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REGISTERED NUMBER: 07979321 (England and Wales)













STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

RELEX LIMITED

RELEX LIMITED (REGISTERED NUMBER: 07979321)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


RELEX LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: J Haataja
T S Pesonen
T J Sirkka





REGISTERED OFFICE: 10 John Street
London
WC1N 2EB





REGISTERED NUMBER: 07979321 (England and Wales)





AUDITORS: Shaw Gibbs (Audit) Limited
Statutory Auditor
264 Banbury Road
Oxford
OX2 7DY

RELEX LIMITED (REGISTERED NUMBER: 07979321)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report for the year ended 31 December 2023.

The principal activity of Relex Limited in the year under review was that of providing support services in accordance with their intercompany agreement to the parent company Relex Oy.

REVIEW OF BUSINESS
Relex Limited ("the company") continues to provide support services in the United Kingdom. Turnover for the year ended 31 December 2023 was £17,573,590 (2022: £13,214,619). Profit before tax was £786,806 (2022: £556,026 loss). Net assets were £2,622,646 (2022: £1,768,243).

PRINCIPAL RISKS AND UNCERTAINTIES
Market and Competition risk - The company is exposed to normal market and economic risks and manages competition by concentrating on its strengths.

Regulatory risk - The company minimises regulatory risk by training key personnel and appointing external experts where appropriate, to assess any potential non-compliance. Accounting is an example of an externally audited area.

KEY PERFORMANCE INDICATORS
Key financial performance indicators during the year were as follows:

31.12.23 31.12.22 Change
£ £ %
Turnover 17,573,590 13,214,619 33
Operating profit/(loss) 777,727 (462,351) 268
Net cash flow 95,198 210,661 (55)

Current assets compare to current liabilities (quick ratio) 2.00 1.57 27

OTHER KEY PERFORMANCE INDICATORS

Turnover increased by 33% during the year due to the mark up on cost-plus activities attributed to the increase in headcount and investment made by the employees.

The company's quick ratio has increased in the period primarily to the increase in current assets of 73.7% outweighing the increase in current liabilities of 35.8%.

FUTURE DEVELOPMENTS
The directors' strategy remains to continue investment in all employee functions in order to provide a high level of customer satisfaction resulting in continued annual turnover growth.

ON BEHALF OF THE BOARD:





J Haataja - Director


14 April 2024

RELEX LIMITED (REGISTERED NUMBER: 07979321)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

FUTURE DEVELOPMENTS
Refer to the Strategic Report.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

J Haataja
T S Pesonen
T J Sirkka

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Shaw Gibbs (Audit) Limited, are deemed to be re-appointed under Section 487 (2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





J Haataja - Director


14 April 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
RELEX LIMITED

Opinion
We have audited the financial statements of Relex Limited (the 'company') for the year ended 31 December 2023 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 31 December 2023 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 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.

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.

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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
RELEX LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.

1. At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the
company and how the management seek to comply with those laws regulations. This helps us to plan
appropriate risk assessments.
2. During the audit we focused on relevant risk areas and review the compliance with the laws and regulations by
making relevant enquiries and undertaking corroboration, for example by reviewing Board Minutes and other
documentation.
3. We assessed the risk of material misstatement in the financial statements including as a result of fraud and
undertook procedures including:
a. Reviewing the controls set in place by management

b. Making enquiries of management as to whether they consider fraud or other irregularity may have
taken place, or where such opportunity might exist
c. Challenging management assumptions with regard to accounting estimates
d. Identifying and testing journal entries, particularly those which appear to be unusual by size or nature

e. Reviewing health and safety reports and obtaining BSI audit results to ensure that the company have
complied with the appropriate requirements.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
RELEX LIMITED


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 a Report of the 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.




Samantha Daniels (Senior Statutory Auditor)
for and on behalf of Shaw Gibbs (Audit) Limited
Statutory Auditor
264 Banbury Road
Oxford
OX2 7DY

16 April 2025

RELEX LIMITED (REGISTERED NUMBER: 07979321)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
as restated
Notes £    £   

TURNOVER 4 17,573,590 13,214,619

Administrative expenses 16,795,864 13,789,135
777,726 (574,516 )

Other operating income - 19,273
OPERATING PROFIT/(LOSS) 6 777,726 (555,243 )

Interest receivable and similar income 9,455 -
787,181 (555,243 )

Interest payable and similar expenses 7 375 783
PROFIT/(LOSS) BEFORE TAXATION 786,806 (556,026 )

Tax on profit/(loss) 8 108,837 (167,885 )
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

677,969

(388,141

)

RELEX LIMITED (REGISTERED NUMBER: 07979321)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
as restated
Notes £    £   

PROFIT/(LOSS) FOR THE YEAR 677,969 (388,141 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

677,969

(388,141

)

RELEX LIMITED (REGISTERED NUMBER: 07979321)

BALANCE SHEET
31 DECEMBER 2023

31.12.23 31.12.22
as restated
Notes £    £    £   
FIXED ASSETS
Tangible assets 10 632,520 798,531

CURRENT ASSETS
Debtors 11 3,468,253 2,036,026
Cash at bank 444,598 349,400
3,912,851 2,385,426
CREDITORS
Amounts falling due within one year 12 1,922,725 1,415,714
NET CURRENT ASSETS 1,990,126 969,712
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,622,646

1,768,243

CAPITAL AND RESERVES
Called up share capital 15 1,000 1,000
Capital contribution reserve 16 877,409 714,144
Retained earnings 16 1,744,237 1,053,099
SHAREHOLDERS' FUNDS 2,622,646 1,768,243

The financial statements were approved by the Board of Directors and authorised for issue on 14 April 2024 and were signed on its behalf by:





J Haataja - Director


RELEX LIMITED (REGISTERED NUMBER: 07979321)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up Capital
share Retained contribution Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 1,000 1,441,240 552,184 1,994,424

Changes in equity
Total comprehensive income - (388,141 ) 161,960 (226,181 )
Balance at 31 December 2022 1,000 1,053,099 714,144 1,768,243

Changes in equity
Total comprehensive income - 691,138 163,265 854,403
Balance at 31 December 2023 1,000 1,744,237 877,409 2,622,646

RELEX LIMITED (REGISTERED NUMBER: 07979321)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
as restated
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 85,871 1,129,971
Interest paid (375 ) (783 )
Tax paid 2,757 (78,011 )
Net cash from operating activities 88,253 1,051,177

Cash flows from investing activities
Purchase of tangible fixed assets (2,510 ) (840,516 )
Interest received 9,455 -
Net cash from investing activities 6,945 (840,516 )

Increase in cash and cash equivalents 95,198 210,661
Cash and cash equivalents at beginning of
year

2

349,400

138,739

Cash and cash equivalents at end of year 2 444,598 349,400

RELEX LIMITED (REGISTERED NUMBER: 07979321)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

31.12.23 31.12.22
as restated
£    £   
Profit/(loss) before taxation 786,806 (556,026 )
Depreciation charges 168,522 56,149
Loss on disposal of fixed assets - 10,391
Share option movement 176,435 714,144
Finance costs 375 783
Finance income (9,455 ) -
1,122,683 225,441
(Increase)/decrease in trade and other debtors (1,541,649 ) 640,409
Increase in trade and other creditors 504,837 264,121
Cash generated from operations 85,871 1,129,971

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 444,598 349,400
Year ended 31 December 2022
31.12.22 1.1.22
as restated
£    £   
Cash and cash equivalents 349,400 138,739


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 349,400 95,198 444,598
349,400 95,198 444,598
Total 349,400 95,198 444,598

RELEX LIMITED (REGISTERED NUMBER: 07979321)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Relex Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The company's trading address is SalesForce Tower, L25 West, 110 Bishopsgate, London, EC2N 4AY.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts are presented in Pounds Sterling (£) and rounded to the nearest £1.

Going concern
The directors of the company have received assurances from the directors of Relex Oy, the parent company, that they will continue to utilise the services of the company for the foreseeable future. As a result of this commitment the directors have continued to adopt the going concern basis in preparing these financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents amounts charged to the company's parent company under an advertising and marketing agreement, excluding value added tax. Turnover is recognised when chargeable costs are incurred.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - over remaining term of lease

Financial instruments
Basic Financial Instruments, as covered by Section 11 of FRS102, are measured at amortised cost. The company does not have any Other Financial Instruments, as covered by Section 12 of FRS102.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


RELEX LIMITED (REGISTERED NUMBER: 07979321)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Share-based payments
Equity-settled share-based compensation benefits are provided to employees.

Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for services.

The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined using the Black Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.

The cost of equity-settled transactions is recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There only key source of estimation of critical accounting judgement made by the directors in preparing these financial statements is in relation to share options.

The company's employees have been granted share options by the ultimate parent company Relex Oy. The company makes use of the exemption in Section 26 of FRS 102 to account for the expense on a reasonable allocation of the parent company's total expense. The company has calculated its allocation of the parent company's total expense based on the number of participating employees in the company compared to the number of participating employees in the group.

RELEX LIMITED (REGISTERED NUMBER: 07979321)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. TURNOVER

The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
as restated
£    £   
Europe 17,573,590 13,214,619
17,573,590 13,214,619

5. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
as restated
£    £   
Wages and salaries 11,437,486 9,340,227
Social security costs 1,419,362 1,240,694
Other pension costs 661,009 427,412
13,517,857 11,008,333

The average number of employees during the year was as follows:
31.12.23 31.12.22
as restated

Support services 114 100
Administration 20 9
134 109

Included within wages and salaries is £176,434 (2022: £714,144) relating to the share based charge in the year.

31.12.23 31.12.22
as restated
£    £   
Directors' remuneration - -

6. OPERATING PROFIT/(LOSS)

The operating profit (2022 - operating loss) is stated after charging:

31.12.23 31.12.22
as restated
£    £   
Other operating leases 485,707 217,538
Depreciation - owned assets 168,521 56,149
Loss on disposal of fixed assets - 10,391
Auditors' remuneration 7,500 7,250
Foreign exchange differences 88 102

RELEX LIMITED (REGISTERED NUMBER: 07979321)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
as restated
£    £   
Bank interest 375 783

8. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
31.12.23 31.12.22
as restated
£    £   
Current tax:
UK corporation tax 2,174 -

Deferred tax 106,663 (167,885 )
Tax on profit/(loss) 108,837 (167,885 )

UK corporation tax has been charged at 23.50% .

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
as restated
£    £   
Profit/(loss) before tax 786,806 (556,026 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

185,057

(105,645

)

Effects of:
Expenses not deductible for tax purposes 45,868 121,309
Capital allowances in excess of depreciation - (136,354 )
Depreciation in excess of capital allowances 39,003 -
Utilisation of tax losses (107,456 ) 99,379
Adjustments to tax charge in respect of previous periods - (146,574 )
Share options exercised (160,249 ) -
Marginal relief (49 ) -
Deferred tax 106,663 -
Total tax charge/(credit) 108,837 (167,885 )

As of 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%. As the company's financial year straddles this date, a blended corporation tax rate of 23.52% has been applied which is calculated by apportioning the two tax rates on a weighted basis for the proportion of the financial year in which each main tax rate was applied.

RELEX LIMITED (REGISTERED NUMBER: 07979321)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. PRIOR YEAR ADJUSTMENT

Statement of changes in equityShare capitalRetained
earnings
Capital
contribution
reserve
Total equity
Balance at 1 January 20221,0001,441,240-1,442,240
Prior year adjustment--552,184552,184
Restated balance1,0001,441,240552,1841,994,424
Changes in equity for 2022----
Prior year adjustment-(535,609)161,960(373,649)
Total income-147,468-147,468
Balance at 31 December 20221,0001,053,099714,1441,768,243

During the year it was established that options over shares in the parent company had been granted to employees of the company. No expense related to these options had been recognised in previous accounting periods. As a result, wages were understated by £552,184 in year to 31 December 2021 and £161,960 in year to 31 December 2022. Therefore a prior year adjustment has been made correct the error to correct the opening capital contribution reserve position at 1 January 2022 and subsequent balance at 31 December 2022. Alongside this adjustment, an increase in the prior year deferred tax asset resulting in final deferred tax asset balance of £167,885, was recognised to reflect the anticipated future deductions available when exercised.

10. TANGIBLE FIXED ASSETS
Improvement
to
property
£   
COST
At 1 January 2023 840,516
Additions 2,510
At 31 December 2023 843,026
DEPRECIATION
At 1 January 2023 41,985
Charge for year 168,521
At 31 December 2023 210,506
NET BOOK VALUE
At 31 December 2023 632,520
At 31 December 2022 798,531

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
as restated
£    £   
Amounts owed by group undertakings 2,691,464 1,262,084
Other debtors 413,467 357,627
Tax - 2,757
VAT 57,758 80,957
Deferred tax asset 61,221 167,885
Prepayments 244,343 164,716
3,468,253 2,036,026

RELEX LIMITED (REGISTERED NUMBER: 07979321)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
as restated
£    £   
Trade creditors 122,302 76,039
Tax 2,174 -
Social security and other taxes 409,152 336,235
Other creditors 115,980 -
Accrued expenses 1,273,117 1,003,440
1,922,725 1,415,714

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
as restated
£    £   
Within one year 542,070 452,372
Between one and five years 455,735 580,958
997,805 1,033,330

14. DEFERRED TAX
£   
Balance at 1 January 2023 (167,885 )
Provided during year 16,717
Utilisation of losses 130,763
Share based payment asset (40,816 )
Balance at 31 December 2023 (61,221 )

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: as restated
£    £   
1,000 Ordinary £1 1,000 1,000

16. RESERVES
Capital
Retained contribution
earnings reserve Totals
£    £    £   

At 1 January 2023 1,053,099 714,144 1,767,243
Profit for the year 677,969 677,969
Share option charge - 176,434 176,434
Share option exercise 13,169 (13,169 ) -
At 31 December 2023 1,744,237 877,409 2,621,646

RELEX LIMITED (REGISTERED NUMBER: 07979321)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

17. ULTIMATE PARENT COMPANY

Relex Oy (incorporated in Finland) is regarded by the directors as being the company's ultimate parent company. Copies of the parent company accounts are available from Postintaival 7, 00230 Helsinki, FInland.

It is the opinion of the directors that there is no ultimate controlling party.

18. SHARE-BASED PAYMENT TRANSACTIONS

The ultimate parent company, Relex Oy has reserved shares of common stock for issuance as stock options.

The stock options granted expire in 10 years from this date or upon termination of the optionee's employment or other relationship with the company. The options vest over 5 years with 20% of the original number of shares becoming exercisable on the anniversary of the vesting start date and shall become exercisable for an additional 5% of the original number of shares granted as of the last day of each three-month period thereafter until the fifth anniversary of the vesting start date. The options are equity settled and valued using the Black Scholes method of valuation.

Detailed below are movements in share options since 1 January 2023:




Weighted
average
exercise
price(EUR



)



Number
Weighted
average
exercise
price(EUR



)



Number
2023202320222022
Options outstanding at beginning of the year1.621,180,3000.821,191,000
Options granted during the year7.315,0008.2617,500
Options transferred during the year----
Options forfeited during the year----
Options exercised during the year1.14(32,400)6.02(28,200)

Outstanding at the end of the year1.711,162,9001.621,180,300

In the year ended 31 December 2023, the company recorded employee expenses of £176,434 (2022: £714,144) related to share-based payments.

In the year ended 31 December 2022, there was a a 100 for 1 share split on the options that had been granted before 1 January 2022. For ease of reference, the options outstanding at the beginning of the year have been shown post impact of this split.

The share based payment expense is recognised on a reasonable allocation of the group expense.