Company registration number 11099853 (England and Wales)
OXWASH LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
OXWASH LTD
COMPANY INFORMATION
Directors
K. Grant
F. Andrewes
B. Crawley
D. Channer
Company number
11099853
Registered office
B1 Stirling Court
Stirling Road
South Marston Industrial Estate
Swindon
SN3 4TQ
Auditor
Critchleys Audit LLP
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP
Business address
Unit 7 Roger House
Osney Mead
Oxford
OX2 0ES
OXWASH LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 39
OXWASH LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

For the financial year ended 31 December 2023, Oxwash Limited has seen significant developments and challenges. The most notable event was the opening of Oxwash Big Blue I Limited, a fully owned Special Purpose Vehicle (SPV) and our first purpose-built facility in Swindon. This facility is part of our strategic plan to prove our sustainability-focused and tech-enhanced model before expanding our network of "Big Blues" across the UK and Europe, aimed at enhancing our service capabilities and market reach.

 

Financial performance

Our financial performance for the year shows a turnover of £2,031,782, an increase from £1,448,849 in the previous year. However, the cost of sales rose significantly to £2,132,268, leading to a gross loss of £100,486 compared to a gross profit of £120,404 in 2022. Administrative expenses also increased to £3,692,085 from £2,943,956, resulting in an operating loss of £3,778,436.

 

Key factors impacting performance

 

Looking ahead, we anticipate that the Swindon facility will stabilise operationally, and we expect economies of scale to begin reducing costs.

 

Principal risks and uncertainties

 

Oxwash Limited faces several principal risks and uncertainties that could impact our business:

 

1. Operational Risks

 

Mitigation Strategies:

 

2. Market Risks

 

Mitigation Strategies:

OXWASH LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

 

3. Regulatory Risks

 

Mitigation Strategies:

 

4. Liquidity Risks

 

Mitigation Strategies:

 

Going concern Assessment

Oxwash Limited has adequate resources to continue operating for the foreseeable future. This conclusion is supported by a thorough evaluation of the company's financial performance, cash flow projections, and the ability to secure necessary funding. We have considered the impact of current economic conditions and potential risks and are confident that Oxwash Limited is well-positioned to meet its obligations as they fall due. Consequently, the financial statements have been prepared on a going concern basis.

 

Development and peformance

 

The development of our first "Big Blue" facility in Swindon is a milestone for Oxwash Limited, reflecting our commitment to expansion and innovation. The financial results, however, show the impact of the initial investment and operational challenges.

 

Performance Analysis

 

Key performance indicators

 

Oxwash Limited tracks several KPIs to monitor performance:

 

 

These KPIs help in identifying areas needing attention and drive strategic initiatives.

OXWASH LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

Technological Advancements

Our in-house platform development team has created a proprietary wash tracking system allowing us to monitor each load and each machine in our system to track real-time performance against tight throughput expectations.

 

Sustainability Achievements

Water Reclamation and Efficiency

In 2023, we saved approximately 6,940,102 litres of water compared to conventional laundries. This was achieved through our water reclamation system, which reuses water from the rinse cycle. In a fully functioning Big Blue I, we plan to further enhance water efficiency by harvesting rainwater and groundwater to supplement washing needs, with an aim to achieve an 80% water recycling rate.

 

Carbon Emissions Reduction

We have reduced our Scope 1 and 2 emissions by 77% and are targeting a 97% reduction by March 2024. This reduction has been facilitated by our switch to biogas instead of natural gas and liquefied petroleum gas. We are also developing fully electrified equipment to eliminate the use of gas entirely.

 

Chemical Management

We use biodegradable detergents that are free from harmful chemicals such as chlorine, dyes, optical brighteners, and phosphates to minimize water contamination. Our technology effectively removes pathogens and chemicals from textiles, ensuring safe wastewater discharge.

 

Microplastic Filtration

In partnership with Cleaner Seas Group, we have implemented a filtration system that removes up to 99% of microfibres from every wash cycle. This system captures fibres as small as 1 micron, significantly reducing microplastic pollution.

Future Developments

The success and lessons learned from the Swindon facility will inform the rollout of additional "Big Blue" facilities across the UK and Europe. This expansion is expected to:

 

We remain committed to innovation, sustainability, and excellence in service delivery as we navigate the complexities and opportunities of our growth journey.

On behalf of the board

K. Grant
Director
12 September 2024
OXWASH LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the company and group continued to be that of the provision of mobile laundry and dry cleaning services,

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

No preference dividends were paid. 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:

T. De Wilton
(Resigned 30 January 2023)
F. Beaulieu
(Resigned 30 October 2023)
K. Grant
F. Andrewes
B. Crawley
D. Channer
Research and development

During the year the group incurred SME qualifying Research and Development expenditure of £377,781 (2022 - £372,839).

Post reporting date events

There were no relevant post reporting date events.

Auditor

Critchleys Audit LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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 auditor of the company 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 auditor of the company is aware of that information.

OXWASH LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed the company's forecasts and projections, taking into account reasonably possible changes in trading performance and the current economic environment, and 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 annual financial statements.

 

In making this assessment, the Directors have considered the company's liquidity position, future cash flows, and any financial support available. Based on this review, the Directors are confident that the company will have sufficient funds to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements.

 

If any material uncertainties exist that may cast significant doubt upon the company's ability to continue as a going concern, these uncertainties are disclosed in the notes to the financial statements.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
K. Grant
Director
12 September 2024
OXWASH LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

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

OXWASH LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OXWASH LTD
- 7 -
Opinion

We have audited the financial statements of Oxwash Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 group and parent 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 group's and parent 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:

OXWASH LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OXWASH LTD
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

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

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

OXWASH LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OXWASH LTD
- 9 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Other matters which we are required to address

The financial statements for Oxwash Limited for the year ended 31 December 2022, were unaudited.

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.

Katherine Wilkes (Senior Statutory Auditor)
For and on behalf of Critchleys Audit LLP
13 September 2024
Chartered Accountants
Statutory Auditor
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP
OXWASH LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
as restated
Notes
£
£
Turnover
3
2,031,782
1,448,849
Cost of sales
(2,132,268)
(1,328,445)
Gross (loss)/profit
(100,486)
120,404
Administrative expenses
(3,753,369)
(2,943,957)
Other operating income
14,135
32,708
Operating loss
4
(3,839,720)
(2,790,845)
Interest receivable and similar income
8
33,838
2,188
Interest payable and similar expenses
9
(11,580)
(7,741)
Loss before taxation
(3,817,462)
(2,796,398)
Tax on loss
10
84,559
124,324
Loss for the financial year
(3,732,903)
(2,672,074)
Loss for the financial year is all attributable to the owners of the parent company.
OXWASH LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
as restated
£
£
Loss for the year
(3,732,903)
(2,672,074)
Other comprehensive income
-
-
Total comprehensive income for the year
(3,732,903)
(2,672,074)
Total comprehensive income for the year is all attributable to the owners of the parent company.
OXWASH LTD
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
1,020,751
851,244
Tangible assets
12
890,450
424,459
1,911,201
1,275,703
Current assets
Debtors
15
1,123,441
428,431
Cash at bank and in hand
1,780,969
5,227,554
2,904,410
5,655,985
Creditors: amounts falling due within one year
16
(1,260,311)
(248,317)
Net current assets
1,644,099
5,407,668
Total assets less current liabilities
3,555,300
6,683,371
Creditors: amounts falling due after more than one year
17
-
(3,495)
Net assets
3,555,300
6,679,876
Capital and reserves
Called up share capital
22
4,085
3,990
Share premium account
11,913,395
11,314,158
Other reserves
23
110,147
101,152
Profit and loss reserves
(8,472,327)
(4,739,424)
Total equity
3,555,300
6,679,876

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
K. Grant
Director
Company registration number 11099853 (England and Wales)
OXWASH LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
1,020,751
851,244
Tangible assets
12
723,054
424,459
Investments
13
827
827
1,744,632
1,276,530
Current assets
Debtors
15
1,970,214
428,431
Cash at bank and in hand
1,748,767
5,227,554
3,718,981
5,655,985
Creditors: amounts falling due within one year
16
(1,178,670)
(248,793)
Net current assets
2,540,311
5,407,192
Total assets less current liabilities
4,284,943
6,683,722
Creditors: amounts falling due after more than one year
17
-
(3,495)
Net assets
4,284,943
6,680,227
Capital and reserves
Called up share capital
22
4,085
3,990
Share premium account
11,913,395
11,314,158
Other reserves
23
110,147
101,152
Profit and loss reserves
(7,742,684)
(4,739,073)
Total equity
4,284,943
6,680,227

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,003,611 (2022 - £2,671,723 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
K. Grant
Director
Company registration number 11099853 (England and Wales)
OXWASH LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
3,012
4,794,446
52,296
(2,067,350)
2,782,404
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
-
(2,672,074)
(2,672,074)
Issue of share capital
22
978
6,519,712
-
-
6,520,690
Fair value of share based payments
-
-
48,856
-
48,856
Balance at 31 December 2022
3,990
11,314,158
101,152
(4,739,424)
6,679,876
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
-
(3,732,903)
(3,732,903)
Issue of share capital
22
95
599,237
-
-
599,332
Fair value of share based payments
-
-
8,995
-
8,995
Balance at 31 December 2023
4,085
11,913,395
110,147
(8,472,327)
3,555,300
OXWASH LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
3,012
4,794,446
52,296
(2,067,350)
2,782,404
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(2,671,723)
(2,671,723)
Issue of share capital
22
978
6,519,712
-
-
6,520,690
Fair value of share based payments
-
-
48,856
-
48,856
Balance at 31 December 2022
3,990
11,314,158
101,152
(4,739,073)
6,680,227
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
(3,003,611)
(3,003,611)
Issue of share capital
22
95
599,237
-
-
599,332
Fair value of share based payments
-
-
8,995
-
8,995
Balance at 31 December 2023
4,085
11,913,395
110,147
(7,742,684)
4,284,943
OXWASH LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(3,671,790)
(2,554,642)
Interest paid
(11,580)
(7,741)
Income taxes refunded
123,794
192,651
Net cash outflow from operating activities
(3,559,576)
(2,369,732)
Investing activities
Purchase of intangible assets
(331,907)
(341,015)
Purchase of tangible fixed assets
(641,875)
(145,340)
Repayment of loans
(777)
(1,911)
Interest received
33,838
2,188
Net cash used in investing activities
(940,721)
(486,078)
Financing activities
Proceeds from issue of shares
599,332
6,520,690
Proceeds from new bank loans
575,200
-
Repayment of bank loans
(115,385)
(130,667)
Payment of finance leases obligations
(9,233)
(9,233)
Net cash generated from financing activities
1,049,914
6,380,790
Net (decrease)/increase in cash and cash equivalents
(3,450,383)
3,524,980
Cash and cash equivalents at beginning of year
5,227,554
1,702,574
Cash and cash equivalents at end of year
1,777,171
5,227,554
Relating to:
Cash at bank and in hand
1,780,969
5,227,554
Bank overdrafts included in creditors payable within one year
(3,798)
-
OXWASH LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(3,879,930)
(2,553,815)
Interest paid
(11,213)
(7,741)
Income taxes refunded
123,794
192,651
Net cash outflow from operating activities
(3,767,349)
(2,368,905)
Investing activities
Purchase of intangible assets
(331,907)
(341,015)
Purchase of tangible fixed assets
(466,304)
(145,340)
Proceeds from disposal of subsidiaries
-
0
(827)
Repayment of loans
(777)
(1,911)
Interest received
33,838
2,188
Net cash used in investing activities
(765,150)
(486,905)
Financing activities
Proceeds from issue of shares
599,332
6,520,690
Proceeds from new bank loans
575,200
-
Repayment of bank loans
(115,385)
(130,667)
Payment of finance leases obligations
(9,233)
(9,233)
Net cash generated from financing activities
1,049,914
6,380,790
Net (decrease)/increase in cash and cash equivalents
(3,482,585)
3,524,980
Cash and cash equivalents at beginning of year
5,227,554
1,702,574
Cash and cash equivalents at end of year
1,744,969
5,227,554
Relating to:
Cash at bank and in hand
1,748,767
5,227,554
Bank overdrafts included in creditors payable within one year
(3,798)
-
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
1
Accounting policies
Company information

Oxwash Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is B1 Stirling Court, Stirling Road, South Marston Industrial Estate, Swindon, SN3 4TQ.

 

The group consists of Oxwash Ltd and all of its subsidiaries.

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.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Oxwash Ltd together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.4
Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed the company's forecasts and projections, taking into account reasonably possible changes in trading performance and the current economic environment, and 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 annual financial statements.

 

In making this assessment, the Directors have considered the company's liquidity position, future cash flows, and any financial support available. Based on this review, the Directors are confident that the company will have sufficient funds to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements.

 

If any material uncertainties exist that may cast significant doubt upon the company's ability to continue as a going concern, these uncertainties are disclosed in the notes to the financial statements.

1.5
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.

Revenue from the linen sales is recognised when the significant risks and rewards of ownership of the linen have passed to the buyer (usually on dispatch of the linen), 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.

1.6
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.

1.7
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:

Development costs
10% straight line
Website
20% straight line
1.8
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.

OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -

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 improvements
20% straight line
Plant and equipment
5%-20% straight line
Fixtures and fittings
33% straight line
Office equipment
33% straight line
Motor vehicles
33% straight line
Other PPE
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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 group 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.

OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
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 group 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
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 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 if, and only if, there is 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.

1.15
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.

1.16
Retirement benefits

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

1.17
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.18
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.

OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 24 -

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 leased asset are consumed.

1.19
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 group’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.

 

Share based payments

The directors concur with HMRC's valuation at the date of the grant of the share options and therefore consider it appropriate to value the options at this amount in the accounts as and when the options have vested.

 

Depreciation

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values.

 

Amortisation

Intangible fixed assets are amortised over their useful lives. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.

 

 

OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Laundry
1,956,986
1,445,995
Sale of linen
74,796
2,854
2,031,782
1,448,849
2023
2022
£
£
Other revenue
Interest income
33,838
2,188
Grants received
7,822
32,708

All revenue is generated in the UK.

4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
209
(143)
Research and development costs
21,055
10,904
Government grants
(7,822)
(32,708)
Depreciation of owned tangible fixed assets
175,884
69,763
Amortisation of intangible assets
162,400
129,209
Share-based payments
8,995
48,856
Operating lease charges
365,326
197,644
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
10,000
-
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
40
28
38
28
Processing and logistics
72
51
53
51
Total
112
79
91
79

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,943,904
2,017,259
2,569,257
2,017,259
Social security costs
305,837
218,819
278,933
218,819
Pension costs
47,070
31,525
42,336
31,525
3,296,811
2,267,603
2,890,526
2,267,603
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
189,488
235,360
Company pension contributions to defined contribution schemes
2,642
2,793
192,130
238,153
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
n/a
75,248
Company pension contributions to defined contribution schemes
n/a
991

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

OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
33,733
2,119
Other interest income
105
69
Total income
33,838
2,188
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
33,733
2,119
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
8,077
5,264
Other finance costs:
Interest on finance leases and hire purchase contracts
2,477
2,477
Other interest
1,026
-
Total finance costs
11,580
7,741
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(84,462)
(124,342)
Adjustments in respect of prior periods
(97)
18
Total current tax
(84,559)
(124,324)
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 28 -
2023
2022
£
£
Loss before taxation
(3,817,462)
(2,796,398)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(725,318)
(531,316)
Research and development tax credit
(84,462)
(124,342)
Under/(over) provided in prior years
(97)
18
Unrecognised deferred tax
725,318
531,249
Expenses not subject to UK corporation tax
-
0
67
Taxation credit
(84,559)
(124,324)

Tax adjusted losses have been included within appropriate deferred tax calculations as disclosed in note 15. The effective tax rate for deferred tax is 19%.

 

The company Oxwash Ltd has undertaken research and development tax credit claims resulting in an amount payable to the company of £84,462 (2022 - £124,342).

11
Intangible fixed assets
Group
Development costs
Website
Total
£
£
£
Cost
At 1 January 2023
810,361
240,865
1,051,226
Additions
331,907
-
0
331,907
At 31 December 2023
1,142,268
240,865
1,383,133
Amortisation and impairment
At 1 January 2023
81,036
118,946
199,982
Amortisation charged for the year
114,227
48,173
162,400
At 31 December 2023
195,263
167,119
362,382
Carrying amount
At 31 December 2023
947,005
73,746
1,020,751
At 31 December 2022
729,325
121,919
851,244
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Intangible fixed assets
(Continued)
- 29 -
Company
Development costs
Website
Total
£
£
£
Cost
At 1 January 2023
810,361
240,865
1,051,226
Additions
331,907
-
0
331,907
At 31 December 2023
1,142,268
240,865
1,383,133
Amortisation and impairment
At 1 January 2023
81,036
118,946
199,982
Amortisation charged for the year
114,227
48,173
162,400
At 31 December 2023
195,263
167,119
362,382
Carrying amount
At 31 December 2023
947,005
73,746
1,020,751
At 31 December 2022
729,325
121,919
851,244
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Other PPE
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
15,998
360,310
11,913
101,991
-
0
62,707
552,919
Additions
136,484
49,968
3,066
3,827
16,143
432,387
641,875
At 31 December 2023
152,482
410,278
14,979
105,818
16,143
495,094
1,194,794
Depreciation and impairment
At 1 January 2023
845
65,112
7,797
38,712
-
0
15,994
128,460
Depreciation charged in the year
8,745
36,294
2,923
28,436
3,587
95,899
175,884
At 31 December 2023
9,590
101,406
10,720
67,148
3,587
111,893
304,344
Carrying amount
At 31 December 2023
142,892
308,872
4,259
38,670
12,556
383,201
890,450
At 31 December 2022
15,153
295,198
4,116
63,279
-
0
46,713
424,459
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 31 -
Company
Leasehold improvements
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Other PPE
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
15,998
360,310
11,913
101,991
-
0
62,707
552,919
Additions
-
0
11,841
3,066
2,867
16,143
432,387
466,304
At 31 December 2023
15,998
372,151
14,979
104,858
16,143
495,094
1,019,223
Depreciation and impairment
At 1 January 2023
845
65,112
7,797
38,712
-
0
15,994
128,460
Depreciation charged in the year
3,200
33,664
2,923
28,436
3,587
95,899
167,709
At 31 December 2023
4,045
98,776
10,720
67,148
3,587
111,893
296,169
Carrying amount
At 31 December 2023
11,953
273,375
4,259
37,710
12,556
383,201
723,054
At 31 December 2022
15,153
295,198
4,116
63,279
-
0
46,713
424,459
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
827
827
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
827
Carrying amount
At 31 December 2023
827
At 31 December 2022
827
14
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Oxwash Big Blue I Ltd
United Kingdom
Mobile laundry and dry cleaning services
Ordinary
100.00
Oxwash Technologies Inc
United States of America
Dormant
Ordinary
100.00

 

Oxwash Big Blue I Ltd - company number 14561528, is exempt from the requirements relating to the audit of individual accounts under Section 479A of the Companies Act 2006 as the parent company has provided guarantee.

15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
320,727
212,731
197,632
212,731
Corporation tax recoverable
84,462
123,697
84,462
123,697
Amounts owed by group undertakings
-
-
1,101,575
-
Other debtors
225,236
40,916
157,537
40,916
Prepayments and accrued income
493,016
51,087
429,008
51,087
1,123,441
428,431
1,970,214
428,431
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Debtors
(Continued)
- 33 -

As at the balance sheet date, the group has an unrecognised deferred tax net asset totalling £1,540,499 (2022 - £776,199) relating to fixed assets and un-utilised losses. It is not expected that this asset will be recognised in the short term as the group is not expected to make taxable profits to offset against the losses in the near future.

16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
463,613
-
0
463,613
-
0
Obligations under finance leases
19
3,495
9,233
3,495
9,233
Trade creditors
310,365
123,988
269,250
123,988
Amounts owed to group undertakings
-
0
-
0
435
476
Other taxation and social security
68,826
60,629
57,378
60,629
Other creditors
301,104
15,376
300,129
15,376
Accruals and deferred income
112,908
39,091
84,370
39,091
1,260,311
248,317
1,178,670
248,793
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
-
0
3,495
-
0
3,495
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
459,815
-
0
459,815
-
0
Bank overdrafts
3,798
-
0
3,798
-
0
463,613
-
463,613
-
Payable within one year
463,613
-
0
463,613
-
0
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Loans and overdrafts
(Continued)
- 34 -

Rocking Horse Solutions UK Limited had a fixed and floating charge over the company which was registered on 8 November 2023. The charge was against all tangible and intangible fixed assets controlled by Oxwash Ltd, as well as all cash held by, and debtors owed to, the company.

 

The loan was settled by Oxwash Ltd on 27 February 2024.

 

Oxwash Ltd did not have any long term debts as at 31 December 2023. All loans payable by the company at the balance sheet date were payable within one year.

 

19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
3,495
9,233
3,495
9,233
In two to five years
-
0
3,495
-
0
3,495
3,495
12,728
3,495
12,728

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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
-
-
Charge to profit or loss
58,454
51,527
Offset by deferred tax asset
(58,454)
(51,527)
Asset at 31 December 2023
-
-

The deferred tax liability set out above is expected to reverse within 5 years and relates to accelerated capital allowances that are expected to mature within the same period. The deferred tax liability is offset during this time by recognising the deferred tax liability.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
47,070
31,525
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Retirement benefit schemes
(Continued)
- 35 -

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Included in the balance sheet are unpaid pension contributions of £7,199 (2022 - £nil).

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
3,213,017
3,243,023
3,213
3,243
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Seed preferred of 0.1p each
872,212
747,212
872
747
Preference shares classified as equity
872
747
Total equity share capital
4,085
3,990

During the year, Oxwash Ltd allotted 94,994 Ordinary £0.001 shares. The company received consideration totalling £603,259 in respect of these shares.

 

The company also redesignated 125,000 Ordinary £0.001 shares as Seed preferred £0.001 shares on 19 July 2023.

23
Non-distributable reserve

Share options granted in previous years totalling 31,704 vested during the year. A remuneration expense in the year totalling £8,995 (2022: £48,856) has been adjusted for.

 

As at the balance sheet date Non-distributable reserves totalled £110,147 (2022: £101,152).

OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
24
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
402,091
46,114
395,847
46,114
Between two and five years
1,203,193
44,881
1,203,193
44,881
In over five years
935,737
-
935,737
-
2,541,021
90,995
2,534,777
90,995
25
Events after the reporting date

Subsequent to the year end, Oxwash Ltd embarked upon a successful equity raise of £6,000,000 in return for 5,000,000 ordinary shares.

26
Related party transactions

Mr K Grant

Director of Oxwash Ltd and Oxwash Big Blue I Ltd

 

As at 31 December 2023, Mr K Grant owed £4,314 (2022 - £3,537) to Oxwash Ltd. Interest is charged at 2.5% and there is no fixed date for repayment.

27
Cash absorbed by group operations
2023
2022
£
£
Loss for the year after tax
(3,732,903)
(2,672,074)
Adjustments for:
Taxation credited
(84,559)
(124,324)
Finance costs
11,580
7,741
Investment income
(33,838)
(2,188)
Amortisation and impairment of intangible assets
162,400
129,209
Depreciation and impairment of tangible fixed assets
175,884
69,763
Equity settled share based payment expense
8,995
48,856
Movements in working capital:
Increase in debtors
(733,468)
(139,944)
Increase in creditors
554,119
128,319
Cash absorbed by operations
(3,671,790)
(2,554,642)
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
28
Cash absorbed by operations - company
2023
2022
£
£
Loss for the year after tax
(3,003,611)
(2,671,723)
Adjustments for:
Taxation credited
(84,559)
(124,324)
Finance costs
11,213
7,741
Investment income
(33,838)
(2,188)
Amortisation and impairment of intangible assets
162,400
129,209
Depreciation and impairment of tangible fixed assets
167,709
69,763
Equity settled share based payment expense
8,995
48,856
Movements in working capital:
Increase in debtors
(1,580,241)
(139,944)
Increase in creditors
472,002
128,795
Cash absorbed by operations
(3,879,930)
(2,553,815)
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
5,227,554
(3,446,585)
1,780,969
Bank overdrafts
-
0
(3,798)
(3,798)
5,227,554
(3,450,383)
1,777,171
Borrowings excluding overdrafts
-
(459,815)
(459,815)
Obligations under finance leases
(12,728)
9,233
(3,495)
5,214,826
(3,900,965)
1,313,861
30
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
5,227,554
(3,478,787)
1,748,767
Bank overdrafts
-
0
(3,798)
(3,798)
5,227,554
(3,482,585)
1,744,969
Borrowings excluding overdrafts
-
(459,815)
(459,815)
Obligations under finance leases
(12,728)
9,233
(3,495)
5,214,826
(3,933,167)
1,281,659
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 38 -
31
Prior period adjustment
Reconciliation of changes in equity - group
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Capitalisation of development costs
469,346
-
Equity as previously reported
2,313,058
6,679,876
Equity as adjusted
2,782,404
6,679,876
Analysis of the effect upon equity
Profit and loss reserves
469,346
-
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Loss as previously reported
(2,672,074)
Loss as adjusted
(2,672,074)
Reconciliation of changes in equity - company
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Capitalisation of development costs
469,346
-
Equity as previously reported
2,313,058
6,680,227
Equity as adjusted
2,782,404
6,680,227
Analysis of the effect upon equity
Profit and loss reserves
469,346
-
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Loss as previously reported
(2,671,723)
Loss as adjusted
(2,671,723)
OXWASH LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
31
Prior period adjustment
(Continued)
- 39 -
Notes to reconciliation

Costs incurred by Oxwash Ltd relating to the development of technology used by the company and were incorrectly recognised in the Profit & Loss in the accounts for the year ended 31 December 2021. The comparative figures in the accounts for the year ended 31 December 2022 were restated to recognise these costs as capital expenditure.

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