Contents of the Financial Statements

for the Period Ended 31 December 2022

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

Directors' report period ended 31 December 2022

The directors present their report with the financial statements of the company for the period ended 31 December 2022

Directors

The directors shown below have held office during the whole of the period from
1 January 2022 to 31 December 2022

Mark Bartlett
Raudres Wong
Nick Gibbs

The director shown below has held office during the period of
1 January 2022 to 14 March 2022

Neil Austin

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
2 October 2023

And signed on behalf of the board by:
Name: Mark Bartlett
Status: Director

Profit And Loss Account

for the Period Ended 31 December 2022

	2022	2021
	£	£
Turnover:	784,290	849,635
Cost of sales:	( 622,816 )	( 764,926 )
Gross profit(or loss):	161,474	84,709
Distribution costs:	0	0
Administrative expenses:	( 1,296,275 )	( 130,934 )
Operating profit(or loss):	(1,134,801)	(46,225)
Interest receivable and similar income:	469,879	286,772
Interest payable and similar charges:	( 884,689 )	( 469,715 )
Profit(or loss) before tax:	(1,549,611)	(229,168)
Tax:	0	0
Profit(or loss) for the financial year:	(1,549,611)	(229,168)

Balance sheet

As at 31 December 2022

	Notes	2022	2021
		£	£
Fixed assets
Intangible assets:		0	0
Tangible assets:	3	16,619	37,908
Investments:	4	24,014,507	6,752,192
Total fixed assets:		24,031,126	6,790,100
Current assets
Stocks:		0	0
Debtors:	5	36,067,108	12,924,632
Cash at bank and in hand:		3,497	8,349
Total current assets:		36,070,605	12,932,981
Net current assets (liabilities):		36,070,605	12,932,981
Total assets less current liabilities:		60,101,731	19,723,081
Creditors: amounts falling due after more than one year:	6	( 62,085,565 )	( 20,146,086 )
Total net assets (liabilities):		(1,983,834)	(423,005)
Capital and reserves
Called up share capital:		1,000,100	1,000,100
Other reserves:		1,005,816	1,005,816
Profit and loss account:		(3,989,750 )	(2,428,921 )
Total Shareholders' funds:		( 1,983,834 )	(423,005)

The notes form part of these financial statements

Balance sheet statements

For the year ending 31 December 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 31 December 2022

• 1. Accounting policies

  Basis of measurement and preparation

  These financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 101

  Turnover policy

  Revenue represents the amounts invoiced to the immediate parent company, Strix Limited, net of VAT for the provision of management services for commercial, technical and development support towards the Group’s sales of water appliances portfolio products. The transaction price is determined within the management services agreement with Strix Limited. Revenue is measured based on the consideration to which the Company expects to be entitled in the management services agreement with Strix Limited and is recognised when the performance obligations have been fulfilled. The Company recognises revenue from the provision of services proportionally over the duration of the service period, based on the nature of the contract terms in the management services agreement.

  Tangible fixed assets depreciation policy

  Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for intended use, dismantling and restoration costs.Depreciation is calculated using the straight-line method to write off the cost less estimated residual value of each asset over its expected useful life.The entity purchases fixed assets which are included within a separate category within property, plant and equipment (“assets under construction”) until the assets are ready for use at which point the costs are transferred to the relevant asset category and depreciated. Any items that are scrapped are written off to the statement of comprehensive income.The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. Assets are derecognised on disposal, or when no future economic benefits are expected from use or disposal. Any gain or loss arising from de-recognition of an asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, is recognised in profit or loss when the asset is derecognised.Repairs and maintenance costs are expensed as incurred.

  Valuation information and policy

  Financial assets The Company classifies its financial assets as financial assets held at amortised cost. Management determines the classification of its financial assets at initial recognition.The Company classifies its financial assets as at amortised cost where both of the following are met: - The asset is held within a business model whose objective is to collect the contractual cash flows; and - The contractual terms give rise to cash flows that are solely payments of principal and interest.Recognition and measurementFinancial assets held at amortised cost are initially recognised at fair value, and are subsequently stated at amortised cost using the effective interest method. Financial assets at amortised cost comprise cash and cash equivalents, amounts owed by Group undertakings and other receivables (excluding prepayments). Impairment of financial assetsThe Company assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.The Company applies the expected credit loss model to financial assets at amortised cost. For amounts owed by Group undertakings, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables. Management performed an assessment of the expected credit losses on the Company's receivables and, given their nature, these have not been considered to be material.Financial liabilities The Company initially recognises its financial liabilities at fair value net of transaction costs where applicable and subsequently they are measured at amortised cost using the effective interest method. Financial liabilities comprise amounts owed to Group undertakings and they are included in current liabilities, unless they have a repayment date greater than 12 months after the end of the reporting period. A financial instrument which does not meet the recognition criteria of a financial liability but rather evidences a residual interest in the assets of the Company, after deducting all of the Company’s liabilities, is classified as equity. Such an instrument is initially measured at the present value of future payments discounted at the incremental borrowing rate of the Group, with the discounting effect, being the difference between the loan proceeds and the present value, being recognised as a capital contribution. The subsequent impact of discount unwinding is recognised directly in equity up to the date of maturity.

  Other accounting policies

  Leases, functional currency, exceptional items, employee benefits, taxation, cash and cash equivalents, financial assets and liabilities, investments in subsidiaries, finance income and costs

Notes to the Financial Statements

for the Period Ended 31 December 2022

• 2. Employees

  	2022	2021
  Average number of employees during the period	15	13