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Registration number: 09157067

Obex Protection Ltd

Annual Report and Audited Financial Statements

for the Year Ended 31 December 2023

 

Obex Protection Ltd

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11 to 22

 

Obex Protection 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 Protection Ltd

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

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

Fair review of the business

The results for the year are set out in the Profit and Loss account on page 8. Turnover was £35,447,671 (2022: £27,766,730) and the Profit before Tax was £11,713,938 (2022: £9,303,892). On 31 December 2023 the company had net assets of £20,491,957 (2022: £11,705,968).

The directors are pleased with the significant improvement in the performance of the company 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 company will generate further substantial growth and strong performance in the current financial year. The continuing growth and performance comes from the investment by the company 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
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.

The directors monitor cash flows to ensure the company 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 company will meet its financial obligations over the next 12 months and beyond. It is expected that the company will continue in business for the foreseeable future and continued growth is anticipated.

Credit risk
Credit risk refers to a risk that a counterparty will default on its contractual obligations resulting in a financial loss to the company.

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

Foreign exchange risk
The company trades in various currencies, purchasing and selling sterling, the US Dollar, Euros, and the Australian Dollar. Fluctuations in exchange rates are carefully monitored by the directors in order to assess the impact on cash and profits.

Financial instruments

The company'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 company.

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

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


R M Francis
Director

 

Obex Protection Ltd

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements 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

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 for more than 12 months from the approval of these financial statements, which consider the general economic environment and its potential impact on the business. The forecasts indicate the company 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 auditors

Each director has taken 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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are 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 Protection 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards has 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 company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Obex Protection Ltd

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

Opinion

We have audited the financial statements of Obex Protection Ltd (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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:

 

Obex Protection Ltd

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, 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 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

reading minutes of meetings of those charged with governance.

 

Obex Protection Ltd

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

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 this 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 Protection Ltd

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
 £

2022
 £

Turnover

3

35,447,671

27,766,730

Cost of sales

 

(16,664,588)

(14,350,718)

Gross profit

 

18,783,083

13,416,012

Administrative expenses

 

(7,096,227)

(4,121,891)

Other operating income

4

14,727

14,400

Operating profit

5

11,701,583

9,308,521

Other interest receivable and similar income

14,542

-

Interest payable and similar charges

(2,187)

(4,629)

Profit before tax

 

11,713,938

9,303,892

Taxation

9

(2,690,349)

(1,760,916)

Profit for the financial year

 

9,023,589

7,542,976

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

 

Obex Protection Ltd

(Registration number: 09157067)
Balance Sheet as at 31 December 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

10

493

1,531

Tangible assets

11

2,069,748

1,268,712

Investment property

12

651,519

651,519

 

2,721,760

1,921,762

Current assets

 

Stocks

13

4,434,857

3,342,880

Debtors

11,818,766

7,380,214

Cash at bank and in hand

 

4,884,020

2,308,438

 

21,137,643

13,031,532

Creditors: Amounts falling due within one year

15

(2,920,935)

(2,923,204)

Net current assets

 

18,216,708

10,108,328

Total assets less current liabilities

 

20,938,468

12,030,090

Creditors: Amounts falling due after more than one year

15

(84,727)

(46,917)

Provisions for liabilities

9

(361,784)

(277,205)

Net assets

 

20,491,957

11,705,968

Capital and reserves

 

Called up share capital

18

106

106

Profit and loss account

19

20,491,851

11,705,862

Total equity

 

20,491,957

11,705,968

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


R M Francis
Director

 

Obex Protection Ltd

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

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2022

106

11,578,514

11,578,620

Profit for the year

-

7,542,976

7,542,976

Dividends

-

(7,415,628)

(7,415,628)

At 31 December 2022

106

11,705,862

11,705,968

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2023

106

11,705,862

11,705,968

Profit for the year

-

9,023,589

9,023,589

Dividends

-

(237,600)

(237,600)

At 31 December 2023

106

20,491,851

20,491,957

 

Obex Protection 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 were 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's intermediate parent undertaking, Obex Holdings Ltd includes the Company in its consolidated financial statements. The consolidated financial statements of Obex Holdings Ltd are prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemption available under FRS102 in respect of the requirement to prepare a Statement of Cash Flows and certain financial instrument disclosures.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company 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.

 

Obex Protection Ltd

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

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 company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

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

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.

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 company 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 financial statements and on unused tax losses or tax credits in the company. 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.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’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.

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

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 Protection Ltd

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

Tangible assets

Tangible assets are stated in the statement of financial position 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

Leasehold property

Straight line on cost over the term of the lease

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. 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.

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 company 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 company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

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

 

Obex Protection 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 company’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 company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

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

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 Protection 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 company's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

35,447,671

27,766,730

The analysis of the company's turnover for the year by market is as follows:

2023
£

2022
£

UK

33,371,721

26,107,729

Europe

441,512

1,382,915

Rest of world

1,634,438

276,086

35,447,671

27,766,730

 

Obex Protection Ltd

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

 

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Rental income

14,727

14,400

 

5

Operating profit

Arrived at after charging:

2023
 £

2022
 £

Depreciation expense

384,700

126,542

Amortisation expense

1,038

170

Research and development cost

447,564

324,252

Foreign exchange losses

99,655

39,154

Operating lease expense - property

265,820

220,819

Operating lease expense - plant and machinery

20,375

23,171

Operating lease expense - other

120,216

57,205

Profit on disposal of property, plant and equipment

-

(1,000)

 

6

Staff costs

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

2023
£

2022
£

Wages and salaries

3,696,058

2,105,425

Social security costs

399,213

268,383

Pension costs, defined contribution scheme

39,362

26,950

Other employee expense

58,511

37,069

4,193,144

2,437,827

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

2023
 No.

2022
 No.

Production

18

13

Administration and support

30

20

Technical support

10

10

58

43

 

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

180,939

36,120

 

Obex Protection Ltd

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

 

8

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

17,700

16,000


 

 

9

Taxation

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

2023
£

2022
£

Current taxation

UK corporation tax

2,675,219

1,774,532

UK corporation tax adjustment to prior periods

(69,449)

-

2,605,770

1,774,532

Deferred taxation

Arising from origination and reversal of timing differences

84,579

-

Arising from changes in tax rates and laws

-

(13,616)

Total deferred taxation

84,579

(13,616)

Tax expense in the income statement

2,690,349

1,760,916

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

The differences are reconciled below:

2023
£

2022
£

Profit before tax

11,713,938

9,303,892

Corporation tax at standard rate

2,752,775

1,767,739

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

1,715

503

UK 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 decrease from effect of capital allowances and depreciation

-

(3,092)

Tax decrease arising from group relief

(1,844)

(966)

Chargeable gains/(losses)

-

475

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

7,152

(475)

Total tax charge

2,690,349

1,760,916

 

Obex Protection Ltd

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

 

9

Taxation (continued)

Deferred tax

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 the 24th May 2021. The deferred liability as at 31 December 2022 and 2023 has been calculated based on the rate of 25%.

 

10

Intangible assets

Goodwill
 £

Cost

At 1 January 2023

254,750

At 31 December 2023

254,750

Amortisation

At 1 January 2023

253,219

Amortisation charge

1,038

At 31 December 2023

254,257

Carrying amount

At 31 December 2023

493

At 31 December 2022

1,531

 

Obex Protection Ltd

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

 

11

Tangible assets

Leasehold property
£

Fixtures and fittings
£

Motor vehicles
 £

Total
£

Cost

At 1 January 2023

509,981

1,081,825

216,894

1,808,700

Additions

703,774

463,337

18,625

1,185,736

At 31 December 2023

1,213,755

1,545,162

235,519

2,994,436

Depreciation

At 1 January 2023

-

372,817

167,171

539,988

Charge for the year

214,138

131,739

38,823

384,700

At 31 December 2023

214,138

504,556

205,994

924,688

Carrying amount

At 31 December 2023

999,617

1,040,606

29,525

2,069,748

At 31 December 2022

509,981

709,008

49,723

1,268,712

Included within the net book value of land and buildings above is £999,617 (2022 - £509,981) in respect of leasehold property.

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

10,955

29,737

     
 

12

Investment properties

£

At 1 January 2023 and as at 31 December 2023

651,519

The directors consider that the value of the investment property has not changed significantly since its acquisition and is reflective of its fair value.

 

13

Stocks

2023
£

2022
£

Goods for resale

4,434,857

3,342,880

 

Obex Protection Ltd

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

 

14

Debtors

2023
£

2022
£

Trade debtors

4,609,816

4,978,712

Amounts owed by related parties

5,684,753

1,636,311

Other debtors

457,399

639,335

Prepayments

360,136

125,856

Corporation tax asset

706,662

-

 

11,818,766

7,380,214

 

15

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

16

25,400

12,196

Trade creditors

 

1,489,397

1,666,008

Social security and other taxes

 

983,950

915,182

Other creditors

 

210,873

154,069

Accrued expenses

 

211,315

73,118

Corporation tax liability

 

-

102,631

 

2,920,935

2,923,204

Due after one year

 

Loans and borrowings

16

-

25,400

Other creditors

 

84,727

21,517

 

84,727

46,917

 

16

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Hire purchase and finance lease liabilities

25,400

12,196

2023
£

2022
£

Non-current loans and borrowings

Hire purchase and finance lease liabilities

-

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.

 

Obex Protection Ltd

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

 

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £39,362 (2022 - £26,950).

Contributions totalling £9,456 (2022 - £7,608) were payable to the scheme at the end of the year and are included in creditors.

 

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

106

106

106

106

         
 

19

Reserves

Profit and loss account
Includes all current and prior period retained profits and losses, less distributions to shareholders.

 

20

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

26,493

12,196

Later than one year and not later than five years

-

25,400

26,493

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 - £259,436).

 

Obex Protection Ltd

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

 

21

Related party transactions

Summary of transactions with other related parties

The company has previously advanced monies to a party under common control totalling £332,210. 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).

 

22

Parent and ultimate parent undertaking

The immediate and ultimate controlling party is Obex Holdings Ltd, incorporated in England and Wales.

The ultimate parent produces publicly available consolidated financial statements. These financial statements are available on request from the company's registered office.