REGISTERED NUMBER: 03216903 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31st December 2022 |
for |
CANNON TECHNOLOGIES GROUP LIMITED |
REGISTERED NUMBER: 03216903 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31st December 2022 |
for |
CANNON TECHNOLOGIES GROUP LIMITED |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Contents of the Consolidated Financial Statements |
for the year ended 31st December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Statement of Directors' Responsibilities | 5 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Financial Statements | 16 |
CANNON TECHNOLOGIES GROUP LIMITED |
Company Information |
for the year ended 31st December 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Alasdair Weaks |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
Suffolk House |
George Street |
Croydon |
Surrey |
CR0 0YN |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Group Strategic Report |
for the year ended 31st December 2022 |
The directors present their strategic report of the company and the group for the year ended 31st December 2022. |
REVIEW OF BUSINESS |
The group reports revenue for the year of £9,178,266 (31.12.21 - £7,578,906) an operating loss of £(817,891) (31.12.21 - £(810,582) loss) and a loss before taxation of £(692,549) (31.12.21 - loss of £(576,999)). Included in group revenue is the group's share of its joint venture's revenues of £2,731,422 (31.12.21 - £2,799,636) for the year. |
The Group continues to invest heavily in R &D to develop its modular data centres, integrated outdoor solutions and data centre infrastructure. The Directors are also developing new product lines which will hopefully generate new revenue streams. The group's trading position has been continuing improving by increasing sales and securing new contracts. |
The directors expect an improvement in the group's trading position in 2023 and onwards to 2024, and are continually reviewing and updating the group's strategy to ensure profitability and to maintain its market position. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group have a number of risks through the normal course of business that it needs to mitigate each year. |
The group's principal risks are considered to be the economic environment in which it operates and supply chain management. The directors manage these risks through continual review of the group's risk management process and strategic plan. |
Liquidity and cash flow risk |
The group finances its operations from ongoing trading, investment income and through various financing agreements with their bankers, including overdraft facilities. |
The group has significant headroom on its banking facilities, and the directors consider the group to have sufficient available funds for operations. The directors review the current cashflow position and future cash forecast of the group on a monthly basis. |
Economic conditions |
The group has seen challenges with regard to price inflation and supply of materials and labour. The directors continue to monitor and update the group's strategy to lessen this impact. |
Supply chain management |
The group is impacted by the availability of key products and components due to a shortage of raw materials, significant global demand and various transportation constraints. The directors are reviewing current stock for potential repurpose, and also maintain good relationships with their suppliers to minimise the impact on operations. |
KEY PERFORMANCE INDICATORS |
The directors constantly monitor a number of key performance indicators to ensure optimal business performance. |
For example, monthly, quarterly and annual performance is reviewed against budget and forecasts. Further measures such as the age of debt, stock holding, turnover and margins are regularly reviewed. |
ON BEHALF OF THE BOARD: |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Report of the Directors |
for the year ended 31st December 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company continued to be that of a holding company. The principal activities of the group continued to be that of the design and manufacture of specialist electronic data enclosure systems. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2022. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2022 to the date of this report. |
GOING CONCERN AND FUTURE DEVELOPMENTS |
The group finances its operations from ongoing trading, investment income and through various financing agreements with their bankers, including overdraft facilities. |
The directors prepare annual budgets and forecasts to ensure the group has sufficient reserves in order to meet its liabilities as they fall due. |
The group retains headroom on the various financing arrangement with its bankers and the directors consider the group to have adequate funds to to meet its liabilities as they fall due for a period of at least 12 months from the date the financial statements were authorised for issue. |
In addition, the group has also generated a number of opportunities with both existing and new customers that the directors expect to generate an uplift in revenue and positive cashflow inflow for 2023 and 2024. |
In light of the above, the directors believe it is appropriate to adopt the going concern basis of accounting in preparing the financial statements. |
FINANCIAL INSTRUMENTS |
The group's operations expose it to a variety of financial risks which include credit risk and liquidity risk. |
Credit Risk |
The group's credit risk relates to bank loans and overdraft facilities held by group companies. These facilities are secured against the assets of all group companies and are reviewed annually. |
Liquidity Risk |
The group ensures that sufficient liquidity is available to meet forseeable needs. The group of companies is liable to its bankers in respect of overdrafts operated by group companies under the terms of an unlimited multilateral guarantee. |
Interest Risk |
The Bank overdraft facilities are used when needed, during the year, the Board monitors the interest rate and level of overdraft and does not believe it appropriate to hedge against interest rate fluctuations. |
MATTERS COVERED IN THE STRATEGIC REPORT |
The principal risks and uncertainties facing the group, and key financial performance indicators have been considered in the strategic report. |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Report of the Directors |
for the year ended 31st December 2022 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Simpson Wreford & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Statement of Directors' Responsibilities |
for the year ended 31st December 2022 |
The Directors are responsible for preparing the Group Strategic, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company and the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue 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 the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Report of the Independent Auditors to the Members of |
Cannon Technologies Group Limited |
Opinion |
We have audited the financial statements of Cannon Technologies Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2022 and of the group's loss 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Cannon Technologies Group Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Cannon Technologies Group Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We made enquiries with management to confirm our understanding that the company continued to comply with the applicable legal and regulatory frameworks, and also to confirm our understanding of the specific policies and procedures enlisted by the company to ensure ongoing compliance. |
- We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud may occur, and gained an understanding of the company's policies and procedures on fraud risks through discussion with the company's management. |
- We considered the risk of material misstatement due to fraud as a result of possible management override of controls, and improper revenue recognition. To address these risks we tested the appropriateness of journal entries posted, reviewed those judgements made in making accounting estimates, and tested the application of revenue recognition and the cut-off of revenue. |
- We communicated those laws and regulations considered relevant to the company, and potential fraud risks to all engagement team members, and consider that the engagement team had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations, and remained alert to any indications of fraud throughout the audit. |
Due to 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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Cannon Technologies Group Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
Suffolk House |
George Street |
Croydon |
Surrey |
CR0 0YN |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Consolidated |
Statement of Comprehensive |
Income |
for the year ended 31st December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
REVENUE |
Group and share of joint ventures | 9,178,266 | 7,578,906 |
Less: |
Share of joint ventures' revenue | (2,731,422 | ) | (2,799,636 | ) |
GROUP REVENUE | 4 | 6,446,844 | 4,779,270 |
Cost of sales | (5,462,868 | ) | (4,188,706 | ) |
GROSS PROFIT | 983,976 | 590,564 |
Administrative expenses | (1,801,867 | ) | (1,597,334 | ) |
(817,891 | ) | (1,006,770 | ) |
Other operating income | - | 196,188 |
GROUP OPERATING LOSS | 6 | (817,891 | ) | (810,582 | ) |
Share of operating profit in |
Joint ventures | 173,312 | 235,799 |
Interest receivable and similar income | 1,065 | - |
(643,514 | ) | (574,783 | ) |
Interest payable and similar expenses | 8 | (49,035 | ) | (2,216 | ) |
LOSS BEFORE TAXATION | (692,549 | ) | (576,999 | ) |
Tax on loss | 9 | 369,203 | 307,609 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR | (323,346 | ) | (269,390 | ) |
Loss attributable to: |
Owners of the parent | (323,346 | ) | (269,390 | ) |
Total comprehensive loss attributable to: |
Owners of the parent | (323,346 | ) | (269,390 | ) |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Consolidated Statement of Financial Position |
31st December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 10,803 | 13,824 |
Property, plant and equipment | 12 | 274,266 | 328,409 |
Investments | 13 |
Interest in joint venture |
Share of gross assets | 1,178,439 | 1,246,558 |
Share of gross liabilities | (380,203 | ) | (410,803 | ) |
1,083,305 | 1,177,988 |
CURRENT ASSETS |
Inventories | 14 | 2,022,576 | 1,539,981 |
Debtors | 15 | 2,012,592 | 1,388,189 |
Cash at bank and in hand | 489,694 | 651,108 |
4,524,862 | 3,579,278 |
CREDITORS |
Amounts falling due within one year | 16 | 2,673,293 | 1,499,046 |
NET CURRENT ASSETS | 1,851,569 | 2,080,232 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 2,934,874 | 3,258,220 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 47,000 | 47,000 |
Capital redemption reserve | 22 | 1,575,942 | 1,575,942 |
Retained earnings | 22 | 1,311,932 | 1,635,278 |
SHAREHOLDERS' FUNDS | 2,934,874 | 3,258,220 |
The financial statements were approved by the Board of Directors and authorised for issue on 31st January 2024 and were signed on its behalf by: |
E A Reddicliffe - Director |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Company Statement of Financial Position |
31st December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Property, plant and equipment | 12 |
Investments | 13 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Capital redemption reserve |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Consolidated Statement of Changes in Equity |
for the year ended 31st December 2022 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st January 2021 | 47,000 | 1,904,668 | 1,575,942 | 3,527,610 |
Changes in equity |
Total comprehensive loss | - | (269,390 | ) | - | (269,390 | ) |
Balance at 31st December 2021 | 47,000 | 1,635,278 | 1,575,942 | 3,258,220 |
Changes in equity |
Total comprehensive loss | - | (323,346 | ) | - | (323,346 | ) |
Balance at 31st December 2022 | 47,000 | 1,311,932 | 1,575,942 | 2,934,874 |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Company Statement of Changes in Equity |
for the year ended 31st December 2022 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st January 2021 | ( |
) | ( |
) |
Changes in equity |
Balance at 31st December 2021 | ( |
) | ( |
) |
Changes in equity |
Balance at 31st December 2022 | ( |
) | ( |
) |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Consolidated Statement of Cash Flows |
for the year ended 31st December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 27 | (1,280,021 | ) | (508,897 | ) |
Interest paid | (49,035 | ) | (2,216 | ) |
Government Grants Received | - | 196,188 |
Tax credit received | 354,299 | 552,584 |
Net cash from operating activities | (974,757 | ) | 237,659 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (4,556 | ) |
Purchase of tangible fixed assets | (74,685 | ) | (32,266 | ) |
Sale of tangible fixed assets | 320 | 5,000 |
Dividends received from joint venture | 195,000 | 234,000 |
Interest received | 1,065 | - |
Net cash from investing activities | 121,700 | 202,178 |
Cash flows from financing activities |
Loan repayments in year | (51,033 | ) | (66,511 | ) |
Net cash from financing activities | (51,033 | ) | (66,511 | ) |
(Decrease)/increase in cash and cash equivalents | (904,090 | ) | 373,326 |
Cash and cash equivalents at beginning of year |
28 |
(55,917 |
) |
(429,243 |
) |
Cash and cash equivalents at end of year | 28 | (960,007 | ) | (55,917 | ) |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements |
for the year ended 31st December 2022 |
1. | STATUTORY INFORMATION |
The principal activity of the company continued to be that of a holding company. The principal activities of the group continued to be that of the design and manufacture of specialist electronic data enclosure systems. |
The company is a private company limited by shares and is registered in England and Wales. The address of the registered office is 13 Queensway, Stem Lane Industrial Estate, New Milton, Hampshire, BH25 5NU. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the group's accounting policies (see note 3). |
Going concern |
The group finances its operations from ongoing trading, investment income and through various financing agreements with their bankers, including overdraft facilities. |
The directors prepare annual budgets and forecasts to ensure the group has sufficient reserves in order to meet its liabilities as they fall due. |
The group retains headroom on the various financing arrangement with its bankers and the directors consider the group to have adequate funds to to meet its liabilities as they fall due for a period of at least 12 months from the date the financial statements were authorised for issue. |
In addition, the group has also generated a number of opportunities with both existing and new customers that the directors expect to generate an uplift in revenue and positive cashflow inflow for 2023 and 2024. |
In light of the above, the directors believe it is appropriate to adopt the going concern basis of accounting in preparing the financial statements. |
Basis of consolidation |
The consolidated financial statements present the results of Cannon Technologies Group Limited and all of its subsidiary undertakings and joint ventures up to 31 December each year. Intercompany transactions and balances between group companies are therefore eliminated in full. |
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
Where a subsidiary has different accounting policies from the group, adjustments are made to those subsidiary financial statements to apply the group's accounting policies when preparing the consolidated financial statements. |
A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of the joint venture are accounted for using the equity method of accounting. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
2. | ACCOUNTING POLICIES - continued |
Joint ventures |
An entity is treated as a joint venture where the group is a party to contractual agreement with one or more parties from outside the group to undertake an economic activity that is subject to joint control. |
An entity is treated as an associated undertaking where the group exercises significant influence in that it has the power to participate in the operating and financial policy decisions. |
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The consolidated statement of comprehensive income includes the group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the group. In the consolidated statement of financial position, the interests in associated undertakings are shown as the group's share of the identifiable net assets, including any unamortised premium paid on aquisition. |
Any premium on acquisition is dealt with accordance with the goodwill policy. |
Revenue |
Turnover is recognised to the extent that it is probable the economic benefits will flow to the group and the turnover can be reliably measured. 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. |
Revenue is recognised when all of the following conditions are satisfied: |
- | the group has transferred the significant risks and rewards of ownership to the buyer; |
- | the group 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 group will receive the consideration due under the transaction; |
- | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill |
Goodwill may arise on the acquisition of subsidiary and associated undertakings and interests in joint ventures. It represents the excess of cost over fair value of the group's share of net assets acquired. |
Goodwill arising in such a manner is capitalised as an intangible asset and amortised by equal instalments over its expected life of 10 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
2. | ACCOUNTING POLICIES - continued |
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 included 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 or, if held under a finance lease, over the lease term, which ever is the shorter. |
Plant and machinery | - 10% straight line |
Fixtures and fittings | - 20% straight line |
Motor vehicles | - 25% reducing balance |
Computer equipment | - 33% straight line |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amounts and are recognised in the Statement of Comprehensive Income. |
Inventories |
Stocks are stated at the lower of cost and net relisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
At each balance sheet 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 the Statement of Comprehensive Income. |
Financial instruments |
The group enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from financial institutions and hire-purchase agreements. |
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute financing transactions, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market value, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the balance sheet date. |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research is written off in the year in which it is incurred. |
Development expenditure is written off in the same year unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period in which the company is expected to derive benefits. |
Foreign currencies |
The group's and company's functional and presentational currency is pound sterling. |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments |
Shares in group companies are stated at cost less provision for diminution in value. |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
2. | ACCOUNTING POLICIES - continued |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Creditors |
Short term trade creditors are measured at 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 effect interest method. |
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. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In applying the group's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carry value of assets and liabilities. The directors' judgement, estimates and assumptions are based on the best and most reliable evidence at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent sensitivity involved in making judgements, estimates and assumptions, the actual results and outcomes may differ. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised prospectively. |
In assessing whether there have been any indicators of impairment to assets, the directors consider both external and internal sources of information such as market conditions and experience of recoverability. |
Recoverability of receivables |
The group establishes a provision for receivables that are estimated not to be recoverable or recoupable. When assessing recoverability, the directors consider factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of the debtor. |
Provisions against slow moving inventory |
The group establishes a provision for slow moving inventory. When determining the provision, the directors consider factors such as the amount of inventory holding and subsequent sales. |
Determining residual values and useful economic lives of property, plant and equipment |
The group depreciates tangible and intangible assets over their estimated useful lives. The estimation of the useful lives of the assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technical innovation, product life cycles and maintenance programmes. |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
4. | REVENUE |
The revenue and loss before taxation are attributable to the one principal activity of the group. |
An analysis of revenue by geographical market is given below: |
31.12.22 | 31.12.21 |
£ | £ |
United Kingdom | 6,223,380 | 4,456,853 |
European Union | 110,598 | 217,905 |
Rest of the world | 112,866 | 104,512 |
6,446,844 | 4,779,270 |
5. | EMPLOYEES AND DIRECTORS |
31.12.22 | 31.12.21 |
£ | £ |
Wages and salaries | 1,818,071 | 1,624,268 |
Social security costs | 198,288 | 165,953 |
Other pension costs | 47,066 | 44,265 |
2,063,425 | 1,834,486 |
The average number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
Management and administration | 17 | 18 |
Production | 32 | 32 |
Paint shop and drivers | 10 | 5 |
The average number of employees by undertakings that were proportionately consolidated during the year was 59 (2021 - 55 ) . |
31.12.22 | 31.12.21 |
£ | £ |
Directors' remuneration | 84,013 | 80,350 |
Directors' pension contributions to money purchase schemes | 7,800 | 7,800 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
6. | OPERATING LOSS |
The operating loss is stated after charging: |
31.12.22 | 31.12.21 |
£ | £ |
Hire of plant and machinery | 11,050 | 13,220 |
Other operating leases | 74,084 | 88,991 |
Depreciation - owned assets | 128,424 | 146,753 |
Loss on disposal of fixed assets | 84 | 414 |
Patents and licences amortisation | 3,021 | 3,340 |
The Group incurred £439k (31.12.21: £1,157k) of research and development expenditure in the year, of which £281k (31.12.21: £220k) relates to total Group staff costs. |
7. | AUDITORS' REMUNERATION |
31.12.22 | 31.12.21 |
£ | £ |
Fees payable to the company's auditor for the audit of the company's annual accounts |
1,000 |
1,000 |
Fees payable to the company's auditor in respect of: |
The auditing of accounts of subsidiaries | 24,500 | 23,600 |
All other non-audit services not included above | 12,325 | 13,852 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.22 | 31.12.21 |
£ | £ |
Bank interest | 48,381 | - |
Bank loan interest | 654 | 2,216 |
49,035 | 2,216 |
9. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
31.12.22 | 31.12.21 |
£ | £ |
Current tax: |
UK corporation tax | (385,034 | ) | (321,265 | ) |
Joint ventures corporation tax | 15,831 | 13,656 |
Tax on loss | (369,203 | ) | (307,609 | ) |
UK corporation tax has been charged at 19 % . |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
9. | TAXATION - continued |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.22 | 31.12.21 |
£ | £ |
Loss before tax | (692,549 | ) | (576,999 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
(131,584 |
) |
(109,630 |
) |
Effects of: |
Depreciation in excess of capital allowances | 6,059 | 13,591 |
Expenses disallowable for tax purposes | 3,971 | 3,167 |
Other differences | (17,098 | ) | 12,640 |
Losses (utilised)/arising | 154,489 | 131,176 |
Research and development tax credit | (385,040 | ) | (358,553 | ) |
Total tax credit | (369,203 | ) | (307,609 | ) |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
11. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1st January 2022 |
and 31st December 2022 | 50,476 | 81,920 | 132,396 |
AMORTISATION |
At 1st January 2022 | 50,476 | 68,096 | 118,572 |
Amortisation for year | - | 3,021 | 3,021 |
At 31st December 2022 | 50,476 | 71,117 | 121,593 |
NET BOOK VALUE |
At 31st December 2022 | - | 10,803 | 10,803 |
At 31st December 2021 | - | 13,824 | 13,824 |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
12. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1st January 2022 | 4,465 | 3,595,018 | 279,127 |
Additions | - | 44,641 | 1,207 |
Disposals | - | - | - |
At 31st December 2022 | 4,465 | 3,639,659 | 280,334 |
DEPRECIATION |
At 1st January 2022 | 4,465 | 3,324,285 | 277,740 |
Charge for year | - | 93,705 | 1,045 |
Eliminated on disposal | - | - | - |
At 31st December 2022 | 4,465 | 3,417,990 | 278,785 |
NET BOOK VALUE |
At 31st December 2022 | - | 221,669 | 1,549 |
At 31st December 2021 | - | 270,733 | 1,387 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st January 2022 | 93,380 | 673,426 | 4,645,416 |
Additions | 27,000 | 1,837 | 74,685 |
Disposals | (8,473 | ) | - | (8,473 | ) |
At 31st December 2022 | 111,907 | 675,263 | 4,711,628 |
DEPRECIATION |
At 1st January 2022 | 84,358 | 626,159 | 4,317,007 |
Charge for year | 6,256 | 27,418 | 128,424 |
Eliminated on disposal | (8,069 | ) | - | (8,069 | ) |
At 31st December 2022 | 82,545 | 653,577 | 4,437,362 |
NET BOOK VALUE |
At 31st December 2022 | 29,362 | 21,686 | 274,266 |
At 31st December 2021 | 9,022 | 47,267 | 328,409 |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
13. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in joint |
venture |
£ |
COST |
At 1st January 2022 | 835,755 |
Share of profit/(loss) | (37,519 | ) |
At 31st December 2022 | 798,236 |
NET BOOK VALUE |
At 31st December 2022 | 798,236 |
At 31st December 2021 | 835,755 |
Interest in joint venture |
Details of the group's joint venture holding at the end of the reporting period are as follows: |
Name | Country of incorporation | Principal activity | Holding |
Centiant Intl Limited | England and Wales | IT and network services | 39% |
The registered office of Centiant Intl Limited is Unit 8 Hawthorn Close, Hartwell, Northampton, NN7 2FA. |
The above joint venture is accounted for using the equity method in these consolidated financial statements as set out in the group's accounting policies in Note 2 and is audited by C J A Accounting Limited. |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
Group |
Summarised financial information in respect of the group’s joint venture is set out below. The summarised financial information below represents the group's share of the amounts shown in the joint venture’s financial statements prepared in accordance with FRS 102. |
31.12.22 | 31.12.21 |
£ | £ |
Fixed assets | 97,202 | 107,361 |
Current assets | 1,081,237 | 1,139,196 |
Current liabilities | (380,203 | ) | (410,802 | ) |
Carrying amount of interest in joint venture | 798,236 | 835,755 |
Revenue | 2,731,422 | 2,799,636 |
Profit before tax | 173,311 | 235,799 |
Taxation | (15,831 | ) | (13,656 | ) |
Share of profit for the period after tax | 157,480 | 222,143 |
Dividends received | (195,000 | ) | (234,000 | ) |
Share of profit / (loss) after dividends | (37,520 | ) | (11,857 | ) |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2022 |
and 31st December 2022 |
NET BOOK VALUE |
At 31st December 2022 |
At 31st December 2021 |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
13. | FIXED ASSET INVESTMENTS - continued |
Subsidiary undertakings |
The following were subsidiary undertakings of the company: |
Name | Country of incorporation | Class of shares | Holding |
Cannon Technologies Limited* | England and Wales | Ordinary | 100% |
Cannon Datacom Limited* | England and Wales | Held indirectly | 100% |
Cannontech Limited** | Scotland | Held indirectly | 100% |
Cannon Technologies (Europe) Limited* | England and Wales | Ordinary | 100% |
Cannon Telecomms Limited* | England and Wales | Held indirectly | 100% |
Registered office |
* 13 Queensway, Stem Lane Industrial Estate, New Milton, Hampshire, BH25 5NU. |
** 8 Kelburn Terrace, Fairlie, Largs, Ayrshire, KA29 0AH. |
14. | STOCKS |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Stocks | 2,022,576 | 1,539,981 |
An impairment loss of £409,738 was recognised in the Statement of Comprehensive Income against stock during the year due to slow-moving and obsolete stock. |
15. | DEBTORS |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Amounts falling due within one year: |
Trade debtors | 1,404,245 | 783,637 |
Amounts owed by related companies | 36,650 | 36,650 |
Other debtors | 78,042 | 92,057 |
Tax | 386,006 | 355,271 |
Prepayments | 64,603 | 77,528 |
1,969,546 | 1,345,143 |
Amounts falling due after more than one | year: |
Amounts owed by related companies | 43,046 | 43,046 |
Aggregate amounts | 2,012,592 | 1,388,189 |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 1,449,701 | 758,058 |
Trade creditors | 828,496 | 517,017 |
Amounts owed to group undertakings | - | - |
Amounts owed to related companies | - | - | 100 | 100 |
Social security and other taxes | 54,897 | 47,928 |
VAT | 86,991 | 81,379 | - | - |
Other creditors | 40,208 | 28,267 |
Accrued expenses | 213,000 | 66,397 |
2,673,293 | 1,499,046 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 1,449,701 | 707,025 |
Bank loans | - | 51,033 |
1,449,701 | 758,058 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
31.12.22 | 31.12.21 |
£ | £ |
Within one year | 54,809 | 63,772 |
Between one and five years | 24,390 | 66,068 |
79,199 | 129,840 |
Company |
The Company does not have any operating leases. |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Bank overdraft | 1,449,701 | 707,025 |
Bank loans | - | 51,033 |
1,449,701 | 758,058 |
The bank overdraft facility is secured by an unscheduled mortgage debenture incorporating a fixed and floating charge over all assets, present and future, of this company, Cannon Technologies Limited, Cannontech Limited and Cannon Datacom Limited, and by an unlimited inter-company guarantee jointly given by this company, Cannon Technologies Limited, Cannontech Limited, and Cannon Datacom Limited. |
In addition a charge is held over property owned by Scammell Estates Limited, a company under common control. |
20. | FINANCIAL INSTRUMENTS |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Financial assets |
Financial assets measured at fair value through profit or loss |
489,693 |
651,109 |
- |
- |
Financial assets that are debt instruments measured at amortised cost |
1,518,937 |
875,694 |
- |
- |
2,332,630 | 1,600,142 | - | - |
Financial liabilities |
Financial liabilities measured at amortised cost |
2,531,405 |
1,341,472 |
120,989 |
120,984 |
Financial assets measured at fair value through profit or loss comprise cash and bank in hand. |
Financial assets measured at amortised cost compromise trade debtors, amounts due from related undertakings, other debtors and accrued income. |
Financial liabilities measured at amortised cost include bank facilities, HP agreements, trade creditors, other creditors, amounts owed to related undertakings and accruals. |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
value: | £ | £ |
Ordinary | £1 | 47,000 | 47,000 |
There are no restrictions on the distribution of dividends and the repayment of capital. |
22. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st January 2022 | 1,635,278 | 1,575,942 | 3,211,220 |
Deficit for the year | (323,346 | ) | (323,346 | ) |
At 31st December 2022 | 1,311,932 | 1,575,942 | 2,887,874 |
23. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme on behalf of the directors and certain employees. There is no commitment under this scheme. The annual cost was £47,066 ( 31.12.21 - £44,265). There was no outstanding or prepaid contribution at the period end (31.12.21 - £Nil). |
24. | CONTINGENT LIABILITIES |
The company is party to a composite guarantee between itself, Cannon Technologies Limited, Cannon Technologies Europe Limited, Cannontech Limited, Cannon Telecomms Limited and Cannon Datacom Limited for bank borrowings, but all such borrowings were by Cannon Technologies Limited only at the period end. There are no other contingent liabilities at the balance sheet date (31.12.21 - none). |
25. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
In the year, the company paid rental costs of £36,000 to Scammell Estates Limited (31.12.21 - £36,000), a company under common control. At the year end there was a balance within debtors of £29,724 (31.12.21 - £26,746) due from Scammell Estates Limited. |
26. | ULTIMATE CONTROLLING PARTY |
The controlling party is E A Reddicliffe. |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
27. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.22 | 31.12.21 |
£ | £ |
Loss before taxation | (692,549 | ) | (576,999 | ) |
Depreciation charges | 131,444 | 150,093 |
Loss on disposal of fixed assets | 84 | 414 |
Joint venture profit share | (173,311 | ) | (235,799 | ) |
Government grants | - | (196,188 | ) |
Finance costs | 49,035 | 2,216 |
Finance income | (1,065 | ) | - |
(686,362 | ) | (856,263 | ) |
(Increase)/decrease in inventories | (482,595 | ) | 17,043 |
(Increase)/decrease in trade and other debtors | (593,668 | ) | 466,806 |
Increase/(decrease) in trade and other creditors | 482,604 | (136,483 | ) |
Cash generated from operations | (1,280,021 | ) | (508,897 | ) |
28. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 489,694 | 651,108 |
Bank overdrafts | (1,449,701 | ) | (707,025 | ) |
(960,007 | ) | (55,917 | ) |
Year ended 31st December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 651,108 | 300,562 |
Bank overdrafts | (707,025 | ) | (729,805 | ) |
(55,917 | ) | (429,243 | ) |
CANNON TECHNOLOGIES GROUP LIMITED (REGISTERED NUMBER: 03216903) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2022 |
29. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 651,108 | (161,414 | ) | 489,694 |
Bank overdrafts | (707,025 | ) | (742,676 | ) | (1,449,701 | ) |
(55,917 | ) | (904,090 | ) | (960,007 | ) |
Debt |
Debts falling due within 1 year | (51,033 | ) | 51,033 | - |
(51,033 | ) | 51,033 | - |
Total | (106,950 | ) | (853,057 | ) | (960,007 | ) |