REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31 December 2022 |
for |
PROCESSIA SOLUTIONS LIMITED |
REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31 December 2022 |
for |
PROCESSIA SOLUTIONS LIMITED |
PROCESSIA SOLUTIONS LIMITED (REGISTERED NUMBER: 04232899) |
Contents of the Financial Statements |
for the Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
PROCESSIA SOLUTIONS LIMITED |
Company Information |
for the Year Ended 31 December 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
52 St Johns Lane |
Halifax |
West Yorkshire |
HX1 2BW |
PROCESSIA SOLUTIONS LIMITED (REGISTERED NUMBER: 04232899) |
Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
PROCESSIA SOLUTIONS LIMITED (REGISTERED NUMBER: 04232899) |
Notes to the Financial Statements |
for the Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Processia Solutions Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Other intangible assets |
During 2010 the company purchased an intangible asset valued at £400,000 from Processia Solutions Inc. This asset was originally amortised over a period of 20 years. From 1 January 2013 the net book value of £345,000 was being amortised over the revised useful economic life of 8 years which was the estimated remaining life span of the contracts purchased at that date. During the year ended 31 December 2018 the remaining net book value of £86,250 was written off in full. |
Tangible fixed assets |
Plant and machinery etc | - |
Stocks |
Work in progress is valued at the lower of cost and net realisable value. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
PROCESSIA SOLUTIONS LIMITED (REGISTERED NUMBER: 04232899) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
PROCESSIA SOLUTIONS LIMITED (REGISTERED NUMBER: 04232899) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The Company has adopted the going concern basis in preparation of its financial statements for the year ended 31 December 2022. |
The Company's business activities, together with the factors likely to affect its future developments, its financial position, financial risk management objectives and its exposure to liquidity, credit, interest and currency risk are described in the Strategic Report. |
The Company's cash forecasts for the going concern period, being 12 months following the signing of the 2022 financial statements by the Directors show that the Company has sufficient access to liquidity to meet its needs over that period. This is reliant upon the Company's continuing access to the Atos SE Group (the "Group") cash-pooling arrangement as the Company is in a net negative cash position at certain times in its working capital cycle over this period. |
In turn, the cash forecasts of the Group as a whole, which includes the cash requirement for the Company, demonstrate that the Group has sufficient access to finance to meet the entire Group's liquidity needs for this period and therefore shall be able to support the Company during the periods where an additional cash requirement exists. |
The Group's cashflow forecasts have been prepared based on the following assumptions: |
" The implementation of specific actions to optimise its working capital requirements, including continued access to a factoring program; |
" The continuation of the €400 million asset divestment program that was announced on 28 July 2023; and |
" The implementation of an additional disposal program as communicated by the Group to the market on 3 January 2024. |
The Group has continued to meet the requirements of the covenants on external borrowings and bonds, however attention should be drawn to the maturity dates of these borrowings and the risks associated with its refinancing. The maturities of the Group borrowings are as follows: |
" €1.5 billion term loan A, maturing in July 2024, provides for another 6-month extension option until January 2025 under standard conditions; |
" €500 million bond (Optional Exchangeable Bond) maturing in November 2024; |
" €750 million bond maturing in May 2025; |
" €900 million revolving credit facility maturing in November 2025; |
" €350 million bond maturing in November 2028; and |
" €800 million bond (Sustainability-Linked Bond) maturing in November 2029. |
The ability of the Group to meet its financing maturities relies on the assumption that the relationship with major third parties (customers, suppliers, etc.) with which the Group operates is not altered, as well as the implementation of the following actions, either individually or in combination: |
" pursue specific actions to optimise its working capital requirement, including continued factoring; |
" implement a major asset disposal program; |
" obtain new bank financing; and |
" access capital markets (debt and/or equity). |
Optimising working capital |
The Group has initiated discussions regarding its factoring program, aiming to have a recurring factoring program available initially for a duration of six months and in an amount of € 300 million. However, the Group cannot rule out that the outcome of those discussions may be unsuccessful or that the solutions arising from those discussions prove insufficient to cover the Group's financing maturities and cash requirements on a long-term basis. |
Major asset disposal program |
PROCESSIA SOLUTIONS LIMITED (REGISTERED NUMBER: 04232899) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
In addition, the Group has decided to implement an additional asset disposal program beyond the €400 million mentioned in the press release of 28 July 2023, of which the sale of the Big Data Services business ("BDS") would be a key factor. In this respect, the Group has entered a due diligence phase with Airbus regarding the potential sale of its BDS business, following the receipt of an indicative offer for an enterprise value of €1.5 to €1.8 billion. Discussions with Airbus are currently at a preliminary stage and are still ongoing at the time of issue of the Company's 2022 financial statements. |
New bank financing |
The Group has entered into discussions with its financial creditors to reach a refinancing plan for its financial debt. As part of this process, the Group has requested the appointment of a mandataire ad hoc, as announced on 5 February 2024. The mandataire ad hoc is an independent third party who will assist the Group in its discussions, in order to agree an appropriate financial solution as soon as possible, in the Group's corporate interests as part of an amicable and confidential framework under French Law. Those discussions are ongoing. |
Material uncertainty |
As a result of the circumstances described above regarding the ability of the Group to support the Company's access to liquidity, there is a material uncertainty related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. In the event of the Group failing to meet or renegotiate its financing maturities, or if the ongoing discussions regarding the asset disposal program were unsuccessful, the Company may not be able to realise its assets or settle its liabilities within the ordinary course of its operations, and the application of the going concern basis of accounting, in particular with regards to the valuation of assets and liabilities, may be inappropriate. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
£ |
COST |
At 1 January 2022 |
Disposals | ( |
) |
At 31 December 2022 |
AMORTISATION |
At 1 January 2022 |
Eliminated on disposal | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
PROCESSIA SOLUTIONS LIMITED (REGISTERED NUMBER: 04232899) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
5. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
£ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
£ | £ |
Trade debtors |
Other debtors |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
£ | £ |
Trade creditors |
Taxation and social security |
Other creditors |
8. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
9. | RELATED PARTY DISCLOSURES |
The company has taken advantage of not disclosing transactions among members in the group as permitted under FRS 102 s33.1A. |
PROCESSIA SOLUTIONS LIMITED (REGISTERED NUMBER: 04232899) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
10. | ULTIMATE CONTROLLING PARTY |
The company is controlled by Processia Solutions Inc a company registered in Quebec, Canada which owns 100% of the shares in Processia Solutions Limited. The ultimate controlling party is Atos SE. |