Registered number
02447353
Paxport Group UK Limited
Report and Financial Statements
31 December 2022
Paxport Group UK Limited
Report and accounts
Contents
Page
Company information 1
Directors' report 2
Strategic report 4
Independent auditor's report 6
Income statement 9
Statement of comprehensive income 10
Statement of financial position 11
Statement of changes in equity 12
Statement of cash flows 13
Notes to the financial statements 14
Paxport Group UK Limited
Company Information
Directors
Mr Claes Mikael Wandt
Mr Ian David Robinson
Secretary
Roxburgh Milkins Limited
Auditors
Chamberlains
Elm House, Tanshire Park,
Shakleford Road,
Elstead,
Godalming
GU8 6LB
Registered office
The Landing, 125 Redcliff Street
Bristol
Avon
BS1 6HU
Registered number
02447353
Paxport Group UK Limited
Registered number: 02447353
Directors' Report
The directors present their report and financial statements for the year ended 31 December 2022.
Principal activities
The company's principal activity during the year continued to be a supplier of online travel software and travel technology solutions for the global travel industry.
Future developments
The directors foresee long term growth prospects in support for its services, in line with the growth anticipated in the travel industry and the resilience of its business model and service agreements with customers.
Research and development
The business continues to allocate resources to further develop its product offerings to its customers.
Financial instrument risk
The disclosure of risks have been included in the directors Strategic report.
Directors
The following persons served as directors during the year:
Mr Claes Mikael Wandt
Mr Ian David Robinson
Directors' responsibilities
The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 and applicable law). 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 estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
Disclosure of information to auditors
Each person who was a director at the time this report was approved confirms that:
so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
he 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 auditor is aware of that information.
This report was approved by the board on 1 November 2023 and signed on its behalf.
Mr Claes Mikael Wandt
Director
Paxport Group UK Limited
Strategic Report
The directors present their strategic report for the Year ended 31st December 2022.
Review of the business
Paxport Group UK Limited is a travel technology business focussed on the aggregation and distribution of airline content. During the last year, the business continued expand its product offering, updating and growing the number of connected airlines and air content providers, as well as evolving the overall end-to-end product offering to include brand new post-booking management capability. This connected product approach enables travel businesses to grow their connectivity options and increase revenue through cloud-based, flexible technology solutions.
The company provides market leading airline distribution technology, with a focus on best-in-class search solutions, through to booking, ancillary, payment and servicing capabilities. The company's platform now handles over 55 million searches per day across over 60 million cached fares and by the end of 2022, provide access to over 75 airlines and consolidator partners through one singe API.
The company made a profit before tax of £2,096,775 after receiving dividends from its wholly owned subsidiary of £1,930,000 (2021: loss of £1,375,724) in the year. The company primarily saw an increase in profitability due to the dividend receipt and increased commissions arising from a greater activity as a result of COVID-19 restrictions being lifted in the second half of 2021 Net assets grew from net liabilities in 2021 of £-929k to net assets in 2022 of £349k
The directors foresee a long term growth phase of the business due to growth in the tourism industry.
Principal risks and uncertainties
The success of our business is dependent on our reputation to deliver a great service to our Clients. The healthy financial position to generate ongoing income ensure that the risks to stakeholders of Paxport Group UK Limited are minimised. The limited risks are explained below.
General risks
Reputational Risk is managed by promoting our business successes through its website, exhibitions and other communications to ensure our integrity and credibility is maintained. During 2022 we have engaged the services of an industry specific marketing consultant to promote our brand with a focus on security and integrity.
IT/Security Risk is a risk we face as in all companies and individuals alike. We are minimising this risk by implementing industry best practices with regular reviews so we can continue to improve them. Also we only partner with reputable partners who have demonstrated they are best in class and use appropriate security. In addition we conduct regular internal audits to ensure we are achieving the best practices.
Financial risk management objectives and policies
Foreign currency risk
Paxport Group UK Limited records its transactions and prepares its financial statements in pounds sterling. However, the company operates on other currencies and cash balances are held in Euros, US Dollars and other currencies. Fluctuations in exchange rates between Pound Sterling and both the Euro and US Dollar may result in realised and unrealised exchange movements.
Interest rate risk
Interest rate risk is the risk that the future cash flows of financial instruments will fluctuate because of changes in market interest rates. As all trade creditors are non interest bearing, they do not expose the company to interest rate risk.
Liquidity risk
The company has one long tern interest bearing loan liability with Barclays bank. . There is an intercompany loan account, however this is operated interest free. The liquidity risk is considered low.
Credit risk
The company's principal financial assets are bank balances and cash, trade and other receivables. The company's credit risk is primarily attributable to trade and other receivables. The amounts presented in the balance sheet are net of allowances attributable to trade and other receivables. An allowance for impairment is made where there is an identified loss event which, based on management judgment is evidence of a reduction in the recoverability of the receivable amount.
Development and performance
The directors foresee long term growth prospects in support for its services, in line with the growth anticipated in the travel industry and the resilience of its business model and service agreements with customers.
Statement of engagement with stakeholders
There is active engagement with all stakeholders of the company, from employees, suppliers, local authorities, and other stakeholders.
Financial key performance indicators
For the year ending 31 December 2022 revenue increased from £2.0m to £6.0m as a result of the dividend from the subsidiary and increased activity in the tourism industry post the pandemic and a greater offering of the companies products. Net current liabilities reduced from £1,506k in the previous year to £261k in the current year.
The business improved its financial position from Net liabilities of £928k in the previous year to net assets of £349k in the current year. Steps are in place to strengthen this position further in future years, but reducing the soft intercompany loan.
Whilst these KPI's are helpful in measuring the Company's performance, and have been chosen amongst the most commonly used ones and provide a general indication of the company's general performance, it should be stressed that they are not exhaustive and that many additional performance measures are used to monitor progress.
This report was approved by the board on 1 November 2023 and signed on its behalf.
Mr Claes Mikael Wandt
Director
Paxport Group UK Limited
Independent auditor's report
to the members of Paxport Group UK Limited
Opinion
We have audited the financial statements of Paxport Group UK Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including 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 the 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 year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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 Auditor’s 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 other information comprises the information included in the annual report other than the financial statements and our auditor’s 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.
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 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, 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.
Auditor’s 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 auditor’s 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the entity’s financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (i.e. gives a true and fair view).
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
The extent to which the audit was considered capable of detecting irregularities including fraud
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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;
- we assessed the extent of compliance with the laws and regulations identified through making enquiries of management; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias;
- investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other Matters
The prior year's financial statements were not audited, because there was no requirement for this to be done.
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 an auditor's 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.
Paul Chamberlain
(Senior Statutory Auditor) Elm House, Tanshire Park,
for and on behalf of Shakleford Road,
Chamberlains Elstead,
Statutory Auditor Godalming
1 November 2023 GU8 6LB
Paxport Group UK Limited
Income Statement
for the year ended 31 December 2022
Unaudited
Notes 2022 2021
£ £
Turnover 2 4,079,648 2,002,664
Cost of sales (922,563) (1,483,535)
Gross profit 3,157,085 519,129
Administrative expenses (2,976,159) (1,878,663)
Operating profit/(loss) 3 180,926 (1,359,534)
Income from shares in group undertakings 1,930,000 -
Interest receivable 1,238 -
Interest payable 5 (15,389) (16,190)
Profit/(loss) on ordinary activities before taxation 2,096,775 (1,375,724)
Tax on profit/(loss) on ordinary activities 6 (19,631) 57,675
Profit/(loss) for the financial year 2,077,144 (1,318,049)
Paxport Group UK Limited
Statement of Comprehensive Income
for the year ended 31 December 2022
Unaudited
Notes 2022 2021
£ £
Profit/(loss) for the financial year 2,077,144 (1,318,049)
Other comprehensive income
Total comprehensive income for the year 2,077,144 (1,318,049)
Paxport Group UK Limited
Statement of Financial Position Registered number 02447353
as at 31 December 2022
Unaudited
Notes 2022 2021
£ £
Fixed assets
Intangible assets 7 936,304 1,125,761
Tangible assets 8 21,373 -
Investments 9 520,035 520,035
1,477,712 1,645,796
Current assets
Debtors 10 2,677,389 1,228,062
Cash at bank and in hand 240,483 588,701
2,917,872 1,816,763
Creditors: amounts falling due within one year 11 (3,178,770) (3,322,520)
Net current liabilities (260,898) (1,505,757)
Total assets less current liabilities 1,216,814 140,039
Creditors: amounts falling due after more than one year 12 (641,667) (861,667)
Provisions for liabilities
Deferred taxation 13 (226,542) (206,911)
Net assets/(liabilities) 348,605 (928,539)
Capital and reserves
Called up share capital 14 36 36
Other reserves 15 46 46
Profit and loss account 16 348,523 (928,621)
Total equity 348,605 (928,539)
Mr Claes Mikael Wandt
Director
Approved by the board on 1 November 2023
Paxport Group UK Limited
Statement of Changes in Equity
for the year ended 31 December 2022
Share Re- Profit Total
capital valuation and loss
reserve account
£ £ £ £
At 1 January 2021 36 46 389,428 389,510
Loss for the financial year (1,318,049) (1,318,049)
At 31 December 2021 36 46 (928,621) (928,539)
At 1 January 2022 36 46 (928,621) (928,539)
Profit for the financial year 2,077,144 2,077,144
Dividends (800,000) (800,000)
At 31 December 2022 36 46 348,523 348,605
Paxport Group UK Limited
Statement of Cash Flows
for the year ended 31 December 2022
Unaudited
Notes 2022 2021
£ £
Operating activities
Profit/(loss) for the financial year 2,077,144 (1,318,049)
Adjustments for:
Income from shares in group undertakings (1,930,000) -
Interest receivable (1,238) -
Interest payable 15,389 16,190
Tax on profit/(loss) on ordinary activities 19,631 (57,675)
Depreciation 1,527 -
Amortisation of intangible assets 189,457 191,378
Increase in debtors (1,449,327) (404,520)
(Decrease)/increase in creditors (184,849) 1,503,008
(1,262,266) (69,668)
Dividends received 1,930,000 -
Interest received 1,238 -
Interest paid (15,389) (16,190)
Corporation tax paid - 46,244
Cash generated by/(used in) operating activities 653,583 (39,614)
Investing activities
Payments to acquire intangible fixed assets - (123,150)
Payments to acquire tangible fixed assets (22,900) -
Payments to acquire investments - (320,000)
Cash used in investing activities (22,900) (443,150)
Financing activities
Equity dividends paid (800,000) -
Proceeds from new loans - 341,596
Repayment of loans (178,901) -
Cash (used in)/generated by financing activities (978,901) 341,596
Net cash used
Cash generated by/(used in) operating activities 653,583 (39,614)
Cash used in investing activities (22,900) (443,150)
Cash (used in)/generated by financing activities (978,901) 341,596
Net cash used (348,218) (141,168)
Cash and cash equivalents at 1 January 588,701 729,869
Cash and cash equivalents at 31 December 240,483 588,701
Cash and cash equivalents comprise:
Cash at bank 240,483 588,701
Paxport Group UK Limited
Notes to the Accounts
for the year ended 31 December 2022
1 Summary of significant accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Plant and machinery over 5 years
Fixtures, fittings, tools and equipment over 5 years
Investment property
Investment property is initially recognised at cost and then subsequently measured at fair value. Changes in value are recognised in profit or loss.
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.

At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
Unaudited
2 Analysis of turnover 2022 2021
£ £
Rental income 111,533 143,359
Services rendered 3,754,158 1,859,305
Covid grants 30,657 -
Transfer pricing adjustment 183,300 -
4,079,648 2,002,664
By geographical market:
UK 3,444,809 1,899,666
Europe 222,571 82,116
Rest of world 412,268 20,882
4,079,648 2,002,664
Unaudited
3 Operating profit 2022 2021
£ £
This is stated after charging:
Depreciation of owned fixed assets 1,527 -
Amortisation of Research and development expenditure 189,457 191,378
Auditors' remuneration for audit services 14,000 -
Unaudited
4 Staff costs 2022 2021
£ £
Wages and salaries 1,277,936 847,670
Social security costs 148,991 100,063
Other pension costs 29,913 22,467
1,456,840 970,200
Average number of employees during the year Number Number
Administration 1 1
Development 7 6
Distribution 12 10
Marketing 3 2
23 19
Unaudited
5 Interest payable 2022 2021
£ £
Bank loans and overdrafts 15,389 16,190
Unaudited
6 Taxation 2022 2021
£ £
Analysis of charge in period
Current tax:
Adjustments in respect of previous periods (R&D tax credit) - (46,244)
Deferred tax:
Origination and reversal of timing differences (45,709) (11,431)
Effect of increased tax rate on opening liability 65,340 -
19,631 (11,431)
Tax on profit/(loss) on ordinary activities 19,631 (57,675)
Factors affecting tax charge for period
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
Unaudited
2022 2021
£ £
Profit/(loss) on ordinary activities before tax 2,096,775 (1,375,724)
Standard rate of corporation tax in the UK 19% 19%
£ £
Profit on ordinary activities multiplied by the standard rate of corporation tax 398,387 -
Effects of:
Expenses not deductible for tax purposes (433,417) -
Capital allowances for period in excess of depreciation 35,030 -
R&D tax credit received in current period relating to previous period - (46,244)
Current tax charge for period - (46,244)
7 Intangible fixed assets £
Capitalised R&D expenditure:
Cost
At 1 January 2022 1,791,240
At 31 December 2022 1,791,240
Amortisation
At 1 January 2022 665,479
Provided during the year 189,457
At 31 December 2022 854,936
Carrying amount
At 31 December 2022 936,304
At 31 December 2021 1,125,761
Capitalised R&D expenditure is being written off in equal annual instalments over its estimated economic life.
8 Tangible fixed assets
Plant and machinery Fixtures, fittings, tools and equipment Total
At cost At cost
£ £ £
Cost or valuation
At 1 January 2022 1,131,315 123,115 1,254,430
Additions 22,900 - 22,900
Disposals (1,131,315) (123,115) (1,254,430)
At 31 December 2022 22,900 - 22,900
Depreciation
At 1 January 2022 1,131,315 123,115 1,254,430
Charge for the year 1,527 - 1,527
On disposals (1,131,315) (123,115) (1,254,430)
At 31 December 2022 1,527 - 1,527
Carrying amount
At 31 December 2022 21,373 - 21,373
9 Investments
Investments in
subsidiary
undertakings
£
Cost
At 1 January 2022 520,035
At 31 December 2022 520,035
Unaudited
2022 2021
£ £
Dividends and other distributions from associates 1,930,000 -
Consolidated accounts are not prepared and the subsidiary is accounted for at cost.
The company holds 20% or more of the share capital of the following company:
Capital and Profit (loss)
Company Shares held reserves for the year
Class % £ £
Pax2Pay Limited Ordinary 100 1,727,424 1,392,746
Registered address: The Landing, 125 Redcliff Street, Bristol BS1 6HU
Principal business: supplier of online travel software
Unaudited
10 Debtors 2022 2021
£ £
Trade debtors 519,869 464,319
Amounts owed by group undertakings and undertakings in which the company has a participating interest 1,930,000 594,461
Prepayments and accrued income 171,231 140,058
Other debtors 56,289 29,224
2,677,389 1,228,062
Unaudited
11 Creditors: amounts falling due within one year 2022 2021
£ £
Bank loans 221,099 180,000
Trade creditors 265,481 314,224
Amounts owed to group undertakings and undertakings in which the company has a participating interest 1,947,288 2,046,499
Other taxes and social security costs 247,304 426,621
Other creditors 497,598 355,176
3,178,770 3,322,520
Unaudited
12 Creditors: amounts falling due after one year 2022 2021
£ £
Bank loans 641,667 861,667
Barclays Security Trustee Limited holds a debenture in respect of the bank loans, secured by a fixed and floating charge over all the assets of the company.
13 Deferred taxation 2022 2021
£ £
Accelerated capital allowances 226,542 206,911
Unaudited
2022 2021
£ £
At 1 January 206,911 218,342
Charged/(credited) to the profit and loss account 19,631 (11,431)
At 31 December 226,542 206,911
14 Share capital Nominal 2022 2022 2021
value Number £ £
Allotted, called up and fully paid:
A Ordinary Shares. One vote per share £0.001 35,000 35 35
D Ordinary Shares Allotted, no right to attend meetings, vote or dividends. £0.001 1,384 1 1
36 36
15 Other reserves 2022 2021
Capital Redemption reserve £ £
At 1 January 46 46
At 31 December 46 46
Unaudited
16 Profit and loss account 2022 2021
£ £
At 1 January (928,621) 389,428
Profit/(loss) for the financial year 2,077,144 (1,318,049)
Dividends (800,000) -
At 31 December 348,523 (928,621)
Unaudited
17 Dividends 2022 2021
£ £
Dividends on ordinary shares (note 16) 800,000 -
18 Other financial commitments
Total future minimum lease payments under non-cancellable operating leases:
Land and buildings Land and buildings Other Other
2022 2021 2022 2021
£ £ £ £
Falling due:
within one year 236,298 256,041 - -
within two to five years 212,669 486,479 - -
448,967 742,520 - -
19 Related party transactions
The company operates an intercompany account with group companies. Shared costs are allocated between the companies. At 31 December 2022 the company was owed £1,930,000 by Pax2Pay Limited (2021: £171,907). Also as at 31 December 2022 the company owed £394,293 to Paxport Group AB (2021: £422,544 due from Paxport Group UK), £698,732 to Paxport AB (2021:£810,840) and £854,262 to Pax2Pay limited (2021: £1,235,659).
20 Controlling party
The company is controlled by Paxport Group AB by virtue of its majority shareholding. Paxport Group AB is also the ultimate parent company, incorporated in Sweden, whose principal place of business and registered office is, and whose financial statements can be obtained at Box 55954, 102, 16, Stockholm, Sweden and this is the smallest and largest group in which the results of the company are consolidated
21 Presentation currency
The financial statements are presented in Sterling.
22 Legal form of entity and country of incorporation
Paxport Group UK Limited is a private company limited by shares and incorporated in England.
23 Principal place of business
The address of the company's principal place of business and registered office is:
The Landing, 125 Redcliff Street
Bristol
Avon
BS1 6HU
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