REGISTERED NUMBER: |
Processing Power Limited |
Financial Statements |
for the Year Ended 31 December 2023 |
REGISTERED NUMBER: |
Processing Power Limited |
Financial Statements |
for the Year Ended 31 December 2023 |
Processing Power Limited (Registered number: 13725972) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Processing Power Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Sterling House |
97 Lichfield Street |
Tamworth |
Staffordshire |
B79 7QF |
Processing Power Limited (Registered number: 13725972) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
CURRENT ASSETS |
Debtors | 4 |
Cash at bank | 5 |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 7 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 8 |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Processing Power Limited (Registered number: 13725972) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Processing Power Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared using the historical cost convention except where the use of fair values are required as disclosed in the accounting policies. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Critical accounting judgements and key sources of estimation uncertainty |
The fair value of receivables for future fee income and the related payables was calculated using a discounted cash flow model. A risk adjusted interest rate relevant to the risk profile of the Company was utilised for discounting. The cash flows for the model were estimated considering the following key assumptions: |
- expected fee per claim, based on historic claims experience and pension values; |
- number of active claims, based on current claims being processed and claims lodged with regulatory bodies; |
- expected claim success rate, based on historic experience for the stage of case completion; and |
- expected timing of receipt, based on historic experience and management assessment of future trends. |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for 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 any direct discounts or write offs. |
The company recognises revenue when: |
- The amount of revenue can be reliably measured; |
- It is probable that future economic benefits will flow to the entity; and |
- Specific criteria have been met for the company's activities. |
Government grants |
Under the performance model of grant accounting, the grant funding is released to the profit and loss account in full in the year the conditions of the grant funding had been met. |
Processing Power Limited (Registered number: 13725972) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
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 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. |
Financial assets are recognised when the company becomes party to the contracts that gives rise to them and are classified as loans or borrowings, receivable, payables, financial instruments fair valued through profit and loss or available for sale financial assets as appropriate. The company determines the classification of its financial assets and liabilities at initial recognition and, where allowed and appropriate, re-evaluate this designation at each financial year end. |
Receivables relating to future fee income are classified as Available for Sale. Such receivables are carried at fair value, and the company has elected to recognise changes in the fair value recognised through Other Comprehensive Income as allowed under FRS 102 and will recycle gains to the P&L when they become realised. The associated commission and fees will be classed as Other Financial Liabilities (financial liability) and are carried at amortised cost with movements being recognised through the Profit and Loss account. |
The fair value of receivables for future fee income and the related payables is calculated using a discounted cash flow model. A risk adjusted interest rate relevant to the risk profile of the company is utilised for discounting. The cash flows for the model are estimated considering the following key assumptions: |
- expected fee per claim, |
- number of active claims, |
- expected claim success rate, and |
- expected timing of receipt. |
Financial liabilities are recognised when the company becomes party to the contracts that give rise to them and are classified as loans or borrowings, receivables, payables, financial instruments fair valued through profit and loss or available for sale financial asset as appropriate. The company determines the classification of its financial assets and liabilities at initial recognition and, where allowed and appropriate, re-evaluate this designation at each financial year end. |
When financial liabilities are recognised initially, they are measured at fair value, being the transaction price plus and directly attributable transaction costs. |
Processing Power Limited (Registered number: 13725972) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tax |
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit or loss, unless the charge is attributable to an item of income or expense recognised as other comprehensive income or to an item recognised directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity respectively. |
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date. |
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. |
Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits. |
Borrowings |
Interest-bearing borrowings are initially recorded at fair value and subsequently measured at amortised cost. |
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. |
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
Foreign currencies |
In preparing the financial statements of the company, transactions in currencies other than the functional currency of sterling are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
Contributions to the company's defined contribution pension scheme are charged to profit or loss in the year in which they become payable. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments. |
Going concern |
The company has been established to facilitate the overall group strategy and has the full support of the group. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
Operating leases and lease incentives |
Leases where substantially all risks and rewards incidental to ownership are retained by the lessors are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessors) are |
recognised in profit or loss on a straight-line basis over the period of the lease. |
Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease. |
Processing Power Limited (Registered number: 13725972) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
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. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
5. | CASH AT BANK |
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
7. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 86,173 | 86,969 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Other comprehensive income | (796 | ) |
Balance at 31 December 2023 |
Processing Power Limited (Registered number: 13725972) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | CALLED UP SHARE CAPITAL |
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. |
9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
10. | ULTIMATE CONTROLLING PARTY |
The ultimate parent undertaking is Rothley Group Limited, which owns 99.95% of the issued share capital of Rothley Holdings Limited, the immediate parent company of Processing Power Limited. |
Copies of the Rothley Group Limited consolidated financial statements can be obtained from the company directors at Vantage Park, 22 High View Close, Leicester. LE4 9LJ. |