Company Registration No. 08116148 (England and Wales)
NEXTGEN360 LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
31 December 2023
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
NEXTGEN360 LIMITED
COMPANY INFORMATION
Directors
B M Wilson
(Appointed 15 September 2023)
D George
(Appointed 15 September 2023)
Company number
08116148
Registered office
Unit A2, Stockport Industrial Estate
Yew Street
Stockport
Cheshire
SK4 2JZ
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
NEXTGEN360 LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 25
NEXTGEN360 LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
Nextgen360 Limited's principal activity throughout 2023 remained focused on the production and distribution of liquids for use in vaping devices, alongside the sale of related electronic vaping devices. The company operates within a dynamic and competitive market, responding to ongoing changes in consumer preferences and regulatory landscapes.
In September 2023 the company was sold by its previous parent, Stada Arzneimittel AG to Wilson George Group Limited as part of a strategic strengthening of the Wilson George Group portfolio. As a result, the previous directors resigned and were replaced by Mr. BM Wilson and Mr. D George.
Principal risks and uncertainties
The key risks faced by the company include:
Regulatory Risk: Changes in legislation surrounding vaping products could adversely impact operations and profitability.
Market Risk: Fluctuations in consumer demand and increasing competition from new entrants.
The company continues to monitor these risks carefully and maintains a strategy of operational efficiency and regulatory compliance.
Development and performance
Looking forward, NEXTGEN360 Limited aims to:
Focus on increasing revenue through expanded distribution and product offerings.
Continue operational cost control improvements.
Explore new markets domestically and internationally.
The directors are optimistic that through proactive management and strategic investment, the company will strengthen its financial position over the next few years.
NEXTGEN360 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
The company’s key financial and other performance indicators during the year were as follows:
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Profit/(Loss) for the year | | |
Net (liabilities) / assets | | |
Turnover
Total revenue for the year reached £13.66 million, marking a 5.93% decline compared to 2022. This decrease was primarily due to lost revenue prior to the acquisition by the Wilson George Group, with the remainder attributed to internal sales restructuring within the group. Nevertheless, gross margins remained relatively stable, reflecting the business’s underlying operational resilience.
Profitability
Gross profit for 2023 totalled £6.65 million, compared to £7.74 million in 2022, resulting in a margin decline from 53.33% to 48.65%. This reduction in gross profit occurred before the acquisition by the Wilson George Group. Nevertheless, effective cost control measures implemented post-acquisition supported a return to profitability, with an operating profit of £343,709—an improvement from the previous year’s operating loss of £510,307. After finance charges, the company recorded a pre-tax profit of £169,086, reversing the 2022 loss of £672,487, and closed the year with a net profit of £107,417.
Cash Flow and Liquidity
Operational cash generation improved markedly to £1.44 million, up from £479,569 in 2022. However, significant non-operating cash outflows related to ownership changes reduced the cash at bank to £254,367, compared with £1.42 million in the previous year.
Balance Sheet Position
At year-end, the balance sheet showed improved net liabilities of £87,530, down from £194,947 the previous year, alongside a reduction in tangible and intangible fixed assets due to asset disposals, and an increase in deferred tax assets to £301,057 reflecting timing differences.
Business and Market Environment
The vaping and e-liquid industry remains highly competitive and increasingly regulated, but NEXTGEN360 is strategically positioned to respond to growing consumer demand for safer, quality-controlled products, ongoing regulatory changes in the UK and abroad, and evolving public health trends, with its focus on product innovation and operational efficiency helping to stabilise profitability amidst these external pressures.
Directors' Statement
The directors believe that the steps taken during 2023 have set a platform for continued recovery and future sustainable growth. Their focus remains on improving profitability, enhancing cash flows, and strengthening the balance sheet.
NEXTGEN360 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
B M Wilson
Director
7 May 2025
NEXTGEN360 LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of production and distribution of liquids for use in electronic cigarettes and the sale of related products including electronic vaping devices.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
B M Wilson
(Appointed 15 September 2023)
D George
(Appointed 15 September 2023)
E Blythe
(Resigned 31 January 2023)
K Heywood
(Appointed 31 January 2023 and resigned 15 September 2023)
Auditor
PM+M Solutions for Business LLP were appointed as auditor to the company.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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; and
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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
NEXTGEN360 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
On behalf of the board
B M Wilson
Director
7 May 2025
NEXTGEN360 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEXTGEN360 LIMITED
- 6 -
Opinion
We have audited the financial statements of Nextgen360 Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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.
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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
NEXTGEN360 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEXTGEN360 LIMITED (CONTINUED)
- 7 -
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
NEXTGEN360 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEXTGEN360 LIMITED (CONTINUED)
- 8 -
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
the matters discussed among the audit engagement team and relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;
any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
NEXTGEN360 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEXTGEN360 LIMITED (CONTINUED)
- 9 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Simon Read BA(Hons) BFP ACA (Senior Statutory Auditor)
For and on behalf of PM+M Solutions for Business LLP, Statutory Auditor
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
7 May 2025
NEXTGEN360 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
13,657,861
14,519,109
Cost of sales
(7,012,783)
(6,775,653)
Gross profit
6,645,078
7,743,456
Distribution costs
(1,258,982)
(2,844,253)
Administrative expenses
(5,042,387)
(5,409,510)
Operating profit/(loss)
5
343,709
(510,307)
Interest receivable and similar income
7
3,471
Interest payable and similar expenses
8
(174,623)
(204,958)
Other gains and losses
174,618
Exceptional item
-
(135,311)
Profit/(loss) before taxation
169,086
(672,487)
Tax on profit/(loss)
9
(61,669)
57,413
Profit/(loss) for the financial year
107,417
(615,074)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 14 to 25 form part of these financial statements.
NEXTGEN360 LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
66,815
236,709
Tangible assets
11
252,633
1,176,405
319,448
1,413,114
Current assets
Stocks
12
945,365
956,412
Debtors
13
1,976,917
2,810,008
Cash at bank and in hand
254,367
1,423,053
3,176,649
5,189,473
Creditors: amounts falling due within one year
14
(3,583,627)
(6,797,534)
Net current liabilities
(406,978)
(1,608,061)
Net liabilities
(87,530)
(194,947)
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
(87,630)
(195,047)
Total equity
(87,530)
(194,947)
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 7 May 2025 and are signed on its behalf by:
B M Wilson
Director
Company registration number 08116148 (England and Wales)
NEXTGEN360 LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100
420,027
420,127
Year ended 31 December 2022:
Loss and total comprehensive income
-
(615,074)
(615,074)
Balance at 31 December 2022
100
(195,047)
(194,947)
Year ended 31 December 2023:
Profit and total comprehensive income
-
107,417
107,417
Balance at 31 December 2023
100
(87,630)
(87,530)
NEXTGEN360 LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
1,443,543
479,569
Interest paid
(174,623)
(204,958)
Income taxes refunded
718,093
65,406
Net cash inflow from operating activities
1,987,013
340,017
Investing activities
Purchase of intangible assets
(40,054)
Proceeds from disposal of intangibles
35,681
Purchase of tangible fixed assets
(118,110)
(82,898)
Proceeds from disposal of tangible fixed assets
380,416
Interest received
3,471
Other income received from investments
174,618
Net cash generated from investing activities
297,987
55,137
Financing activities
Movement in group balances
(3,453,686)
Net cash used in financing activities
(3,453,686)
-
Net (decrease)/increase in cash and cash equivalents
(1,168,686)
395,154
Cash and cash equivalents at beginning of year
1,423,053
1,027,899
Cash and cash equivalents at end of year
254,367
1,423,053
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Nextgen360 Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit A2, Stockport Industrial Estate, Yew Street, Stockport, Cheshire, SK4 2JZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 December 2023 are the first financial statements of Nextgen360 Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2022. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102. The company has also changed the presentation of certain expenses within the financial statements, following a review of the company's chart of accounts within its accounting records. As a result the categorisation of certain expense types between cost of sales, distribution costs and administrative expenses may not be entirely comparable with the previous year, although this has no overall impact on the expenses in the profit and loss account, or the company's net profit for the year.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
5 years straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
6 years straight line
Plant and equipment
5 years straight line
Fixtures and fittings
5 years straight line
Computers
4 years straight line
Software
4 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The directors consider the primary estimates impacting the financial statements relate to the calculation of provisions for impairment of obsolete and slow moving stocks.
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
United Kingdom
12,792,558
14,519,109
Rest of World
865,303
-
13,657,861
14,519,109
2023
2022
£
£
Other revenue
Interest income
-
3,471
4
Exceptional item
During 2022, the exceptional expenses of £135,311 related primarily to providing employees with a one off cost of living payment.
5
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
10,986
(11,282)
Research and development costs
493
Fees payable to the company's auditor for the audit of the company's financial statements
35,000
50,000
Depreciation of owned tangible fixed assets
566,504
792,930
Loss on disposal of tangible fixed assets
94,962
Amortisation of intangible assets
96,307
105,628
Loss on disposal of intangible assets
37,906
Operating lease charges
311,494
225,822
Other gains and losses totalling £174,618 in the previous year related to the proceeds of an insurance claim in respect of a fire in 2017.
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Employees
94
118
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,026,511
3,960,536
Social security costs
343,242
420,477
Pension costs
112,476
99,561
3,482,229
4,480,574
The company's directors did not receive remuneration from this company during the current or previous year.
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
3,471
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,471
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
174,623
204,958
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
121,259
Deferred tax
Origination and reversal of timing differences
(59,590)
(40,557)
Adjustment in respect of prior periods
(16,856)
Total deferred tax
(59,590)
(57,413)
Total tax charge/(credit)
61,669
(57,413)
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 21 -
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit/(loss) before taxation
169,086
(672,487)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
39,769
(127,773)
Tax effect of expenses that are not deductible in determining taxable profit
30,699
2,188
Adjustments in respect of prior years
19,170
(16,856)
Effect of change in corporation tax rate
(9,733)
Group relief
80,635
Fixed asset differences
14,126
Remeasurement of deferred tax for change in tax rates
(1,989)
Movement in deferred tax not recognised
(25,980)
Taxation charge/(credit) for the year
61,669
(57,413)
10
Intangible fixed assets
Patents & licences
£
Cost
At 1 January 2023
546,751
Disposals
(267,682)
At 31 December 2023
279,069
Amortisation and impairment
At 1 January 2023
310,042
Amortisation charged for the year
96,307
Disposals
(194,095)
At 31 December 2023
212,254
Carrying amount
At 31 December 2023
66,815
At 31 December 2022
236,709
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
11
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Software
Total
£
£
£
£
£
£
Cost
At 1 January 2023
617,660
2,824,073
771,104
314,778
453,300
4,980,915
Additions
108,420
9,690
118,110
Disposals
(470,220)
(2,830,583)
(600,160)
(195,448)
(393,430)
(4,489,841)
At 31 December 2023
147,440
101,910
180,634
119,330
59,870
609,184
Depreciation and impairment
At 1 January 2023
426,067
2,152,257
639,979
214,296
371,911
3,804,510
Depreciation charged in the year
81,502
311,501
65,581
44,758
63,162
566,504
Eliminated in respect of disposals
(409,797)
(2,463,758)
(575,273)
(179,278)
(386,357)
(4,014,463)
At 31 December 2023
97,772
130,287
79,776
48,716
356,551
Carrying amount
At 31 December 2023
49,668
101,910
50,347
39,554
11,154
252,633
At 31 December 2022
191,593
671,816
131,125
100,482
81,389
1,176,405
12
Stocks
2023
2022
£
£
Raw materials and consumables
36,104
593,237
Work in progress
46,439
Finished goods and goods for resale
909,261
316,736
945,365
956,412
Stocks are stated after provision for impairment £209,335 (2022 - £727,630).
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,113,972
1,107,797
Corporation tax recoverable
718,093
Amounts owed by group undertakings
47,838
Other debtors
23
433,148
Prepayments and accrued income
315,431
309,503
1,477,264
2,568,541
Deferred tax asset (note 15)
301,057
241,467
1,778,321
2,810,008
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
198,596
Total debtors
1,976,917
2,810,008
Amounts owed by group undertakings are interest free and repayable on demand.
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
871,773
428,177
Amounts owed to group undertakings
829,278
4,235,126
Corporation tax
121,259
Other taxation and social security
298,923
632,461
Other creditors
285,023
152,666
Accruals and deferred income
1,177,371
1,349,104
3,583,627
6,797,534
Amounts owed to group undertakings are interest free and payable on demand.
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
278,864
220,659
Short term timing differences
22,193
20,808
301,057
241,467
2023
Movements in the year:
£
Asset at 1 January 2023
(241,467)
Credit to profit or loss
(59,590)
Asset at 31 December 2023
(301,057)
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
112,476
99,561
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The amount due to the scheme at the year end totalled £34,564 (2022: £nil).
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
100 Ordinary shares of £1 each
100
100
100
100
NEXTGEN360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
535,319
Between two and five years
94,469
629,788
19
Ultimate controlling party
The company's immediate and ultimate parent undertaking is Wilson George Group Limited, a company incorporated in the United Kingdom.
20
Cash generated from operations
2023
2022
£
£
Profit/(loss) after taxation
107,417
(615,074)
Adjustments for:
Taxation charged/(credited)
61,669
(57,413)
Finance costs
174,623
204,958
Investment income
(3,471)
Loss on disposal of tangible fixed assets
94,962
Loss on disposal of intangible assets
37,906
Fair value (gain)/loss on foreign exchange contracts
-
135,311
Amortisation and impairment of intangible assets
96,307
105,628
Depreciation and impairment of tangible fixed assets
566,504
792,930
Other gains and losses
-
(174,618)
Movements in working capital:
Decrease in stocks
11,047
420,690
Decrease/(increase) in debtors
174,588
(475,560)
Increase in creditors
118,520
146,188
Cash generated from operations
1,443,543
479,569
21
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,423,053
(1,168,686)
254,367
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