Company registration number 06824757 (England and Wales)
ECX.IO LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
ECX.IO LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
ECX.IO LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
41,737
59,760
Current assets
Debtors
5
1,032,745
982,514
Cash at bank and in hand
212,705
513,340
1,245,450
1,495,854
Creditors: amounts falling due within one year
6
(856,279)
(1,432,703)
Net current assets
389,171
63,151
Total assets less current liabilities
430,908
122,911
Provisions for liabilities
7
(5,694)
(9,160)
Net assets
425,214
113,751
Capital and reserves
Called up share capital
10,000
10,000
Profit and loss reserves
415,214
103,751
Total equity
425,214
113,751

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

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

The financial statements were approved and signed by the director and authorised for issue on 30 August 2024
A Moran
Director
Company registration number 06824757 (England and Wales)
ECX.IO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

ECX.IO Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 2 Arlington Square, Downshire Way, Bracknell, Berkshire, RG12 1WA.

1.1
Accounting convention

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

 

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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 £.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements. which is considered to be appropriate for the following reasons.

 

The company is a critical strategic organisation for IBM iX and notwithstanding improved performance during the year resulting in net assets of £419,152 as at 31 December 2023 (2022: net assets of £113,751) the financial statements have been prepared on a going concern basis. The company retains support from IBM Corporation who have indicated their intention to continue to make available such funds as are needed by the company for a period of at least 12 months from the date of approval of these financial statements.

 

 

 

1.3
Turnover

Turnover comprises the fair value of the consideration received or receivable for provision of digital change services to Group companies. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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 each of the company's activities.

1.4
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:

Computers
33.3% per annum on cost
ECX.IO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.5
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.

1.6
Financial instruments and liabilities
Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

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

1.7
Equity instruments

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.

1.8
Taxation

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

Current tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

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 in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company.

 

Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

ECX.IO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.9
Employee benefits

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

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

1.10
Foreign exchange

Transactions in currencies, other than the functional currency of the company, are recorded at the rate

of exchange on the date the transaction occurred. Monetary items denominated in other currencies are

translated at the rate prevailing at the end of the reporting period. All differences are taken to the

profit and loss account. Non-monetary items that are measured at historic cost in a foreign currency

are not retranslated.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

 

There are no judgements made by management that are considered critical to the preparation of the accounts and there are no sources of significant estimation uncertainty deemed necessary to disclose.

3
Employees

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

2023
2022
Number
Number
Total
47
40
ECX.IO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
4
Tangible fixed assets
Computer equipment
£
Cost
At 1 January 2023
146,951
Additions
11,984
At 31 December 2023
158,935
Depreciation and impairment
At 1 January 2023
87,191
Depreciation charged in the year
30,007
At 31 December 2023
117,198
Carrying amount
At 31 December 2023
41,737
At 31 December 2022
59,760
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
0
6,157
Amounts owed by group undertakings
989,910
961,168
Other debtors
42,835
15,189
1,032,745
982,514
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
37,618
16,637
Amounts owed to group undertakings
433,840
1,196,525
Corporation tax
98,996
21,716
Other taxation and social security
122,728
77,436
Other creditors
163,097
120,389
856,279
1,432,703
ECX.IO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
7
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
5,694
9,160
8
Audit report information

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

The auditor's report was unqualified.

Senior Statutory Auditor:
Katherine Wilkes
Statutory Auditor:
Critchleys Audit LLP
Date of audit report:
3 September 2024
9
Related party transactions

 

Summary of transactions with other related parties

No disclosure has been made of transactions and balances with group companies as these are all wholly owned within the group and hence no disclosure is required under FRS 102.

10
Operating lease commitments
Lessee

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

2023
2022
£
£
52,532
53,724

The amount of non-cancellable operating lease payments recognised as an expense during the year was £157,388 (2022: £154,422).

11
Parent company

The company's immediate parent is ECX International AG, incorporated in Germany.

 

The ultimate parent is IBM Corporation, incorporated in USA.

 

The most senior parent entity producing publicly available financial statements is IBM Corporation. These financial statements are available upon request from the company's headquarters at 1 Orchard Road, Armonk, New York, 10504-1722, USA.

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