IRIS Accounts Production v24.2.0.383 10227803 Board of Directors 1.1.23 31.12.23 31.12.23 The principal activity of the company continued to be that of developers and providers of video communication software. true false true true false false true false Ordinary shares 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh102278032022-12-31102278032023-12-31102278032023-01-012023-12-31102278032021-12-31102278032022-01-012022-12-31102278032022-12-3110227803ns15:EnglandWales2023-01-012023-12-3110227803ns14:PoundSterling2023-01-012023-12-3110227803ns10:Director12023-01-012023-12-3110227803ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3110227803ns10:FRS1022023-01-012023-12-3110227803ns10:Audited2023-01-012023-12-3110227803ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3110227803ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3110227803ns10:FullAccounts2023-01-012023-12-3110227803ns10:OrdinaryShareClass12023-01-012023-12-3110227803ns10:Director22023-01-012023-12-3110227803ns10:RegisteredOffice2023-01-012023-12-3110227803ns5:RetainedEarningsAccumulatedLosses2022-12-3110227803ns5:RetainedEarningsAccumulatedLosses2021-12-3110227803ns5:RetainedEarningsAccumulatedLosses2023-12-3110227803ns5:RetainedEarningsAccumulatedLosses2022-12-3110227803ns5:CurrentFinancialInstruments2023-12-3110227803ns5:CurrentFinancialInstruments2022-12-3110227803ns5:Non-currentFinancialInstruments2023-12-3110227803ns5:Non-currentFinancialInstruments2022-12-3110227803ns5:ShareCapital2023-12-3110227803ns5:ShareCapital2022-12-3110227803ns10:HighestPaidDirector2023-01-012023-12-3110227803ns5:OwnedAssets2023-01-012023-12-3110227803ns5:OwnedAssets2022-01-012022-12-311022780312023-01-012023-12-311022780312022-01-012022-12-3110227803ns5:LeaseholdImprovements2022-12-3110227803ns5:PlantMachinery2022-12-3110227803ns5:ComputerEquipment2022-12-3110227803ns5:LeaseholdImprovements2023-01-012023-12-3110227803ns5:PlantMachinery2023-01-012023-12-3110227803ns5:ComputerEquipment2023-01-012023-12-3110227803ns5:LeaseholdImprovements2023-12-3110227803ns5:PlantMachinery2023-12-3110227803ns5:ComputerEquipment2023-12-3110227803ns5:LeaseholdImprovements2022-12-3110227803ns5:PlantMachinery2022-12-3110227803ns5:ComputerEquipment2022-12-3110227803ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3110227803ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3110227803ns5:WithinOneYear2023-12-3110227803ns5:WithinOneYear2022-12-3110227803ns5:BetweenOneFiveYears2023-12-3110227803ns5:BetweenOneFiveYears2022-12-3110227803ns5:AllPeriods2023-12-3110227803ns5:AllPeriods2022-12-3110227803ns10:OrdinaryShareClass12023-12-3110227803ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-31
REGISTERED NUMBER: 10227803 (England and Wales)











STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

PEXIP LTD

PEXIP LTD (REGISTERED NUMBER: 10227803)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Income and Retained Earnings 7

Statement of Financial Position 8

Statement of Cash Flows 9

Notes to the Statement of Cash Flows 10

Notes to the Financial Statements 11


PEXIP LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: O D Hem
L Hughes





REGISTERED OFFICE: Earley East Building
Thames Valley Park
Reading
Berkshire
RG6 1RB





REGISTERED NUMBER: 10227803 (England and Wales)





AUDITORS: Bradshaw Johnson
Chartered Accountants
Statutory Auditor
Croft Chambers
11 Bancroft
Hitchin
Hertfordshire
SG5 1JQ

PEXIP LTD (REGISTERED NUMBER: 10227803)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

PRINCIPAL ACTIVITIES
The principal activity of the Company during the period was that of developing and selling universal video communication technology.

REVIEW OF BUSINESS
The Company's key financial and other performance indicators during the period were as follows:

2023 2022
£    £   
Turnover 12,989,236 15,632,799
Operating profit/(loss) before interest and taxation 1,438,423 1,482,398
Average number of employees 74 101

ON BEHALF OF THE BOARD:





O D Hem - Director


16 August 2024

PEXIP LTD (REGISTERED NUMBER: 10227803)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

O D Hem
L Hughes

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Bradshaw Johnson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





O D Hem - Director


16 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PEXIP LTD

Opinion
We have audited the financial statements of Pexip Ltd (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PEXIP LTD


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the Company's industry and its control environment, and reviewed the Company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the Company operates in, and identified the key laws and regulations that:
- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act and tax legislation; and
- do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PEXIP LTD


We discussed among the audit engagement team including relevant internal specialists such as tax specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:
- reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
- reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with HMRC.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Andrew Pearce (Senior Statutory Auditor)
for and on behalf of Bradshaw Johnson
Chartered Accountants
Statutory Auditor
Croft Chambers
11 Bancroft
Hitchin
Hertfordshire
SG5 1JQ

11 September 2024

PEXIP LTD (REGISTERED NUMBER: 10227803)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 12,989,236 15,632,799

Cost of sales 1,068,053 1,424,006
GROSS PROFIT 11,921,183 14,208,793

Administrative expenses 10,482,760 12,726,605
OPERATING PROFIT 4 1,438,423 1,482,188

Interest receivable and similar income 42,025 10,424
1,480,448 1,492,612

Interest payable and similar expenses 6 - 64
PROFIT BEFORE TAXATION 1,480,448 1,492,548

Tax on profit 7 86,292 156,975
PROFIT FOR THE FINANCIAL YEAR 1,394,156 1,335,573

Retained earnings at beginning of year 2,008,199 672,626

RETAINED EARNINGS AT END OF
YEAR

3,402,355

2,008,199

PEXIP LTD (REGISTERED NUMBER: 10227803)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 58,473 952,581

CURRENT ASSETS
Debtors 9 4,259,616 2,823,517
Cash at bank 527,905 745,383
4,787,521 3,568,900
CREDITORS
Amounts falling due within one year 10 1,443,539 2,172,337
NET CURRENT ASSETS 3,343,982 1,396,563
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,402,455

2,349,144

CREDITORS
Amounts falling due after more than one year 11 - 340,845
NET ASSETS 3,402,455 2,008,299

CAPITAL AND RESERVES
Called up share capital 14 100 100
Retained earnings 15 3,402,355 2,008,199
SHAREHOLDERS' FUNDS 3,402,455 2,008,299

The financial statements were approved by the Board of Directors and authorised for issue on 16 August 2024 and were signed on its behalf by:





O D Hem - Director


PEXIP LTD (REGISTERED NUMBER: 10227803)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (725,907 ) (640,937 )
Interest paid - (64 )
Tax paid 372,902 367,248
Net cash from operating activities (353,005 ) (273,753 )

Cash flows from investing activities
Purchase of tangible fixed assets (60,665 ) (93,648 )
Sale of tangible fixed assets 140,342 1,506
Interest received 42,025 10,424
Net cash from investing activities 121,702 (81,718 )

Decrease in cash and cash equivalents (231,303 ) (355,471 )
Cash and cash equivalents at beginning of
year

2

745,383

1,100,854

Cash and cash equivalents at end of year 2 514,080 745,383

PEXIP LTD (REGISTERED NUMBER: 10227803)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 1,480,448 1,492,548
Depreciation charges 279,452 375,793
Loss on disposal of fixed assets 534,979 -
Amounts owed by/to group 1,479,000 (1,495,822 )
Finance costs - 64
Finance income (42,025 ) (10,424 )
3,731,854 362,159
(Increase)/decrease in trade and other debtors (3,368,059 ) 663,684
Decrease in trade and other creditors (1,089,702 ) (1,666,780 )
Cash generated from operations (725,907 ) (640,937 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 527,905 745,383
Bank overdrafts (13,825 ) -
514,080 745,383
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 745,383 1,100,854


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 745,383 (217,478 ) 527,905
Bank overdrafts - (13,825 ) (13,825 )
745,383 (231,303 ) 514,080
Total 745,383 (231,303 ) 514,080

PEXIP LTD (REGISTERED NUMBER: 10227803)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Pexip Ltd 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.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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.

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 are recoverable.

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 land and buildingsStraight line over 5 years
Plant and equipmentStraight line over 3 years
ComputersStraight line over 3 years

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.

PEXIP LTD (REGISTERED NUMBER: 10227803)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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 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. Differed 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.

PEXIP LTD (REGISTERED NUMBER: 10227803)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

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
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash at bank and in hand
Cash at bank and in hand 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.

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.

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.

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.

PEXIP LTD (REGISTERED NUMBER: 10227803)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

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

Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

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.

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 are included in the profit and loss account for this period.

3. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 6,412,004 7,657,913
Social security costs 947,749 1,171,742
Other pension costs 354,469 444,765
7,714,222 9,274,420

The average number of employees during the year was as follows:
31.12.23 31.12.22

Sales & service 24 40
R&D and engineering 48 59
HQ 2 2
74 101

31.12.23 31.12.22
£    £   
Directors' remuneration 325,684 164,750

PEXIP LTD (REGISTERED NUMBER: 10227803)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Defined benefit schemes 1 1

Information regarding the highest paid director for the year ended 31 December 2023 is as follows:
31.12.23
£   
Emoluments etc 325,684

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.23 31.12.22
£    £   
Other operating leases 532,388 421,703
Depreciation - owned assets 279,452 375,793
Loss on disposal of fixed assets 534,979 -
Foreign exchange differences 7,655 (45,984 )

5. EXCEPTIONAL ITEMS
31.12.23 31.12.22
£    £   
Exceptional items - (478,589 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Other interest costs - 64

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax (76,337 ) (210,272 )

Deferred tax 162,629 367,247
Tax on profit 86,292 156,975

PEXIP LTD (REGISTERED NUMBER: 10227803)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. TANGIBLE FIXED ASSETS
Improvements
to Plant and Computer
property machinery equipment Totals
£    £    £    £   
COST
At 1 January 2023 1,419,064 28,585 424,237 1,871,886
Additions 630 - 60,035 60,665
Disposals (1,419,694 ) (7,848 ) (178,681 ) (1,606,223 )
At 31 December 2023 - 20,737 305,591 326,328
DEPRECIATION
At 1 January 2023 558,063 28,585 332,657 919,305
Charge for year 212,922 - 66,530 279,452
Eliminated on disposal (770,985 ) (7,848 ) (152,069 ) (930,902 )
At 31 December 2023 - 20,737 247,118 267,855
NET BOOK VALUE
At 31 December 2023 - - 58,473 58,473
At 31 December 2022 861,001 - 91,580 952,581

9. DEBTORS
31.12.23 31.12.22
£    £   
Amounts falling due within one year:
Trade debtors 9,391 9,403
Amounts owed by group undertakings - 1,479,000
Other debtors 14,042 2,497
Tax 84,321 212,023
VAT 51,594 66,960
Prepayments and accrued income 3,521,328 312,065
3,680,676 2,081,948

Amounts falling due after more than one year:
Deferred tax asset 578,940 741,569

Aggregate amounts 4,259,616 2,823,517

PEXIP LTD (REGISTERED NUMBER: 10227803)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 12) 13,825 -
Trade creditors 39,974 154,622
Tax 7,985 1,751
Social security and other taxes 256,367 264,874
Other creditors - 458,139
Accruals and deferred income 1,125,388 1,292,951
1,443,539 2,172,337

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
£    £   
Accruals and deferred income - 340,845

12. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 13,825 -

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
£    £   
Within one year - 501,831
Between one and five years - 836,385
- 1,338,216

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
100 Ordinary shares £1 100 100

PEXIP LTD (REGISTERED NUMBER: 10227803)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

15. RESERVES
Retained
earnings
£   

At 1 January 2023 2,008,199
Profit for the year 1,394,156
At 31 December 2023 3,402,355

16. ULTIMATE PARENT COMPANY

Pexip AS (incorporated in Norway ) is regarded by the directors as being the company's ultimate parent company.

Copies of it's group financial statements, which include the Company, are available from Vollsveien 9, 1366 Lysaker, Norway.