Company registration number 03005200 (England and Wales)
ANALOX LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ANALOX LIMITED
COMPANY INFORMATION
Directors
Miss E C Harbottle
Mr D B Johns
Miss N A Howard
(Appointed 20 December 2023)
Company number
03005200
Registered office
The Hive
Butts Lane
Fowlmere
Royston
SG8 7SL
Auditor
Azets Audit Services
Wynyard Park House
Wynyard Avenue
Wynyard
United Kingdom
TS22 5TB
Solicitors
Thorp Parker
Martin House
13 High Street
Stokesley
North Yorkshire
United Kingdom
TS9 5AD
ANALOX LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
ANALOX LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the group is the design, manufacture and supply of gas sensing products and complex systems into niche industries.

Strategy and business model

We are a niche gas sensing business and we define our mission as “collaboration to solve the total gas sensing need”. We focus on a small number of markets providing gas sensing products, systems and consultancy to enable life support and environmental improvement.

 

In 2023, our primary industries remained:

 

Growth will come from expansion within existing industries, existing customers, investment in green economy markets and from geographic expansion.

 

A strategic plan up to the end of 2026 has been published and approved by the Directors, in which an aggressive growth plan is outlined to push further into our chosen markets and explore emerging markets.

Review of the business

The business has continued on its pre-pandemic growth trajectory. Turnover in 2023 saw further growth across the business resulting in another record year for the company increasing from £10.4m to £12.4m. Submarine related sales have grown significantly following the winning of major contracts in 2021 and 2023. Two major defence contracts continue to deliver revenue through to 2026 and beyond through ongoing support service requirements. These long term contracts provide an unprecedented level of business security on top of the baseline of product sales achieved on an annual basis.

Analox’s wholly owned USA based subsidiary Amoxtec Inc is no longer consolidated into the Analox Ltd statutory accounts, and will instead be consolidated into the Hive Technologies Group Ltd accounts. 2023 results only include sales to Amoxtec Inc and not sales to Amoxtec Inc’s customer base.

Principal risks and uncertainties

The directors have identified the following principal risks and uncertainties affecting the company:

 

 

Analox’s product and service portfolio is well diversified providing a resilient foundation on which to navigate uncertain times.

ANALOX LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The company monitors its performance using a number of measures. Some of the top level measures are:

 

Unit

2023

2022

Delivery – On time in full (OTIF)

%

89.6

93.1

Quality – Delivered right first time (DRFT)

%

99.3

99.8

Return on sales (RoS) excluding one off costs

%

12.7

13.7

Employee numbers

 

103

99

Sales per employee

£’000

130

115

 

The Directors consider that these indicators are representative of the objectives we want to achieve.

On behalf of the board

Miss E C Harbottle
Director
19 July 2024
ANALOX LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £726,000. The directors do not recommend payment of a final dividend.

Directors

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

Miss E C Harbottle
Mr D B Johns
Miss N A Howard
(Appointed 20 December 2023)
Financial risk management polices and objectives
Objectives and policies

The company finances its activities with a combination of cash and short term deposits, bank loans, finance leases and hire purchase contracts. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities.

Cash flow and liquidity risk

Cash flow and liquidity risk is the risk that a company's available cash will not be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the Company is deemed sufficient to minimise the Company's exposure to cash flow and liquidity risk.

Foreign exchange risk

Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Company policies are aimed at minimising this risk. The company does not consider that it is materially exposed to foreign exchange risk.

Credit risk

Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Company policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The company does not consider that it is materially exposed to credit risk.

Price risk

Price risk is the risk that changes in raw material prices have the potential to impact on the profitability of the company. The company does not consider that it is materially exposed to price risk.

ANALOX LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Going concern

The financial statements have been prepared on a going concern basis.

The group meets its day to day working capital requirements through cash generated from operations and external borrowings.

The group’s forecasts and projections for the next twelve months show that the group should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance. Although the forecasts support the ability of the group to remain a going concern and to be able to trade and meets its debts as they fall due the underlying trading assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation.

Based on the factors set out above the directors believe that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Miss E C Harbottle
Director
19 July 2024
ANALOX LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ANALOX LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ANALOX LIMITED
- 6 -
Opinion

We have audited the financial statements of Analox Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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 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:

ANALOX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ANALOX LIMITED
- 7 -
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:

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 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.

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.

ANALOX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ANALOX LIMITED
- 8 -

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.

Graham Fitzgerald BA FCA DChA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
19 July 2024
Chartered Accountants
Statutory Auditor
Wynyard Park House
Wynyard Avenue
Wynyard
United Kingdom
TS22 5TB
ANALOX LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
12,428,833
10,406,703
Other operating income
224,696
218,442
Raw materials and consumables used
(4,884,151)
(3,723,476)
Staff costs
5
(4,446,743)
(4,621,716)
Depreciation and other amounts written off tangible and intangible fixed assets
4
(185,788)
(154,177)
Other operating expenses
(1,545,484)
(1,347,409)
Operating profit
4
1,591,363
778,367
Interest receivable and similar income
7
(165)
5,383
Interest payable and similar expenses
8
(3,430)
(47,388)
Profit before taxation
1,587,768
736,362
Tax on profit
9
(335,905)
(97,908)
Profit for the financial year
1,251,863
638,454

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ANALOX LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
9,833
11,833
Tangible assets
12
1,452,240
1,342,901
Investments
13
258,096
258,096
1,720,169
1,612,830
Current assets
Stocks
15
4,292,745
3,279,403
Debtors
16
3,409,268
2,576,486
Cash at bank and in hand
3,132,696
748,818
10,834,709
6,604,707
Creditors: amounts falling due within one year
17
(6,775,053)
(2,955,901)
Net current assets
4,059,656
3,648,806
Total assets less current liabilities
5,779,825
5,261,636
Creditors: amounts falling due after more than one year
18
(14,582)
(54,267)
Provisions for liabilities
Deferred tax liability
21
107,478
75,467
(107,478)
(75,467)
Net assets
5,657,765
5,131,902
Capital and reserves
Called up share capital
23
29,252
29,252
Share premium account
4,304
4,304
Capital redemption reserve
750
750
Profit and loss reserves
5,623,459
5,097,596
Total equity
5,657,765
5,131,902
The financial statements were approved by the board of directors and authorised for issue on 19 July 2024 and are signed on its behalf by:
Miss E C Harbottle
Director
Company Registration No. 03005200
ANALOX LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
30,002
4,304
-
0
5,171,030
5,205,336
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
-
638,454
638,454
Dividends
10
-
-
-
(440,325)
(440,325)
Own shares acquired
-
-
-
(271,563)
(271,563)
Redemption of shares
23
-
0
-
0
750
-
0
750
Other movements
(750)
-
-
-
(750)
Balance at 31 December 2022
29,252
4,304
750
5,097,596
5,131,902
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
1,251,863
1,251,863
Dividends
10
-
-
-
(726,000)
(726,000)
Balance at 31 December 2023
29,252
4,304
750
5,623,459
5,657,765
ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Analox Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Hive, Butts Lane, Fowlmere, Royston, SG8 7SL.

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. 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.

This 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:

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Analox Limited is a wholly owned subsidiary of Jofa Holdings Limited and the results of Analox Limited are included in the consolidated financial statements of Jofa Holdings Limited which are available from The Hive Butts Lane, Fowlmere, Royston, SG8 7SL.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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 as the contract progresses. The method requires judgement to accurately estimate the extent of progress towards contract completion and may involve estimates of totals contract costs to completion, total revenues, contract risks and toher judgements.

1.4
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.

1.5
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:

Intellectual Property
10 years straight line
1.6
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:

Freehold land and buildings
5 to 50 years (Land is not depreciated)
Plant and machinery
10% to 33% straight line
Website design
20% to 33% 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.

1.7
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
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.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

 

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock 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.

1.10
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.

1.11
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.

ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

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 company 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 company 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the company 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 company.

1.13
Taxation

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

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 company’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 when the company has 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.

1.14
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.

1.15
Retirement benefits

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

ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be 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.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Assessing nature of lease

The company has entered into commercial leases and as a lessee it obtains use of property, plant and equipment. The classification as operation or finance lease requires the Company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet,

ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
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.

Useful economic lives of tangible assets

The annual depreciation charge is sensitive to changes in the estimated useful lives of assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimate, future investments and econmic utilisation.

Stock provision

The company has made an assumption of writing down the value of stock items in which they expect the cost to exceed the net realisable value before it is fully sold/utilised. The assumption has involved looking at the histroic sales patters and expected sales in future years. The carrying amounts is £197,977 (2022: £164,372).

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods and services
12,428,833
10,406,703
2023
2022
£
£
Turnover analysed by geographical market
UK
8,519,159
6,013,063
Rest of world
3,909,674
4,393,640
12,428,833
10,406,703
2023
2022
£
£
Other revenue
Interest income
(165)
5,383
Grants received
28,016
9,983
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
62,098
(85,301)
Research and development costs
84,624
56,443
Government grants
(28,016)
(9,983)
Fees payable to the company's auditor for the audit of the company's financial statements
16,500
15,000
Depreciation of owned tangible fixed assets
166,831
152,577
Loss/(profit) on disposal of tangible fixed assets
16,957
(400)
Amortisation of intangible assets
2,000
2,000
Operating lease charges
68,957
28,282
ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
5
Employees

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

2023
2022
Number
Number
95
93

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,922,708
4,018,921
Social security costs
393,889
493,702
Pension costs
130,146
109,093
4,446,743
4,621,716
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
158,460
608,184
Company pension contributions to defined contribution schemes
7,502
24,649
165,962
632,833
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
n/a
142,600
Company pension contributions to defined contribution schemes
n/a
4,919

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
(165)
5,383
ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
264
44,730
Interest on finance leases and hire purchase contracts
3,166
2,658
3,430
47,388
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
301,943
104,136
Adjustments in respect of prior periods
1,951
(1,711)
Total current tax
303,894
102,425
Deferred tax
Origination and reversal of timing differences
32,011
(4,517)
Total tax charge
335,905
97,908

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

2023
2022
£
£
Profit before taxation
1,587,768
736,362
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
373,443
139,909
Tax effect of expenses that are not deductible in determining taxable profit
20,577
53,270
Tax effect of income not taxable in determining taxable profit
(11,044)
(87,365)
Effect of change in corporation tax rate
1,894
(1,182)
Group relief
-
0
(564)
Research and development tax credit
(50,916)
(6,139)
Under/(over) provided in prior years
1,951
-
0
Other
-
0
(21)
Taxation charge for the year
335,905
97,908
ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
10
Dividends
2023
2022
£
£
Interim paid
726,000
440,325
11
Intangible fixed assets
Intellectual Property
£
Cost
At 1 January 2023 and 31 December 2023
20,000
Amortisation and impairment
At 1 January 2023
8,167
Amortisation charged for the year
2,000
At 31 December 2023
10,167
Carrying amount
At 31 December 2023
9,833
At 31 December 2022
11,833
12
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Website design
Total
£
£
£
£
Cost
At 1 January 2023
1,034,892
775,428
32,550
1,842,870
Additions
196,253
139,831
-
0
336,084
Disposals
-
0
(106,971)
(1,350)
(108,321)
At 31 December 2023
1,231,145
808,288
31,200
2,070,633
Depreciation and impairment
At 1 January 2023
83,071
408,274
8,624
499,969
Depreciation charged in the year
36,576
123,970
6,285
166,831
Eliminated in respect of disposals
-
0
(47,057)
(1,350)
(48,407)
At 31 December 2023
119,647
485,187
13,559
618,393
Carrying amount
At 31 December 2023
1,111,498
323,101
17,641
1,452,240
At 31 December 2022
951,821
367,154
23,926
1,342,901
ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
251,962
251,962
Unlisted investments
6,134
6,134
258,096
258,096
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Analox Sensor Technology Limited
The Hive, Butts Lane, Fowlmere, Royston, SG8 7SL
Ordinary
100.00
Amoxtec Incorporated
15121 Graham St, Huntington Beach, CA, 92648-1133 USA
Ordinary
100.00

The company's other subsidiaries (Analox Military Systems Limited and Genius Gas Innovations Limited) have since been dissolved on 26 March 2024, following the company's year end.

15
Stocks
2023
2022
£
£
Raw materials and consumables
2,963,161
2,457,987
Work in progress
1,329,584
821,416
4,292,745
3,279,403
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,841,676
1,908,999
Amounts owed by group undertakings
1,209,882
189,844
Other debtors
1,884
13,417
Prepayments and accrued income
355,826
464,226
3,409,268
2,576,486
ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
20
10,632
22,647
Other borrowings
19
26,650
28,235
Trade creditors
330,722
622,979
Amounts owed to group undertakings
85,062
85,062
Corporation tax
288,236
75,610
Other taxation and social security
317,231
271,140
Other creditors
447,839
319,391
Accruals and deferred income
5,268,681
1,530,837
6,775,053
2,955,901
18
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
20
14,582
26,032
Other borrowings
19
-
0
28,235
14,582
54,267
19
Loans and overdrafts
2023
2022
£
£
Other loans
26,650
56,470
Payable within one year
26,650
28,235
Payable after one year
-
0
28,235
20
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
10,632
22,647
In two to five years
14,582
26,032
25,214
48,679

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
21
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
107,478
75,467
2023
Movements in the year:
£
Liability at 1 January 2023
75,467
Charge to profit or loss
32,011
Liability at 31 December 2023
107,478

The deferred tax liability set out above is expected to reverse over the life of the assets and relates to accelerated capital allowances that are expected to mature within the same period.

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
130,146
109,093

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

23
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
29,252
29,252
29,252
29,252
ANALOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
24
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
100,066
56,642
Between two and five years
303,237
139,561
In over five years
240,750
46,500
644,053
242,703
25
Related party transactions

The company has taken adavantage of the exmeptions contained in section 33 of FRS102 not to disclose transactions and balances with wholly owned members of the same group.

26
Ultimate controlling party

The company's immediate parent is Analox Holdings Limited.

The ultimate parent company is Jofa Holdings Limited, incorporated England & Wales. The financial statements are available upon request from The Hive, Butts Lane, Fowlmere, Royston, SG8 7SL.

 

The ultimate controlling party is Mr D B Johns.

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