Caseware UK (AP4) 2023.0.135 2023.0.135 2024-02-292024-02-29truetruetrue2023-03-01false113110falsefalse 04356233 2023-03-01 2024-02-29 04356233 2022-03-01 2023-02-28 04356233 2024-02-29 04356233 2023-02-28 04356233 1 2023-03-01 2024-02-29 04356233 1 2022-03-01 2023-02-28 04356233 3 2023-03-01 2024-02-29 04356233 3 2022-03-01 2023-02-28 04356233 d:CompanySecretary1 2023-03-01 2024-02-29 04356233 d:Director1 2023-03-01 2024-02-29 04356233 d:RegisteredOffice 2023-03-01 2024-02-29 04356233 d:Agent1 2023-03-01 2024-02-29 04356233 e:Buildings e:ShortLeaseholdAssets 2023-03-01 2024-02-29 04356233 e:Buildings e:ShortLeaseholdAssets 2024-02-29 04356233 e:Buildings e:ShortLeaseholdAssets 2023-02-28 04356233 e:PlantMachinery 2023-03-01 2024-02-29 04356233 e:PlantMachinery 2024-02-29 04356233 e:PlantMachinery 2023-02-28 04356233 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-03-01 2024-02-29 04356233 e:MotorVehicles 2023-03-01 2024-02-29 04356233 e:MotorVehicles 2024-02-29 04356233 e:MotorVehicles 2023-02-28 04356233 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-03-01 2024-02-29 04356233 e:OfficeEquipment 2023-03-01 2024-02-29 04356233 e:OfficeEquipment 2024-02-29 04356233 e:OfficeEquipment 2023-02-28 04356233 e:OfficeEquipment e:OwnedOrFreeholdAssets 2023-03-01 2024-02-29 04356233 e:OwnedOrFreeholdAssets 2023-03-01 2024-02-29 04356233 e:CurrentFinancialInstruments 2024-02-29 04356233 e:CurrentFinancialInstruments 2023-02-28 04356233 e:Non-currentFinancialInstruments 2024-02-29 04356233 e:Non-currentFinancialInstruments 2023-02-28 04356233 e:CurrentFinancialInstruments e:WithinOneYear 2024-02-29 04356233 e:CurrentFinancialInstruments e:WithinOneYear 2023-02-28 04356233 e:Non-currentFinancialInstruments e:AfterOneYear 2024-02-29 04356233 e:Non-currentFinancialInstruments e:AfterOneYear 2023-02-28 04356233 e:ReportableOperatingSegment1 2023-03-01 2024-02-29 04356233 e:ReportableOperatingSegment1 2022-03-01 2023-02-28 04356233 f:UnitedKingdom 2023-03-01 2024-02-29 04356233 f:UnitedKingdom 2022-03-01 2023-02-28 04356233 f:RestWorldOutsideUK 2023-03-01 2024-02-29 04356233 f:RestWorldOutsideUK 2022-03-01 2023-02-28 04356233 e:UKTax 2023-03-01 2024-02-29 04356233 e:UKTax 2022-03-01 2023-02-28 04356233 e:ShareCapital 2024-02-29 04356233 e:ShareCapital 2023-02-28 04356233 e:RetainedEarningsAccumulatedLosses 2023-03-01 2024-02-29 04356233 e:RetainedEarningsAccumulatedLosses 2024-02-29 04356233 e:RetainedEarningsAccumulatedLosses 2022-03-01 2023-02-28 04356233 e:RetainedEarningsAccumulatedLosses 2023-02-28 04356233 e:RetainedEarningsAccumulatedLosses 2022-03-01 04356233 d:OrdinaryShareClass1 2023-03-01 2024-02-29 04356233 d:OrdinaryShareClass1 2024-02-29 04356233 d:OrdinaryShareClass1 2023-02-28 04356233 d:OrdinaryShareClass2 2023-03-01 2024-02-29 04356233 d:OrdinaryShareClass2 2024-02-29 04356233 d:OrdinaryShareClass2 2023-02-28 04356233 d:FRS102 2023-03-01 2024-02-29 04356233 d:Audited 2023-03-01 2024-02-29 04356233 d:FullAccounts 2023-03-01 2024-02-29 04356233 d:PrivateLimitedCompanyLtd 2023-03-01 2024-02-29 04356233 e:WithinOneYear 2024-02-29 04356233 e:WithinOneYear 2023-02-28 04356233 e:BetweenOneFiveYears 2024-02-29 04356233 e:BetweenOneFiveYears 2023-02-28 04356233 e:MoreThanFiveYears 2024-02-29 04356233 e:MoreThanFiveYears 2023-02-28 04356233 e:AcceleratedTaxDepreciationDeferredTax 2024-02-29 04356233 e:AcceleratedTaxDepreciationDeferredTax 2023-02-28 04356233 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2024-02-29 04356233 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-02-28 04356233 e:LeasedAssetsHeldAsLessee 2024-02-29 04356233 e:LeasedAssetsHeldAsLessee 2023-02-28 04356233 g:PoundSterling 2023-03-01 2024-02-29 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 04356233







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
29 FEBRUARY 2024


PHOENIX SYSTEMS UK LIMITED






































img23ea.png                        

 


PHOENIX SYSTEMS UK LIMITED
 


 
COMPANY INFORMATION


Director
Mr S K Jacobs 




Company secretary
Mrs A Jacobs



Registered number
04356233



Registered office
Unit 48
Standard Way

Fareham

Hampshire

PO16 8XQ




Independent auditors
Shaw Gibbs Audit Limited

25 St Thomas Street

Winchester

Hampshire

SO23 9HJ




Bankers
Lloyds Bank Plc
PO Box 1000

BX11LT





 


PHOENIX SYSTEMS UK LIMITED
 



CONTENTS



Page
Strategic Report
1
Director's Report
2 - 4
Independent Auditors' Report
5 - 7
Statement of Income and Retained Earnings
8
Statement of Financial Position
9 - 10
Notes to the Financial Statements
11 - 24


 


PHOENIX SYSTEMS UK LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024

Introduction
 
Phoenix Systems UK Limited (PSUK) are a UK based World class PCB Assembly and Electronic Equipment Manufacturing Solutions provider, located in southern England over 2 sites covering 21,000 sq. ft. PSUK was established in January 2002 and specialise in manufacturing solutions to the Aerospace, Defence, Medical, Transport, Automotive, Education and Industrial industry sectors, with a strong commitment to continuous improvement and maintain an accredited AS9100 QMS.

Business review
 
The business has grown significantly again this year with an increased turnover of 12%. A new Management structure has been implemented to support this growth, with continued high focus on quality and manufacturing processes to help maintain the continued world class service. 

Principal risks and uncertainties
 
We have a strategic focus on risk management and cyber protection. Robust procurement planning supports supply chain challenges and cost increases.

Financial key performance indicators
 
We have a comprehensive suite of key performance indicators that include our financial performance against targets. This helps ensure the management team are fully informed of our strategic objectives.

Other key performance indicators
 
Close working with our financial partners, stakeholders and utilisation of performance indicators drive our strategic decisioning.


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



Mr S K Jacobs
Director

Date: 25 November 2024

Page 1

 


PHOENIX SYSTEMS UK LIMITED
 


 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024

The director presents his report and the financial statements for the year ended 29 February 2024.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Company'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 Company will continue in business.

The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activities

The principal activity of the company during the year was the manufacture of electrical components.

Results and dividends

The profit for the year, after taxation, amounted to £1,183,080 (2023 - £339,632).

The director does not recommend that any final dividend is paid relating to the year ended 29th February 2024.

Director

The director who served during the year was:

Mr S K Jacobs 

Future developments

Our current strategy following this period of growth is to secure turnover at this level for the next financial year. We want to support and maintain our team in order to maximise their development and provide opportunities for their progression. 

Research and development activities

Using the wealth of experience we now have in our Engineering team, we remain dedicated to ‘Design for Manufacture’ we have researched and developed many processes and designs to ensure product can be built correctly whilst ensuring they remain Technically compliant for the end use.

Page 2

 


PHOENIX SYSTEMS UK LIMITED
 


 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he 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's auditors are aware of that information.

Page 3

 


PHOENIX SYSTEMS UK LIMITED
 


 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024


Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsShaw Gibbs Audit Limitedwill 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.
 





Mr S K Jacobs
Director

Date: 25 November 2024

Unit 48
Standard Way
Fareham
Hampshire
PO16 8XQ

Page 4

 


PHOENIX SYSTEMS UK LIMITED
 


 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX SYSTEMS UK LIMITED

Opinion


We have audited the financial statements of Phoenix Systems UK Limited (the 'company') for the year ended 29th February 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). 


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 29 February 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Other information


The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. 
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. 


Page 5

 


PHOENIX SYSTEMS UK LIMITED



 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX SYSTEMS UK LIMITED (CONTINUED)

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 Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's Responsibilities Statement set out on page 2, the director is 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 director determines 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 director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


PHOENIX SYSTEMS UK LIMITED



 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX SYSTEMS UK 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 a Report of Auditors 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.


The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. 
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. 



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 Report of Auditors.


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 Report of Auditors 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.





Harriet Sergeant (Senior Statutory Auditor)
for and on behalf of Shaw Gibbs Audit Limited 
Chartered Certified Accountants
Statutory Auditor
25 St Thomas Street
Winchester
Hampshire
SO23 9HJ
 

27 November 2024
Page 7

 


PHOENIX SYSTEMS UK LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2024
2023
£
£

  

Turnover
 3 
16,111,264
14,295,040

Cost of sales
  
(12,102,742)
(10,987,838)

Gross profit
  
4,008,522
3,307,202

Distribution costs
  
(84,622)
(79,970)

Administrative expenses
  
(2,570,381)
(2,775,667)

Other operating income
 4 
18,654
-

Operating profit
 5 
1,372,173
451,565

Interest receivable and similar income
  
-
6

Interest payable and similar expenses
 9 
(50,318)
(49,348)

Profit before tax
  
1,321,855
402,223

Tax on profit
 10 
(138,775)
(62,591)

Profit after tax
  
1,183,080
339,632

  

  

Retained earnings at the beginning of the year
  
1,195,247
1,279,334

  
1,195,247
1,279,334

Profit for the year
  
1,183,080
339,632

Dividends declared and paid
  
(734,215)
(423,719)

Retained earnings at the end of the year
  
1,644,112
1,195,247
The notes on pages 11 to 24 form part of these financial statements.

Page 8

 


PHOENIX SYSTEMS UK LIMITED
REGISTERED NUMBER:04356233



STATEMENT OF FINANCIAL POSITION
AS AT 29 FEBRUARY 2024

29 February
28 February
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
543,752
605,737

  
543,752
605,737

Current assets
  

Stocks
 13 
2,258,365
3,058,568

Debtors: amounts falling due within one year
 14 
4,177,954
3,612,255

Cash at bank and in hand
 15 
454,608
217,472

  
6,890,927
6,888,295

Creditors: amounts falling due within one year
 16 
(5,387,178)
(5,741,256)

Net current assets
  
 
 
1,503,749
 
 
1,147,039

Total assets less current liabilities
  
2,047,501
1,752,776

Creditors: amounts falling due after more than one year
 17 
(288,389)
(436,720)

Provisions for liabilities
  

Deferred tax
  
(114,900)
(120,709)

  
 
 
(114,900)
 
 
(120,709)

Net assets
  
1,644,212
1,195,347

Page 9

 


PHOENIX SYSTEMS UK LIMITED
REGISTERED NUMBER:04356233


    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 29 FEBRUARY 2024

29 February
28 February
2024
2023
£
£

Capital and reserves
  

Called up share capital 
 23 
100
100

Profit and loss account
 24 
1,644,112
1,195,247

  
1,644,212
1,195,347


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




Mr S K Jacobs
Director

Date: 25 November 2024

The notes on pages 11 to 24 form part of these financial statements.

Page 10

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

1.


General information

Phoenix Systems UK Limited is a private company limited by shares, registered in England and Wales. The address of its registered office is disclosed on the company information page.

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 management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of PHX Holdings Limited as at 29 February 2024 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

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

Sale of goods

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

 
2.4

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.

Page 11

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)


2.4
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Leasehold property
-
10%
Plant & machinery
-
10% and 25%
Motor vehicles
-
25%
Office equipment
-
25%

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

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

  
2.5

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 weighted average basis.
At each reporting 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.

 
2.6

Financial instruments

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

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company 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 present value of the future receipts discounted at a market rate of interest.

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

Other financial assets
Page 12

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)


2.6
Financial instruments (continued)


Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans 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.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Page 13

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)


2.6
Financial instruments (continued)

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company 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 Company 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 Company's contractual obligations expire or are discharged or cancelled.

 
2.7

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.

 
2.8

Operating lease agreements

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.9

Pensions

Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors and accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 14

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)

 
2.11

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 reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 reporting date.


3.


Turnover

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


2024
2023
£
£

Sale of goods
16,111,264
14,295,040

16,111,264
14,295,040


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
12,024,682
11,736,304

Rest of the world
4,086,582
2,558,736

16,111,264
14,295,040


Page 15

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

4.


Other operating income

2024
2023
£
£

Insurance claims receivable
18,654
-

18,654
-



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
(10,688)
(113,165)

Other operating lease rentals
195,543
190,777

Depreciation on fixed assets
118,159
135,857

Impairment of stock
(15,927)
49,192


6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
13,500
15,500

Page 16

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

7.


Employees

2024
2023
£
£

Wages and salaries
3,276,173
3,122,225

Social security costs
304,481
294,449

Cost of defined contribution scheme
116,338
91,558

3,696,992
3,508,232


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


        2024
        2023
            No.
            No.







Production
88
82



Admin
20
24



Management
5
4

113
110


8.


Director's remuneration

2024
2023
£
£

Director's emoluments
10,032
12,939

Company contributions to defined contribution pension schemes
29,164
5,193

39,196
18,132


During the year retirement benefits were accruing to 1 director (2023 - NIL) in respect of defined contribution pension schemes.

During the year the number of directors receiving retirement benefits under money purchase schemes was 1 (2023 - 1).


9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
12,055
15,932

Other loan interest payable
25,607
20,101

Finance leases and hire purchase contracts
12,656
11,914

Other interest payable
-
1,401

50,318
49,348

Page 17

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
274,418
91,095

Adjustments in respect of previous periods
(129,834)
(13,433)


144,584
77,662


Total current tax
144,584
77,662

Deferred tax


Origination and reversal of timing differences
(5,809)
(15,071)

Total deferred tax
(5,809)
(15,071)


Tax on profit
138,775
62,591
Page 18

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,321,855
402,224


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
330,464
76,423

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,968
1,829

Adjustments to tax charge in respect of prior periods
-
(1)

Other timing differences leading to an increase (decrease) in taxation
11,790
1,390

Adjustment for change in tax rates
(6,718)
(3,617)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(70,896)
-

Other differences leading to an increase (decrease) in the tax charge
(129,833)
(13,433)

Total tax charge for the year
138,775
62,591


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

29 February
28 February
2024
2023
£
£


Dividends paid
734,215
423,719

734,215
423,719

Page 19

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

12.


Tangible fixed assets







Leasehold property
Plant & machinery
Motor vehicles
Equipment
Total

£
£
£
£
£



Cost or valuation


At 1 March 2023
402,718
1,041,166
18,950
139,424
1,602,258


Additions
3,876
16,598
-
37,664
58,138


Disposals
-
(1,890)
-
(158)
(2,048)



At 29 February 2024

406,594
1,055,874
18,950
176,930
1,658,348



Depreciation


At 1 March 2023
270,295
613,259
18,950
94,019
996,523


Charge for the year on owned assets
23,874
71,882
-
22,403
118,159


Disposals
-
(79)
-
(7)
(86)



At 29 February 2024

294,169
685,062
18,950
116,415
1,114,596



Net book value



At 29 February 2024
112,425
370,812
-
60,515
543,752



At 28 February 2023
132,424
427,907
-
45,406
605,737

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


29 February
28 February
2024
2023
£
£



Plant and machinery
229,745
196,132

229,745
196,132


13.


Stocks

29 February
28 February
2024
2023
£
£

Work in progress (goods to be sold)
1,242,371
1,352,159

Raw materials and finished goods
1,015,994
1,706,409

2,258,365
3,058,568


Page 20

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

14.


Debtors

29 February
28 February
2024
2023
£
£


Trade debtors
4,034,729
3,265,611

Amounts owed by group undertakings
400
-

Other debtors
161
282,472

Prepayments and accrued income
142,664
64,172

4,177,954
3,612,255



15.


Cash and cash equivalents

29 February
28 February
2024
2023
£
£

Cash at bank and in hand
454,608
217,472

Less: bank overdrafts
(25)
-

454,583
217,472


Page 21

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

16.


Creditors: Amounts falling due within one year

29 February
28 February
2024
2023
£
£

Bank overdrafts
25
-

Bank loans
100,000
100,000

Trade creditors
1,418,369
2,507,830

Corporation tax
274,418
91,095

Other taxation and social security
224,899
111,127

Obligations under finance lease and hire purchase contracts
44,278
52,445

Other creditors
2,821,844
2,504,837

Accruals and deferred income
503,345
373,922

5,387,178
5,741,256


Creditors totalling £2,384,858 (2023 - £2,343,342) falling due within one year are secured over the assets of the company by way of fixed and floating charges including a negative pledge.
Bank loans totalling £100,000 (2023 - £100,000) falling due within one year are secured over the assets of the company by way of fixed and floating charges.
Hire purchase obligations totalling £44,278 (2023 - £52,445) falling due within one year are secured over the assets which they relate to.
 






17.


Creditors: Amounts falling due after more than one year

29 February
28 February
2024
2023
£
£

Bank loans
183,333
283,333

Net obligations under finance leases and hire purchase contracts
105,056
153,387

288,389
436,720


Bank loans totalling £183,333 (2023 - £283,333) falling due after one year are secured over the assets of the company by way of fixed and floating charges.
Hire purchase obligations totalling £105,056 (2023 - £153,387) falling due after one year are secured over the assets which they relate to.

Page 22

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

18.


Deferred taxation






2024


£






At beginning of year
(120,709)


Charged to profit or loss
5,809



At end of year
(114,900)

The provision for deferred taxation is made up as follows:

29 February
28 February
2024
2023
£
£


Accelerated capital allowances
(114,900)
(120,709)

(114,900)
(120,709)


19.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held seperately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £119,745 (2023 - £91,558). Contributions totalling £21,008 (2023 - £55,940) were payable to the fund at the reporting date and are included in creditors.
Amounts accrued in relation to directors pension totalled £24,000 (2023 - £Nil).


20.


Commitments under operating leases

At 29 February 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

29 February
28 February
2024
2023
£
£


Not later than 1 year
165,393
178,166

Later than 1 year and not later than 5 years
577,387
579,713

Later than 5 years
287,000
430,500

1,029,780
1,188,379

Page 23

 


PHOENIX SYSTEMS UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

21.


Related party transactions

At the year end, included within other creditors, were amounts owed to the Director totalling £389,326 (2023 - £84,942). This loan is undated, interest free and repayable on demand.
At the year end, included within other creditors, were amounts owed to a shareholder of PHX Holdings Limited totalling £7,600 (2023 - £14,739). This loan is undated, interest free and repayable on demand.


22.


Ultimate controlling party

The ultimate and immediate parent company is Phx Holdings Limited, a company registered in England and Wales. The address of its registered office is Unit 48 Standard Way, Fareham Industrial Park, Fareham, Hampshire, PO16 8XQ.


23.


Share capital

29 February
28 February
2024
2023
£
£
Allotted, called up and fully paid



95 (2023 - 95) Ordinary shares of £1.00 each
95
95
5 (2023 - 5) Ordinary Class B shares of £1.00 each
5
5

100

100

All shares have attached to them full voting and capital distribution (including on Winding up) rights; they do not confer any rights of redemption. The shares have a right to a Dividend but the directors can declare a dividend on the different classes of shares at differing times.



24.


Reserves

Profit and loss account

The profit and loss account represents all accumulated net gains and losses which are distributable.

 
Page 24