Lincolnshire |
LN6 3QN |
BANKERS: |
Stonebow |
221 High Street |
LINCOLN |
Lincolnshire |
LN1 1TS |
SOLICITORS: |
The Maltings |
11-15 Brayford Wharf East |
LINCOLN |
LN5 7AY |
Ox Products Group UK Limited (Registered number: 07697065) |
Strategic Report |
for the Period 1 April 2022 to 31 December 2022 |
The nine months to 31 December 2022 saw a return to more typical operational and trading conditions after two years which were dominated by the impact of COVID. There were, however, significant changes which lasted into the current year, most notably with fluctuation in production and delivery schedules, international shipping costs and macroeconomic factors such as movements in exchange rates. However OX continues to focus on developing, sourcing and marketing high quality products which are attractive to end users and working with our network of suppliers and customers to deliver value. |
Turnover of £21.566m reflected the change in the company's year-end from March to December and was broadly in line with the prior year. The table below draws out key performance measures. |
December 2022 | March 2022 | March 2021 | March 2020 |
Turnover | 21,556,200 | 28,730,864 | 31,035,031 | 21,410,618 |
EBITDA | 1,634,251 | 4,494,374 | 5,901,225 | 1,443,778 |
Net assets | 11,398,535 | 10,408,884 | 8,473,041 | 4,723,895 |
Cash movement | (915,372 | ) | (3,480,140 | ) | 3,552,069 | 191,515 |
The company continued to develop brand awareness, improve customer service and was able to expand its product range and its customer base. |
The impact of the stronger USD and higher freight costs was a notable feature of the period and impacted on the gross margin achieved. The company seeks to mitigate the impact of these external factors through maintaining a wide range of supplier relationships and maintaining a significant inventory balance, in order to supply its customers. At the end of the period the company had approximately £12.8m of inventory, an increase of £0.6m. |
The company continues to invest in sustainability, primarily though the development of more environmentally-friendly product packaging, reducing the proportion of plastic used, and increasing the use of electric vehicles in the company's fleet. |
The company also continues to invest in research and development activities and to seek out partners to bring innovative products to market in the UK. |
Net profit for the period was £1.194m (March 2022: £3.036m). |
The investment in inventory was funded by an increase in the company's borrowings and cash reduced in the period by £0.018m. |
Ox Products Group UK Limited (Registered number: 07697065) |
Strategic Report |
for the Period 1 April 2022 to 31 December 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company is mindful of the challenges of maintaining margins and operational stability as the market emerges from the COVID period. The company has experienced volatile supply chains and is focused on managing the risks that a global supplier base can bring. Recent years have underlined the importance of maintaining close links with the user community, supporting our customer base, and in working with responsive suppliers. The fluctuations in production capacity, in shipping costs as well as changes in exchange rates are all prominent factors in the company's business. |
Management continues to monitor its broad supplier base, seeking alternative sources where necessary. The company also monitors its future purchasing requirements and undertakes forward currency purchases where necessary. The company does not enter into speculative foreign currency transactions. |
Future Developments |
The company expects to develop relationships with new customers, and to expand its network of supplier partners from around the globe in order to maintain a robust and efficient supply chains, and in order to bring new products to the market in order to provide attractive offers to our customers and our end users. |
ON BEHALF OF THE BOARD: |
Ox Products Group UK Limited (Registered number: 07697065) |
Report of the Directors |
for the Period 1 April 2022 to 31 December 2022 |
The directors present their report with the financial statements of the company for the period 1 April 2022 to 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of retail of diamond blade cutting discs, hand tools and safety equipment for the construction industry. The subsidiary companies were dormant throughout the year. |
DIVIDENDS |
Interim dividends totalling £2,040 per share were paid during the period. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the period ended 31 December 2022 will be £204,000 |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
As permitted by Schedule 7 of the Accounts and Reports Regulations 2008 SI No. 410, comments relating to future developments have been included in the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Ox Products Group UK Limited (Registered number: 07697065) |
Report of the Directors |
for the Period 1 April 2022 to 31 December 2022 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Ox Products Group UK Limited |
Opinion |
We have audited the financial statements of Ox Products Group UK Limited (the 'company') for the period ended 31 December 2022 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Ox Products Group UK Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Ox Products Group UK Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102), the Companies Act 2006 and the relevant tax compliance. |
We understood how the company is complying with those frameworks by making enquiries of management and those charged with governance, and we corroborated our enquiries by reviewing third party correspondence, including any correspondence with HMRC and Companies House. |
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur by inquiring of management as to where they considered there was susceptibility to fraud. We considered the controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud and also reviewed how these had operated in the period. |
Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk along with procedures to identify non-compliance with such laws and regulations identified in the paragraphs above along with areas where management override of controls may be relevant. These procedures included assessing the appropriateness of presentation of separately disclosed items with a focus on manual journals and journals indicating large or unusual transactions based on our understanding of the company. These procedures were designed to provide reasonable assurance that the financial statements were free from material fraud or error. |
We also considered the risk associated with completeness and recognition of income, particularly around the period end. Stock valuation was also considered to be an area of heightened risk and testing in this area was extended to support the year end valuation. |
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The audit was planned to ensure that the more complex areas were performed by more experienced members of the audit team and there were no areas of the audit which were considered to require external experts to be appointed by the audit team. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances or non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
Report of the Independent Auditors to the Members of |
Ox Products Group UK Limited |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Newland House |
The Point |
Weaver Road |
LINCOLN |
Lincolnshire |
LN6 3QN |
Ox Products Group UK Limited (Registered number: 07697065) |
Statement of Comprehensive |
Income |
for the Period 1 April 2022 to 31 December 2022 |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,516,255 | 3,808,344 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,516,639 | 3,832,026 |
Interest payable and similar expenses |
6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL PERIOD |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
Ox Products Group UK Limited (Registered number: 07697065) |
Statement of Financial Position |
31 December 2022 |
31/12/22 | 31/3/22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Ox Products Group UK Limited (Registered number: 07697065) |
Statement of Changes in Equity |
for the Period 1 April 2022 to 31 December 2022 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Ox Products Group UK Limited (Registered number: 07697065) |
Statement of Cash Flows |
for the Period 1 April 2022 to 31 December 2022 |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Finance costs paid | - | (27,807 | ) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | (865 | ) | - |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | - | 1,127,806 |
Movement on directors' loans | (192,189 | ) | (530,624 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
(1,917,526 |
) |
1,562,614 |
Cash and cash equivalents at end of period |
2 |
( |
) |
( |
) |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Statement of Cash Flows |
for the Period 1 April 2022 to 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 90,270 | 37,630 |
Finance income | (384 | ) | (42 | ) |
1,633,867 | 4,494,332 |
Increase in stocks | ( |
) | ( |
) |
Decrease in trade and other debtors |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Period ended 31 December 2022 |
31.12.22 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 56,647 | 74,519 |
Bank overdrafts | ( |
) | ( |
) |
(2,832,898 | ) | (1,917,526 | ) |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 74,519 | 1,562,614 |
Bank overdrafts | ( |
) |
(1,917,526 | ) | 1,562,614 |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Statement of Cash Flows |
for the Period 1 April 2022 to 31 December 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank | 74,519 | (17,872 | ) | 56,647 |
Bank overdrafts | (1,992,045 | ) | (897,500 | ) | (2,889,545 | ) |
(1,917,526 | ) | ( |
) | (2,832,898 | ) |
Total | (1,917,526 | ) | (915,372 | ) | (2,832,898 | ) |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements |
for the Period 1 April 2022 to 31 December 2022 |
1. | STATUTORY INFORMATION |
Ox Products Group UK Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Preparation of consolidated financial statements |
The financial statements contain information about Ox Products Group UK Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 405(2) of the Companies Act 2006 from the requirements to prepare consolidated financial statements as inclusion is not material for the purpose of giving a true and fair view. |
Critical accounting judgements and key sources of estimation uncertainty |
The financial statements are prepared to generally accepted accounting principles which requires management to make estimates and assumptions that affect assets and liabilities. Actual results could be different due to these estimates. The effect of any differences are reported at the time the information becomes available. |
Loan notes which are basic financial instruments are initially recorded at the present value of future payments discounted at a market rate of interest for a similar loan. |
Subsequently, they are measured at amortised cost using the effective interest method. |
Loan notes that are receivable within one year are not discounted. |
Turnover |
Turnover represents net invoiced sales of goods, excluding value added tax. Turnover is gross of rebates given. |
Goodwill |
The basis of amortisation is on usage determined by the sales volume of each independent sales unit. |
Where there is evidence of impairment the directors will conduct a full impairment review and if the carrying value of the goodwill is higher than the value determined by the review an adjustment will be made appropriately. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Only basic financial instruments as defined in FRS 102 are held. Financial assets and financial liabilities are recognised in the accounts only when the entity becomes party to the contractual provisions of the instrument and their measurement basis is as follows: |
Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. |
Cash at bank is classified as a basic financial instrument and is measured at transaction price. |
Financial liabilities - trade creditors, accruals and other creditors are basic financial instruments, and are measured at amortised cost. Where a financial liability constitutes a financing transaction it is initially and subsequently measured at the present value of future payments, discounted at a market rate of interest. |
Forward exchange contracts are recognised at fair value using a valuation technique with any gains or losses reported within the Statement of Comprehensive Income. Outstanding forward exchange contracts at the reporting date are included under the appropriate format heading depending on the nature of the derivative. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Interest free loans |
Interest free loans have been measured at amortised cost using the effective interest method. |
The effective interest on these interest free loans is accounted as interest income or interest expense as appropriate. |
Accounting period change |
The accounting period has changed from 31 March to 31 December to tie in with the calendar year and be consistent with internal reporting. Therefore the current period covers a 9 month period and so is not directly comparable to the year to 31 March 2022 results. |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
£ | £ |
United Kingdom |
Europe |
United States of America |
Rest of World | 19,615 | 19,811 |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
Directors | 3 | 3 |
Other employees | 61 | 63 |
Pensions |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit and loss in the period to which they relate. Contributions in the period totalled £25,895 (2022 £30,273). |
The directors are not part of this scheme. |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
4. | EMPLOYEES AND DIRECTORS - continued |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
£ | £ |
Emoluments etc |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Patents and licences amortisation |
Computer software amortisation |
Auditors' remuneration |
Auditors' remuneration for non audit work |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
£ | £ |
Bank and import loan interest |
Shareholder loan interest |
Shareholder loan interest relates to movement on the notional interest reserve see note 19 Reserves. |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
£ | £ |
Current tax: |
UK corporation tax |
Previous years tax | (77,021 | ) | - |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Deferred tax movement | (9,044 | ) | 46,272 |
R&D tax provision | 36,437 | (77,414 | ) |
Prior year tax | (77,020 | ) | (110 | ) |
Total tax charge | 232,718 | 758,553 |
8. | DIVIDENDS |
Period |
1.4.22 |
to | Year Ended |
31.12.22 | 31.3.22 |
£ | £ |
Interim |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
9. | INTANGIBLE FIXED ASSETS |
Patents |
and | Computer |
Goodwill | licences | software | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 December 2022 |
AMORTISATION |
At 1 April 2022 |
Amortisation for period |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 March 2022 |
10. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2022 |
DEPRECIATION |
At 1 April 2022 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 March 2022 |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
11. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
Additions |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 March 2022 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/3/22 |
£ | £ |
Aggregate capital and reserves |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/3/22 |
£ | £ |
Aggregate capital and reserves |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/3/22 |
£ | £ |
Aggregate capital and reserves |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: France |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 |
£ |
Aggregate capital and reserves |
12. | STOCKS |
31/12/22 | 31/3/22 |
£ | £ |
Finished goods |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/12/22 | 31/3/22 |
£ | £ |
Trade debtors |
Other debtors |
Payments in advance |
Prepayments |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/12/22 | 31/3/22 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 836,150 | 909,191 |
Other creditors |
Directors' current accounts | 798,598 | 990,787 |
Accrued expenses |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
31/12/22 | 31/3/22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
16. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31/12/22 | 31/3/22 |
£ | £ |
Within one year |
Between one and five years |
17. | PROVISIONS FOR LIABILITIES |
31/12/22 | 31/3/22 |
£ | £ |
Deferred tax | 112,940 | 121,984 |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Accelerated capital allowances | (9,044 | ) |
Balance at 31 December 2022 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/12/22 | 31/3/22 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2022 |
Profit for the period |
Dividends | ( |
) |
At 31 December 2022 |
Included within retained earnings is an amount of £nil (2022 : £27,806) which relates to the adjustments made for interest free loans from non-shareholders and forward exchange contracts, these amounts are not distributable. |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
20. | RELATED PARTY DISCLOSURES |
During the period dividends were paid to directors of £204,000 (2022: £880,000). |
At the balance sheet date the company owed the Directors an amount of capital of £798,598 (2022: £990,787) this amount is reflected within the liabilities of the company. |
The total amount of interest £nil (2022: £-27,806), has been calculated as a capital contribution and included within other reserves. The notional interest has been charged at a rate of 3.5% per annum. |
At the period end there is a balance of £289,081 (2022: £289,081) owed to members of families of directors. Notional interest has been charged at a rate of 3.5% per annum. |
All loans from directors and their families are unsecured. |
Mr J P Hazell has provided a personal guarantee to the bank with regards to the company overdraft. |
Included in turnover and cost of sales are sales and the related purchases at nil margin to companies wholly owned and controlled by a member of key management, worth £nil (2022: £91,603). These sales were made on favourable terms and at the period end the balance owed by these companies was £7,183 (2022: £7,914). Recharges were also made totalling £1,294 (2022: £76,157). |
Recharges of £11,376 (2022: £21,959) were also made to a company controlled by a family member of 2 of the directors. Purchases from this company of £13,574 (2022: £37,147) were made in the period. These sales were made on favourable terms and at the period end the company owed £nil (2022: £21,270) and a balance of £871 (2022: £16,271) was owed to it. |
During the period the company made a donation of £nil (2022: £32,250) to The Grace Trust, a charity registered with the charity commission. Mr L D Hazell and members of his close family are also Trustees of the charity. |
A company that one of the directors provides a key management role for sold services to the company during the period of £26,296 (2022: £47,685). These purchases were under normal trading terms and at the period end the balance within creditors was £5,744 (2022: £6,397). |
During the year Key Management Personnel received remuneration of £325.608 (2022: £423,087). |
21. | ULTIMATE CONTROLLING PARTY |
The controlling party is Mr L D Hazell. |
Ox Products Group UK Limited (Registered number: 07697065) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 31 December 2022 |
22. | GOING CONCERN |
The directors consider the use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern. The directors have considered a period of 12 months from the date of approval of these financial statements. |