Caseware UK (AP4) 2022.0.179 2022.0.179 2023-02-282023-02-28falsetrue2022-03-0111091false 04356233 2022-03-01 2023-02-28 04356233 2021-03-01 2022-02-28 04356233 2023-02-28 04356233 2022-02-28 04356233 2021-03-01 04356233 1 2022-03-01 2023-02-28 04356233 1 2021-03-01 2022-02-28 04356233 5 2022-03-01 2023-02-28 04356233 5 2021-03-01 2022-02-28 04356233 d:CompanySecretary1 2022-03-01 2023-02-28 04356233 d:Director1 2022-03-01 2023-02-28 04356233 d:RegisteredOffice 2022-03-01 2023-02-28 04356233 d:Agent1 2022-03-01 2023-02-28 04356233 e:Buildings e:ShortLeaseholdAssets 2022-03-01 2023-02-28 04356233 e:Buildings e:ShortLeaseholdAssets 2023-02-28 04356233 e:Buildings e:ShortLeaseholdAssets 2022-02-28 04356233 e:PlantMachinery 2022-03-01 2023-02-28 04356233 e:PlantMachinery 2023-02-28 04356233 e:PlantMachinery 2022-02-28 04356233 e:PlantMachinery e:OwnedOrFreeholdAssets 2022-03-01 2023-02-28 04356233 e:MotorVehicles 2022-03-01 2023-02-28 04356233 e:MotorVehicles 2023-02-28 04356233 e:MotorVehicles 2022-02-28 04356233 e:MotorVehicles e:OwnedOrFreeholdAssets 2022-03-01 2023-02-28 04356233 e:OfficeEquipment 2022-03-01 2023-02-28 04356233 e:OfficeEquipment 2023-02-28 04356233 e:OfficeEquipment 2022-02-28 04356233 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-03-01 2023-02-28 04356233 e:OwnedOrFreeholdAssets 2022-03-01 2023-02-28 04356233 e:CurrentFinancialInstruments 2023-02-28 04356233 e:CurrentFinancialInstruments 2022-02-28 04356233 e:Non-currentFinancialInstruments 2023-02-28 04356233 e:Non-currentFinancialInstruments 2022-02-28 04356233 e:CurrentFinancialInstruments e:WithinOneYear 2023-02-28 04356233 e:CurrentFinancialInstruments e:WithinOneYear 2022-02-28 04356233 e:Non-currentFinancialInstruments e:AfterOneYear 2023-02-28 04356233 e:Non-currentFinancialInstruments e:AfterOneYear 2022-02-28 04356233 e:ReportableOperatingSegment1 2022-03-01 2023-02-28 04356233 e:ReportableOperatingSegment1 2021-03-01 2022-02-28 04356233 f:UnitedKingdom 2022-03-01 2023-02-28 04356233 f:UnitedKingdom 2021-03-01 2022-02-28 04356233 f:RestWorldOutsideUK 2022-03-01 2023-02-28 04356233 f:RestWorldOutsideUK 2021-03-01 2022-02-28 04356233 e:UKTax 2022-03-01 2023-02-28 04356233 e:UKTax 2021-03-01 2022-02-28 04356233 e:ShareCapital 2023-02-28 04356233 e:ShareCapital 2022-02-28 04356233 e:RetainedEarningsAccumulatedLosses 2022-03-01 2023-02-28 04356233 e:RetainedEarningsAccumulatedLosses 2023-02-28 04356233 e:RetainedEarningsAccumulatedLosses 2021-03-01 2022-02-28 04356233 e:RetainedEarningsAccumulatedLosses 2022-02-28 04356233 e:RetainedEarningsAccumulatedLosses 2021-03-01 04356233 d:OrdinaryShareClass1 2022-03-01 2023-02-28 04356233 d:OrdinaryShareClass1 2023-02-28 04356233 d:OrdinaryShareClass1 2022-02-28 04356233 d:OrdinaryShareClass2 2022-03-01 2023-02-28 04356233 d:OrdinaryShareClass2 2023-02-28 04356233 d:OrdinaryShareClass2 2022-02-28 04356233 d:FRS102 2022-03-01 2023-02-28 04356233 d:Audited 2022-03-01 2023-02-28 04356233 d:FullAccounts 2022-03-01 2023-02-28 04356233 d:PrivateLimitedCompanyLtd 2022-03-01 2023-02-28 04356233 e:WithinOneYear 2023-02-28 04356233 e:WithinOneYear 2022-02-28 04356233 e:BetweenOneFiveYears 2023-02-28 04356233 e:BetweenOneFiveYears 2022-02-28 04356233 e:MoreThanFiveYears 2023-02-28 04356233 e:MoreThanFiveYears 2022-02-28 04356233 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-02-28 04356233 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2022-02-28 04356233 e:LeasedAssetsHeldAsLessee 2023-02-28 04356233 e:LeasedAssetsHeldAsLessee 2022-02-28 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 04356233







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
28 FEBRUARY 2023


PHOENIX SYSTEMS UK LIMITED






































img194f.png                        

 


PHOENIX SYSTEMS UK LIMITED
 


 
COMPANY INFORMATION


Director
Mr S K Jacobs 




Company secretary
Mrs A Jacobs



Registered number
04356233



Registered office
Unit 48
Standard Way

Fareham

Hampshire

PO16 8XQ




Independent auditors
Martin and Company Audit Limited
Chartered Accountants and Statutory Auditors

25 St Thomas Street

Winchester

Hampshire

SO23 9HJ




Bankers
Lloyds Bank Plc
PO Box 1000

BX11LT





 


PHOENIX SYSTEMS UK LIMITED
 



CONTENTS



Page
Strategic Report
1
Director's Report
2 - 3
Independent Auditors' Report
4 - 6
Statement of Income and Retained Earnings
7
Statement of Financial Position
8 - 9
Statement of Cash Flows
10
Analysis of Net Debt
11
Notes to the Financial Statements
12 - 23


 


PHOENIX SYSTEMS UK LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

Introduction
 
Phoenix Systems UK Limited (PSUK) are a UK based World class PCB Assembly and Electronic Equipment Manufacturing Solutions provider, located in southern England over 2 sites covering 21,000 sq. ft. PSUK was established in January 2002 and specialise in manufacturing solutions to the Aerospace, Defence, Medical, Transport, Automotive, Education and Industrial industry sectors, with a strong commitment to continuous improvement and maintain an accredited AS9100 QMS.

Business review
 
The business has grown significantly again this year with an increased turnover of 33%. A new Management structure has been implemented to support this growth, with continued high focus on quality and manufacturing processes to help maintain the continued world class service. 

Principal risks and uncertainties
 
We have a strategic focus on risk management and cyber protection. Robust procurement planning supports supply chain challenges and cost increases.

Financial key performance indicators
 
We have a comprehensive suite of key performance indicators that include our financial performance against targets. This helps ensure the management team are fully informed of our strategic objectives.

Other key performance indicators
 
Close working with our financial partners, stakeholders and utilisation of performance indicators drive our strategic decisioning.


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



Mr S K Jacobs
Director

Date: 16 November 2023

Page 1

 


PHOENIX SYSTEMS UK LIMITED
 


 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

The director presents his report and the financial statements for the year ended 28 February 2023.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Principal activities

The principal activity of the company during the year was the manufacture of electrical components.

Director

The director who served during the year was:

Mr S K Jacobs 

Future developments

Our current strategy following this period of growth is to secure turnover at this level for the next financial year. We want to support and maintain our team in order to maximise their development and provide opportunities for their progression. 

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he 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.

Page 2

 


PHOENIX SYSTEMS UK LIMITED
 


 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023


Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsMartin and Company Audit Limitedwill 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.
 





Mr S K Jacobs
Director

Date: 16 November 2023

Unit 48
Standard Way
Fareham
Hampshire
PO16 8XQ

Page 3

 


PHOENIX SYSTEMS UK LIMITED
 


 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX SYSTEMS UK LIMITED

Opinion


We have audited the financial statements of Phoenix Systems UK Limited (the 'Company') for the year ended 28 February 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows 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 28 February 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.


Other matters
The comparative figures in these financial statements are unaudited.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 4

 


PHOENIX SYSTEMS UK LIMITED



 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX SYSTEMS UK LIMITED (CONTINUED)

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 Auditor’s Report 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. 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's 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 Director's 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 director's 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 Director's Responsibilities Statement set out on page 2, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 


PHOENIX SYSTEMS UK LIMITED



 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX SYSTEMS UK 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.


The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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.

We obtained an understanding of the legal and regulatory framework applicable to the company via discussions with the directors. This identified that the most significant laws and regulations relate to the form and content of the financial statements such as the UK Companies Act 2006 and Financial Reporting Standard 102. The company complies with these laws and regulations by using appropriately qualified professionals to prepare the financial statements.
As part of our planning process we assessed susceptibility of the company's financial statements to material misstatements, including how fraud might occur by making an assessment of the key risks. The key risks identified in respect of Phoenix Systems UK Limited are revenue recognition and the impact of performance targets on influencing management override. The directors confirmed no actual, suspected or alleged cases of fraud.
Based on this assessment we designed our audit procedures to address these key risk areas with an emphasis on testing revenue recognition policies and sales cut off and reviewing those areas susceptible to management override including testing manual journals and making enquiries of management.


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.


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.





David Barr FCA (Senior Statutory Auditor)
for and on behalf of
Martin and Company Audit Limited
Chartered Accountants and Statutory Auditors
25 St Thomas Street
Winchester
Hampshire
SO23 9HJ
 

17 November 2023
Page 6

 


PHOENIX SYSTEMS UK LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023
2022
£
£

  

Turnover
 3 
14,295,040
10,827,788

Cost of sales
  
(10,987,838)
(8,218,464)

Gross profit
  
3,307,202
2,609,324

Distribution costs
  
(79,970)
(56,071)

Administrative expenses
  
(2,775,667)
(2,185,474)

Operating profit
 4 
451,565
367,779

Interest receivable and similar income
  
6
12

Interest payable and similar expenses
  
(49,348)
(11,629)

Profit before tax
  
402,223
356,162

Tax on profit
 9 
(62,591)
(84,080)

Profit after tax
  
339,632
272,082

  

  

Retained earnings at the beginning of the year
  
1,279,334
1,152,048

  
1,279,334
1,152,048

Profit for the year
  
339,632
272,082

Dividends declared and paid
  
(423,719)
(144,796)

Retained earnings at the end of the year
  
1,195,247
1,279,334
The notes on pages 12 to 23 form part of these financial statements.

Page 7

 


PHOENIX SYSTEMS UK LIMITED
REGISTERED NUMBER:04356233



STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
605,737
672,228

  
605,737
672,228

Current assets
  

Stocks
 12 
3,058,568
2,414,805

Debtors: amounts falling due within one year
 13 
3,612,255
2,354,920

Cash at bank and in hand
 14 
217,472
214,486

  
6,888,295
4,984,211

Creditors: amounts falling due within one year
 15 
(5,741,256)
(3,624,594)

Net current assets
  
 
 
1,147,039
 
 
1,359,617

Total assets less current liabilities
  
1,752,776
2,031,845

Creditors: amounts falling due after more than one year
 16 
(436,720)
(616,630)

Provisions for liabilities
  

Deferred tax
  
(120,709)
(135,780)

  
 
 
(120,709)
 
 
(135,780)

Net assets
  
1,195,347
1,279,435

Page 8

 


PHOENIX SYSTEMS UK LIMITED
REGISTERED NUMBER:04356233


    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 28 FEBRUARY 2023

2023
2022
£
£

Capital and reserves
  

Called up share capital 
 21 
100
100

Profit and loss account
 22 
1,195,247
1,279,335

  
1,195,347
1,279,435


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




Mr S K Jacobs
Director

Date: 16 November 2023

The notes on pages 12 to 23 form part of these financial statements.

Page 9

 


PHOENIX SYSTEMS UK LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
339,632
272,082

Adjustments for:

Depreciation of tangible assets
135,897
123,776

Loss on disposal of tangible assets
-
(2,702)

Interest paid
49,347
11,629

Interest received
(6)
(12)

Taxation charge
62,591
84,080

(Increase) in stocks
(643,763)
(1,301,497)

(Increase) in debtors
(1,257,334)
(1,020,238)

Increase in creditors
2,046,946
1,949,900

Corporation tax received
-
110,384

Net cash generated from operating activities

733,310
227,402


Cash flows from investing activities

Purchase of tangible fixed assets
(69,405)
(86,139)

Sale of tangible fixed assets
-
10,623

Interest received
6
12

HP interest paid
(11,914)
(3,909)

Net cash from investing activities

(81,313)
(79,413)

Cash flows from financing activities

Repayment of loans
(131,308)
(54,557)

Repayment of/new finance leases
(56,550)
(30,501)

Dividends paid
(423,719)
(144,796)

Interest paid
(37,434)
(7,722)

Net cash used in financing activities
(649,011)
(237,576)

Net increase/(decrease) in cash and cash equivalents
2,986
(89,587)

Cash and cash equivalents at beginning of year
214,486
304,073

Cash and cash equivalents at the end of year
217,472
214,486


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
217,472
214,486

217,472
214,486


The notes on pages 12 to 23 form part of these financial statements.

Page 10

 


PHOENIX SYSTEMS UK LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 28 FEBRUARY 2023





At 1 March 2022
Cash flows
Other non-cash changes
At 28 February 2023
£

£

£

£

Cash at bank and in hand

214,486

2,986

-

217,472

Debt due after 1 year

(399,546)

163,783

-

(235,763)

Debt due within 1 year

(1,655,926)

(875,212)

(85,000)

(2,616,138)

Finance leases

(262,383)

20,283

-

(242,100)


(2,103,369)
(688,160)
(85,000)
(2,876,529)

The notes on pages 12 to 23 form part of these financial statements.

Page 11

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

1.


General information

Phoenix Systems UK Limited is a private company limited by shares, registered in England and Wales. The address of its registered office is disclosed on the company information page.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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.

The following principal accounting policies have been applied:

 
2.2

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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.3

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.

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:

Leasehold property
-
10%
Plant & machinery
-
10% and 25%
Motor vehicles
-
25%
Office equipment
-
25%

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.

Page 12

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

  
2.4

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.5

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the
Page 13

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)


2.5
Financial instruments (continued)

original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 14

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

 
2.6

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.

 
2.7

Operating lease agreements

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.8

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 other creditors as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 15

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

 
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.


3.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
14,295,040
10,827,788

14,295,040
10,827,788


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
11,736,304
9,792,008

Rest of the world
2,558,736
1,035,779

14,295,040
10,827,787


Page 16

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

4.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Research & development charged as an expense
-
256,047

Exchange differences
(113,165)
53,096

Other operating lease rentals
157,156
141,048

Depreciation on fixed assets
135,857
123,776

Impairment of stock
49,192
45,881


5.


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
15,500
-


6.


Employees

2023
2022
£
£

Wages and salaries
3,122,225
2,411,751

Social security costs
294,449
222,353

Cost of defined contribution scheme
91,558
74,497

3,508,232
2,708,601


The average monthly number of employees, including directors, during the year was 110 (2022 - 91).


7.


Director's remuneration

2023
2022
£
£

Director's emoluments
12,939
11,400

Company contributions to defined contribution pension schemes
5,193
5,595

18,132
16,995


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

Page 17

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

8.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
15,932
4,434

Other loan interest payable
20,101
3,274

Finance leases and hire purchase contracts
11,914
3,909

Other interest payable
1,401
12

49,348
11,629


9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
91,095
13,433

Adjustments in respect of previous periods
(13,433)
(126)


77,662
13,307


Total current tax
77,662
13,307

Deferred tax


Origination and reversal of timing differences
(15,071)
50,572

Changes to tax rates
-
20,450

Adjustment for prior period
-
(249)

Total deferred tax
(15,071)
70,773


Tax on profit
62,591
84,080
Page 18

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 19% (2022 - 19%) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
402,224
356,162


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
76,423
67,671

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,829
422

Adjustments to tax charge in respect of prior periods
(1)
(249)

Other timing differences leading to an increase (decrease) in taxation
1,390
(16,351)

Adjustment for change in tax rates
(3,617)
32,587

Other differences leading to an increase (decrease) in the tax charge
(13,433)
-

Total tax charge for the year
62,591
84,080


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


10.


Dividends

2023
2022
£
£


Dividends paid
423,719
144,796

423,719
144,796

Page 19

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

11.


Tangible fixed assets





Leasehold property
Plant & machinery
Motor vehicles
Equipment
Total

£
£
£
£
£



Cost or valuation


At 1 March 2022
388,269
1,014,331
18,950
111,303
1,532,853


Additions
14,449
26,835
-
28,122
69,406



At 28 February 2023

402,718
1,041,166
18,950
139,425
1,602,259



Depreciation


At 1 March 2022
246,754
526,503
18,950
68,418
860,625


Charge for the year on owned assets
23,540
86,756
-
25,601
135,897



At 28 February 2023

270,294
613,259
18,950
94,019
996,522



Net book value



At 28 February 2023
132,424
427,907
-
45,406
605,737



At 28 February 2022
141,515
487,828
-
42,885
672,228

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
59,191
67,803

59,191
67,803


12.


Stocks

2023
2022
£
£

Work in progress (goods to be sold)
1,352,159
708,029

Raw materials and finished goods
1,706,409
1,706,776

3,058,568
2,414,805


Page 20

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

13.


Debtors

2023
2022
£
£


Trade debtors
3,265,611
2,116,306

Other debtors
282,472
135,488

Prepayments and accrued income
64,172
103,126

3,612,255
2,354,920



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
217,472
214,486

217,472
214,486



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
100,000
115,095

Trade creditors
2,507,830
1,452,626

Corporation tax
91,095
13,433

Other taxation and social security
111,127
260,539

Obligations under finance lease and hire purchase contracts
52,445
45,299

Other creditors
2,504,837
1,540,829

Accruals and deferred income
373,922
196,773

5,741,256
3,624,594


Creditors totalling £2,343,342 (2022 - £1,507,650) falling due within one year are secured over the assets of the company by way of fixed and floating charges including a negative pledge.
Bank loans totalling £100,000 (2022 - £115,095) falling due within one year are secured over the assets of the company by way of fixed and floating charges.
Hire purchase obligations totalling £52,445 (2022 - £42,299) falling due within one year are secured over the assets which they relate to.
 





Page 21

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

16.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
283,333
399,546

Net obligations under finance leases and hire purchase contracts
153,387
217,084

436,720
616,630


Bank loans totalling £283,333 (2022 - £399,546) falling due within one year are secured over the assets of the company by way of fixed and floating charges.
Hire purchase obligations totalling £153,387 (2022 - £217,084) falling due after one year are secured over the assets which they relate to.

The aggregate amount of liabilities repayable wholly or in part more than five years after the reporting date is:

2023
2022
£
£


Repayable by instalments
5,920
42,239

5,920
42,239

The loan is repayable in equal installments over an 84 month period, interest is charged at an effective rate of 6.37% per annum.


17.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held seperately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £91,558 (2022 - £74,497). Contributions totalling £55,940 (2022 - £13,166) were payable to the fund at the reporting date and are included in creditors.


18.


Commitments under operating leases

At 28 February 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
178,166
169,956

Later than 1 year and not later than 5 years
579,713
600,800

Later than 5 years
430,500
574,000

1,188,379
1,344,756

Operating leases expensed during the year amount to £143,500 (2022 - £71,750).

Page 22

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

19.


Related party transactions

At the year end, included within other creditors, were amounts owed to the Director totalling £84,942 (2022 - £15,681). This loan is undated, interest free and repayable on demand.
At the year end, included within other creditors, were amounts owed to a shareholder totalling £14,739 (2022 - £nil). This loan is undated, interest free and repayable on demand.


20.


Ultimate controlling party

The ultimate and immediate parent company is Phx Holdings Limited, a company registered in England and Wales. The address of its registered office is Unit 48 Standard Way, Fareham Industrial Park, Fareham, Hampshire, PO16 8XQ.


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



95 (2022 - 95) Ordinary shares of £1.00 each
95
95
5 (2022 - 5) Ordinary Class B shares of £1.00 each
5
5

100

100

All shares have attached to them full voting and capital distribution (including on Winding up) rights; they do not confer any rights of redemption. The shares have a right to a Dividend but the directors can declare a dividend on the different classes of shares at differing times.



22.


Reserves

Profit and loss account

The profit and loss account represents all accumulated net gains and losses which are distributable.

 
Page 23