Company registration number 00964834 (England and Wales)
OXLEY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
OXLEY GROUP LIMITED
COMPANY INFORMATION
Directors
Mr D M Cavan
Mr P G W Bedwin
Mr P T Sheldon
Secretary
Squire Patton Boggs Secretarial Services Limited
Company number
00964834
Registered office
Priory Park
Ulverston
Cumbria
United Kingdom
LA12 9QG
Auditor
Azets Audit Services
Fleet House
New Road
Lancaster
United Kingdom
LA1 1EZ
OXLEY GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
OXLEY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 September 2023.

Review of the business

Revenue increased 11% to £20.7m in 2023 (2022: £18.7m). LED Lighting Systems remains a key strategic growth product group, which has seen significant revenue growth across the previous year up to £12.9m (2022: £12.0m). Sales volume growth is consistent across all geographical areas, as we continue to develop opportunities and customer relationships across the globe. The post-tax profit of £223,145 (2022: £907,336 profit), was predominately driven by inflationary material and labour cost increases across the Group, and Oxley Inc’s major commercial programme.

 

Positive signs of increased global defence budgetary spend has been experienced by the Group during the year, with increased levels of orders and sales. The order book stood at £24.8m (2022: £21.1m) reflecting the increasing level of order receipts in the year £27.3m (2022: £21.0m). The long-term nature of our business and our forward orderbook both provide a level of confidence in respect of trading in years to come. The Group is optimistic that 2024 looks set to achieve further revenue growth from the level achieved in 2023.

 

The cash balance fell to £2.8m in 2023 (2022: £4.0m), predominately due to the self-funded investment into the Group ERP system, which also impacted the net asset position which fell at the end of 2023 to £12.9m (2022: £13.0m).

 

During 2023, the Group continued to make significant investments in people, resources, and capital equipment, including the completion of the new Group ERP System implementation project in March 2023. The Group has invested further in its workforce during the year, by implementing a change to working patterns and a skilled based salary framework in Operational areas. These investments are to support the Group’s strategy to build resilience and to support future growth.

 

The Group continues to utilise its UK based Design and Development teams, and extensive internal manufacturing capabilities and facilities, and US based assembly and testing capabilities to support customer commitments and programmes.

 

Oxley Developments Company Ltd has continued to engage in a UK Government funded regional growth program called Sharing in Growth. This program provides funding for training and process improvements across the business. Over the next year, this program will enhance product line profitability in the UK and overall Oxley Group product margins. This program is delivering tangible positive results to the business.

Principal risks and uncertainties

The principal risks and uncertainties facing the business relate to pressures in the supply chain; driven by labour shortages, raw material cost and energy cost increases and increased lead-times. Additionally, changes in government defence spending policies in key markets, including the USA, can fluctuate and impact the Group’s future results. The Group has a broad customer and supplier base across many countries throughout the world, that provides a degree of protection against these risks.

 

Contracts and technological developments can be long term and complex, it is crucial the Group regularly manages these risks and uncertainties to ensure projects are completed timely and to cost.

 

The Group is planning to make further progress selling variants of established and new product lines particularly into aerospace applications and military land vehicles. Growth in these sectors is forecast to increase over the coming decade generating firm orders and volume production from an expanding global customer base.

OXLEY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Research and development

The directors recognise that to retain the Group’s competitive advantage in the industries that it operates, investment in research and development is essential. Equipment and people in the Group’s design and development team is one of the key areas benefitting from continuous investment from the business.

 

There has been growth in the level of customer funded contracts and internally funded research projects this year, that has contributed to the product development activities and expansion of the Group’s product portfolio; this is anticipated to continue.

 

Environment

The Group recognises its responsibilities to minimise its environmental impact and strive to integrate sustainable practices across our business operations. The Group continues to focus on areas and policies to reduce consumption, waste and emissions, drive efficiencies and innovation, and increase recycling.

Key performance indicators

The directors monitor key performance indicators at a group and company level to review the development, performance or position of the business. These include:

 

On behalf of the board

Mr P T Sheldon
Director
8 April 2024
OXLEY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 September 2023.

Principal activities

The Group focuses on designing and the manufacture of innovative and state of the art technology, recognising the increasing complexity of the products and services required by our global customers. Oxley Group continues to provide advanced solutions for both defence and civil aerospace applications and other highly regulated defence markets.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M E Sloan
(Resigned 20 February 2024)
Mrs M Madrona
(Resigned 15 April 2023)
Mr D M Cavan
Mr P G W Bedwin
Mr P T Sheldon
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

OXLEY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
On behalf of the board
Mr P T Sheldon
Director
8 April 2024
OXLEY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OXLEY GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Oxley Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 group and parent company 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 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

OXLEY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OXLEY GROUP LIMITED
- 6 -
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 their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

OXLEY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OXLEY GROUP LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 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.

Susanna Cassey (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
22 April 2024
Chartered Accountants
Statutory Auditor
Fleet House
New Road
Lancaster
United Kingdom
LA1 1EZ
OXLEY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
20,690,102
18,666,112
Cost of sales
(11,529,661)
(10,003,762)
Gross profit
9,160,441
8,662,350
Distribution costs
(960,271)
(731,935)
Administrative expenses
(8,568,222)
(6,832,208)
Other operating income
435,711
4,895
Operating profit
4
67,659
1,103,102
Interest receivable and similar income
8
143
-
0
Interest payable and similar expenses
9
(146,133)
(99,858)
(Loss)/profit before taxation
(78,331)
1,003,244
Tax on (loss)/profit
10
301,476
(95,908)
Profit for the financial year
24
223,145
907,336
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(327,846)
719,812
Total comprehensive income for the year
(104,701)
1,627,148
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
OXLEY GROUP LIMITED
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
3,110,583
1,200,577
Tangible assets
12
1,850,276
3,242,529
4,960,859
4,443,106
Current assets
Stocks
15
6,836,740
6,656,893
Debtors
16
4,645,011
4,577,365
Cash at bank and in hand
2,805,883
3,998,669
14,287,634
15,232,927
Creditors: amounts falling due within one year
17
(4,239,040)
(4,123,006)
Net current assets
10,048,594
11,109,921
Total assets less current liabilities
15,009,453
15,553,027
Creditors: amounts falling due after more than one year
18
(1,820,000)
(2,045,000)
Provisions for liabilities
Provisions
20
250,698
329,387
Deferred tax liability
21
-
0
135,184
(250,698)
(464,571)
Net assets
12,938,755
13,043,456
Capital and reserves
Called up share capital
23
5,031,848
5,031,848
Share premium account
24
2,624,530
2,624,530
Capital redemption reserve
24
228,332
228,332
Other reserves
24
5,551
5,551
Profit and loss reserves
24
5,048,494
5,153,195
Total equity
12,938,755
13,043,456
The financial statements were approved by the board of directors and authorised for issue on 8 April 2024 and are signed on its behalf by:
08 April 2024
Mr D M Cavan
Mr P T Sheldon
Director
Director
Company registration number 00964834 (England and Wales)
OXLEY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
3,050,156
3,050,156
Current assets
Debtors
16
4,185,521
4,083,820
Cash at bank and in hand
478,836
882,697
4,664,357
4,966,517
Creditors: amounts falling due within one year
17
(889,270)
(866,080)
Net current assets
3,775,087
4,100,437
Total assets less current liabilities
6,825,243
7,150,593
Creditors: amounts falling due after more than one year
18
(1,820,000)
(2,045,000)
Net assets
5,005,243
5,105,593
Capital and reserves
Called up share capital
23
5,031,848
5,031,848
Share premium account
24
2,624,530
2,624,530
Other reserves
24
5,551
5,551
Profit and loss reserves
24
(2,656,686)
(2,556,336)
Total equity
5,005,243
5,105,593

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £100,350 (2022 - £293,522 profit).

The financial statements were approved by the board of directors and authorised for issue on 8 April 2024 and are signed on its behalf by:
08 April 2024
Mr D M Cavan
Mr P T Sheldon
Director
Director
Company registration number 00964834 (England and Wales)
OXLEY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 October 2021
5,031,848
2,624,530
228,332
5,551
3,526,047
11,416,308
Year ended 30 September 2022:
Profit for the year
-
-
-
-
907,336
907,336
Other comprehensive income:
Currency translation differences
-
-
-
-
719,812
719,812
Total comprehensive income
-
-
-
-
1,627,148
1,627,148
Balance at 30 September 2022
5,031,848
2,624,530
228,332
5,551
5,153,195
13,043,456
Year ended 30 September 2023:
Profit for the year
-
-
-
-
223,145
223,145
Other comprehensive income:
Currency translation differences
-
-
-
-
(327,846)
(327,846)
Total comprehensive income
-
-
-
-
(104,701)
(104,701)
Balance at 30 September 2023
5,031,848
2,624,530
228,332
5,551
5,048,494
12,938,755
OXLEY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 October 2021
5,031,848
2,624,530
5,551
(2,849,858)
4,812,071
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
-
-
293,522
293,522
Balance at 30 September 2022
5,031,848
2,624,530
5,551
(2,556,336)
5,105,593
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
-
(100,350)
(100,350)
Balance at 30 September 2023
5,031,848
2,624,530
5,551
(2,656,686)
5,005,243
OXLEY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,166,585
1,469,142
Interest paid
(146,133)
(99,858)
Income taxes paid
(241,957)
(116,455)
Net cash inflow from operating activities
778,495
1,252,829
Investing activities
Purchase of intangible assets
(781,366)
(94,575)
Purchase of tangible fixed assets
(753,836)
(1,258,416)
Proceeds from disposal of tangible fixed assets
-
359
Interest received
143
-
0
Net cash used in investing activities
(1,535,059)
(1,352,632)
Financing activities
Repayment of borrowings
(230,778)
-
Net cash used in financing activities
(230,778)
-
Net decrease in cash and cash equivalents
(987,342)
(99,803)
Cash and cash equivalents at beginning of year
3,998,669
3,630,131
Effect of foreign exchange rates
(205,444)
468,341
Cash and cash equivalents at end of year
2,805,883
3,998,669
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 14 -
1
Accounting policies
Company information

Oxley Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Priory Park, Ulverston, Cumbria, LA12 9QG.

 

The Group consists of Oxley Group Limited and all of its subsidiaries.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Foreign currency differences on the translation of overseas subsidiaries are taken to the statement of comprehensive income. 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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Oxley Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The Group Board have a reasonable expectation of the continuing viability of the company during the current

period of economic volatility. Customers continue to place increased orders and sale commitments, and are keen to receive and, in some cases, expedite deliveries. However, our supply chain has been affected by the impact of inflation and increased supplier lead times, which has delayed our delivery times to customers.

 

The Directors prepare a detailed annual budget and three year business plan showing that they expect the company to be profitable over this period and remain within its facilities. Over the last three years, additional financial modelling has been performed for the Group, for a range of different scenarios, to establish the scope of the stresses that could impact the business, and this has shown that the business is still viable.

 

Accordingly the Directors continue to adopt the going concern basis in preparing the financial statements.

 

At the time of approving the financial statements, the Directors have a reasonable expectation that the Group has adequate resources to continue operational existence for the foreseeable future.

1.5
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.

 

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.

OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets other than goodwill

Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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
5 years straight line
Development costs
10 years straight line
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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:

Leasehold improvements
20 years straight line
Plant and equipment
5 years straight line
Fixtures and fittings
3 years 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 recognised in the profit and loss account.

Assets in the course of construction are not depreciated.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.11
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.

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.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

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.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.

1.17
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.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
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 leased asset are consumed.

OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.20
Government grants

Government grants are recognised at the fair value of the asset received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.21
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

 

On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

The Directors consider the key judgements and uncertainties relevant to the Financial Statements to be in respect to the carrying value of stock, debtors and intangible assets. The Directors apply their experience and knowledge of the industry to determine whether the carrying values and where relevant, useful economic lives, are appropriate, and make provisions to reduce the carrying value where necessary.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
3,001,858
2,739,894
Rest of European Union
4,731,837
4,052,494
Rest of world
12,956,407
11,873,724
20,690,102
18,666,112
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Other revenue
Interest income
143
-
Grants received
-
518
Other scrap sales
30,881
4,377
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
275,095
(405,649)
Research and development costs
903,414
687,819
Government grants
-
(518)
Depreciation of owned tangible fixed assets
462,373
517,343
Amortisation of intangible assets
383,884
179,288
Operating lease charges
117,771
58,034
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,500
12,500
Audit of the financial statements of the company's subsidiaries
41,000
37,000
54,500
49,500
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Office and Management
59
54
3
3
Manufacturing
137
129
-
-
Total
196
183
3
3
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
7,713,130
6,713,640
296,519
350,764
Social security costs
960,083
948,379
36,371
30,568
Pension costs
276,330
272,926
19,113
15,671
8,949,543
7,934,945
352,003
397,003
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
614,513
616,230
Company pension contributions to defined contribution schemes
34,352
36,842
648,865
653,072

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
155,000
177,878
Company pension contributions to defined contribution schemes
10,850
15,075
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
143
-
0
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
82,663
15,432
Interest payable to group undertakings
63,433
84,426
Other interest
37
-
Total finance costs
146,133
99,858
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
27,104
175,569
Adjustments in respect of prior periods
(79,945)
-
0
Total current tax
(52,841)
175,569
Deferred tax
Origination and reversal of timing differences
(248,635)
(79,661)
Total tax (credit)/charge
(301,476)
95,908

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(78,331)
1,003,244
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
(17,241)
190,616
Tax effect of expenses that are not deductible in determining taxable profit
11,556
5,528
Tax effect of utilisation of tax losses not previously recognised
12,483
40,565
Change in unrecognised deferred tax assets
(123,663)
-
0
Group relief
-
0
(22,918)
Permanent capital allowances in excess of depreciation
-
(161,464)
Depreciation on assets not qualifying for tax allowances
2,988
3,606
Amortisation on assets not qualifying for tax allowances
61,936
19,000
Research and development tax credit
(49,354)
(4,147)
Other non-reversing timing differences
-
0
5,396
Other permanent differences
-
0
68
Effect of overseas tax rates
(213,802)
(155,909)
Under/(over) provided in prior years
(79,946)
-
0
Foreign current tax on profits for the current period
93,567
175,567
Taxation (credit)/charge
(301,476)
95,908
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
11
Intangible fixed assets
Group
Software
Development costs
Total
£
£
£
Cost
At 1 October 2022
-
0
2,383,123
2,383,123
Additions - internally developed
-
0
617,236
617,236
Additions - separately acquired
107,384
56,746
164,130
Disposals
-
0
(80,199)
(80,199)
Transfers
1,609,419
-
0
1,609,419
Exchange adjustments
-
0
(79,008)
(79,008)
At 30 September 2023
1,716,803
2,897,898
4,614,701
Amortisation and impairment
At 1 October 2022
-
0
1,182,546
1,182,546
Amortisation charged for the year
175,501
208,383
383,884
Disposals
-
0
(31,410)
(31,410)
Exchange adjustments
-
0
(30,902)
(30,902)
At 30 September 2023
175,501
1,328,617
1,504,118
Carrying amount
At 30 September 2023
1,541,302
1,569,281
3,110,583
At 30 September 2022
-
0
1,200,577
1,200,577
The company had no intangible fixed assets at 30 September 2023 or 30 September 2022.
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 25 -
12
Tangible fixed assets
Group
Leasehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 October 2022
1,511,747
1,016,214
6,748,294
2,400,320
11,676,575
Additions
15,483
549,898
136,261
52,194
753,836
Disposals
-
0
-
0
(202,247)
-
0
(202,247)
Transfers
48,839
(1,566,112)
-
0
(92,147)
(1,609,420)
Exchange adjustments
(40,672)
-
0
(104,600)
(89,186)
(234,458)
At 30 September 2023
1,535,397
-
0
6,577,708
2,271,181
10,384,286
Depreciation and impairment
At 1 October 2022
512,846
-
0
5,833,960
2,087,240
8,434,046
Depreciation charged in the year
84,614
-
0
261,500
116,259
462,373
Eliminated in respect of disposals
-
0
-
0
(202,247)
-
0
(202,247)
Exchange adjustments
(26,391)
-
0
(65,541)
(68,230)
(160,162)
At 30 September 2023
571,069
-
0
5,827,672
2,135,269
8,534,010
Carrying amount
At 30 September 2023
964,328
-
0
750,036
135,912
1,850,276
At 30 September 2022
998,901
1,016,214
914,334
313,080
3,242,529
The company had no tangible fixed assets at 30 September 2023 or 30 September 2022.

The carrying value of leasehold improvements comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Short leasehold
834,956
998,901
-
0
-
0
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
3,050,156
3,050,156
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
13
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2022 and 30 September 2023
3,050,156
Carrying amount
At 30 September 2023
3,050,156
At 30 September 2022
3,050,156
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Arun Systems Limited
United Kingdom
Dormant
Ordinary
100.00
Beck Electronics Limited
United Kingdom
Dormant
Ordinary
100.00
Oxley Avionics Limited
United Kingdom
Dormant
Ordinary
100.00
Oxley Developments Company Limited
United Kingdom
Design and development of electronic technology
Ordinary
100.00
Oxley Incorporated
United States
Design and development of electronic technology
Ordinary
100.00
Oxley Systems Limited
United Kingdom
Dormant
Ordinary
100.00

The registered office of the UK based group companies is Priory Park, Ulverston, Cumbria, LA12 9QG.

 

The registered office of Oxley Incorporated is 31 Business Park Drive, Branford, Connecticut, 06405, USA.

15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,838,685
1,885,181
-
-
Work in progress
3,487,909
3,574,888
-
-
Finished goods and goods for resale
1,510,146
1,196,824
-
0
-
0
6,836,740
6,656,893
-
-
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 27 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,208,172
3,348,733
-
0
-
0
Corporation tax recoverable
537,374
255,282
-
0
-
0
Amounts owed by group undertakings
-
-
4,185,521
4,068,545
Other debtors
391,249
260,162
-
0
15,275
Prepayments and accrued income
382,059
713,188
-
0
-
0
4,518,854
4,577,365
4,185,521
4,083,820
Amounts falling due after more than one year:
Deferred tax asset (note 21)
126,157
-
0
-
0
-
0
Total debtors
4,645,011
4,577,365
4,185,521
4,083,820

Included within prepayments and accrued income is £91,344 (2022 - £356,837) of amounts due from customers in relation to ongoing contract work.

17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
19
300,000
305,778
300,000
305,778
Trade creditors
1,702,124
1,339,712
-
0
-
0
Other taxation and social security
134,667
160,444
13,723
39,814
Other creditors
558,096
614,845
19,164
7,490
Accruals and deferred income
1,544,153
1,702,227
556,383
512,998
4,239,040
4,123,006
889,270
866,080
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
19
1,820,000
2,045,000
1,820,000
2,045,000
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 28 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Other loans
2,120,000
2,350,778
2,120,000
2,350,778
Payable within one year
300,000
305,778
300,000
305,778
Payable after one year
1,820,000
2,045,000
1,820,000
2,045,000

Interest on a related party loan of £1,291,680 is charged at base rate plus 2.5%. The earliest date that this can be called for repayment is June 2028.

 

Interest on a related party loan of £828,320 is charged at 4%. The earliest date that this can be called for repayment is June 2028.

20
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
250,698
329,387
-
-

Provisions include a warranty provision of £250,698 (2022: £329,387).

Movements on provisions:
Group
£
At 1 October 2022
329,387
Reversal of provision
(78,689)
At 30 September 2023
250,698
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
-
135,184
126,157
-
The company has no deferred tax assets or liabilities.
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
21
Deferred taxation
(Continued)
- 29 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 October 2022
135,184
-
Credit to profit or loss
(261,341)
-
Asset at 30 September 2023
(126,157)
-

The deferred tax asset of £126,157 (2022: Liability of £135,184) relates to timing differences in Oxley Inc. Oxley Development Company carried forward tax losses of £3,686,871, no deferred tax asset has been recognised in relation to these losses.

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
276,330
272,926

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
'A' Ordinary Shares of 1p each
3,488,690
3,488,690
34,887
34,887
Ordinary Shares of 1p each
3,351,879
3,351,879
33,519
33,519
Deferred Shares of 1p each
169,726,831
169,726,831
1,697,268
1,697,268
'B' Ordinary Shares of £1 each
3,200,505
3,200,505
3,200,505
3,200,505
'C' Ordinary Shares of 1p each
6,566,947
6,566,947
65,669
65,669
186,334,852
186,334,852
5,031,848
5,031,848

Deferred shares have a right to £0.01 (for all deferred shares) for each £100,000,000 of dividends distributed. On a winding up or return of capital, all deferred shares carry an aggregate value of £0.01 for each £100,000,000 of capital to be returned. The company has the right to buy back all deferred shares for £1.00 at any time. Deferred shares carry no voting rights.

 

Ordinary shares and 'A' Ordinary shares carry the same right to dividends once any preference dividends due has been paid. On a winding up, Ordinary shares and 'A' Ordinary shares carry the same rights. 'A' Ordinary shares and Ordinary shares carry equal voting rights. Ordinary 'B' and 'C' shares have no rights of control.

OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 30 -
24
Reserves
Profit and loss reserves

 

Profit and loss account represents accumulated comprehensive income for the year and prior periods net of equity dividends paid.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
279,345
232,126
10,694
-
Between two and five years
247,554
380,126
15,365
-
526,899
612,252
26,059
-
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
28,237
128,584
-
-
27
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Rental expenses
2023
2022
£
£
Group
Other related parties
105,400
105,150
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
27
Related party transactions
(Continued)
- 31 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the group
2,120,000
2,350,778
Other information

The company has taken advantage of the exemption contained in Section 33 of Financial Reporting Standard 102 'Related Party Disclosures' from disclosing transactions entered into between two or more members of a group, where the entity is wholly owned and included within the consolidated financial statements that are publicly available.

28
Controlling party

The company is controlled by Oxley International Limited, a company incorporated in Guernsey. In the opinion of the Directors this is the company's ultimate party company.

 

Consolidated financial statements are not prepared by Oxley International Limited and therefore these financial statements are the consolidated financial statements of the smallest and largest group of which the company is a member.

29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
223,145
907,336
Adjustments for:
Taxation (credited)/charged
(301,476)
95,908
Finance costs
146,133
99,858
Investment income
(143)
-
0
Amortisation and impairment of intangible assets
432,672
179,288
Depreciation and impairment of tangible fixed assets
462,373
517,343
(Decrease)/increase in provisions
(78,689)
329,387
Movements in working capital:
Increase in stocks
(179,847)
(1,196,633)
Decrease/(increase) in debtors
340,603
(218,961)
Increase in creditors
121,814
755,616
Cash generated from operations
1,166,585
1,469,142
OXLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 32 -
30
Analysis of changes in net funds - group
1 October 2022
Cash flows
Exchange rate movements
30 September 2023
£
£
£
£
Cash at bank and in hand
3,998,669
(987,342)
(205,444)
2,805,883
Borrowings excluding overdrafts
(2,350,778)
230,778
-
(2,120,000)
1,647,891
(756,564)
(205,444)
685,883
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