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Registered number: 05314641










XYNTEO LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022



 
XYNTEO LIMITED
 

COMPANY INFORMATION


DIRECTORS
O M Bjelland (resigned 18 March 2022)
J P Pikunic (appointed 17 March 2022, resigned 14 October 2022)
J C Grunsell (appointed 13 October 2022, resigned 16 August 2023)
JC N Bonaparte (appointed 20 February 2023)
C I Lavidas (appointed 20 February 2023)
T Widvey (appointed 20 February 2023)
M S Youtsos (appointed 20 February 2023)
H Madsen (appointed 20 February 2023, resigned 30 June 2023)
N Munjee (appointed 20 February 2023, resigned 12 April 2023)
M Crossen (appointed 25 September 2023)




REGISTERED NUMBER
05314641



REGISTERED OFFICE
Reading Bridge House
George Street

Reading

Berkshire

RG1 8LS




INDEPENDENT AUDITOR
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
XYNTEO LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Profit and Loss Account
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 23


 
XYNTEO LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

BUSINESS REVIEW
 
The results for the year and the financial position of the company are shown in the annexed financial statements.
Xynteo Limited's mission is focused on ‘reinventing growth together’. We work with global companies to identify and implement collaborative initiatives that enable businesses to grow in a new way, fit for the resource, climate and demographic realities of the 21st century. The response from partners has confirmed the success and relevance of this approach.
We closed 2022 with total revenue of £13,194k (2021: £12,935k), resulting in earnings before tax of £2,072k (2021: £2,284k). 
Xynteo Limited has a very positive position in the market, a diverse client base with many long-term relationships with global companies, an outstanding team with dynamic behaviour and a values-driven foundation.
Principal risk and uncertainties 
Risks are assessed by the Management Team regularly. They meet biweekly (and face to face once a month).
The specific risks include: market relevance of mission, revenue, OPEX, successfully embedding the restructure, attracting, retaining and performance management of the team – these are well managed, documented and under control, with new methods and structures being explored continually.
The director is of the view that the main financial risks arising from the company's activities are liquidity, credit and foreign exchange risk. The director sets and reviews policies for managing each of these risks and they are summarised below:
Liquidity risk
Xynteo Limited seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The funding for any significant new ventures is secured before commitments are made. Cashflow is monitored on a weekly basis.
Credit risk
The principal credit risk arises from the company's trade debtors. In order to manage credit risk, the director performs a regular review of trade debtors outstanding. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
Foreign exchange risk
Xynteo Limited is exposed to fluctuations in the EUR to GBP exchange rate. The exposure has been analysed and the company has set out to further minimise these risks in 2023, ensuring that the majority of transactions are denominated in pounds sterling.
Interest rate risk is not considered to be significant as the company has no borrowings.
Going concern
The Director has considered the financial position of the Company and believe that the Company is a going concern. Consequently, the financial statements have been prepared on a going concern basis.
Key Performance Indicators 
Xynteo Limited uses key performance indicators suitable for the nature and size of the company's business. These are primarily monthly financial reports which include; profit & loss statement, cash flow, open receivables together with a project profitability and project staffing analysis. Revenue forecast is continuously monitored focusing on key risks/opportunities.

Page 1

 
XYNTEO LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


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



M Crossen
Director
Date: 1 March 2024

Page 2

 
XYNTEO LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

DIRECTORS

The directors who served during the year were:

O M Bjelland (resigned 18 March 2022)
J P Pikunic (appointed 17 March 2022, resigned 14 October 2022)
J C Grunsell (appointed 13 October 2022, resigned 16 August 2023)
H Madsen (appointed 20 February 2023, resigned 30 June 2023)
N Munjee (appointed 20 February 2023, resigned 12 April 2023)

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of business and management consultancy.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £1,601,096 (2021 - £1,820,667).

The company has paid interim dividends totalling £700,000 (2021 - £NIL). The director recommends that no final dividend be paid. 

Page 3

 
XYNTEO LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

DISCLOSURE OF INFORMATION TO AUDITOR

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

AUDITOR

The auditor, James Cowper Kreston Auditwill 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.
 





M Crossen
Director
Date: 1 March 2024

Page 4

 
XYNTEO LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF XYNTEO LIMITED
 

OPINION


We have audited the financial statements of Xynteo Limited (the 'Company') for the year ended 31 December 2022, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2022 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


CONCLUSIONS RELATING TO GOING CONCERN


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditor's Report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 
XYNTEO LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF XYNTEO LIMITED (CONTINUED)


OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
XYNTEO LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF XYNTEO LIMITED (CONTINUED)


AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


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.

The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows: 

Enquiry of management and those charged with governance around actual and potential litigation and claims;  
Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations; 
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; 
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias. 


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 Auditor's 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 Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.


Page 7

 
XYNTEO LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF XYNTEO LIMITED (CONTINUED)





Alexander Peal BSc(Hons) FCA DChA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

1 March 2024
Page 8

 
XYNTEO LIMITED
 

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022

As restated
2022
2021
 £
£

  

Turnover
 4 
13,193,759
12,934,545

Cost of sales
  
(10,295,482)
(9,736,939)

Gross profit
  
2,898,277
3,197,606

Administrative expenses
  
(1,068,591)
(999,209)

Operating profit
 5 
1,829,686
2,198,397

Income from shares in group undertakings
  
242,615
85,985

Interest receivable and similar income
  
26
-

Profit before tax
  
2,072,327
2,284,382

Tax on profit
 8 
(471,231)
(463,715)

Profit for the financial year
  
1,601,096
1,820,667

There was no other comprehensive income for 2022 (2021: £NIL).

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

Page 9

 
XYNTEO LIMITED
REGISTERED NUMBER: 05314641

BALANCE SHEET
AS AT 31 DECEMBER 2022

As restated
2022
2021
£
£

Fixed assets
  

Tangible assets
 10 
27,258
31,168

Investments
 11 
154,456
154,455

  
181,714
185,623

Current assets
  

Debtors: amounts falling due after more than one year
 12 
66,558
66,558

Debtors: amounts falling due within one year
 12 
5,176,183
4,061,331

Cash at bank and in hand
 13 
1,138,268
1,667,900

  
6,381,009
5,795,789

Creditors: amounts falling due within one year
 14 
(1,870,623)
(2,190,432)

Net current assets
  
 
 
4,510,386
 
 
3,605,357

Total assets less current liabilities
  
4,692,100
3,790,980

Provisions for liabilities
  

Deferred tax
 15 
(4,682)
(4,658)

  
 
 
(4,682)
 
 
(4,658)

Net assets
  
4,687,418
3,786,322


Capital and reserves
  

Called up share capital 
 16 
1
1

Profit and loss account
  
4,687,417
3,786,321

  
4,687,418
3,786,322


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


M Crossen
Director
Date: 1 March 2024

Page 10

 
XYNTEO LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022 (as previously stated)
1
3,956,074
3,956,075

Prior year adjustment
-
(169,753)
(169,753)

At 1 January 2022 (as restated)
1
3,786,321
3,786,322



Profit for the year
-
1,601,096
1,601,096

Dividends: Equity capital
-
(700,000)
(700,000)


At 31 December 2022
1
4,687,417
4,687,418


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


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2021
1
1,965,654
1,965,655



Profit for the year
-
1,820,667
1,820,667


At 31 December 2021
1
3,786,321
3,786,322


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

Page 11

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


GENERAL INFORMATION

Xynteo Limited is a private company, limited by shares and registered in England and Wales. It's registered office is Reading Bridge House, George Street, Reading, RG1 8LS. 

2.ACCOUNTING POLICIES

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 2).
The Company is exempt under s400 of the Companies Act 2006 from the requirement to prepare group financial statements because the company is itself a subsidiary undertaking and its parent undertaking prepares group financial statements meeting the relevant conditions. These financial statements therefore present information about the Company as an individual undertaking and not about its group.
The following principal accounting policies have been applied:

 
2.2

Financial reporting standard 102 - reduced disclosure exemptions

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

This information is included in the consolidated financial statements of Xynteo Invest AS as at 31 December 2022 and these financial statements may be obtained from the registered office.

  
2.3
Turnover

Turnover represents sales of services, excluding value added tax. Amounts invoiced for services in advance are deferred to the period to which they relate.

 
2.4

Tangible fixed assets

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

Page 12

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.ACCOUNTING POLICIES (CONTINUED)


2.4
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Office equipment
-
25%
straight line
Computer equipment
-
33%
straight line

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

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

 
2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

  
2.6
Debtors

Short term debtors are measured at transaction price, less any impairment

 
2.7

Cash and cash equivalents

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

 
2.8

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

  
2.9
Creditors

Short term creditors are measured at the transaction price.

Page 13

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.ACCOUNTING POLICIES (CONTINUED)

 
2.10

Foreign currencies

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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.11

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

  
2.12
Operating leases

Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term.

Page 14

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.ACCOUNTING POLICIES (CONTINUED)

 
2.13

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 balance sheet 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 balance sheet 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 balance sheet date.


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgments and estimates have had the most significant effect on amounts recognised in the financial statements.
Bad debt provisions
Provisions are estimated by the company in respect of specific debts based upon the age of the debt and knowledge of known issues.
Accrued expenses
Accrued expenses are estimated by the company based upon past experience, with knowledge of known issues at the balance sheet date, and management information available after the balance sheet date, in respect of matters for which management are confident there will be an outflow of economic benefit from the company.
Turnover
Turnover is recognised on delivery of services or to the extent that the company has obtained the right to consideration through its performance under contracts. Where appropriate, the degree of completion of performance under contracts is estimated by the company based on resources / FTE’s spent per balance sheet date as a percentage of total expected resources / FTE’s.

Page 15

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


TURNOVER

Analysis of turnover by country of destination:

2022
2021
£
£

Europe - Sales
10,102,222
7,073,692

Rest of the World - Sales
2,298,187
5,264,748

Europe - Reimbursed expenses
793,350
596,105

13,193,759
12,934,545


Turnover is wholly attributable to the principal activity of the company.


5.


OPERATING PROFIT

The operating profit is stated after charging:

2022
2021
£
£

Depreciation of tangible fixed assets
18,887
22,216

Exchange differences
(122,294)
460,020

Fees payable to the Company’s auditor for the audit of the Company’sannual financial statements
25,581
18,900


6.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


2022
2021
£
£

Wages and salaries
4,288,813
3,139,043

Social security costs
555,002
410,062

4,843,815
3,549,105


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


        2022
        2021
            No.
            No.







Total
35
30

Page 16

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


DIRECTORS' REMUNERATION

2022
2021
£
£

Directors' emoluments
676,612
-

676,612
-


The highest paid director received remuneration of £532,795 (2021 - £NIL).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £483 (2021 - £NIL).


8.


TAXATION


2022
2021
£
£

Corporation tax


Current tax on profits for the year
365,631
453,478

Adjustments in respect of previous periods
53,740
(10,223)


419,371
443,255


Double taxation relief
(60,966)
(23,606)


358,405
419,649

Foreign tax


Foreign tax on income for the year
112,802
44,309

Total current tax
471,207
463,958

Deferred tax


Origination and reversal of timing differences
18
(1,791)

Effect of tax rate change on opening balance
6
1,548

Total deferred tax
24
(243)


Taxation on profit on ordinary activities
471,231
463,715
Page 17

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
8.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2021 - higher than) the standard rate of corporation tax in the UK of19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
2,072,327
2,284,382


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
393,742
434,033

Effects of:


Expenses not deductible for tax purposes
18,880
3,009

Foreign tax credits not used
51,836
20,703

Adjustments to tax charge in respect of prior periods
53,740
(10,223)

Remeasurement of deferred tax for changes in tax rates
6
1,118

Fixed asset differences
(876)
(841)

Exempt ABGH distributions
(46,097)
(16,337)

Other differences leading to an increase (decrease) in the tax charge
-
32,253

Total tax charge for the year
471,231
463,715


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

The main rate of corporation tax has risen from 19% to 25% from 1 April 2023. On this basis deferred tax is provided at the future rate of 25%.


9.


DIVIDENDS

2022
2021
£
£


Dividends
700,000
-

700,000
-

Page 18

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


TANGIBLE FIXED ASSETS





Office equipment
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2022
64,838
220,591
285,429


Additions
-
15,375
15,375


Disposals
-
(1,136)
(1,136)



At 31 December 2022

64,838
234,830
299,668



Depreciation


At 1 January 2022
64,725
189,536
254,261


Charge for the year
113
18,774
18,887


Disposals
-
(738)
(738)



At 31 December 2022

64,838
207,572
272,410



Net book value



At 31 December 2022
-
27,258
27,258



At 31 December 2021
113
31,055
31,168

Page 19

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


FIXED ASSET INVESTMENTS





Investments in subsidiary companies

£



COST


At 1 January 2022
154,456



At 31 December 2022
154,456





SUBSIDIARY UNDERTAKINGS


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Xynteo AB
Business and   management consultancy
Ordinary
100%
Xynteo AS
Business and management consultancy
Ordinary
100%
Xynteo Inc
Business and management consultancy
Ordinary
100%
Xynteo India Private Limited
Business and management consultancy
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2022 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit
£
£

Xynteo AB
117,857
2,398

Xynteo AS
660,251
3,110,805

Xynteo Inc
145,340
340,105

Xynteo India Private Limited
541,483
470,169

Page 20

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


DEBTORS

2022
2021
£
£

Due after more than one year

Other debtors
66,558
66,558

66,558
66,558


2022
2021
£
£

Due within one year

Trade debtors
3,763,649
2,589,454

Amounts owed by group undertakings
-
624,510

Other debtors
84,561
44,410

Prepayments and accrued income
1,327,973
802,957

5,176,183
4,061,331



13.


CASH AND CASH EQUIVALENTS

2022
2021
£
£

Cash at bank and in hand
1,138,268
1,667,900

1,138,268
1,667,900



14.


CREDITORS: Amounts falling due within one year

As restated
2022
2021
£
£

Trade creditors
341,333
582,103

Amounts owed to group undertakings
344,130
309,462

Corporation tax
269,928
125,764

Other taxation and social security
205,513
187,823

Other creditors
8,658
12,663

Accruals and deferred income
701,061
972,617

1,870,623
2,190,432


Page 21

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

15.


DEFERRED TAXATION




2022


£






At beginning of year
(4,658)


Charged to profit or loss
(24)



At end of year
(4,682)

The provision for deferred taxation is made up as follows:

2022
2021
£
£


Accelerated capital allowances
(4,658)
(4,901)

Charged to profit or loss
(24)
243

(4,682)
(4,658)


16.


SHARE CAPITAL

2022
2021
£
£
Allotted, called up and fully paid



1 (2021 - 1) Ordinary share of £1
1
1



17.


PRIOR YEAR ADJUSTMENT

The prior year adjustment was posted in order to account for rental invoices that relate to the prior year. The adjustment has decreased the prior year profit by £169,753 and decreased reserves and creditors due within one year by £169,753.


18.


PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately 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 £111,849 (2021 - £87,707). Contributions totalling £8,532 (2021 - £12,537) were payable to the fund at the balance sheet date and are included in creditors.

Page 22

 
XYNTEO LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

19.


COMMITMENTS UNDER OPERATING LEASES

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
222,929
148,920

Later than 1 year and not later than 5 years
887,444
887,444

Later than 5 years
461,143
757,012

1,571,516
1,793,376


20.


ADVANCES, CREDITS AND GUARANTEES

O M Bjelland, a former director, had an overdrawn loan balance at the start of the year of £22,380 (2021: £1,304). As at 31 December 2022, the balance outstanding was £57,327 (2021: £22,380). The maximum balance outstanding during the year was £57,327 (2021: £22,380).
The loan made to the former director is interest free and has no set repayment date.


21.


RELATED PARTY TRANSACTIONS

The company is a wholly owned subsidiary of Xynteo Invest AS and has taken advantage of the exemption conferred by FRS 102 not to disclose transactions with Xynteo Invest AS or other wholly owned subsidiaries within the group.


22.


POST BALANCE SHEET EVENTS

After the year end, the majority of the shares for the group and company were sold to new owners.


23.


ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

The immediate parent company in the year is Xynteo Holding AS, a company incorporated in Norway.The ultimate parent company is Xynteo Invest AS, a company incorporated in Norway.
The largest and smallest group in which the results of the company are consolidated is Xynteo Invest AS a company incorporated in Norway. The consolidated financial statements are available to the public Xynteo Invest As,and may be obtained from its registered office. 
The company is ultimately controlled by O M Bjelland by virtue of his shareholding in the ultimate parent company.


Page 23