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338,588
280,449
369,765
112,738
482,503
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1
2023-01-01
2023-12-31
COMPANY REGISTRATION NUMBER:
06626433
Year ended 31 December 2023
Independent auditor's report to the members |
6 |
|
|
Statement of income and retained earnings |
11 |
|
|
Statement of financial position |
12 |
|
|
Statement of cash flows |
13 |
|
|
Notes to the financial statements |
14 |
|
|
Year ended 31 December 2023
Principal activity The principal activity of the business is that of a technology channels support and services company as well as the commodity trade with IT-Equipment. The commodity trading business in the British market of the affiliated company SYNAXON Projekt- und Handels GmbH, Germany, known in the UK as SYNAXON Hub. Fair review of the company's business SYNAXON AG continues to invest heavily in the UK business, both financially and through management structure and re-organisation. Having served the B2C market as well as the B2B market in the past SYNAXON has geared its service offerings primarily to companies that have their focus on small and medium sized business clients over the course of the last three years. With this strategic shift SYNAXON UK is now in accordance with the overall SYNAXON group strategy regarding the main client target group of partners. In 2023 the organisation concentrated its efforts on the following key areas: the EGIS online procurement platform, SYNAXON Distribution (SYNAXON Hub). With our EGIS SaaS platform and our comprehensive Managed Services offering we are helping partners to increase automation, streamline their processes, stay competitive, and drive new business opportunities in a rapidly-changing market. With a single, unified, international team, SYNAXON is better-equipped than ever to meet and exceed partner expectations. SYNAXON Hub offers products from top manufacturers such as Lenovo, HP, Dell, Microsoft and APC through its official distribution channel, without the need for partners to achieve difficult turnover targets or go through complex vendor certifications. Partners benefit directly from individual project conditions through SYNAXON certifications and SYNAXON ensures the availability of the most important commercial product lines. Personnel support has continued from SYNAXON with an international team of experienced staff in the UK and Germany, proving over the course of the year that it can successfully leverage its service offering for its partners and rapidly grow the business. We significantly reduced stock level compared to previous years due to the volatile pricing and we have delayed the decision to hold stock. In Q3 of 2023 the organisation opened up the 'SYNAXON Shop', an ecommerce platform for customers to self-serve, helping drive efficiency and automation with smaller transactions. The EGIS online procurement platform continued to grow in revenue and maintained the number of users and distributors. No changes were made to the board of Directors with Frank Roebers CEO of SYNAXON AG, Mark Schroeder CFO of SYNAXON AG and Mike Barron UK Managing Director remaining. Due to the growth in revenue 2 new hires were made, one in Sales and one in Customer Service. The international team had little change and remained strong. After seeing triple digit growth in 2022 an increase of approx 40% for the year ending 31st December 2023 was considered reasonable by the directors. The business has remained stable, is completely scalable and financially sound, with no borrowings other than an intercompany business loan with SYNAXON AG, the ultimate parent company.
Key financial performance indicators The change initiated in 2022 with regard to products and services experienced a further upturn in 2023, which is why our sales increased by 46%. The operating profit merely moved sideways due to price transfers from our suppliers and improved by 1.1%. 2023 2022 GBP'000 GBP'000 Change Turnover 4,634 3,619 46.2% EBIT -451 -456 1.1% EBIT as turnover -9.7% -14.4%
Future developments With continued support from SYNAXON AG and working closely with the large international team the UK business is moving forward in delivering on its goals with the main aim to return to profit in 2026. For 2024, the further expansion of purchasing is planned with a positive margin of 4% for the first time. In addition, there were also various ERP improvements in Q4, which have led to more automation of processes, especially for customer service. Overall, the team is very well positioned for 2024, so nothing stands in the way of further growth.
Results and dividends The results for the year are shown on the Statement of Income and Retained Earnings. As the business has not returned a profit for the financial year ending 2023, the directors have not recommended a dividend.
Financial risk management objectives and policies The principal financial assets of the business are derived from trade debtors. Historically financial exposure has been limited due to the business operating as a provider of business services with minimal product sales. SYNAXON Hub (sales of technology products) is now managed by the parent company with appropriate credit insurance and therefore not a financial consideration for the UK business. SYNAXON UK has strict credit control policies and procedures to manage normal member subscriptions, bad debt exposure is limited, debt management policy and procedures are closely monitored by senior experienced staff in the UK and Germany, minimising any risk. SYNAXON uses Creditsafe for accurate business credit ratings and assisting with the structure of small trading limits relating to monthly subscriptions. Thomas Higgins Solicitors are the business legal representatives for any potential business debt collections and recovery. Any larger credit amounts would be with blue-chip organisations from the corporate IT sector, the majority have high credit ratings assigned by international credit rating agencies. Smaller credit amounts and consequently higher risk credit for subscriptions from the smaller member companies are paid annually in advance or by monthly direct debit controlled by SYNAXON, thus reducing credit exposure within this higher risk area. Continual monitoring of the business through monthly KPI's ensures close management and early recognition of trends. The business exposure is limited to a supported commercial loan from SYNAXON AG - the parent company - the business has no other borrowings or long-term liability.
Policy on the payment of creditors It is the company's policy to abide by the terms of payment agreed with individual suppliers. The company does not follow standard terms as each supplier is negotiated with on its merits.
This report was approved by the board of directors on 24 January 2025 and signed on behalf of the board by:
Mr M Barron
Director
Registered office: |
Sterling House |
Mandarin Court |
Centre Park |
Warrington |
Cheshire |
WA1 1GG |
|
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended
31 December 2023
.
Directors
The directors who served the company during the year were as follows:
Mr M Barron |
|
Mr F Roebers |
|
Mr M Schroder |
|
|
|
Dividends
The directors do not recommend the payment of a dividend.
Future developments
The future developments of the company have been discussed within the Strategic Report.
Financial instruments
The financial instruments relating to the company have been discussed within the Strategic Report.
Political donations
Synaxon UK Limited
does not make political contributions (donations to politicians, political parties or political organisations).
Disclosure of information in the strategic report
The company has chosen, in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out in the company's Strategic Report, the information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review, future developments, financial instruments and the principal risks and uncertainties within the Directors' Report.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
24 January 2025
and signed on behalf of the board by:
Mr M Barron
Director
Registered office: |
Sterling House |
Mandarin Court |
Centre Park |
Warrington |
Cheshire |
WA1 1GG |
|
Independent Auditor's Report to the Members of
Synaxon UK Limited |
|
Year ended 31 December 2023
Opinion
We have audited the financial statements of Synaxon UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 31 December 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Emphasis of matter
In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of the disclosure made in the accounting policies concerning the company's ability to continue as a going concern. The company made a net loss of £338,588 during the year ended 31 December 2023 and at that date the company had net liabilities of £1,361,009. Included within liabilities is an amount owed to the ultimate parent company Synaxon AG, who have confirmed their continued support of the company. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.
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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
-
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, 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 directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company; - we assessed the extent of compliance with the laws and regulations through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
Rachel Palombella FCA |
(Senior Statutory Auditor) |
|
For and on behalf of |
AGP |
Chartered Accountants & statutory auditor |
Sterling House |
810 Mandarin Court |
Centre Park |
Warrington |
Cheshire |
WA1 1GG |
|
24 January 2025
Statement of Income and Retained Earnings |
|
Year ended 31 December 2023
|
2023 |
2022 |
Note |
£ |
£ |
Turnover |
4 |
4,633,569 |
3,168,904 |
|
|
|
|
Cost of sales |
4,375,599 |
3,019,014 |
|
------------ |
------------ |
Gross profit |
257,970 |
149,890 |
|
|
|
Administrative expenses |
709,296 |
605,683 |
|
|
--------- |
--------- |
Operating loss |
5 |
(
451,326) |
(
455,793) |
|
|
|
|
|
--------- |
--------- |
Loss before taxation |
(
451,326) |
(
455,793) |
|
|
|
Taxation on ordinary activities |
9 |
(
112,738) |
(
175,344) |
|
--------- |
--------- |
Loss for the financial year and total comprehensive income |
(
338,588) |
(
280,449) |
|
--------- |
--------- |
|
|
|
|
Retained losses at the start of the year |
(
1,122,421) |
(
841,972) |
|
------------ |
------------ |
Retained losses at the end of the year |
(
1,461,009) |
(
1,122,421) |
|
------------ |
------------ |
|
|
|
All the activities of the company are from continuing operations.
Statement of Financial Position |
|
31 December 2023
Current assets
Stocks |
10 |
4,987 |
|
133,726 |
Debtors |
11 |
458,200 |
|
671,919 |
Cash at bank and in hand |
180,981 |
|
172,390 |
|
--------- |
|
--------- |
|
644,168 |
|
978,035 |
|
|
|
|
|
Creditors: amounts falling due within one year |
13 |
2,487,680 |
|
2,370,221 |
|
------------ |
|
------------ |
Net current liabilities |
|
1,843,512 |
1,392,186 |
|
|
------------ |
------------ |
Total assets less current liabilities |
|
(
1,843,512) |
(
1,392,186) |
|
|
|
|
|
Provisions
Taxation including deferred tax |
14 |
|
(
482,503) |
(
369,765) |
|
|
------------ |
------------ |
Net liabilities |
|
(
1,361,009) |
(
1,022,421) |
|
|
------------ |
------------ |
|
|
|
|
|
Capital and reserves
Called up share capital |
17 |
|
100,000 |
100,000 |
Profit and loss account |
18 |
|
(
1,461,009) |
(
1,122,421) |
|
|
------------ |
------------ |
Shareholders deficit |
|
(
1,361,009) |
(
1,022,421) |
|
|
------------ |
------------ |
|
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
24 January 2025
, and are signed on behalf of the board by:
Mr M Barron
Director
Company registration number:
06626433
Year ended 31 December 2023
Cash flows from operating activities
Loss for the financial year |
(
338,588) |
(
280,449) |
|
|
|
Adjustments for: |
|
|
Taxation on ordinary activities |
(
112,738) |
(
175,344) |
Accrued expenses/(income) |
4,993 |
(
1,796) |
|
|
|
Changes in: |
|
|
Stocks |
128,739 |
129,465 |
Trade and other debtors |
213,719 |
(
565,839) |
Trade and other creditors |
(
101,816) |
272,317 |
|
--------- |
--------- |
Cash generated from operations |
(
205,691) |
(
621,646) |
|
--------- |
--------- |
Net cash used in operating activities |
(
205,691) |
(
621,646) |
|
--------- |
--------- |
|
|
|
Cash flows from financing activities
Proceeds from loans from group undertakings |
215,015 |
677,684 |
|
--------- |
--------- |
Net cash from financing activities |
215,015 |
677,684 |
|
--------- |
--------- |
|
|
|
Net increase in cash and cash equivalents |
9,324 |
56,038 |
Cash and cash equivalents at beginning of year |
171,657 |
115,619 |
|
|
--------- |
--------- |
Cash and cash equivalents at end of year |
12 |
180,981 |
171,657 |
|
|
--------- |
--------- |
|
|
|
|
Notes to the Financial Statements |
|
Year ended 31 December 2023
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Sterling House, Mandarin Court, Centre Park, Warrington, Cheshire, WA1 1GG.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The company has net liabilities. However, the financial statements have been prepared on a going concern basis due to the continued support of the ultimate parent company Synaxon AG, who hold 100% of the shares, which they have confirmed will be forthcoming. The accounts do not include adjustments that would be necessary if the company was unable to continue as a going concern. The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling (£), which is the functional currency of the entity.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Synaxon AG which can be obtained from the parent company's registered office. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: a. No cash flow statement has been presented for the company. b. Disclosures in respect of financial instruments have not been presented.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
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 entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4.
Turnover
Turnover arises from:
|
2023 |
2022 |
|
£ |
£ |
Sale of goods |
3,756,358 |
2,405,500 |
Rendering of services |
877,211 |
763,404 |
|
------------ |
------------ |
|
4,633,569 |
3,168,904 |
|
------------ |
------------ |
|
|
|
The whole of the turnover is attributable to the principal activity of the company.
5.
Operating loss
Operating profit or loss is stated after charging/crediting:
|
2023 |
2022 |
|
£ |
£ |
Impairment of trade debtors |
190,960 |
27,484 |
Foreign exchange differences |
(
42,737) |
98,429 |
|
--------- |
-------- |
|
|
|
6.
Auditor's remuneration
|
2023 |
2022 |
|
£ |
£ |
Fees payable for the audit of the financial statements |
10,500 |
6,500 |
|
-------- |
------- |
|
|
|
7.
Particulars of employees
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2023 |
2022 |
|
No. |
No. |
Administrative staff |
7 |
5 |
Management staff |
1 |
1 |
|
---- |
---- |
|
8 |
6 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2023 |
2022 |
|
£ |
£ |
Wages and salaries |
387,318 |
312,297 |
Social security costs |
38,423 |
27,243 |
Other pension costs |
7,579 |
7,048 |
|
--------- |
--------- |
|
433,320 |
346,588 |
|
--------- |
--------- |
|
|
|
8.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
|
2023 |
2022 |
|
£ |
£ |
Remuneration |
80,400 |
72,000 |
Company contributions to defined contribution pension plans |
1,321 |
1,321 |
|
-------- |
-------- |
|
81,721 |
73,321 |
|
-------- |
-------- |
|
|
|
9.
Taxation on ordinary activities
Major components of tax income
Deferred tax:
Origination and reversal of timing differences |
(
112,738) |
(
175,344) |
|
--------- |
--------- |
Taxation on ordinary activities |
(
112,738) |
(
175,344) |
|
--------- |
--------- |
|
|
|
Reconciliation of tax income
The tax assessed on the loss on ordinary activities for the year is higher than (2022: lower than) the
standard rate of corporation tax in the UK
of
25
% (2022:
19
%).
|
2023 |
2022 |
|
£ |
£ |
Loss on ordinary activities before taxation |
(
451,326) |
(
455,793) |
|
--------- |
--------- |
Loss on ordinary activities by rate of tax |
(
112,832) |
(
86,601) |
Effect of expenses not deductible for tax purposes |
94 |
– |
Change in tax rate |
– |
(
88,743) |
|
--------- |
--------- |
Tax on loss |
(
112,738) |
(
175,344) |
|
--------- |
--------- |
|
|
|
Factors that may affect future tax income
As at the year ended 31 December 2023, the company had tax losses of £1,930,012 available to be carried forward for use against future profits.
10.
Stocks
|
2023 |
2022 |
|
£ |
£ |
Merchandise inventories |
4,987 |
133,726 |
|
------- |
--------- |
|
|
|
The value of stock recognised in cost of sales amounted to £4,357,420 (2022: £2,992,565).
11.
Debtors
|
2023 |
2022 |
|
£ |
£ |
Trade debtors |
417,969 |
618,177 |
Prepayments and accrued income |
40,231 |
53,742 |
|
--------- |
--------- |
|
458,200 |
671,919 |
|
--------- |
--------- |
|
|
|
An impairment provision relating to bad debts of £73,100 (2022: £50,410) has been recognised against trade debtors at the year end.
12.
Cash and cash equivalents
Cash and cash equivalents comprise the following:
|
2023 |
2022 |
|
£ |
£ |
Cash at bank and in hand |
180,981 |
172,390 |
Bank overdrafts |
– |
(
733) |
|
--------- |
--------- |
|
180,981 |
171,657 |
|
--------- |
--------- |
|
|
|
13.
Creditors:
amounts falling due within one year
|
2023 |
2022 |
|
£ |
£ |
Bank loans and overdrafts |
– |
733 |
Trade creditors |
158,401 |
203,768 |
Amounts owed to group undertakings |
2,274,661 |
2,059,646 |
Accruals and deferred income |
18,201 |
13,208 |
Social security and other taxes |
34,396 |
39,589 |
Other creditors |
2,021 |
53,277 |
|
------------ |
------------ |
|
2,487,680 |
2,370,221 |
|
------------ |
------------ |
|
|
|
14.
Provisions
|
Deferred tax (note 15) |
|
£ |
At 1 January 2023 |
(
369,765) |
Additions |
(
112,738) |
|
--------- |
At 31 December 2023 |
(
482,503) |
|
--------- |
|
|
15.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2023 |
2022 |
|
£ |
£ |
Included in provisions (note 14) |
(
482,503) |
(
369,765) |
|
--------- |
--------- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2023 |
2022 |
|
£ |
£ |
Unused tax losses |
(
482,503) |
(
369,765) |
|
--------- |
--------- |
|
|
|
16.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
7,579
(2022: £
7,048
).
At the balance sheet date, unpaid contributions of £1,593 (2022: £2,830) were due to the fund. They are included in other creditors.
17.
Called up share capital
Issued, called up and fully paid
|
2023 |
2022 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
100,000 |
100,000 |
100,000 |
100,000 |
|
--------- |
--------- |
--------- |
--------- |
|
|
|
|
|
All shares have equal rights in regards to voting, dividends and distribution rights. Voting rights by both a show of hands and a poll of one per share. Dividends and distribution rights are in the proportion of shareholding.
18.
Reserves
The reserves on the balance sheet include the following: Called up share capital - this represents the nominal value of shares that have been issued. Profit and loss account - this records retained earnings and accumulated losses.
19.
Analysis of changes in net debt
|
At 1 Jan 2023 |
Cash flows |
At 31 Dec 2023 |
|
£ |
£ |
£ |
Cash at bank and in hand |
172,390 |
8,591 |
180,981 |
Bank overdrafts |
(733) |
733 |
– |
Debt due within one year |
(2,059,646) |
(215,015) |
(2,274,661) |
|
------------ |
--------- |
------------ |
|
(
1,887,989) |
(
205,691) |
(
2,093,680) |
|
------------ |
--------- |
------------ |
|
|
|
|
Notes to the Financial Statements (continued) |
|
Year ended 31 December 2023
20.
Related party transactions
The company is exempt from disclosing related party transactions as they are with companies that are wholly owned within Synaxon AG.
21.
Controlling party
The parent company is Synaxon AG incorporated in Germany, which own 100% of the shares in
Synaxon UK Limited
. Copies of the accounts can be obtained from the parent company's address, Falkenstraße 31, 33758 Schloß Holte-Stukenbrock, Germany.