Company registration number 05056314 (England and Wales)
SOTAX LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SOTAX LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
SOTAX LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
5
13,061
-
0
Tangible assets
6
591,494
521,433
604,555
521,433
Current assets
Stocks
7
518,049
647,369
Debtors
8
1,758,569
1,148,459
Cash at bank and in hand
160,482
279,625
2,437,100
2,075,453
Creditors: amounts falling due within one year
9
(2,263,814)
(1,995,794)
Net current assets
173,286
79,659
Total assets less current liabilities
777,841
601,092
Provisions for liabilities
(39,074)
-
0
Net assets
738,767
601,092
Capital and reserves
Called up share capital
10
60,000
60,000
Non-distributable profits reserve
11
45,119
85,420
Distributable profit and loss reserves
633,648
455,672
Total equity
738,767
601,092

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 25 February 2024 and are signed on its behalf by:
R Khinda
Director
Company registration number 05056314 (England and Wales)
SOTAX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

SOTAX Limited is a private company limited by shares incorporated in England and Wales. The registered office is Rutherford House, Tomlinson Business Park, Woodyard Lane, Foston, Derbyshire, DE65 5BU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

                        

1.2
Going concern

Sotax AG has produced a Letter of Support indicating their continued financial support as required in order for the company to remain a going concern for at least the next twelve months.

 

Sotax Limited has existing processes for assessing its ability to continue as a going concern, including forecasts, budgets and cash flows. The UK Financed Team regularly updated the HQ in Switzerland on the operations and finance state of affairs of the UK company. Every quarter, the UK Finance Tea, sends reports to the HQ, and these reports are accessible directly from the accounting system.

 

The information system identifies and captures events or conditions, that individually or collectively may threaten the entity's ability to continue as a going concern. Regular communication takes place between the Head of Finance in the UK and the HQ team in Switzerland.

 

The methods, assumptions and data used in assessing its going concern status are identified by management. The bank accounts are reconciled regularly and the bank balances are updated on the accounting system. Bankings and payments are processed, managed and authorised by the UK Finance Team.

 

In view of the measures outlined above and the support of the parent company, the directors consider that the going concern basis of accounting is appropriate in these financial statements.

SOTAX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
20% straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery etc
20% straight line
Furniture and fixtures
10%/14% straight line
Technical equipment
10% straight line
Motor vehicles
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

SOTAX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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

SOTAX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

SOTAX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.13
Foreign exchange

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

 

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of stock

The company’s products are subject to changing market demand. It is therefore necessary to consider on a periodic basis the recoverability of the cost of stocks and the associated impairment. Management calculates impairments by considering the nature and condition of the stocks and applies assumptions around anticipated salability of finished goods and future usage of raw materials, overheads and labour.

Warranty provision

The company includes a warranty provision in respect of the expected future cost of warranty commitments existing at the balance sheet date in respect of sales made. Management makes such estimations based on the value of products sold during the period, the nature and technical specifications of the items sold and also historical experience of such matters. Due to their very nature these provisions represent a key estimation uncertainty and at the balance sheet date an amount of £39,074 (2022 - £nil) has been provided.

3
Exceptional item

Included within other operating income is an exceptional management fee received £nil (2022 - £400,000) from the parent company.

4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
28
25
SOTAX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
5
Intangible fixed assets
Other
£
Cost
At 1 January 2023
-
0
Additions
13,748
At 31 December 2023
13,748
Amortisation and impairment
At 1 January 2023
-
0
Amortisation charged for the year
687
At 31 December 2023
687
Carrying amount
At 31 December 2023
13,061
At 31 December 2022
-
0
6
Tangible fixed assets
Plant and machinery etc
Furniture and fixtures
Total
£
£
£
Cost
At 1 January 2023
1,049,893
130,756
1,180,649
Additions
338,920
-
0
338,920
Disposals
(288,901)
-
0
(288,901)
At 31 December 2023
1,099,912
130,756
1,230,668
Depreciation and impairment
At 1 January 2023
613,950
45,266
659,216
Depreciation charged in the year
205,970
13,140
219,110
Eliminated in respect of disposals
(239,152)
-
0
(239,152)
At 31 December 2023
580,768
58,406
639,174
Carrying amount
At 31 December 2023
519,144
72,350
591,494
At 31 December 2022
435,943
85,490
521,433
7
Stocks
2023
2022
£
£
Stocks
518,049
647,369
SOTAX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,661,769
795,231
Amounts owed by group undertakings
9,628
266,157
Other debtors
87,172
87,071
1,758,569
1,148,459
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
82,085
158,173
Amounts owed to group undertakings
1,430,861
1,099,290
Taxation and social security
197,289
174,348
Other creditors
553,579
563,983
2,263,814
1,995,794
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
60,000
60,000
60,000
60,000
11
Non-distributable profits reserve

Purchase of NLG Labserv Limited

 

NLG Labserv Limited ("NLG") provide servicing of pharmaceutical machinery made by other manufacturers. In January 2019, it was purchased by the Sotax Group. The previous owners continued to run the company throughout 2019 while Sotax reviewed the current structures / procedures in place.

 

In January 2020, the day to day running of NLG was then transferred over to Sotax Limited employees, with the previous owners still in place to assist with the transition. The previous owners left the company in March and June 2020.

In July 2020 Sotax Limited acquired all of the assets, liabilities and the trade of NLG, taking over all employees, contracts, customers, suppliers etc.

 

The acquisition price was determined at £1,220,993, and this was initially accounted for as an intercompany loan. Subsequently the loan was waived by NLG.

 

In accordance with accounting guidelines, the part of the loan relating to non-monetary assets has been credited to non-distributable reserves, and the balance credited to distributable reserves.

 

An annual transfer equivalent to the depreciation charge on the non-monetary assets is made from non-distributable reserves to distributable reserves.

SOTAX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
12
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Gavin Robert Booth
Statutory Auditor:
Ashgates Corporate Services Limited
13
Financial commitments, guarantees and contingent liabilities

The total amount of financial commitments not included in the balance sheet in respect of operating leases is £330,082 (2022 - £390,082).

 

The total amount of these commitments due within one year are £60,000 (2022 - £60,000) and amounts due over one year are £270,082 (2022 - £330,082).

14
Related party transactions

Sotax Ltd is a wholly owned subsidiary of its parent company, Sotax Holding AG, a company incorporated in Switzerland. It is included in the consolidated financial statements of Sotax Holding AG which can be made available by contacting them through their site www.sotax.com.

 

In accordance with FRS 102 paragraph 33.1A, transactions entered into by the company and other wholly owned members of Sotax Holding AG group are not disclosed within the notes to the financial statements.

2023-12-312023-01-01false26 February 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedJ BenzR BenzL BruttelR KhindaL J Stonefalse050563142023-01-012023-12-31050563142023-12-31050563142022-12-3105056314core:IntangibleAssetsOtherThanGoodwill2023-12-3105056314core:IntangibleAssetsOtherThanGoodwill2022-12-3105056314core:PlantMachinery2023-12-3105056314core:FurnitureFittings2023-12-3105056314core:PlantMachinery2022-12-3105056314core:FurnitureFittings2022-12-3105056314core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3105056314core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3105056314core:CurrentFinancialInstruments2023-12-3105056314core:CurrentFinancialInstruments2022-12-3105056314core:ShareCapital2023-12-3105056314core:ShareCapital2022-12-3105056314core:FurtherSpecificReserve1ComponentTotalEquity2023-12-3105056314core:FurtherSpecificReserve1ComponentTotalEquity2022-12-3105056314core:RetainedEarningsAccumulatedLosses2023-12-3105056314core:RetainedEarningsAccumulatedLosses2022-12-3105056314bus:Director42023-01-012023-12-3105056314core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3105056314core:ComputerSoftware2023-01-012023-12-3105056314core:PlantMachinery2023-01-012023-12-3105056314core:FurnitureFittings2023-01-012023-12-3105056314core:ComputerEquipment2023-01-012023-12-3105056314core:MotorVehicles2023-01-012023-12-31050563142022-01-012022-12-3105056314core:IntangibleAssetsOtherThanGoodwill2022-12-3105056314core:PlantMachinery2022-12-3105056314core:FurnitureFittings2022-12-31050563142022-12-3105056314core:WithinOneYear2023-12-3105056314core:WithinOneYear2022-12-3105056314bus:PrivateLimitedCompanyLtd2023-01-012023-12-3105056314bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3105056314bus:FRS1022023-01-012023-12-3105056314bus:Audited2023-01-012023-12-3105056314bus:Director12023-01-012023-12-3105056314bus:Director22023-01-012023-12-3105056314bus:Director32023-01-012023-12-3105056314bus:CompanySecretary12023-01-012023-12-3105056314bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP