Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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BOX TECHNOLOGIES LIMITED
COMPANY INFORMATION
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BOX TECHNOLOGIES LIMITED
CONTENTS
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BOX TECHNOLOGIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
For the period ending 31 December 2023 the Company continued to maintain a strong overall financial position, with the successful implementation of its strategic plan again delivering significant results and revenue contribution.
Environment
The business environment throughout 2023 continued to be challenging and with markets finally recovering post global pandemic issues, the obstacles of product supply with a combination of worldwide microprocessor availability and global logistics challenges continued to manifest in the first half of the year. Critical planning allowed the Company to maintain its ability to service opportunity and a £1.29m (2022: £1.82m) EBITDA was achieved. Objectives With sales revenue and therefore gross margin continuing to recover in the post pandemic period EBITDA was ahead of target, this further assisted by continued strict cost control exercised by the management team. The balance sheet remains strong with the cash position positive and continuing to grow. Strategy Following the principles of our business planning methodologies, continued execution of long term goals set previously has seen further development in marketing strategy with the increased use of social and business broadcast media continuing to build and strengthen company brand credibility and evolve our position. Whilst this has led to the continued development of the business and product proposition, we also continue to focus on both product and market diversification. Our parent company’s strategy of new product development to extend outside of the traditional POS space has allowed not only new customer and market engagements, but also allowed the business to build greater resilience within its overall customer engagement. The focus is very much now aligned to building strategic long term partnerships with customers whereby core Flytech products sit at the centre of those customers own go to market solutions. The Company continues to progress the engagement within the arena of software provision with the continued development of the Inefi end point management software portfolio. With early adopter customer engagement moving forward, the planned intention of contributing further to the continued development and expansion of recurring revenue models continues to grow. With regard to internal operations, the Company continues to move forward through planned for key migration projects with regards to internal IT systems and legacy IT infrastructure. These projects are now well matured and will deliver efficiency benefits for the long term. Structure The ‘by business function’ based structure of the board, continues to work well and the management team continue to be able to stretch and load share at busy periods, which has led to many efficiency gains.
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BOX TECHNOLOGIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Changes to customer requirements in respect of products and services and through which channels these are acquired continues to be considered Box’s biggest risk. However, the Company has a well spread base of customer engagements due to selling through multiple channels (independent software vendors, systems integrators, resellers and end users) and into multiple markets.
This situation has provided good mitigation against such risk and supports the business well going forward. That said, the organisation continues to explore new business opportunities and product and market innovation to further strengthen the business as a whole with a developing proposition of hardware, services and software revenues sitting central to this. All other risks, such as product or service failure and business interruption are covered by policies, processes and procedures which are managed and insured under the auspices of the company's ISO 9001 accredited management system. This report is written after the year end and the post pandemic period combined with a broader challenging economic environment has seen key customers impacted, especially in the retail fashion and department store market. With our core customer base well positioned in food, convenience, discounters and finally leisure and hospitality we are well placed to benefit from our supplier relationships and with a customer base that sits across essential goods and a continuing recovering hospitality and leisure market. As such through that positioning the balance sheet has again grown.
Sales revenue (£)
Sales revenue have decreased from £21.19m for the year ended 31 December 2022 to £16.97m for the year ended 31 December 2023. Gross Margin (£) Gross profit margin has increased from 24.3% in the year ended 31 December 2022 to 27.2% during the year ended 31 December 2023. EBITDA (£) EBITDA has decreased from £1.82m for the year ended 31 December 2022 to £1.29m for the year ended 31 December 2023. Net Assets (£) Net assets have increased from £8.60m as at 31 December 2022 to £9.35m as at 31 December 2023. Current ratio The current ratio of 4.5 (2022: 3.0) is a ratio that measures the Company's liquidity. The current ratio can be calculated by dividing current assets over current liabilities.
This report was approved by the board on 20 September 2024 and signed on its behalf.
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BOX TECHNOLOGIES LIMITED
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.
The profit for the year, after taxation, amounted to £750,498 (2022 - £1,236,246).
The Directors who served during the year were:
The Directors are responsible for preparing the Strategic Report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
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BOX TECHNOLOGIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
There have been no significant events affecting the company since the year end.
The auditors, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BOX TECHNOLOGIES LIMITED
We have audited the financial statements of Box Technologies Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BOX TECHNOLOGIES LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BOX TECHNOLOGIES LIMITED (CONTINUED)
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 Auditors' 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.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
∙Enquiry of entity staff in tax and compliance functions to identify any instances on non-compliance with laws and regulations;
∙Reviewing minutes of meetings of those charged with governance;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountant and Statutory Auditor
2 Chawley Park
Cumnor Hill Oxford Oxfordshire OX2 9GG
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BOX TECHNOLOGIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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BOX TECHNOLOGIES LIMITED
REGISTERED NUMBER: 02722340
BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 11 to 27 form part of these financial statements.
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BOX TECHNOLOGIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Box Technologies Limited is a private company limited by share capital, incorporated in England and Wales.
The principal activity of the Company is the distribution and installation of point of sale equipment. The registered and trading address of the Company is 20 Thame Business Centre, Wenman Road, Thame, Oxfordshire, OX9 3XA.
2.Accounting policies
The financial statements are presented in Sterling and rounded to the nearest pound.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
- paragraph 118(e) of IAS 38 Intangible Assets;
- paragraphs 76 and 79(d) of IAS 40 Investment Property; and
∙the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
∙the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
This information is included within the consolidated financial statements of Flytech Technology Co. Ltd as at 31 December 2023. These financial statements may be obtained from No. 168, Sing-Ai Rd., Neihu District, Taipei City, Taiwan.
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
a) New standards, interpretations and amendments effective from 1 January 2023
There have been no new international reporting standards, amendments and interpretations that have had a material impact on the Company for the year ended 31 December 2023. b) New standards, interpretations and amendments not yet effective At the date of signing of these financial statements, the Company has not applied the following new and revised IFRSs that have been issued but are not yet effective and had not yet been adopted by the EU: Classification of Liabilities as Current or Non-Current and Non-Current Liabilities with Covenants (Amendments to IAS 1) The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments clarify that the classification of liabilities as current or non-current should be based on rights that exist at the end of the reporting period. Where an entity is required to comply with a covenant attached to the liability on or before the end of the reporting period, the covenant will affect whether the right to defer settlement of the liability exists at the reporting date and therefore impacts the classification of the liability. Covenants to be complied with after the reporting date do not affect the classification but entities are required to disclose information about the covenants in the notes to the financial statements. . Supplier Finance Arragements (Amendments to IAS 7 and IFRS 7) The amendments require an entity to disclose qualitative and quantitave information about its supplier finance arrangements, such as terms and conditions - including, for example, extended payment terms and security or guarantees provided. Lease Liability in a sale and leaseback (Amendment to IFRS 16) The amendments require a seller-lessee to subsequently measure lease liabilities arising from a leaseback so as not to recognise any amount of the gain or loss that relates to the right of use retained, however they may recognise any gain or loss relating to partial or full termination of a lease in profit or loss.
The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern.
At the balance sheet date the Company had net assets of £9,352,660 (2022: £8,602,162) which includes net current assets of £9,507,836 (2022: £8,716,818) having made a profit before tax in the year of £981,467 (2022: £1,562,352). The Company has considered the expected financial performance, current financial position and existing financial resources for a period of at least 12 months from the date of signing of the financial statements. The Directors consider the Company to be a going concern and have prepared the financial statements on a going concern basis.
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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.
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is based on the cost of purchase on a first in, first out basis and also includes all direct costs and an appropriate proportion of fixed and variable overheads.
At each balance sheet date, stock 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.
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease
agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low-value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise: · fixed lease payments (including in-substance fixed payments), less any lease incentives; · variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; The lease liability is included in the 'Creditor' line in balance sheet. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are included in the 'Property, Plant and Equipment', as applicable, in the Statement of Financial Position. The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 2.6. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in the Statement of Profit or Loss if the carrying amount of the right-of-use asset has been reduced to zero. As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. Tangible fixed assets (Note 11) Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values. Stock provision (Note 12) As part of the identification and measurement of assets and liabilities, the Company has recognised a provision for impaired stock. In determining the fair value of the provision, assumptions and estimates are made in relation to future product sales. Deferred taxation (Note 17) Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies. Warranty provision (Note 18) A provision for warranty is recognized when the underlying products or services are sold. This provision reflects the historical warranty claim rate and the weighting of all possible outcomes against their associated probabilities.
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Analysis of turnover by country of destination:
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
10.Taxation (continued)
The main rate of corporation tax rose from 19% to 25% from 1 April 2023. On this basis deferred tax is provided at the new rate of 25%.
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
11.Tangible fixed assets (continued)
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BOX TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Capital redemption reserve
Profit & loss account
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 £44,589 (2022: £41,110). Contributions totalling £13,575 (2022: £12,572) were payable to the fund at the balance sheet date and are included in creditors.
The ultimate parent undertaking and controlling party is
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