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Registration number: 13167133

Obex Holdings Ltd

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

 

Obex Holdings Ltd

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Consolidated Profit and Loss Account

8

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Financial Statements

15 to 32

 

Obex Holdings Ltd

Company Information

Directors

G Francis

R M Francis

R Francis

T Francis

Registered office

Unit 5 Norton Road
Broomhall
Worcester
Worcestershire
WR5 2QR

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Obex Holdings Ltd

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023. The comparative period represents the 16 month period of account to 31 December 2022.

Principal activity

The principal activity of the group is the sale of weatherproofing membranes, fire rated membranes, adhesive tapes, sheathing boards and associated products within the United Kingdom, Europe and Australia. Creating safer buildings with through-wall & façade innovations. The principal activity of the company is that of a holding company.

Fair review of the business

The results for the year are set out in the Profit and Loss account on page 8. Turnover was £36,256,698 (2022: £35,403,140) and the Profit before Tax was £7,261,484 (2022: £6,063,246). On 31 December 2023 the group had net assets of £43,994,267 (2022: £40,499,561).

The directors are pleased with the significant improvement in the performance of the group and acknowledge that the expansion this year has been achieved by the high service standards and the dedication and support of the management team and the staff.

Future Developments
The directors are confident that the group will generate further substantial growth and strong performance in the current financial year. The continuing growth and performance comes from the investment by the group in both its new product development and into growing and expanding new markets and territories for these products.

Principal risks and uncertainties

The directors have considered the key risks facing the business and concluded as follows:

Liquidity risk
The directors monitor cash flows to ensure the Group is able to meet its operational requirements. The financial statements have been prepared on a going concern basis and the directors are confident that the Group will meet its financial obligations over the next 12 months and beyond. It is expected that the Group will continue in business for the foreseeable future and continued growth is anticipated.

Credit risk
Credit terms are offered to certain customers after an assessment has been made of customer credit ratings in order to ensure that all group companies are not excessively exposed to major credit risk.

Foreign exchange risk
All Group trading companies trade in various currencies, purchasing and selling sterling, the US Dollar, Euros, and the Australian Dollar. The Group has also provided funding for its non-UK domiciled subsidiaries. Fluctuations in exchange rates are carefully monitored by the directors in order to assess the impact on cash and profits.

Financial instruments

The group's financial instruments comprise borrowings, cash and liquid resources, and various other items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the group.

The group is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages these through credit control procedures. The nature of these financial instruments means they are not subject to price risk or liquidity risk.

Approved by the Board on 17 September 2024 and signed on its behalf by:


R M Francis
Director

 

Obex Holdings Ltd

Directors' Report for the Year Ended 31 December 2023

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

Directors of the company

The directors who held office during the year were as follows:

G Francis

R M Francis

R Francis

T Francis

Research and development

The Company continues to invest in research and development to broaden and to enhance its product range, and with working with its customers and suppliers continues to bring new and innovative products to the construction industry to create safer buildings.

Information included in the Strategic Report

Disclosure regarding future developments and financial instruments is covered in the Strategic Report.

Going concern

The directors have prepared detailed cash flow forecasts for the company and the Group covering a period of more than 12 months from the approval of these financial statements. These forecasts consider the general economic environment and its potential impact on the business. The forecasts indicate the group can operate within its facilities and meet its liabilities as they fall due and accordingly are satisfied that it is appropriate to prepare the financial statements on a going concern basis.

Disclosure of information to the auditor

Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Hazlewoods LLP as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved by the Board on 17 September 2024 and signed on its behalf by:


R M Francis
Director

 

Obex Holdings Ltd

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, Directors' 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

 

Obex Holdings Ltd

Independent Auditor's Report to the Members of Obex Holdings Ltd

Opinion

We have audited the financial statements of Obex Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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 group's and the parent company's affairs as at 31 December 2023 and of the group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

 

Obex Holdings Ltd

Independent Auditor's Report to the Members of Obex Holdings Ltd

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company 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 4, 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 group’s and 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 group or 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.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the group's and company’s industry and their control environment and reviewed the group's and 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 group and 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, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group's and company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team 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 judgments made in 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 misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

 

Obex Holdings Ltd

Independent Auditor's Report to the Members of Obex Holdings Ltd

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.





Scott Lawrence (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

19 September 2024

 

Obex Holdings Ltd

Consolidated Profit and Loss Account for the Year Ended 31 December 2023

Note

Year ended 31 December 2023
 £

1 September 2021 to 31 December 2022
 £

Turnover

3

36,256,698

35,403,140

Cost of sales

 

(16,904,166)

(17,577,650)

Gross profit

 

19,352,532

17,825,490

Administrative expenses

 

(11,810,489)

(11,139,304)

Other operating income

4

14,727

14,400

Operating profit

5

7,556,770

6,700,586

Interest receivable and similar income

18,740

81

Interest payable and similar charges

6

(314,026)

(637,421)

Profit before tax

 

7,261,484

6,063,246

Taxation

10

(2,690,349)

(2,326,494)

Profit for the financial period

 

4,571,135

3,736,752

Profit attributable to:

 

Owners of the company

 

4,571,135

3,736,752

The above results were derived from continuing operations.

 

Obex Holdings Ltd

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2023

Year ended 31 December
2023
£

1 September 2021 to 31 December
2022
£

Profit for the period

4,571,135

3,736,752

Foreign currency translation (losses)/gains

(64,744)

1,047

Total comprehensive income for the period

4,506,391

3,737,799

Total comprehensive income attributable to:

Owners of the company

4,506,391

3,737,799

 

Obex Holdings Ltd

(Registration number: 13167133)
Consolidated Balance Sheet as at 31 December 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

11

31,661,421

35,787,692

Tangible assets

12

2,710,708

1,707,844

Investment property

13

1,420,827

1,420,827

 

35,792,956

38,916,363

Current assets

 

Stocks

15

4,690,301

3,512,618

Debtors

16

6,359,990

6,093,300

Cash at bank and in hand

17

5,447,621

2,959,441

 

16,497,912

12,565,359

Creditors: Amounts falling due within one year

18

(7,779,559)

(10,657,959)

Net current assets

 

8,718,353

1,907,400

Total assets less current liabilities

 

44,511,309

40,823,763

Creditors: Amounts falling due after more than one year

18

(155,178)

(46,917)

Provisions for liabilities

10

(361,784)

(277,205)

Net assets

 

43,994,347

40,499,641

Capital and reserves

 

Called up share capital

21

80

80

Capital contribution reserve

22

781,702

1,844,648

Merger reserve

22

34,649,922

34,649,922

Profit and loss account

22

8,562,643

4,004,991

Equity attributable to owners of the company

 

43,994,347

40,499,641

Total equity

 

43,994,347

40,499,641

Approved and authorised by the Board on 17 September 2024 and signed on its behalf by:
 



 

R M Francis
Director

 

Obex Holdings Ltd

(Registration number: 13167133)
Balance Sheet as at 31 December 2023

Note

2023
 £

2022
 £

Fixed assets

 

Investment property

13

769,308

769,308

Investments

14

50,297,960

50,297,960

 

51,067,268

51,067,268

Current assets

 

Debtors

16

-

2

Cash at bank and in hand

 

31,867

258,517

 

31,867

258,519

Creditors: Amounts falling due within one year

18

(8,709,679)

(7,804,936)

Net current liabilities

 

(8,677,812)

(7,546,417)

Net assets

 

42,389,456

43,520,851

Capital and reserves

 

Called up share capital

21

80

80

Capital contribution reserve

22

781,702

1,844,648

Merger reserve

22

34,649,922

34,649,922

Profit and loss account

22

6,957,752

7,026,201

Total equity

 

42,389,456

43,520,851

The company made a loss after tax for the financial year of £119,710 (2022 - profit of £6,759,009).

Approved and authorised by the Board on 17 September 2024 and signed on its behalf by:
 



 

R M Francis
Director

 

Obex Holdings Ltd

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Capital redemption reserve
£

Merger reserve
£

Profit and loss account
£

Total
£

At 1 September 2021

1

-

-

-

1

Profit for the period

-

-

-

3,736,752

3,736,752

Other comprehensive income

-

-

-

1,047

1,047

Total comprehensive income

-

-

-

3,737,799

3,737,799

Dividends

-

-

-

(365,600)

(365,600)

New share capital subscribed

79

-

34,649,922

-

34,650,001

Capital contribution arising from loan notes

-

2,477,440

-

-

2,477,440

Unwinding of capital contribution on loan notes

-

(632,792)

-

632,792

-

At 31 December 2022

80

1,844,648

34,649,922

4,004,991

40,499,641

Share capital
£

Capital contribution reserve
£

Merger reserve
£

Profit and loss account
£

Total
£

At 1 January 2023

80

1,844,648

34,649,922

4,004,991

40,499,641

Profit for the year

-

-

-

4,571,135

4,571,135

Other comprehensive income

-

-

-

(64,744)

(64,744)

Total comprehensive income

-

-

-

4,506,391

4,506,391

Dividends

-

-

-

(260,000)

(260,000)

Unwinding of capital contribution on loan notes

-

(311,261)

-

311,261

-

Capital contribution eliminated upon redemption of loan notes

-

(751,685)

-

-

(751,685)

At 31 December 2023

80

781,702

34,649,922

8,562,643

43,994,347

 

Obex Holdings Ltd

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Capital redemption reserve
£

Merger reserve
£

Profit and loss account
£

Total
£

At 1 September 2021

1

-

-

-

1

Profit for the period

-

-

-

6,759,009

6,759,009

Dividends

-

-

-

(365,600)

(365,600)

New share capital subscribed

79

-

34,649,922

-

34,650,001

Capital contribution arising from loan notes

-

2,477,440

-

-

2,477,440

Unwinding of capital contribution on loan notes

-

(632,792)

-

632,792

-

At 31 December 2022

80

1,844,648

34,649,922

7,026,201

43,520,851

Share capital
£

Capital contribution reserve
£

Merger reserve
£

Profit and loss account
£

Total
£

At 1 January 2023

80

1,844,648

34,649,922

7,026,201

43,520,851

Loss for the year

-

-

-

(119,710)

(119,710)

Dividends

-

-

-

(260,000)

(260,000)

Unwinding of capital contribution on loan notes

-

(311,261)

-

311,261

-

Capital contribution eliminated upon redemption of loan notes

-

(751,685)

-

-

(751,685)

At 31 December 2023

80

781,702

34,649,922

6,957,752

42,389,456

 

Obex Holdings Ltd

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

Year ended 31 December 2023
 £

1 September 2021 to 31 December 2022
 £

Cash flows from operating activities

Profit for the period

 

4,571,135

3,736,752

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

4,534,320

5,596,574

Loss/(profit) on disposal of tangible assets

1,815

(1,000)

Finance income

(18,740)

(81)

Finance costs

6

314,026

637,421

Income tax expense

10

2,690,349

2,326,494

Foreign exchange gains/losses

 

(41,919)

1,047

 

12,050,986

12,297,207

Working capital adjustments

 

Increase in stocks

 

(1,177,683)

(1,526,223)

Decrease/(increase) in trade debtors

 

439,972

(2,714,463)

Increase in trade creditors

 

289,961

1,236,936

Cash generated from operations

 

11,603,236

9,293,457

Income taxes paid

 

(3,404,836)

(3,304,817)

Net cash flow from operating activities

 

8,198,400

5,988,640

Cash flows from investing activities

 

Interest received

8,513

81

Acquisitions of tangible assets

(1,343,852)

(61,771)

Proceeds from sale of tangible assets

 

11,245

2,500

Acquisition of intangible assets

 

-

(99,973)

Acquisition of investment properties

 

-

(769,308)

Acquisition of subsidiaries, net of cash acquired

 

-

1,373,829

Net cash flows from investing activities

 

(1,324,094)

445,358

Cash flows from financing activities

 

Interest paid

 

(2,765)

(4,629)

Proceeds from other borrowing draw downs

 

-

86,353

Repayment of other borrowing

 

(4,075,524)

(3,190,682)

Payments to finance lease creditors

 

(47,837)

-

Dividends paid

(260,000)

(365,600)

Net cash flows from financing activities

 

(4,386,126)

(3,474,558)

Net increase in cash and cash equivalents

 

2,488,180

2,959,440

Cash and cash equivalents at 1 January

 

2,959,441

1

Cash and cash equivalents at 31 December

17

5,447,621

2,959,441

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 5 Norton Road
Broomhall
Worcester
Worcestershire
WR5 2QR

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

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

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemptions

The company has taken advantage of the following disclosure exemptions available to qualifying entities in preparing its separate financial statements, as permitted by FRS 102:
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
• the requirements of Section 33 Related Party Disclosures paragraph 33.7; and
• the requirements of certain paragraphs within Sections 11 and 12 relating to Financial Instruments..

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.

No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006.

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

The directors do not consider there to be a material movement in the fair value of the investment properties held, as detailed in note 12 to these financial statements. The directors assess fair value through the application of market rent yields. Where those indicate a material movement in fair value, formal valuations are obtained.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

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

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

33% on reducing balance

Fixtures and fittings

33% on reducing balance

Motor vehicles

33% on cost

Computer equipment

33% on cost

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

20% on cost and 10% on cost

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of goods for resale comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

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

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Non-interest bearing borrowings are initially measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument, and are subsequently measured at amortised cost.

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

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

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

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Turnover

The analysis of the group's Turnover for the period from continuing operations is as follows:

Year ended 31 December 2023
£

1 September 2021 to 31 December 2022
£

Sale of goods

36,256,698

35,402,073

Other revenue

-

1,067

36,256,698

35,403,140

The analysis of the group's Turnover for the period by market is as follows:

Year ended 31 December 2023
£

1 September 2021 to 31 December 2022
£

UK

33,371,721

33,375,970

Europe

768,240

1,473,155

Rest of world

2,116,737

554,015

36,256,698

35,403,140

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

4

Other operating income

The analysis of the group's other operating income for the period is as follows:

Year ended 31 December 2023
£

1 September 2021 to 31 December 2022
£

Rental income

14,727

14,400

 

5

Operating profit

Arrived at after charging/(crediting)

Year ended 31 December 2023
£

1 September 2021 to 31 December 2022
£

Depreciation expense

408,049

180,102

Amortisation expense

4,126,271

5,466,404

Research and development cost

456,348

387,922

Foreign exchange losses/(gains)

120,115

(36,940)

Operating lease expense - property

321,030

297,485

Operating lease expense - plant and machinery

21,052

58,716

Operating lease expense - other

128,554

57,205

 

6

Interest payable and similar expenses

Year ended 31 December 2023
£

1 September 2021 to 31 December 2022
£

Interest on obligations under finance leases and hire purchase contracts

2,765

4,629

Interest expense on other finance liabilities

311,261

632,792

314,026

637,421

 

7

Staff costs

Group
The aggregate payroll costs (including directors' remuneration) were as follows:

Year ended 31 December 2023
 £

1 September 2021 to 31 December 2022
 £

Wages and salaries

3,943,325

2,869,744

Social security costs

432,374

364,497

Pension costs, defined contribution scheme

39,362

35,066

4,415,061

3,269,307

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

7

Staff costs (continued)

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

Year ended 31 December 2023
 No.

1 September 2021 to 31 December 2022
 No.

Production

18

13

Administration and support

36

24

Technical support

10

10

64

47

Company
The only employees of the company are the directors, who are remunerated by a group company.

 

8

Directors' remuneration

The directors' remuneration for the period was as follows:

Year ended 31 December 2023
£

1 September 2021 to 31 December 2022
£

Remuneration

226,999

47,896

In respect of the highest paid director:

Year ended 31 December 2023
£

1 September 2021 to 31 December 2022
£

Remuneration

62,124

11,225

 

9

Auditors' remuneration

Year ended 31 December 2023
£

1 September 2021 to 31 December 2022
£

Audit of these financial statements

11,000

10,000

Audit of the financial statements of subsidiaries of the company pursuant to legislation

17,700

15,675

28,700

25,675


 

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

10

Taxation

Tax charged/(credited) in the consolidated profit and loss account

Year ended 31 December 2023
£

1 September 2021 to 31 December 2022
£

Current taxation

UK corporation tax

2,675,219

2,340,110

UK corporation tax adjustment to prior periods

(69,449)

-

2,605,770

2,340,110

Deferred taxation

Arising from origination and reversal of timing differences

84,579

(13,616)

Tax expense in the income statement

2,690,349

2,326,494

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 23.5% (2022 - 19%).

The differences are reconciled below:

Year ended 31 December 2023
£

1 September 2021 to 31 December 2022
£

Profit before tax

7,261,484

6,063,246

Corporation tax at standard rate

1,706,449

1,152,017

Effect of expense not deductible in determining taxable profit (tax loss)

1,053,267

(418,503)

Effect of tax losses

11,832

-

Effect of foreign tax rates

-

(4,810)

Deferred tax credit relating to changes in tax rates or laws

-

(3,268)

Decrease in UK and foreign current tax from adjustment for prior periods

(69,449)

-

Tax increase from effect of capital allowances and depreciation

-

1,035,480

Tax increase from effect of adjustment for long accounting periods

-

565,578

Chargeable gains/(losses)

(11,750)

475

Other tax effects for reconciliation between accounting profit and tax expense (income)

-

(475)

Total tax charge

2,690,349

2,326,494

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

10

Taxation (continued)

Deferred tax

Group

Deferred tax assets and liabilities

2023

Liability
£

Fixed asset timing differences

363,135

Short term timing differences

(1,351)

361,784

2022

Liability
£

Fixed asset timing differences

278,045

Short term timing differences

(840)

277,205

An increase in the UK corporation tax rate to 25%, effective from April 2023, was announced and substantively enacted on 24 May 2021. The deferred liability as at 31 December 2022 and 2023 has been calculated based on the rate of 25%.

 

11

Intangible assets

Group

Goodwill
 £

Cost

At 1 January 2023

41,254,033

At 31 December 2023

41,254,033

Amortisation

At 1 January 2023

5,466,341

Amortisation charge

4,126,271

At 31 December 2023

9,592,612

Carrying amount

At 31 December 2023

31,661,421

At 31 December 2022

35,787,692

At 31 December 2023, the remaining amortisation periods for goodwill, with carrying values of £31,660,928 (2022: £35,786,161) and £493 (2022: £1,531) were 7 years and 8 months and 5 years and 8 months respectively.

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

12

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 January 2023

868,366

784,527

185,184

1,838,077

Additions

703,774

481,333

261,691

1,446,798

Disposals

-

-

(31,649)

(31,649)

Foreign exchange movements

(18,628)

(33)

(5,645)

(24,306)

At 31 December 2023

1,553,512

1,265,827

409,581

3,228,920

Depreciation

At 1 January 2023

-

75,350

54,883

130,233

Charge for the year

214,138

131,739

62,172

408,049

Eliminated on disposal

-

-

(18,589)

(18,589)

Foreign exchange movements

-

(24)

(1,457)

(1,481)

At 31 December 2023

214,138

207,065

97,009

518,212

Carrying amount

At 31 December 2023

1,339,374

1,058,762

312,572

2,710,708

At 31 December 2022

868,366

709,177

130,301

1,707,844

Included within the net book value of land and buildings above is £1,339,374 (2022 - £868,366) in respect of freehold land and buildings.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Motor Vehicles

138,289

29,737

     
 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

13

Investment properties

Group

2023
£

At 1 January 2023 and at 31 December 2023

1,420,827

Company

2023
£

At 1 January 2023 and at 31 December 2023

769,308

The directors consider that the value of the investment properties have not changed significantly since acquisition and are reflective of their fair value.

 

14

Investments

Company

2023
£

2022
£

Investments in subsidiaries

50,297,960

50,297,960

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Obex Protection Ltd

Unit 5 Norton Road, Broomhall, Worcester, WR5 2QR United Kingdom

Ordinary

100%

100%

Obex Group Pty Ltd

Unit 8-13 Lyell St, Mittagong, NSW 2575, Australia

Ordinary

100%

100%

Obex Protection France

37 Rue Ambroise Paré, 83100 Toulon, France

Ordinary

100%

100%

Obex Property Company Australia PTY Ltd

Unit 8-13 Lyell St, Mittagong, NSW 2575, Australia

Ordinary

100%

100%

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

14

Investments (continued)

Subsidiary undertakings

Obex Protection Ltd

The principal activity of Obex Protection Ltd is the sale of weatherproofing membranes, fire rated membranes, adhesive tapes and associated products within the United Kingdom and Europe.

Obex Group Pty Ltd

The principal activity of Obex Group Pty Ltd is the sale of weatherproofing membranes, fire rated membranes, adhesive tapes and associated products within Australia.

Obex Protection France

The principal activity of Obex Protection France is the sale of weatherproofing membranes, fire rated membranes, adhesive tapes and associated products within France.

Obex Property Company Australia PTY Ltd

The principal activity of Obex Property Company Australia PTY Ltd is the holding of property.

 

15

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Goods for resale

4,690,301

3,512,618

-

-

 

16

Debtors

   

Group

Company

Note

2023
 £

2022
 £

2023
 £

2022
 £

Trade debtors

 

4,807,884

5,305,745

-

-

Other debtors

 

466,142

649,130

-

2

Prepayments

 

379,302

138,425

-

-

Corporation tax asset

10

706,662

-

-

-

 

6,359,990

6,093,300

-

2

 

17

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash at bank

5,447,621

2,959,441

31,867

258,517

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

18

Creditors

   

Group

Company

Note

2023
 £

2022
 £

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

19

4,651,618

7,654,138

4,590,282

7,601,705

Trade creditors

 

1,494,135

1,702,128

-

-

Amounts due to related parties

26

-

-

4,119,397

203,231

Social security and other taxes

 

1,209,543

969,337

-

-

Other creditors

 

212,948

153,994

-

-

Accrued expenses

 

211,315

75,731

-

-

Corporation tax liability

10

-

102,631

-

-

 

7,779,559

10,657,959

8,709,679

7,804,936

Due after one year

 

Loans and borrowings

19

70,451

25,400

-

-

Other non-current financial liabilities

 

84,727

21,517

-

-

 

155,178

46,917

-

-

 

19

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Hire purchase contracts

40,262

30,204

-

-

Other borrowings

4,611,356

7,623,934

4,590,282

7,601,705

4,651,618

7,654,138

4,590,282

7,601,705

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Hire purchase contracts

70,451

25,400

-

-


Hire purchase and finance lease liabilities
Obligations under hire purchase and finance lease liabilities are secured over the assets to which they relate.

Other borrowings
As part of an acquisition £12,550,000 zero coupon loan notes were issued as part of the transaction. These loan notes were initially recorded by discounting the expected cash flows using a market rate of interest of 5.5% and are subsequently measured at amortised cost. The carrying amount of these loan notes at the end of the year was £4,368,299 (2022 - £7,515,352) and the capital contribution element was £781,701 (2022 - £1,844,648). The loan notes are repayable on or before 31 December 2026.

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

20

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £39,362 (2022 - £35,066).

Contributions totalling £9,546 (2022 - £7,608) were payable to the scheme at the end of the year and are included in creditors.

 

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

A Ordinary shares of £1 each

5

5

5

5

B Ordinary shares of £1 each

5

5

5

5

C Ordinary shares of £1 each

10

10

10

10

D Ordinary shares of £1 each

10

10

10

10

E Ordinary shares of £1 each

10

10

10

10

F Ordinary shares of £1 each

10

10

10

10

G Ordinary shares of £1 each

10

10

10

10

H Ordinary shares of £1 each

10

10

10

10

I1 Ordinary shares of £1 each

1

1

1

1

I2 Ordinary shares of £1 each

1

1

1

1

I3 Ordinary shares of £1 each

1

1

1

1

I4 Ordinary shares of £1 each

1

1

1

1

J1 Ordinary shares of £1 each

1

1

1

1

J2 Ordinary shares of £1 each

1

1

1

1

J3 Ordinary shares of £1 each

1

1

1

1

J4 Ordinary shares of £1 each

1

1

1

1

J5 Ordinary shares of £1 each

1

1

1

1

J6 Ordinary shares of £1 each

1

1

1

1

 

80

80

80

80

Share classes rank pari passu in all respects save for:

• Dividend rights
• I1 - I4 and J1 - J6 shares shall not be entitled to attend or vote at any general meeting of the Company or on any written resolution of the Company;
• I1 - I4 shares on exit shall only be entitled to an amount equal to 1% of the exit proceeds; and
• J1 - J6 shares on exit shall only be entitled to the amount credited as paid up on each share.

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

22

Reserves

Reserves of the group and company represent the following:

Called up share capital
This represents the nominal value of the issued equity share capital.

Capital contribution reserve
This represents the effect of imputing a market rate of interest to loan notes issued with a zero coupon net of the unwinding of that interest.

Profit and loss account
Cumulative profit and loss net of distributions to owners.

Merger reserve
In 2022 the acquisition of Obex Protection Limited was undertaken using an arrangement involving the issue of equity shares that took the interest in Obex Protection Limited to above a 90% equity holding. Consequently, in accordance with the requirements of Section 612 of the Companies Act 20016, a share premium reserve has not been recognised on the issue of the shares and the company has instead elected to record a merger reserve to reflect the value of the shares issued as a result of the transaction.

 

23

Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

48,385

12,196

Later than one year and not later than five years

95,544

25,400

143,929

37,596

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

676,599

248,275

Later than one year and not later than five years

1,792,577

360,112

Later than five years

1,781,420

11,165

4,250,596

619,552

The amount of non-cancellable operating lease payments recognised as an expense during the year was £406,411 (2022 - £319,399).

 

24

Dividends

2023
 £

2022
 £

Dividends paid

260,000

365,600

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

25

Analysis of changes in net debt

Group

At 1 January 2023
£

Cash flows
£

New finance leases
£

Other non-cash changes
£

At 31 December 2023
£

Cash and cash equivalents

Cash

2,959,441

2,488,182

-

-

5,447,623

Borrowings

Long term borrowings

(7,623,934)

4,075,524

-

(1,062,947)

(4,611,357)

Lease liabilities

(55,604)

47,837

(102,946)

-

(110,713)

(7,679,538)

4,123,361

(102,946)

(1,062,947)

(4,722,070)

 

(4,720,097)

6,611,543

(102,946)

(1,062,947)

725,553

 

26

Related party transactions

Group

Summary of transactions with other related parties

The group has previously advanced monies to a party under common control totalling £322,210. During the year, the decision was made to write off the balance advanced in full as the recovery of this balance was deemed to be unlikely. At the balance sheet date the amount due amounted to £nil (2022 - £310,551).

Company

Summary of transactions with key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 9 to the financial statements.

Other transactions with directors

Amounts due to directors
At the balance sheet date, the amounts owing to the directors of the company amounted to £221,984 (2022: £86,353).

 

Obex Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

 

27

Financial instruments

Group

Items of income, expense, gains or losses

2023

Income
£

Expense
£

Net gains
£

Net losses
£

Financial assets measured at amortised cost

8,513

-

-

-

Financial liabilities measured at amortised cost

-

314,026

-

-

8,513

314,026

-

-

2022

Income
£

Expense
£

Net gains
£

Net losses
£

Financial assets measured at amortised cost

81

-

-

-

Financial liabilities measured at amortised cost

-

637,421

-

-

81

637,421

-

-

The total interest income for financial assets not measured at fair value through profit or loss is £8,513 (2022 - £81). The total interest expense for financial liabilities not measured at fair value through profit or loss is £314,026 (2022 - £637,421).