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Registered number: 12358163










PARAGON MICRO UK LTD










FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
PARAGON MICRO UK LTD
REGISTERED NUMBER: 12358163

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 4 
6,211
10,421

Current assets
  

Stocks
  
7,423
114,565

Debtors: amounts falling due within one year
 5 
555,087
840,649

Cash at bank and in hand
  
491,274
408,171

  
1,053,784
1,363,385

Creditors: amounts falling due within one year
 6 
(3,982,785)
(4,193,816)

Net current liabilities
  
 
 
(2,929,001)
 
 
(2,830,431)

Total assets less current liabilities
  
(2,922,790)
(2,820,010)

  

Net liabilities
  
(2,922,790)
(2,820,010)


Capital and reserves
  

Called up share capital 
  
100
100

Profit and loss account
  
(2,922,890)
(2,820,110)

  
(2,922,790)
(2,820,010)


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 18 April 2024.




J Reimer
Director

The notes on pages 2 to 6 form part of these financial statements.

Page 1

 
PARAGON MICRO UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Paragon Micro UK Ltd is a private company limited by shares, incorporated in England and Wales (registered number: 12358163). Its registered office is Cedar House, 63 Napier Street, Sheffield, South Yorkshire, S11 8HA. The principal activity of the Company throughout the period continued to be the procurement of information technology and professional services worldwide. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

At 31 December 2023 the Company’s liabilities exceeded its assets by £2,922,790 as a result of losses incurred since the date of incorporation, arising from difficulties recruiting and retaining key members of staff.
The Company has considered the level of funds held and the expected levels of cash inflows and outflows for 12 months from the date of authorising these financial statements. In addition, the Company has been given formal assurances from its parent company that repayment will not be sought of the intercompany balances until such time as funds and working capital levels allow, and that it will continue to support the Company to enable it to meet its debts as they fall due. It is on this basis that the directors are of the view that it is appropriate for the financial statements to be prepared on a going concern basis.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 2

 
PARAGON MICRO UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 3

 
PARAGON MICRO UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
7 years straight line
Office equipment
-
7 years straight line
Computer equipment
-
5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

 
2.11

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
 
Page 4

 
PARAGON MICRO UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.11
Financial instruments (continued)


Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Employees

The average monthly number of employees, including directors, during the year was 7 (2022 - 13).


4.


Tangible fixed assets





Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£



Cost


At 1 January 2023
775
3,361
18,096
22,232



At 31 December 2023

775
3,361
18,096
22,232



Depreciation


At 1 January 2023
185
1,400
10,226
11,811


Charge for the year on owned assets
111
480
3,619
4,210



At 31 December 2023

296
1,880
13,845
16,021



Net book value



At 31 December 2023
479
1,481
4,251
6,211



At 31 December 2022
590
1,961
7,870
10,421

Page 5

 
PARAGON MICRO UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Debtors

2023
2022
£
£


Trade debtors
523,459
822,412

Other debtors
29,264
-

Prepayments and accrued income
2,364
18,237

555,087
840,649



6.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
289,001
443,795

Amounts owed to group undertakings
3,578,751
3,596,563

Other taxation and social security
-
42,681

Other creditors
99,319
74,079

Accruals and deferred income
15,714
36,698

3,982,785
4,193,816



7.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £15,756 (2022 - £30,426). Contributions totalling £4,089 (2022 - £2,804) were payable to the fund at the balance sheet date and are included in creditors.


8.


Controlling party

The immediate parent company is Paragon Micro Inc, a company incorporated in the United States of
America. 


9.


Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2023 was unqualified.

The audit report was signed on 18 April 2024 by Andrew Irvine (Senior Statutory Auditor) on behalf of Shorts.

 
Page 6