Company registration number 07020062 (England and Wales)
SAFEKICK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SAFEKICK LIMITED
COMPANY INFORMATION
Directors
E M Santos
H M R D Santos
Company number
07020062
Registered office
1010 Eskdale Road
Winnersh Triangle
Wokingham
Berkshire
RG41 5TS
Auditor
FLB Audit LLP
1010 Eskdale Road
Winnersh Triangle
Wokingham
Berkshire
RG41 5TS
SAFEKICK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
SAFEKICK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for Safekick Limited (the "Company") and its subsidiary (the "Group") for the year ended 31 December 2023.

Review of the business

The Group continues to drive engagement with its key clients, a number of which are major players in the industry, which has resulted in the Group expanding in to more countries and expanding the utilisation of the Group's products and services. The year has been a successful one with results as expected by management.

 

The Group's primary operating strategy is to seek out projects which are profitable, rather than purely focusing on turnover and market share levels, however differing projects do vary in the gross margin they yield, and management continues to review and base strategy around acceptable project margin yields for the Group to undertake with customers. During the year, turnover has increased from £12.9m to £17.2m, up by 33%. However the Group did see a slight decline in gross profit margin from 59.5% (as reclassified) to 57.1%. The decrease in margin is primarily due to the Group generating a higher proportion of equipment sales in 2023, compared to consulting sales in 2022, with consulting sales typically generating a higher gross margin.

Principal risks and uncertainties

There are a number of risks and uncertainties that can impact the performance of the Group which are beyond the control of the Company and its directors.

 

These include:

 

Geopolitical factors

Geopolitical factors are the biggest risk to the business since a geopolitical disruption in a specific worldwide location could adversely impact the energy sector and our customers' operations and activities there. Should customers' be restricted from activities by war, regulation or political changes, subsequent business generated could suffer.

 

Market risk

The price of commodities, such as oil, produced by customers' remains a key influencer of investment decisions made by clients of the Group. Significant drops in the price of such commodities could pose a risk to the ability of the Group to generate revenue and profits, which is largely out of the Group's control.

 

Key Inputs

With the pandemic a lot of suppliers are facing difficulties with raw materials and electronic components. We have been advised that some components will be delayed, and this may impact the delivery of some of our equipment projects. We are actively seeking alternatives and interacting with the clients to find possible and feasible alternatives to reduce the overall impact.

 

Personnel logistics is another key parameter. Restrictions are introduced and changed without much notice, people cannot apply for Visa, entry permissions are delayed, and this is causing problems to support the various projects. We have seen situation improving in some countries, but getting worse in others. There is no certainty on what is going to happen and when we will get back to some normality.

 

Conflict in Ukraine and sanctions on Russia

Although the Group operate in the oil industry, no operations are held or operated in either Russia or Ukraine, and no direct disruption or adverse impacts have been felt as a result of the conflict.

 

Inflation

Following a dramatic increase in 2022, UK inflation decreased during the year and has steadied post year end. However, the directors consider this to have had a negligible impact on the Group and its operations. With office rent costs fixed and staffing costs at competitive industry levels across its primary operating locations, the Group has not seen dramatic cost base increases causing concern. One of the main drivers of inflation is increased energy prices, which actually is deemed to have a benefit to the Group given the industry it operates in.

SAFEKICK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future developments

The directors anticipate the primary business environment that the Group operate to remain the same and continue to be competitive. The Group continues to be in a good financial position and the risks identified continue to be closely managed. The directors continue to place careful focus on appropriate diversification and development of new products, as well as continuing review of the state of the market and the activities of competitors. The directors are confident in the Group's ability to maintain and build on this position, albeit with cautious growth expectations, with new innovative solutions in product offerings and the expansion of additional projects and new customers.

Key performance indicators ("KPIs")

Given the nature of the business, the Group's directors are of the opinion that analysis using KPIs beyond those reported within the financial statements, is not necessary for the understanding of the development, performance or position of the business.

 

The main financial metrics the directors monitor to assess the position and performance of the business are cash on hand, which decreased from £12.4m to £9.9m during the year to 31 December 2023, due primarily to the Group paying a dividend to its parent of £1.6m (2022: £nil). Profitability, rather than turnover which can fluctuate drastically based on oil prices, is monitored and provides a better depiction of the performance of the business. Total gross profit rose from £7.7m (as reclassified) to £9.8m during the year, driven by higher sales volumes across the Group, Operating profit margin was 18.3% in 2023 compared to 17.2% in 2022. The primary overheads of the Group continue to be wages and salaries, depreciation of equipment and IT and insurance related expenditure. Management continues to ensure competitive salaries are paid to retain high quality staff whilst ensuring sufficient investment in IT infrastructure and ongoing services are maintained.

Financial instruments

The Group has a solid financial position, holding more than sufficient cash reserves to meet its liabilities as they fall due with a suitable surplus to support any unforeseen business interruptions or unexpected costs. Beyond its current creditors, the Group does not expect to require further external financing or borrowings. The exposure of the Group to liquidity or cash flow risks is deemed to be low due to the structuring of its existing debts from related parties and contracts in place with customers and suppliers.

 

The Group's primary borrowings are from key management personnel and although repayable on demand are not expected to be called in the short term or at a time where the Group is not well placed to settle them without compromising its short term working capital or liquidity. The interest rate applicable to the borrowings are at favourable rates compared to current market financing options and remain a suitable source of debt finance within the Group.

 

The Group does not enter into any formally designated hedging arrangements and does not use hedge accounting.

On behalf of the board

H M R D Santos
Director
19 November 2024
SAFEKICK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the Group continued to be that of support activities and developing products for the energy sector. The Group's product and service offerings help clients work towards their 'Net Zero' goals, by reducing their carbon footprint through efficiency and safety measures, reduction to risk of environmental disaster and providing greater visibility of their operations.

Results and dividends

The directors find the Group's performance for the year satisfactory and as expected. The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,646,666. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

E M Santos
H M R D Santos
Post reporting date events

The Group has no notable events after the reporting date to report.

Auditor

The auditor, FLB Audit LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SAFEKICK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Branches of the Group outside the UK

Aside from a subsidiary operating in the United States of America, the Group maintained branch operations in Norway, Australia and Suriname during the current year.

Strategic report

The directors have chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report, information required by Sch. 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) to be contained in the directors' report. It has done so in respect of future developments and financial instruments.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
H M R D Santos
Director
19 November 2024
SAFEKICK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SAFEKICK LIMITED
- 5 -
Opinion

We have audited the financial statements of Safekick Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SAFEKICK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAFEKICK LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We obtained an understanding of the legal and regulatory frameworks within which the Group and company operate, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and UK taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and revenue recognition. Our audit procedures to respond to management override risks included inquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases and assessing the treatment of non-routine transactions. Our audit procedures to respond to revenue recognition risks included sample testing revenue across the period and deferred revenue as at period end to agree to supporting documentation and reviewing revenue received either side of the period end to ensure this has been recognised correctly.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.

SAFEKICK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAFEKICK LIMITED
- 7 -

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Daniel Wesolowski (Senior Statutory Auditor)
For and on behalf of FLB Audit LLP
Statutory Auditor
1010 Eskdale Road
Winnersh Triangle
Wokingham
Berkshire
RG41 5TS
19 November 2024
SAFEKICK LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
as reclassified
Notes
£
£
Turnover
3
17,212,360
12,934,195
Cost of sales
(7,384,842)
(5,232,991)
Gross profit
9,827,518
7,701,204
Administrative expenses
(6,736,877)
(5,471,888)
Other operating income
39,974
134
Operating profit
4
3,130,615
2,229,450
Interest receivable and similar income
8
288,665
78,594
Interest payable and similar expenses
9
(220,381)
(219,269)
Profit before taxation
3,198,899
2,088,775
Tax on profit
10
(1,056,631)
(1,135,212)
Profit for the financial year
2,142,268
953,563
Profit for the financial year is all attributable to the owners of the parent company.

A reclassification to the prior year Group income statement has been included in the above, to reflect a correction to the allocation of cost of sales and administrative expenditure of the Group in 2022. The reclassification resulted in a decrease of £581,774 to cost of sales and a corresponding increase of the same amount to administrative expenses.

 

The directors believe this reclassification providers a more accurate reflection of direct costs associated with the Group's turnover and the resultant gross profit margin. The reclassification has been applied consistently in the current year Group income statement.

SAFEKICK LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
2,142,268
953,563
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(83,531)
263,642
Total comprehensive income for the year
2,058,737
1,217,205
Total comprehensive income for the year is all attributable to the owners of the parent company.
SAFEKICK LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
842,985
673,791
Tangible assets
13
953,903
736,004
1,796,888
1,409,795
Current assets
Stocks
16
1,805,876
494,081
Debtors
17
5,954,847
4,195,370
Cash at bank and in hand
9,906,022
12,433,986
17,666,745
17,123,437
Creditors: amounts falling due within one year
18
(11,790,457)
(11,274,915)
Net current assets
5,876,288
5,848,522
Total assets less current liabilities
7,673,176
7,258,317
Provisions for liabilities
Deferred tax liability
19
3,540
752
(3,540)
(752)
Net assets
7,669,636
7,257,565
Capital and reserves
Called up share capital
21
1,000
1,000
Profit and loss reserves
7,668,636
7,256,565
Total equity
7,669,636
7,257,565

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 19 November 2024 and are signed on its behalf by:
19 November 2024
H M R D Santos
Director
Company registration number 07020062 (England and Wales)
SAFEKICK LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,400
3,009
Investments
14
632
632
2,032
3,641
Current assets
Debtors
17
3,021,936
2,164,221
Cash at bank and in hand
2,146,015
1,380,450
5,167,951
3,544,671
Creditors: amounts falling due within one year
18
(1,142,506)
(1,006,983)
Net current assets
4,025,445
2,537,688
Total assets less current liabilities
4,027,477
2,541,329
Provisions for liabilities
Deferred tax liability
19
350
752
(350)
(752)
Net assets
4,027,127
2,540,577
Capital and reserves
Called up share capital
21
1,000
1,000
Profit and loss reserves
4,026,127
2,539,577
Total equity
4,027,127
2,540,577

As permitted by s408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes. The Company’s profit for the year was £3,133,216 (2022 - £44,657 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 19 November 2024 and are signed on its behalf by:
19 November 2024
H M R D Santos
Director
Company registration number 07020062 (England and Wales)
SAFEKICK LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1,000
6,039,360
6,040,360
Year ended 31 December 2022:
Profit for the year
-
953,563
953,563
Other comprehensive income:
Currency translation differences
-
263,642
263,642
Total comprehensive income
-
1,217,205
1,217,205
Balance at 31 December 2022
1,000
7,256,565
7,257,565
Year ended 31 December 2023:
Profit for the year
-
2,142,268
2,142,268
Other comprehensive income:
Currency translation differences
-
(83,531)
(83,531)
Total comprehensive income
-
2,058,737
2,058,737
Dividends
11
-
(1,646,666)
(1,646,666)
Balance at 31 December 2023
1,000
7,668,636
7,669,636
SAFEKICK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1,000
2,584,234
2,585,234
Year ended 31 December 2022:
Loss and total comprehensive expenese for the year
-
(44,657)
(44,657)
Balance at 31 December 2022
1,000
2,539,577
2,540,577
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
3,133,216
3,133,216
Dividends
11
-
(1,646,666)
(1,646,666)
Balance at 31 December 2023
1,000
4,026,127
4,027,127
SAFEKICK LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,884,741
3,909,693
Income taxes paid
(1,165,519)
(656,276)
Net cash inflow from operating activities
719,222
3,253,417
Investing activities
Purchase of intangible assets
(217,985)
(194,505)
Purchase of tangible fixed assets
(714,749)
(36,334)
Repayment of loans
19,348
-
Interest received
288,665
76,863
Net cash used in investing activities
(624,721)
(153,976)
Financing activities
Interest paid
(160,874)
-
Dividends paid to equity shareholders
(1,646,666)
-
0
Net cash used in financing activities
(1,807,540)
-
Net (decrease)/increase in cash and cash equivalents
(1,713,039)
3,099,441
Cash and cash equivalents at beginning of year
12,433,986
9,070,903
Effect of foreign exchange rates
(814,925)
263,642
Cash and cash equivalents at end of year
9,906,022
12,433,986
SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Safekick Limited (“the Company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is 1010 Eskdale Road, Winnersh Triangle, Wokingham, Berkshire, RG41 5TS.

 

The Group consists of Safekick Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of all companies within the Group, with the exception of Safekick Americas LLC, of which the functional currency is United States Dollars. Monetary amounts in these financial statements are rounded to the nearest £, being the chosen presentational currency of the Group.

 

The parent company has taken advantage of the exemption from preparing a statement of cash flows, on the basis that it is a qualifying entity and the group statement of cash flows, included in these financial statements, includes the Company's cash flows.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

 

The financial statements of the Company are consolidated in the financial statements of Santos Vision Limited. These consolidated financial statements are available from its registered office, 1010 Eskdale Road, Winnersh Triangle, Wokingham, United Kingdom, RG41 5TS.

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Safekick Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The Group continues to maintain a strong short term working capital position based around holding more than sufficient cash reserves, to cover its working capital requirements for the foreseeable future. The directors continue to manage and develop a robust pipeline of work across various geographical locations around the globe. This is strengthened by the current environment of a high energy, and energy input commodities such as oil, prices which although volatile at times, are expected to remain at a generally high level for the foreseeable future. Post year end performance of the Group and forecasts into future years continue to provide strong indication of the Group's ability to continue in operational existence and profitability.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from equipment sales is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

When the outcome of a consulting contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

 

Licensing fees are recognised when customers are granted the right to use the software and are recognised based on usage over the term of the contract.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years straight line
Patents & licences
17 years from the date the patent is filed

Software

The Group has created software that it markets to customers through licensing and hosting services as an application service provider. Costs incurred related to the development of the software to be licenced prior to technological feasibility are expensed. Once the Group concludes that technological feasibility is obtained, all subsequent development costs are capitalised and reported at the lower of amortised cost or net realisable value. Amortisation is computed on an individual product basis over the estimated useful economic life of the product of 5 years, using the straight line method.

 

Patents

The cost of patents with determinable useful lives is amortised to reflect the pattern of economic benefits consumed on a straight line basis over 17 years from the date the patent is filed. Patents with contractual terms are generally amortised over their respective legal or constructive lives. When certain events or changes in operating conditions occur, an impairment assessment is performed and the life of the patents may be adjusted. The patents are held in the name of the a Group company.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
Between 3 and 5 years straight line
Fixtures and fittings
Between 5 and 7 years straight line
Computers
Between 3 and 5 years straight line
Motor vehicles
5 years straight line
SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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.

 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date where there is an indication of impairment and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The Group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the Group's statement of financial position when the Group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors and amounts due to key management personnel, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.16
Retirement benefits

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 statement of financial position. The Assets of the plan are held separately from the Group in independently administered funds.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

 

Consolidated within the Group financial statements are the results and financial position of a foreign subsidiary undertaking. Items included in the financial statements of each of the entities in the Group are measured using the currency of the primary economic environment in which the Group operates (the functional currency). The functional currency is British Pounds Sterling. The Company financial statements are presented in sterling.

(i) 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 the profit and loss account.

(ii) Translation

The trading results of Group undertakings that have a different functional currency from that of the group are translated into sterling at the average exchange rate for the year. Their assets and liabilities, including goodwill and fair value adjustments arising on acquisition, are translated at the exchange rate as at the year end.

Exchange adjustments arising from the retranslation of opening net investments and from the translation of the profits or losses at average rates are recognised in ‘Other comprehensive income’.

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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.

Critical judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Revenue recognition

The key judgements made by management in respect of revenue is the point at which that revenue should be recognised. Management consider the underlying contract terms and conclude upon the most appropriate point of the cycle at which to recognise revenue based upon these terms and in particular where the risks and rewards of ownership transfer.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets

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 assessment consider issues such as the remaining life of the asset and the projected disposal value.

Intangible fixed assets

Intangibles are capitalised in accordance with accounting standards and the Group's accounting policy. Management estimate the useful life of intangible assets based on factors such as the expected use in the business.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Equipment sales
4,578,990
1,558,530
Consulting fees
6,038,587
6,357,036
Licensing fees
6,464,705
5,005,404
Others
130,078
13,225
17,212,360
12,934,195
SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
430,146
326,959
Europe
790,389
373,595
Asia
(37,322)
892,940
United States of America
9,707,876
7,498,071
South and Central America
3,828,914
1,423,480
Australia
806,442
1,203,394
Africa
1,685,915
1,215,756
17,212,360
12,934,195
2023
2022
£
£
Other revenue
Interest income
288,665
78,594
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
47,328
(219,729)
Depreciation of owned tangible fixed assets
496,850
465,022
Amortisation of intangible assets
48,791
51,266
Operating lease charges
163,196
171,193
5
Auditor's remuneration
2023
2022
Fees payable to the Company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the Group and Company
8,500
6,000
For other services
Taxation compliance services
4,750
5,000
All other non-audit services
6,148
6,500
10,898
11,500
SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
6
Employees

The average monthly number of persons (including directors) employed by the Group and Company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
2
2
2
2
Administration and selling
30
28
4
5
Total
32
30
6
7

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,785,011
3,128,916
535,664
547,091
Social security costs
64,691
72,771
64,691
72,771
Pension costs
9,873
9,835
9,873
9,835
3,859,575
3,211,522
610,228
629,697
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
62,167
61,650
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
265,257
76,863
Other interest income
23,408
1,731
Total income
288,665
78,594
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest payable
220,381
219,269
SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
329
Foreign current tax on profits for the current period
1,029,435
1,182,728
Adjustments in foreign tax in respect of prior periods
-
0
41,896
Total current tax
1,029,435
1,224,953
Deferred tax
Origination and reversal of timing differences
27,196
(89,741)
Total tax charge
1,056,631
1,135,212

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,198,899
2,088,775
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
751,741
396,867
Tax effect of expenses that are not deductible in determining taxable profit
-
(3,787)
Change in unrecognised deferred tax assets
-
0
48
Adjustments in respect of prior years
6,906
10,063
Double tax relief
(54,394)
(82,767)
Effect of overseas tax rates
(75,123)
64,800
Overseas taxes paid
340,431
679,630
Effect of changes in US state and other tax
87,070
70,358
Taxation charge
1,056,631
1,135,212

The Group has no tax adjusted losses available for carry forward against future trading profits. The Group has unrelieved foreign tax credits amounting to £1,211,813 (2022: £930,250), for which a deferred tax asset has not been recognised due to uncertainty around recoverability and timing of the realisation of benefits from such tax credits.

 

On 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%.

11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
1,646,666
-
SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Intangible fixed assets
Group
Software
Patents & licences
Total
£
£
£
Cost
At 1 January 2023
356,283
893,339
1,249,622
Additions
-
0
217,985
217,985
At 31 December 2023
356,283
1,111,324
1,467,607
Amortisation and impairment
At 1 January 2023
356,283
219,548
575,831
Amortisation charged for the year
-
0
48,791
48,791
At 31 December 2023
356,283
268,339
624,622
Carrying amount
At 31 December 2023
-
0
842,985
842,985
At 31 December 2022
-
0
673,791
673,791
The Company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
2,618,951
28,440
72,490
8,949
2,728,830
Additions
309,697
-
0
405,052
-
0
714,749
At 31 December 2023
2,928,648
28,440
477,542
8,949
3,443,579
Depreciation and impairment
At 1 January 2023
1,905,617
16,227
69,640
1,342
1,992,826
Depreciation charged in the year
463,539
1,939
29,573
1,799
496,850
At 31 December 2023
2,369,156
18,166
99,213
3,141
2,489,676
Carrying amount
At 31 December 2023
559,492
10,274
378,329
5,808
953,903
At 31 December 2022
713,334
12,213
2,850
7,607
736,004
SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 27 -
Company
Computers
£
Cost
At 1 January 2023 and 31 December 2023
12,169
Depreciation and impairment
At 1 January 2023
9,160
Depreciation charged in the year
1,609
At 31 December 2023
10,769
Carrying amount
At 31 December 2023
1,400
At 31 December 2022
3,009
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
632
632
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
632
Carrying amount
At 31 December 2023
632
At 31 December 2022
632
15
Subsidiaries

Details of the Company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Safekick Americas, LLC
1350 Ravello Dr, Katy, TX 77449, USA
Ordinary
100.00
SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,805,876
494,081
-
0
-
0
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,921,942
2,956,860
2,556,418
1,558,455
Corporation tax recoverable
-
0
187,136
-
0
187,136
Amounts owed by group undertakings
271,800
322,509
271,800
322,509
Other debtors
570,488
513,960
155,952
57,562
Prepayments and accrued income
1,190,617
189,810
37,766
38,559
5,954,847
4,170,275
3,021,936
2,164,221
Amounts falling due after more than one year:
Deferred tax asset (note 19)
-
0
25,095
-
0
-
0
Total debtors
5,954,847
4,195,370
3,021,936
2,164,221

Amounts owed by group undertakings relate to balances due from the parent company, which are interest free, unsecured and repayable on demand.

18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
1,317,228
338,781
798,844
344,743
Other taxation and social security
571,205
1,068,566
324,878
633,123
Other creditors
9,073,961
9,536,914
-
0
12,076
Accruals and deferred income
828,063
330,654
18,784
17,041
11,790,457
11,274,915
1,142,506
1,006,983

Included in other creditors is £9,011,938 (2022: £9,457,730) owed to key management personnel, relating to loan note borrowings which are unsecured, repayable on demand and carry interest at 2.66% per annum.

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the Group and Company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
208,127
752
-
(171,662)
Intangibles temporary difference
(10,900)
-
-
5,059
Accrued interest temporary difference
(193,687)
-
-
191,698
3,540
752
-
25,095
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
350
752
-
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 January 2023
(24,343)
752
Charge/(credit) to profit or loss
27,197
(402)
Effect of foreign translation
686
-
Liability at 31 December 2023
3,540
350

Deferred tax liabilities relate to Group companies resident in both the UK and US and are expected to reverse in line with the depreciation or amortisation of the underlying tangible and intangible fixed assets to which they relate, being 3 to 7 years.

 

Deferred tax assets relate to Safekick Americas LLC, which is tax resident in the United States of America. The principal factor in the net deferred tax asset recognised, is the timing difference for qualifying tax relief on accrued interest costs within that subsidiary's financial statements. The timing of the realisation of the associated tax relief for which the deferred tax asset is provided, is uncertain due to the underlying loan notes being repayable on demand, but unlikely to be recalled for payment in the near future.

 

At the comparative reporting date the deferred tax assets and liabilities related to separate tax jurisdictions and there was no legal right to offset the underlying timing differences against one another. As such the deferred tax assets and liabilities were not presented net of each other in the Group financial statements.

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
9,873
9,835

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the Group in an independently administered fund.

 

There were no pensions payable to the fund at the year end.

21
Share capital
Group and Company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of £1 each
100
100
100
100
B Ordinary of £1 each
900
900
900
900
1,000
1,000
1,000
1,000

Both classes of Ordinary share capital are entitled to one vote in each circumstance, to equal dividend payments and distributions (including on winding up).

22
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
37,990
53,047
8,066
21,450
Between two and five years
-
7,150
-
7,150
37,990
60,197
8,066
28,600
23
Events after the reporting date

The Group has no notable events after the reporting date to report.

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
24
Related party transactions
Transactions with related parties

During the year the Group and Company entered into the following transactions with related parties:

Management fee income
Rent paid
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
19,305
19,207
136,099
135,411
Management charges paid
Interest paid
2023
2022
2023
2022
£
£
£
£
Group
Parent company
652,396
820,620
-
-
Other related parties
32,175
-
-
-
Key management personnel
-
-
220,381
219,269
Interest received
2023
2022
£
£
Other related parties
3,285
3,506
Management charges paid
2023
2022
Company
£
£
Parent company
652,396
820,652

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Key management personnel
9,011,938
9,457,730

Amounts owed to key management personnel consist of loan note borrowings which are unsecured, repayable on demand and carry interest at 2.66% per annum. During the year, the Group paid $200,000 (approximately £160,874) of accrued interest to the loan note holder (2022: nil).

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Related party transactions
(Continued)
- 32 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Parent company
271,800
322,509
Other related parties
112,373
127,819
Company
Parent company
271,800
322,509

Amounts due from the parent company consist of intercompany loans which are unsecured, interest free and repayable on demand.

 

Amounts due from other related parties consist of intercompany loan advances made by the Group, which bear interest at 2.74% and is repayable by way of instalment, maturing October 2034.

Other information

The Company has claimed exemption from disclosing related party transactions with wholly owned subsidiaries of the same group.

25
Controlling party

The Company's ultimate parent company is Santos Vision Limited, a company incorporated in the United Kingdom. The registered office is 1010 Eskdale Road, Winnersh Triangle, Wokingham, United Kingdom, RG41 5TS

 

The parent company is the largest group to consolidate the results of the Safekick Limited group.

 

There is not considered to be an ultimate controlling party, as Santos Vision Limited is owned by a number of shareholders, none of which can individually exert control.

SAFEKICK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
26
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,142,268
953,563
Adjustments for:
Taxation charged
1,056,631
1,135,212
Finance costs
220,381
219,269
Investment income
(288,665)
(78,594)
Amortisation and impairment of intangible assets
48,791
51,266
Depreciation and impairment of tangible fixed assets
496,850
465,022
Movements in working capital:
Increase in stocks
(1,863,992)
(187,087)
(Increase)/decrease in debtors
(1,971,708)
686,496
Increase in creditors
2,044,185
664,546
Cash generated from operations
1,884,741
3,909,693
27
Analysis of changes in net funds - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
12,433,986
(1,713,039)
(814,925)
9,906,022
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