Caseware UK (AP4) 2023.0.135 2023.0.135 2023-01-01false6970truefalsefalse 05003084 2023-01-01 2023-12-31 05003084 2022-01-01 2022-12-31 05003084 2023-12-31 05003084 2022-12-31 05003084 2022-01-01 05003084 2 2022-01-01 2022-12-31 05003084 d:CompanySecretary1 2023-01-01 2023-12-31 05003084 d:Director1 2023-01-01 2023-12-31 05003084 d:Director6 2023-01-01 2023-12-31 05003084 d:Director8 2023-01-01 2023-12-31 05003084 d:Director10 2023-01-01 2023-12-31 05003084 d:RegisteredOffice 2023-01-01 2023-12-31 05003084 e:Buildings e:LongLeaseholdAssets 2023-01-01 2023-12-31 05003084 e:Buildings e:LongLeaseholdAssets 2023-12-31 05003084 e:Buildings e:LongLeaseholdAssets 2022-12-31 05003084 e:PlantMachinery 2023-01-01 2023-12-31 05003084 e:PlantMachinery 2023-12-31 05003084 e:PlantMachinery 2022-12-31 05003084 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05003084 e:FurnitureFittings 2023-01-01 2023-12-31 05003084 e:FurnitureFittings 2023-12-31 05003084 e:FurnitureFittings 2022-12-31 05003084 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05003084 e:ComputerEquipment 2023-01-01 2023-12-31 05003084 e:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 05003084 e:OtherPropertyPlantEquipment 2023-12-31 05003084 e:OtherPropertyPlantEquipment 2022-12-31 05003084 e:OtherPropertyPlantEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05003084 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05003084 e:PatentsTrademarksLicencesConcessionsSimilar 2023-01-01 2023-12-31 05003084 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-01-01 2023-12-31 05003084 e:Goodwill 2023-01-01 2023-12-31 05003084 e:CurrentFinancialInstruments 2023-12-31 05003084 e:CurrentFinancialInstruments 2022-12-31 05003084 e:Non-currentFinancialInstruments 2023-12-31 05003084 e:Non-currentFinancialInstruments 2022-12-31 05003084 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 05003084 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 05003084 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 05003084 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 05003084 e:ShareCapital 2023-12-31 05003084 e:ShareCapital 2022-12-31 05003084 e:ShareCapital 2022-01-01 05003084 e:SharePremium 2023-01-01 2023-12-31 05003084 e:SharePremium 2023-12-31 05003084 e:SharePremium 2022-12-31 05003084 e:SharePremium 2022-01-01 05003084 e:SharePremium 2 2022-01-01 2022-12-31 05003084 e:ForeignCurrencyTranslationReserve 2023-01-01 2023-12-31 05003084 e:OtherMiscellaneousReserve 2023-01-01 2023-12-31 05003084 e:OtherMiscellaneousReserve 2023-12-31 05003084 e:OtherMiscellaneousReserve 2022-12-31 05003084 e:OtherMiscellaneousReserve 2022-01-01 05003084 e:OtherMiscellaneousReserve 2 2022-01-01 2022-12-31 05003084 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 05003084 e:RetainedEarningsAccumulatedLosses 2023-12-31 05003084 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 05003084 e:RetainedEarningsAccumulatedLosses 2022-12-31 05003084 e:RetainedEarningsAccumulatedLosses 2022-01-01 05003084 e:RetainedEarningsAccumulatedLosses 2 2022-01-01 2022-12-31 05003084 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-01-01 2023-12-31 05003084 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-12-31 05003084 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-12-31 05003084 d:OrdinaryShareClass1 2023-01-01 2023-12-31 05003084 d:OrdinaryShareClass1 2023-12-31 05003084 d:OrdinaryShareClass1 2022-12-31 05003084 d:FRS102 2023-01-01 2023-12-31 05003084 d:Audited 2023-01-01 2023-12-31 05003084 d:FullAccounts 2023-01-01 2023-12-31 05003084 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 05003084 e:Subsidiary1 2023-01-01 2023-12-31 05003084 e:Subsidiary1 1 2023-01-01 2023-12-31 05003084 e:WithinOneYear 2023-12-31 05003084 e:WithinOneYear 2022-12-31 05003084 d:Consolidated 2023-12-31 05003084 d:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 05003084 6 2023-01-01 2023-12-31 05003084 e:Associate1 2023-01-01 2023-12-31 05003084 e:Associate1 1 2023-01-01 2023-12-31 05003084 e:ShareCapital 2 2022-01-01 2022-12-31 05003084 f:PoundSterling 2023-01-01 2023-12-31 xbrli:pure iso4217:GBP xbrli:shares

Registered number: 05003084










SOLOPROTECT LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

For the Year Ended 31 December 2023

 
SOLOPROTECT LIMITED
 
 
COMPANY INFORMATION


Directors
G K Broady 
S Hough 
G V Broady 
A Melucci 




Company secretary
A Melucci



Registered number
05003084



Registered office
Suzy Lamplugh House
1 Vantage Drive

Tinsley

Sheffield

S9 1RG




Independent auditors
Sumer Auditco Limited

14th Floor

33 Cavendish Square

London

W1G 0PW





 
SOLOPROTECT LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 10
Consolidated Statement of Comprehensive Income
11
Consolidated Balance Sheet
12 - 13
Company Balance Sheet
14 - 15
Consolidated Statement of Changes in Equity
16
Company Statement of Changes in Equity
17
Consolidated Statement of Cash Flows
18
Consolidated Analysis of Net Debt
19
Notes to the Financial Statements
20 - 41


 
SOLOPROTECT LIMITED
 
 
GROUP STRATEGIC REPORT
For the Year Ended 31 December 2023

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

Business review
 
Consolidated sales in the year were £7,288,996 (2022: £7,628,384), consolidated profit before tax was £39,532 (2022: £319,307) and net profit for the financial year was £200,617 (2022: £236,856). 

With a strong broad historic customer base across various industries & the public sector, 2023 saw particular demand and growth for SoloProtect in local government, charities, education including student support services & transport & logistics. 

Demand & popularity of our new next generation 4G touchscreen devices was stronger during 2023, driven by an increasing awareness of future 3G & 2G cellular network close downs in our UK & European territories, as well as an ever-increasing requirement for richer features & greater user adoption from our customers, all of which will be facilitated through our new device platforms.  

Following completion of the latest version of SoloProtect Mobile (App), demand for SoloProtect Mobile increased in line with industry expectations. This has placed us in a great position to respond to expected future market direction as seen in our results this year by the increased number of customers taking this product.  

During 2023, the business continued to invest in our product range through Touchscreen device enhancements including adding further feature sets to our future development roadmap, following active engagement with our customers. Furthermore, hardware additions such as Bluetooth Buttons to enhance App usage were implemented during 2023 and are proving popular in line with increases in App sales. 

While UK sales orders taken grew by just under 41% compared to 2022, the business also started the implementation of additional strategies in the latter part of 2023 to diversify its sales channels which will prove lucrative in the mid to long term.

Like most businesses in the UK, labour costs increased during 2023, primarily as a result of the inflationary impacts of the UK government fiscal policies which has increased our costs. However, SoloProtect continues to run efficiently, with high levels of productivity per head & without the need for linear headcount increases as we continue to scale the business with volume growth.  

As a result of new product development over 2023, future revenues are expected and targeted through the continuing growth of the direct sales channels as well as the resurgence of channel partner sales across Europe, where 4G becomes ever more critical as 3G & 2G networks are scheduled to close sooner than in the UK. 

Our purpose-built EN50518 compliant UK Alarm Receiving Centre ("ARC") remains firmly established with exceptionally high levels of customer service delivery being achieved regularly and consistently. Customers continue to benefit from our control of the end-to-end elements of our solutions and service, something that they place value on. 

The privately owned nature of our ownership structure is also providing customers the peace of mind & security of being with a stable business that is not nearing the end of its external investment cycle with inevitable & imminent changes of ownership possible, unlike some of our UK competitors. 

We continue to support & grow our European based contracts using our unique UK-based ARC infrastructure hosting model, giving us greater control over quality of service and data reporting for our customers in these territories and for those who operate internationally.  

In our European territories, 2023 saw increased sales, with sizable customers coming on board together with an increasing pipeline of business for 2024 as lone worker / personal protection risk becomes more visible in these
Page 1

 
SOLOPROTECT LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
For the Year Ended 31 December 2023

countries more recently. The business will also continue to seek out further opportunities in other territories for Channel Sales, particularly with the new 4G product range which will become ever more critical to the industry in Europe. 

Following the carefully planned & executed investments & initiatives during 2023, the business remains positive and optimistic about its growth in the mid to long term, as a result of its state of readiness for the expected market direction & demand.  

Given all the above factors, the Directors believe that SoloProtect Limited continues to be a going concern

Principal risks and uncertainties
 
The UK lone worker security industry is highly competitive and price competition may impact our ability to maintain our customer contracts after their initial term. SoloProtect seeks to combat this risk with a continual investment and development of innovative product and services that directly appeal to customers, their businesses and to meet their challenges. Significant investment of which has now been completed, resulting in an all-new product range that is expandable for new future features, ensuring we are able to stay ahead of our customers evolving requirements.  
The company's growth in European markets has historically carried some risk relating to the uncertainty of how health & safety legislation in those markets is maintained, developed and enforced. However, we are seeing significant movement in the strength of health and safety legislation in some of these countries and as a result we are seeing sales grow. Risk is also reduced as a result of the relatively low European cost base as a result of our highly efficient operating model. 
The company depends on a third-party contract manufacturer for the production of most products. If there are any delays, disruption or quality control issues in their operations, the company could lose market share and revenues, and our reputation may be harmed. SoloProtect has contracts & processes in place to minimise this risk together with close and regular engagement/management with that supplier, all of which have proven effective.
Financial risk management objectives and policies
As with any business, there is always potential cash flow risk. The Directors manage this risk through transparent and regular reviews of financials, rigorous planning, strong cost management and a high focus on customer retention and sales growth. Customers are invoiced in advance with any customer debt managed quickly, resulting in consistently low debtor day metrics. 
Loss of major contracts

This risk is managed and mitigated as a result of the broad range of customer sectors & contract sizes in our customer base. Additionally, most customers are committed to long term contracts of between one to three years, with some at four and five years. We also operate a structured Account Management programme to ensure that customers feel well cared for and engaged with our business. Listening to our customers coupled with a broad product range enables us to be responsive to customers needs and therefore mitigate loss of contracts as much as possible. 
                        
Currency risk
SoloProtect invoices its customers in either GBP or Euro. The company also procures components and product in USD. As a result, the company is exposed to currency fluctuation risks. Whilst many currency transactions are carried out by the US based parent company and EU based subsidiary, SoloProtect Limited is subject to the impact of exchange rate fluctuations on amounts owed to and from these group entities. Regular review and monitoring of currency denominated liabilities and exchange rates informs our decision making to minimise the impact of currency fluctuations.
 
Page 2

 
SOLOPROTECT LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
For the Year Ended 31 December 2023

Credit risk
The Company's credit risk is primarily attributable to its trade debtors. If a new customer's financial standing is of concern, appropriate credit checks are carried out. The amounts presented in the balance sheet are net of allowances for doubtful debtors. The Company has no significant concentration of credit risk, with exposure spread over a large number of countries and customers.

Financial key performance indicators

The Group uses the following key performance indicators to measure its financial performance:

2023
2022
Variance
        £
        £
        %
Turnover

7,288,996

7,628,384

(4)
 
 
Gross profit

5,496,819

5,893,430

(7)
 
 
Profit/(Loss) before tax

39,532

319,307

(88)
 
 


This report was approved by the board and signed on its behalf.



................................................
S Hough
Director

Date: 23 September 2024

Page 3

 
SOLOPROTECT 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.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group 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 for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company continued to be that of helping businesses and their organisations ensure the safety of their lone working employees.

Results and dividends

The Group's results are shown in the Consolidated Statement of Comprehensive Income on page 11 of these financial statements.

The profit for the year, after taxation, amounted to £200,617 (2022 - £236,856).

During the year the company paid no dividends (2022: £nil).

Directors

The directors who served during the year were:

G K Broady 
S Hough 
G V Broady 
A Melucci 

Page 4

 
SOLOPROTECT LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
For the Year Ended 31 December 2023


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

Simmons Gainsford LLP, the previous auditors, have transferred their audit business to Sumer Auditco Limited who will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
S Hough
Director

Date: 23 September 2024

Page 5

 
SOLOPROTECT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOLOPROTECT LIMITED
 

Opinion


We have audited the financial statements of Soloprotect Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 of 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 Auditors' 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 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.


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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
SOLOPROTECT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOLOPROTECT LIMITED (CONTINUED)


Other information


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 ReportOur 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.


Opinion on other matters 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 Group 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 Group Strategic Report and the 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 the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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 Directors' Responsibilities Statement 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.


Page 7

 
SOLOPROTECT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOLOPROTECT LIMITED (CONTINUED)


Auditors' 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 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 Group financial statements.


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:

In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:

the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
the nature of the company, including its management structure and control systems (including the opportunity for management to override such controls);
management’s incentives and opportunities for fraudulent manipulation of the financial statements including the company’s remuneration and bonus policies and performance targets; and 
the industry and environment in which it operates.

We also considered UK tax legislation, laws and regulations relating to employment, pension legislation and the preparation and presentation of the financial statements such as the Companies Act 2006. 

Based on this understanding we identified the following matters as being of significance to the entity:

laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax legislation, pension legislation and distributable profits legislation;
the timing of the recognition of income;
compliance with legislation relating to UK employment law, GDPR and health and safety;
management bias in selecting accounting policies and determining estimates;
use of journal entries;
manipulation of specific performance measures to meet remuneration targets;
the capitalisation of development costs, including the timeline of amortising these costs;
requirement to impair its inventories, intangibles and tangible fixed assets;
recoverability of debtors, including intercompany debtors; and
understatement of liabilities and provisions.

We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members. 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:

inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;
enquiries with the same concerning any actual or potential litigation or claims;
discussion with the same regarding any known or suspected instances of non-compliance with laws and
Page 8

 
SOLOPROTECT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOLOPROTECT LIMITED (CONTINUED)


regulation and fraud;
inspection of relevant legal correspondence;
assessment of matters reported to management and the result of the subsequent investigation;
obtaining an understanding of the relevant controls;
assessing the timing of recognition of all revenue streams;
reviewing the appropriateness of the capitalisation of development costs, ensuring all requirements under FRS 102 have been met.
obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year;
review documentation relating to compliance with the regulations relating to GDPR, Health and Safety and fire risk assessment reports;
challenging key assumptions made by management in their specific accounting policies and estimates, in particular in relation to amortisation of intangible fixed assets, depreciation of tangible fixed assets and accruals;
identifying and testing journal entries, in particular any unusual journal entries and non-standard journal entries;
assessing the recovery of debtors, including intercompany debtors, in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding;
assessing the completeness of material trade and other payables, including provisions;
reviewing the financial statements for compliance with the relevant disclosure requirements;
performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud;
reviewing the correspondence with HMRC; and
evaluating the underlying business reasons for any unusual transactions.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, 
including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s
controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud
might be inherently more difficult to detect than irregularities that result from error. As explained above, there is
an unavoidable risk that material misstatements

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.


Page 9

 
SOLOPROTECT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOLOPROTECT LIMITED (CONTINUED)


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 2006Our 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.






Rajiv Thakerar FCA (Senior Statutory Auditor)
for and on behalf of
Sumer Auditco Limited
Statutory Auditors
14th Floor
33 Cavendish Square
London
W1G 0PW

23 September 2024
Page 10

 
SOLOPROTECT LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the Year Ended 31 December 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
7,288,996
7,628,384

Cost of sales
  
(1,792,177)
(1,734,954)

Gross profit
  
5,496,819
5,893,430

Administrative expenses
  
(5,777,681)
(5,554,667)

Other operating income
 5 
322,792
4,631

Operating profit
 6 
41,930
343,394

Interest payable and similar expenses
 10 
(2,398)
(24,087)

Profit before taxation
  
39,532
319,307

Tax on profit
 11 
161,085
(82,451)

Profit for the year
  
200,617
236,856

  

Exchange gain/(loss) arising from translation in foreign subsidiary
  
7,853
(23,844)

Total comprehensive income for the year
  
208,470
213,012

Profit for the year attributable to:
  

Owners of the parent Company
  
200,617
236,856

The notes on pages 20 to 41 form part of these financial statements.

Page 11

 
SOLOPROTECT LIMITED
Registered number: 05003084

CONSOLIDATED BALANCE SHEET
As at 31 December 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
1,228,950
1,863,543

Tangible assets
 13 
1,643,487
1,353,830

Investments
 14 
315
315

  
2,872,752
3,217,688

Current assets
  

Stocks
 15 
466,766
930,066

Debtors: amounts falling due within one year
 16 
2,006,839
1,711,732

Cash at bank and in hand
 17 
1,240,455
810,805

  
3,714,060
3,452,603

Creditors: amounts falling due within one year
 18 
(2,725,783)
(2,954,450)

Net current assets
  
 
 
988,277
 
 
498,153

Total assets less current liabilities
  
3,861,029
3,715,841

Creditors: amounts falling due after more than one year
 19 
(113,636)
(170,481)

Provisions for liabilities
  

Other provisions
 21 
(90,572)
(97,009)

  
 
 
(90,572)
 
 
(97,009)

Net assets
  
3,656,821
3,448,351


Capital and reserves
  

Called up share capital 
 22 
1,703
1,703

Share premium account
 23 
981,736
981,736

Foreign exchange reserve
 23 
(165,032)
(172,885)

Other reserves
 23 
1,526,985
1,526,985

Profit and loss account
 23 
1,311,429
1,110,812

  
3,656,821
3,448,351


Page 12

 
SOLOPROTECT LIMITED
Registered number: 05003084
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
As at 31 December 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
S Hough
Director

Date: 23 September 2024

The notes on pages 20 to 41 form part of these financial statements.

Page 13

 
SOLOPROTECT LIMITED
Registered number: 05003084

COMPANY BALANCE SHEET
As at 31 December 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
1,228,950
1,863,543

Tangible assets
 13 
1,584,720
1,310,101

Investments
 14 
1,154
1,154

  
2,814,824
3,174,798

Current assets
  

Stocks
 15 
466,766
930,066

Debtors: amounts falling due within one year
 16 
2,939,625
2,252,227

Cash at bank and in hand
 17 
277,156
307,370

  
3,683,547
3,489,663

Creditors: amounts falling due within one year
 18 
(2,673,411)
(2,836,167)

Net current assets
  
 
 
1,010,136
 
 
653,496

Total assets less current liabilities
  
3,824,960
3,828,294

  

Creditors: amounts falling due after more than one year
 19 
(113,636)
(170,481)

Provisions for liabilities
  

Other provisions
 21 
(90,572)
(97,009)

  
 
 
(90,572)
 
 
(97,009)

Net assets
  
3,620,752
3,560,804


Capital and reserves
  

Called up share capital 
 22 
1,703
1,703

Share premium account
 23 
981,736
981,736

Other reserves
 23 
1,526,985
1,526,985

Profit and loss account
 23 
1,110,328
1,050,380

  
3,620,752
3,560,804


Page 14

 
SOLOPROTECT LIMITED
Registered number: 05003084
    
COMPANY BALANCE SHEET (CONTINUED)
As at 31 December 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
S Hough
Director

Date: 23 September 2024

The notes on pages 20 to 41 form part of these financial statements.

Page 15

 
SOLOPROTECT LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 31 December 2023


Called up share capital
Share premium account
Foreign exchange reserve
Other reserves
Profit and loss account
Total equity

£
£
£
£
£
£


At 1 January 2022
1,703
981,736
(149,041)
-
873,956
1,708,354



Profit for the year
-
-
-
-
236,856
236,856

Exchange loss on translation of foreign subsidiary
-
-
(23,844)
-
-
(23,844)
Total comprehensive income for the year
-
-
(23,844)
-
236,856
213,012

Capital contribution
-
-
-
1,526,985
-
1,526,985



At 1 January 2023
1,703
981,736
(172,885)
1,526,985
1,110,812
3,448,351



Profit for the year
-
-
-
-
200,617
200,617

Exchange gain on translation of foreign subsidiary
-
-
7,853
-
-
7,853
Total comprehensive income for the year
-
-
7,853
-
200,617
208,470


At 31 December 2023
1,703
981,736
(165,032)
1,526,985
1,311,429
3,656,821


The notes on pages 20 to 41 form part of these financial statements.

Page 16

 
SOLOPROTECT LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
For the Year Ended 31 December 2023


Called up share capital
Share premium account
Other reserves
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
1,703
981,736
-
1,304,823
2,288,262



Loss for the year
-
-
-
(254,443)
(254,443)

Capital contribution
-
-
1,526,985
-
1,526,985



At 1 January 2023
1,703
981,736
1,526,985
1,050,380
3,560,804



Profit for the year
-
-
-
59,948
59,948


At 31 December 2023
1,703
981,736
1,526,985
1,110,328
3,620,752


The notes on pages 20 to 41 form part of these financial statements.

Page 17

 
SOLOPROTECT LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 31 December 2023

As restated
2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
200,617
236,856

Adjustments for:

Amortisation of intangible assets
857,490
960,675

Depreciation of tangible assets
503,617
480,375

Loss on disposal of tangible assets
17,371
13,282

Interest paid
2,398
130,861

Taxation charge
(169,700)
82,451

Decrease/(increase) in stocks
463,300
(290,067)

(Increase)/decrease in debtors
(95,680)
120,510

Decrease in amounts owed by groups
1,537
-

Increase/(decrease) in creditors
4,519
(45,932)

Increase/(decrease) in amounts owed to groups
(320,961)
(1,474,487)

(Decrease) in provisions
(6,438)
(7,542)

Foreign exchange
4,716
(124,766)

Net cash generated from operating activities

1,462,786
82,216


Cash flows from investing activities

Purchase of intangible fixed assets
(222,898)
(960,769)

Purchase of tangible fixed assets
(807,509)
(421,855)

Interest received
-
4,631

Net cash from investing activities

(1,030,407)
(1,377,993)

Cash flows from financing activities

Repayment of/new finance leases
(331)
-

Interest paid
(2,398)
(24,087)

Members' capital contributed
-
1,526,985

Net cash used in financing activities
(2,729)
1,502,898

Net increase in cash and cash equivalents
429,650
207,121

Cash and cash equivalents at beginning of year
810,805
603,684

Cash and cash equivalents at the end of year
1,240,455
810,805


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,240,455
810,805


The notes on pages 20 to 41 form part of these financial statements.

Page 18

 
SOLOPROTECT LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
For the Year Ended 31 December 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

810,805

429,650

1,240,455

Finance leases

(331)

331

-


810,474
429,981
1,240,455

The notes on pages 20 to 41 form part of these financial statements.

Page 19

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

1.


General information

Soloprotect Limited is a private company limited by share capital, incorporated in England and Wales. The address of the registered office is Suzy Lamplugh House, 1 Vantage Drive, Tinsley, Sheffield S9 1RG.

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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 20

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.3

Associates and joint ventures

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in significant associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
The management considers the results of the Group's associate undertaking for both current year and prior year are insignificant to be consolidated into these financial statements. As a result, the investment in associate undertaking has been included in these financial statements at cost less any provision for impairment and the full amount due by the same associate undertaking to the group is included in other debtors.

 
2.4

Going concern

The directors have prepared forecasts and received confirmation of continued support from the parent company G Broady Enterprises Inc. On this basis, the financial statements have been prepared on a going concern basis.

 
2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Turnover 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

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group 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 Group 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.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
Page 21

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.5
Turnover (continued)

it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Patents
-
3
Years
Development expenditure
-
3
Years
Computer Software
-
4
Years

 
2.7

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.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Long-term leasehold property
-
between 5 and 50 years on a straight line basis
Plant and machinery
-
between 3 and 10 years on a straight line basis
Fixtures and fittings
-
between 3 and 10 years on a straight line basis
Computer equipment
-
3 years on a straight line basis
Operating leased assets
-
over 3 and a half years on a straight line basis
Land
-
not depreciated

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.
 

Page 22

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

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

 
2.8

Valuation of investments

Investment in the subsidiary company is held at cost less accumulated impairment losses.

 
2.9

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.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.12

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the
Page 23

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.12
Financial instruments (continued)

present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 24

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.14

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.15

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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.16

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.

 
2.17

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Page 25

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.18

Operating leases: the Group as lessee

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

 
2.19

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.20

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 26

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.22

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.23

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives of 3 years.
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.
Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Profit and loss account.

Page 27

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported. These estimates and judgments are continually evaluated by the directors and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The directors consider the following to be significant areas of judgment or key sources of estimation uncertainty.
 
Valuation of stock and stock provisions is an area of accounting estimate. The entity's policy in relation to stock provisioning is therefore to provide for obsolete, slow moving and defective stock, and therefore ensure that stock is held at the most appropriate estimate of net realisable value.

Amortisation and depreciation of intangible and tangible fixed assets respectively are also key accounting estimates. The entity's policy is to amortise intangible fixed assets over the expected useful life of the product to which they relate, commencing from the date the product first goes to market. Depreciation is estimated based upon the expected useful lives of the company's tangible fixed assets.
 
Research and Development is another area of key judgment. The entity's policy is to recognise all expenditure on research as an expense to the Statement of Comprehensive Income when it is incurred.  Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured.

Warranty provisions for leased devices is also an area of key judgment and estimation uncertainty. An estimated cost per device is provided based on the expectation of the probable future costs required to service the warranties to customers.

Page 28

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Provision of services
6,911,930
7,168,323

Sales of goods
377,066
460,061

7,288,996
7,628,384


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
5,392,756
5,694,711

Rest of the world
1,896,240
1,933,673

7,288,996
7,628,384



5.


Other operating income

2023
2022
£
£

Other operating income
318,161
-

Government grants
4,631
4,631

322,792
4,631



6.


Operating profit

The operating profit is stated after charging:

As restated
2023
2022
£
£

Intangible fixed assets - amortisation
857,490
960,675

Tangible fixed assets - depreciation
473,161
480,375

Sundry expenses
246
-

Exchange differences
66,511
84,022

Other operating lease rentals
4,154
3,773

Page 29

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
33,284
39,500


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
3,234,466
2,948,126
3,037,102
2,604,296

Social security costs
405,189
390,671
369,939
345,439

Pension costs - defined contribution scheme
82,523
85,790
75,451
69,644

3,722,178
3,424,587
3,482,492
3,019,379


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Directors
4
5
4
5



Employees
68
71
65
65

72
76
69
70


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
186,000
186,000

Group contributions to defined contribution pension schemes
4,500
4,500

190,500
190,500


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

Page 30

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

10.


Interest payable and similar expenses

As restated
2023
2022
£
£


Loans from group undertakings
-
17,592

Other interest payable
2,398
6,495

2,398
24,087


11.


Taxation


2023
2022
£
£

Corporation tax


Research and development tax credit
(200,964)
-


Overseas corporation tax
31,264
-

Total current tax
(169,700)
-

Deferred tax


Origination and reversal of timing differences
8,615
82,451

Total deferred tax
8,615
82,451


Taxation on (loss)/profit on ordinary activities
(161,085)
82,451
Page 31

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
39,532
319,307


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
9,883
60,668

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
199,528
568

Capital allowances for year in excess of depreciation
(89,439)
(14,173)

Utilisation of tax losses
(73,612)
(109,012)

Other differences in relation to different tax treatment in foreign subsidiary
(12,321)
-

Deferred tax movement in the year
8,615
82,451

Other timing differences leading to an increase (decrease) in taxation
-
(15,308)

Research and development tax credit
(200,964)
-

Changes in provisions leading to an increase (decrease) in the tax charge
(2,775)
2,374

Unrelieved tax losses carried forward
-
74,883

Total tax charge for the year
(161,085)
82,451


Factors that may affect future tax charges

The company has estimated losses of £1,378,479 (2022: £1,669,455) available for carry forward against future trading profits.

Page 32

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

12.


Intangible assets

Group and company





Patents
Product develop-ment
Computer software
Total

£
£
£
£



Cost


At 1 January 2023
43,895
4,028,758
660,702
4,733,355


Additions
-
222,898
-
222,898



At 31 December 2023

43,895
4,251,656
660,702
4,956,253



Amortisation


At 1 January 2023
43,895
2,197,165
628,753
2,869,813


Charge for the year on owned assets
-
825,541
31,949
857,490



At 31 December 2023

43,895
3,022,706
660,702
3,727,303



Net book value



At 31 December 2023
-
1,228,950
-
1,228,950



At 31 December 2022
-
1,831,593
31,949
1,863,542

Expenditure on the development of products is capitalised as intangible fixed assets and amortised over the estimated useful life of the products. 
Further development expenditure of this nature may also be capitalised as intangible fixed assets where it results in significant and measurable improvements in the design or performance of existing products.


The intangible assets which are material to the financial statements are development costs related to Project Brama and the ID Touch range of devices. These have a carrying amount of £981,825 (2022: £1,805,895 and are being amortised over a period of three years.


Page 33

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

13.


Tangible fixed assets

Group






Long-term leasehold property
Plant and machinery
Computer equipment and fixtures and fittings
Other fixed assets
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
905,233
201,247
1,011,792
2,316,283
4,434,555


Additions
-
-
20,705
786,804
807,509


Disposals
-
-
(32,957)
(445,133)
(478,090)


Exchange adjustments
-
-
(485)
(5,077)
(5,562)



At 31 December 2023

905,233
201,247
999,055
2,652,877
4,758,412



Depreciation


At 1 January 2023
191,732
168,413
960,546
1,760,035
3,080,726


Charge for the year on owned assets
25,898
11,929
35,363
430,427
503,617


Disposals
-
-
(36,420)
(424,299)
(460,719)


Exchange adjustments
-
-
(4,483)
(4,216)
(8,699)



At 31 December 2023

217,630
180,342
955,006
1,761,947
3,114,925



Net book value



At 31 December 2023
687,603
20,905
44,049
890,930
1,643,487



At 31 December 2022
713,501
32,834
51,246
556,248
1,353,829




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Long leasehold
687,603
713,501


Page 34

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

Future minimum lease payments due from customers

As at 31 December 2023 the Group had future minmum lease payments from its customers over the use of assets under non-cancellable operating leases as follows:


2023
2022
£
£



Not later than 1 year
2,392,245
2,878,292

Later than 1 year and not later than 5 years
1,941,010
2,372,017

4,333,255
5,250,309


Company






Long-term leasehold property
Plant and machinery
Computer equipment and fixtures and fittings
Other fixed assets
Total

£
£
£
£
£

Cost or valuation


At 1 January 2023
905,233
201,247
982,921
2,096,652
4,186,053


Additions
-
-
20,705
721,271
741,976


Disposals
-
-
(32,957)
(418,720)
(451,677)



At 31 December 2023

905,233
201,247
970,669
2,399,203
4,476,352



Depreciation


At 1 January 2023
191,732
168,413
933,658
1,582,150
2,875,953


Charge for the year on owned assets
25,898
11,929
35,049
364,139
437,015


Disposals
-
-
(36,420)
(384,916)
(421,336)



At 31 December 2023

217,630
180,342
932,287
1,561,373
2,891,632



Net book value



At 31 December 2023
687,603
20,905
38,382
837,830
1,584,720



At 31 December 2022
713,501
32,834
49,263
514,502
1,310,100


Page 35

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

           13.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Long leasehold
687,603
713,501



14.


Fixed asset investments

Group





Investment in associate

£



Cost or valuation


At 1 January 2023
315



At 31 December 2023
315




Company





Investments in subsidiary companies
Investment in associate
Total

£
£
£



Cost or valuation


At 1 January 2023
839
315
1,154



At 31 December 2023
839
315
1,154





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Soloprotect BV
The Netherlands
Ordinary shares
100%

Page 36

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

Associate


The following was an associate of the Company:


Name

Registered office

Class of shares

Holding

Vantage Drive Management Limited
England and Wales
Ordinary shares
31.5%


15.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials and consumables
23,830
30,113
23,830
30,113

Finished goods and goods for resale
442,936
899,953
442,936
899,953

466,766
930,066
466,766
930,066



16.


Debtors

Group

Group
As restated
Company

Company
As restated
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,464,698
1,515,614
1,227,134
1,333,395

Amounts owed by group undertakings
-
1,537
1,171,863
733,571

Prepayments and accrued income
341,177
185,966
339,664
185,261

Tax recoverable
200,964
-
200,964
-

Deferred taxation
-
8,615
-
-

2,006,839
1,711,732
2,939,625
2,252,227



17.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,240,455
810,805
277,156
307,370


Page 37

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

18.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2023
2022
2023
2022
£
£
£
£

Trade creditors
310,162
333,413
278,459
308,040

Amounts owed to group undertakings
1,372,618
1,693,579
1,497,584
1,693,579

Corporation tax
31,264
-
-
-

Other taxation and social security
378,796
377,032
343,804
341,717

Obligations under finance lease and hire purchase contracts
-
331
-
331

Other creditors
68,566
67,428
67,502
66,489

Accruals and deferred income
564,377
482,667
486,062
426,011

2,725,783
2,954,450
2,673,411
2,836,167



19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Other creditors
-
52,213
-
52,213

Accruals and deferred income
113,636
118,268
113,636
118,268

113,636
170,481
113,636
170,481





20.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
8,615
91,066


Charged to profit or loss
(8,615)
(82,451)



At end of year
-
8,615

Page 38

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023
 
20.Deferred taxation (continued)

The deferred tax asset is made up as follows:

Group
Group
2023
2022
£
£

Tax losses carried forward
-
8,615


21.


Provisions


Group



Other provisions

£





At 1 January 2023
97,010


Utilised in year
(6,438)



At 31 December 2023
90,572

Company


Other provisions
Total

£
£





At 1 January 2023
97,010
97,010


Utilised in year
(6,438)
(6,438)



At 31 December 2023
90,572
90,572


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



340,646 (2022 - 340,646) Ordinary shares of £0.005 each
1,703
1,703


Page 39

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

23.


Reserves

Share premium account

Represents the amount paid for share capital above the nominal value.

Foreign exchange reserve

Includes exchange gains or losses arising from translation of the foreign subsidiary.

Other reserves

Other reserves represent a capital contribution from the parent company.

Profit and loss account

Includes all current and prior period retained profits and losses.


24.


Prior year adjustment

The 2022 comparatives for both the company and the group have been restated to address the following adjustment:

The grossing up of intercompany balances following the conversion of intercompany loan notes to equity:

Balance sheet:
Amounts owed by group undertakings have decreased by £1,564,396,
Amounts owed to group undertakings have decreased by £1,564,396.

The recalculation of intercompany loan note interest prior to the capital contribution made in 2022:
Statement of comprehensive income:
Administrative expenses have increased by £106,774,
Interest payable has decreased by £106,774.


25.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund.
The contributions payable by the Group for the year were £82,523 (2022: £85,790). Contributions totalling £15,907 (2022: £14,321) were payable to the fund at the balance sheet date and are included in creditors.

Page 40

 
SOLOPROTECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2023

26.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
2,088
9,042
-
526


27.


Related party transactions

Group and company
The company has taken advantage of the exemption available in FRS 102, paragraph 33.1A "Related Party disclosures", whereby it has not disclosed transactions with any wholly owned subsidiary undertakings.


28.


Ultimate parent undertaking and controlling party

The immediate and ultimate parent company is G Broady Enterprises Inc, a company registered in the United States, by virtue of its shareholding in the company.
The ultimate controlling party is G K Broady.

 
Page 41