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AXIS WELL TECHNOLOGY LIMITED






ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

 
AXIS WELL TECHNOLOGY LIMITED
 

COMPANY INFORMATION


Directors
J Anderson 
P Handsley 
W A Dodds 
N Davies (appointed 2 June 2023)
D I Taylor (appointed 2 June 2023)
A S Draper (appointed 2 June 2023)
A A Ryder (appointed 2 June 2023)




Company secretary
S Evans



Registered number
SC217030



Registered office
65 Sussex Street

Glasgow

G41 1DX




Independent auditors
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
AXIS WELL TECHNOLOGY LIMITED
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditors' report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 24

 
AXIS WELL TECHNOLOGY LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

Introduction
 
The directors present their report and the financial statements for the year ended 31 January 2023. 

Business review
 
Overall, the group has exceeded Directors’ expectation during the year improving revenues by £4.5m to £24.5m and EBITDA by £1.6m to £4.6m.

This was predominantly achieved with Carbon, Capture and Storage activity increasing by >60% and Decommissioning by >100%.  These projects were principally UK based which impacted Axis’ international footprint with the proportion of turnover from overseas markets reducing to 42% from 53% in 2022.

During the year Axis successfully entered an additional low carbon market focusing on Hydrogen (H2) production and storage.  Examples of such initiatives include Axis assuming responsibility for:

Owners Engineer for H2 infrastructure development
Conceptual design of blue and green H2 production facilities onshore and offshore

Looking forward the Directors anticipate the continuing growth in global energy demand, high commodity prices, strong investment incentivisation from many governments looking to maintain energy security, and the increasing interest in carbon lowering technology will position the group to assist its clients in our three key markets:

Energy (our traditional oil and gas services) – where current activity is being supported by global economies facing multiple energy security challenges
Low Carbon – supported by the Energy Transition with the focus to date having been Carbon, Capture and Storage (CCS) and Hydrogen production and storage which is only expected to benefit from increasing demand both in the UK and Internationally
Decommissioning – supported by a stronger regulatory posture regarding mature fields reaching Cessation of Production

Page 1
 

 
AXIS WELL TECHNOLOGY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Principal risks and uncertainties
 
Financial risk management
The company's operations expose it to a variety of financial risks that include the effects of prices and liquidity risk. The Company has in place a risk management process that seeks to limit the potential adverse effects of these risks on the financial performance of the business.
Price Risk
The company is exposed to selling rate price risk as a result of its operations. The Company manages this risk by establishing contractual arrangements with clients that specify selling rates.

Liquidity Risk
The company, with the support of its principal shareholder, actively maintains a mixture of long term shareholder debt finance and committed bank working capital facilities that is designed to ensure the Company has sufficient working capital and funding available to support current and future expansion plans.

Operational Risk
The Company regularly assesses risks that impact on the business, including our processes and procedures in relation to quality and health and safety. Through our quality management system, we conduct regular risk assessments and audits with management fully committed to maintaining and improving controls and effective processes. The management team regularly reviews such risk assessments together with related health and safety matters.

Foreign Currency Risk
As the company continues to expand its operations internationally the exposure to the financial risks of changes in foreign currency exchange rates will increase. The company will, where deemed necessary, enter into forward currency contract to mitigate the risk.

Fluctuating prices for oil and natural gas
Oil, natural gas, oil products and chemical prices rise and fall for various reasons involving supply and demand. These include weather, economic conditions, actions by major oil exporting countries, political instability or conflicts, and natural disasters or global pandemics. 

Financial key performance indicators
 
The key performance indicators used by the directors are EBITDA, employee utilisation, gross margins, cash generation and customer satisfaction.

Employees
 
The Company recognises the need for good communication and is committed to involving all employees in its development. Employees are kept informed of, consulted and encouraged to express their views on matters which are likely to affect their interest in and contribution to their Company, its profitability and performance.
It is the Company's policy to give full consideration to suitable applications for employment by disabled persons. Where an employee becomes disabled whilst employed, arrangements are made whenever practicable to continue their employment or provide training for any other suitable position. Disabled persons are eligible to participate in all career development opportunities available to staff. All employees are given opportunities to develop their expertise and knowledge and to qualify for promotion in furtherance of their careers.
The Company also has Gold accreditation for Investors in People and is accredited for Investors in Young People, with both renewed until November 2023.

Page 2
 

 
AXIS WELL TECHNOLOGY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023


This report was approved by the board and signed on its behalf.



J Anderson
Director

Date: 2 August 2023
Page 3
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

The directors present their report and the financial statements for the year ended 31 January 2023.

Results and dividends

The profit for the year, after taxation, amounted to £3,810,133 (2022 - £2,438,099).

No dividends were paid during the year (2022 - £NIL).

Directors

The directors who served during the year were:

J Anderson 
P Handsley 
W A Dodds 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

All Ordinary and Preference shares in Axis Well Technology Group Limited were acquired on 2 June 2023 by RSK Environment Limited.  Axis Well Technology Limited was included in this sale.
No other events have occurred which would change the financial position of the company or require adjustment of, or disclosure in the financial statements.

Auditors

The auditorsAnderson Anderson & Brown Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





J Anderson
Director

Date: 2 August 2023
Page 4
 

 
AXIS WELL TECHNOLOGY LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 5
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AXIS WELL TECHNOLOGY LIMITED
 

Opinion


We have audited the financial statements of Axis Well Technology Limited (the 'Company') for the year ended 31 January 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 January 2023 and of its profit for the year 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 United Kingdom, including the Financial Reporting Council'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.


Page 6
 

 
AXIS WELL TECHNOLOGY LIMITED

 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AXIS WELL TECHNOLOGY LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The directors are responsible for the other information contained within the Annual Report.  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. 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 course of 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report 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 Directors' report.


We have nothing to report in respect of the following matters in relation to which 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 Directors' responsibilities statement set out on page 5, 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 is 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.


Page 7
 

 
AXIS WELL TECHNOLOGY LIMITED

 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AXIS WELL TECHNOLOGY LIMITED (CONTINUED)

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 an Auditors' report 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 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 within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. 
The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation.
We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:
 
Management override of controls to manipulate the company’s key performance indicators to meet targets
Timing and completeness of revenue recognition
Management judgement applied in calculating provisions
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading

Our audit procedures to respond to these risks included:
 
Testing of journal entries and other adjustments for appropriateness
Evaluating the business rationale of significant transactions outside the normal course of business
Reviewing judgments made by management in their calculation of accounting estimates for potential management bias
Enquiries of management about litigation and claims and inspection of relevant correspondence
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations
Analytical procedures to identify any unusual or unexpected trends or relationship
Reviewing minutes of meetings of those charged with governance to identify any matters indicating actual or potential fraud


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 of 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.


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 Auditors' report.


Page 8
 

 
AXIS WELL TECHNOLOGY LIMITED

 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AXIS WELL TECHNOLOGY LIMITED (CONTINUED)

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 2006Our 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 an Auditors' report 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.





James Pirrie (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

2 August 2023
Page 9
 

 
AXIS WELL TECHNOLOGY LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

2023
2022
Note
£
£

  

Turnover
 4 
24,474,512
20,047,948

Cost of sales
  
(16,881,323)
(14,580,403)

Gross profit
  
7,593,189
5,467,545

Administrative expenses
  
(3,055,469)
(2,605,157)

Other operating income
 5 
-
139,353

Operating profit
 6 
4,537,720
3,001,741

Interest receivable and similar income
 10 
4,651
-

Profit before tax
  
4,542,371
3,001,741

Tax on profit
 11 
(732,238)
(563,642)

Profit for the financial year
  
3,810,133
2,438,099

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 13 to 24 form part of these financial statements.
Page 10
 

 
AXIS WELL TECHNOLOGY LIMITED

REGISTERED NUMBER:SC217030

STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
95,720
73,292

  
95,720
73,292

Current assets
  

Debtors: amounts falling due within one year
 13 
20,662,430
20,615,074

Cash at bank and in hand
 14 
10,988,513
7,004,110

  
31,650,943
27,619,184

Creditors: amounts falling due within one year
 15 
(2,836,873)
(2,600,765)

Net current assets
  
 
 
28,814,070
 
 
25,018,419

Total assets less current liabilities
  
28,909,790
25,091,711

Provisions for liabilities
  

Deferred tax
 17 
(13,277)
(5,331)

  
 
 
(13,277)
 
 
(5,331)

Net assets
  
28,896,513
25,086,380


Capital and reserves
  

Called up share capital 
 18 
1,032
1,032

Share premium account
  
81,543
81,543

Profit and loss account
  
28,813,938
25,003,805

  
28,896,513
25,086,380


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J Anderson
Director

Date: 2 August 2023

Page 11
 

 
AXIS WELL TECHNOLOGY LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 February 2022
1,032
81,543
25,003,805
25,086,380



Profit for the year
-
-
3,810,133
3,810,133


At 31 January 2023
1,032
81,543
28,813,938
28,896,513


The notes on pages 13 to 24 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 February 2021
1,032
81,543
22,565,706
22,648,281



Profit for the year
-
-
2,438,099
2,438,099


At 31 January 2022
1,032
81,543
25,003,805
25,086,380


The notes on pages 13 to 24 form part of these financial statements.
Page 12
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1.


General information

Axis Well Technology Limited is a limited company incorporated in the United Kingdom. The registered address is 65 Sussex Street, Glasgow, G41 1DX.
The principal activity of the company is the provision of subsurface, petroleum and well engineering and operational support consultancy services to the international energy industry.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Axis Well Technology Group Limited as at 31 January 2022 and these financial statements may be obtained from Spring Lodge, 172 Chester Road, Helsby, Cheshire, WA6 0AR.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 13
 

 
AXIS WELL TECHNOLOGY LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 14
 

 
AXIS WELL TECHNOLOGY LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 15
 

 
AXIS WELL TECHNOLOGY LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant & machinery
-
25%
straight line
Fixtures, fittings & office equipment
-
25%
- 33% straight line
Tenant's Improvements
-
33%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

Page 16
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Balance Sheet date and the amounts reported during the year for revenue and costs. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements and estimates have had the most significant impact on amounts recognised in the financial statements.
Impairment of debtors
The Company makes an assessment of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management consider various factors including the ageing profile of debtors and historical experience.


4.


Turnover

Turnover comprises the invoice value of goods and services exclusive of value added tax.
Turnover attributable to geographical markets outside the United Kingdom amounted to 42% (2022 - 53%).


5.


Other operating income

2023
2022
£
£

Government grants receivable
-
139,353

-
139,353



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
70,784
68,216

Exchange differences
(61,678)
(5,317)

Other operating lease rentals
169,261
168,640

Defined contribution pension cost
342,292
294,118

Page 17
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,400
14,000



8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
8,504,550
7,126,492

Social security costs
1,026,042
789,612

Cost of defined contribution scheme
342,292
294,118

9,872,884
8,210,222


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
16
13



Production
85
73



Director
3
3

104
89


9.


Directors' remuneration



During the year the directors were paid by another group company and recharged to Axis Well Technology Limited. The total value of the recharges were £1,185,978 (2022 - £841,753).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
4,651
-

4,651
-

Page 18
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
723,742
574,638

Adjustments in respect of previous periods
(3,480)
(5,467)


720,262
569,171

Foreign tax


Foreign tax on income for the year
4,030
-

4,030
-

Total current tax
724,292
569,171

Deferred tax


Origination and reversal of timing differences
7,946
(8,959)

Changes to tax rates
-
3,430

Total deferred tax
7,946
(5,529)


Taxation on profit on ordinary activities
732,238
563,642
Page 19
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
4,542,371
3,001,741


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
863,050
570,331

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
663
583

Capital allowances for year in excess of depreciation
(5,619)
(1,197)

Adjustments to tax charge in respect of prior periods
550
(5,467)

Changes in tax rates
1,907
1,280

Payment for group relief
(128,313)
(1,888)

Total tax charge for the year
732,238
563,642


Factors that may affect future tax charges

The Government have announced that the corporation tax main rate will be increased to 25% for profits over £250,000 from 1 April 2023. As this rate has been substantively enacted the deferred tax provision has been based on the rate of 25%.

Page 20
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

12.


Tangible fixed assets





Plant & machinery
Fixtures, fittings & office equipment
Tenant's imp'ments
Total

£
£
£
£



Cost or valuation


At 1 February 2022
9,000
1,322,371
103,925
1,435,296


Additions
-
93,212
-
93,212



At 31 January 2023
9,000
1,415,583
103,925
1,528,508



Depreciation


At 1 February 2022
9,000
1,249,079
103,925
1,362,004


Charge for the year on owned assets
-
70,784
-
70,784



At 31 January 2023
9,000
1,319,863
103,925
1,432,788



Net book value



At 31 January 2023
-
95,720
-
95,720



At 31 January 2022
-
73,292
-
73,292


13.


Debtors

2023
2022
£
£


Trade debtors
3,683,069
3,645,101

Amounts owed by group undertakings
15,651,540
15,594,522

Other debtors
171,842
250,902

Prepayments and accrued income
1,155,979
1,124,549

20,662,430
20,615,074



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
10,988,513
7,004,110

10,988,513
7,004,110


Page 21
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
836,879
956,246

Amounts owed to group undertakings
10,518
-

Other taxation and social security
376,146
354,620

Other creditors
7,691
7,046

Accruals and deferred income
1,605,639
1,282,853

2,836,873
2,600,765



16.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
10,988,513
7,004,110

Financial assets that are debt instruments measured at amortised cost
20,345,924
20,496,292

31,334,437
27,500,402


Financial liabilities


Financial liabilities measured at amortised cost
(2,029,438)
(1,837,804)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings, other debtors and accrued income.


Financial liabilities measured at amortised cost comprise trade creditors and accruals.

17.


Deferred taxation




2023


£






At beginning of year
5,331


Charged to profit or loss
(7,946)



At end of year
13,277

Page 22
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
 
17.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
13,277
5,331

13,277
5,331


18.


Share capital

2023
2022
£
£
Authorised



750,000 (2022 - 750,000) 'A' ordinary shares of £0.01 each
7,500
7,500
250,000 (2022 - 250,000) 'B' ordinary shares of £0.01 each
2,500
2,500

10,000

10,000

Allotted, called up and fully paid



75,000 (2022 - 75,000) 'A' ordinary shares of £0.01 each
750
750
28,200 (2022 - 28,200) 'B' ordinary shares of £0.01 each
282
282

1,032

1,032



19.


Pension commitments

There are no unpaid contributions outstanding at the year end (2022 - £nil).


20.


Commitments under operating leases

At 31 January 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£



Not later than 1 year
216,457
128,914

2 - 5 years
328,543
156,644


545,000
285,558

Page 23
 

 
AXIS WELL TECHNOLOGY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

21.


Related party transactions

The Company has taken advantage of the exemption conferred by Financial Reporting Standard 102 Section 33 "Related Party Disclosure" from the need to disclose transactions between group entities that have been eliminated on consolidation in the parent company's consolidated financial statements, copies of which are publicly available .


22.


Post balance sheet events

All Ordinary and Preference shares in Axis Well Technology Group Limited were acquired on 2 June 2023 by RSK Environment Limited.  Axis Well Technology Limited was included in this sale.
No other events have occurred which would change the financial position of the company or require adjustment of, or disclosure in the financial statements.


23.


Controlling party

Axis Well Technology Management Limited is the Company’s intermediate parent company.  
Axis Well Technology Group Limited, the parent company of Axis Well Technology Management Limited, is the only undertaking for which consolidated financial statements that include the results of Axis Well Technology Limited.
Until 2 June 2023, the ultimate controlling party was Elysian Capital LLP on the basis that it controlled a controlling interest in the voting rights of the share capital of Axis Well Technology Group Limited.
On 2 June 2023, Axis Well Technology Group Limited was acquired by RSK Environment Limited.  RSK Group Limited are now deemed to be the ultimate controlling party by virtue of it holding full control of the voting and dividend rights of RSK Environment Limited.

Page 24