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REGISTERED NUMBER: 13725972 (England and Wales)











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: R Ladak
S Boyd
M S Khadr
C Rutherford





REGISTERED OFFICE: 22 High View Close
Vantage Park
Leicester
Leicestershire
LE4 9LJ





REGISTERED NUMBER: 13725972 (England and Wales)





AUDITORS: Haines Watts Tamworth Limited
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 4 405,407 347,876
Cash at bank 5 257,380 211,257
662,787 559,133
CREDITORS
Amounts falling due within one year 6 101,923 72,142
NET CURRENT ASSETS 560,864 486,991
TOTAL ASSETS LESS CURRENT
LIABILITIES

560,864

486,991

PROVISIONS FOR LIABILITIES 7 86,173 86,969
NET ASSETS 474,691 400,022

CAPITAL AND RESERVES
Called up share capital 8 1 1
Retained earnings 474,690 400,021
SHAREHOLDERS' FUNDS 474,691 400,022

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

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 30 July 2024 and were signed on its behalf by:





C Rutherford - Director


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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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 3 (2022 - NIL ) .

4. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 722 -
Amounts owed by group undertakings 59,796 -
Other debtors 344,889 347,876
405,407 347,876

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 2,003 292
Amounts owed to group undertakings 64,828 32,645
Taxation and social security 5,566 4,418
Other creditors 29,526 34,787
101,923 72,142

7. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 86,173 86,969

Deferred
tax
£   
Balance at 1 January 2023 86,969
Other comprehensive income (796 )
Balance at 31 December 2023 86,173

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.

Darren Barlow FCCA (Senior Statutory Auditor)
for and on behalf of Haines Watts Tamworth Limited

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.