REGISTERED NUMBER: 01374913 (England and Wales)

Financial Statements

for the Year Ended 31st December 2024

for

CANNON TECHNOLOGIES LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

E A Reddicliffe

M Goulding

SECRETARY:

E A Reddicliffe

REGISTERED OFFICE:

13 Queensway

Stem Lane Industrial Estate

New Milton

Hampshire

BH25 5NU

REGISTERED NUMBER:

01374913 (England and Wales)

SENIOR STATUTORY AUDITOR:

Alasdair Weaks

AUDITORS:

TC Group

Statutory Auditor

Office: Croydon - TC SWP

3rd Floor, Suffolk House

George Street

Croydon

CR0 0YN

BANKERS:

Lloyds Bank

Audits Team

3rd Floor, Citymark

150 Fountainbridge

Edinburgh

EH3 9PE

FIXED ASSETS

Intangible assets

5

9,729

11,995

Property, plant and equipment

6

214,034

240,338

223,763

252,333

CURRENT ASSETS

Inventories

7

1,623,835

1,382,216

Debtors

8

1,783,405

3,210,498

Cash at bank and in hand

166,230

5,768

3,573,470

4,598,482

CREDITORS

Amounts falling due within one year

9

2,236,067

2,916,636

NET CURRENT ASSETS

1,337,403

1,681,846

TOTAL ASSETS LESS CURRENT LIABILITIES

1,561,166

1,934,179

CAPITAL AND RESERVES

Called up share capital

60,000

60,000

Fair value reserve

13

293,328

-

Retained earnings

13

1,207,838

1,874,179

SHAREHOLDERS' FUNDS

1,561,166

1,934,179

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 1st September 2025 and were signed on its behalf by:

M Goulding - Director

1.	STATUTORY INFORMATION

Cannon Technologies 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 presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. During the year the Company derecognised a financial asset in exchange for the rights and rewards of stock items. In accordance with FRS 102 (Para 11.33), the stock has been measured by the directors at fair value at the date of the exchange. FRS 102 also requires that any difference between the consideration received and the amounts recognised and derecognised shall be recognised in the profit and loss. However Companies Act 2006 states that 'only profits realised at the balance sheet date are to be included in the profit and loss account'. As FRS 102 is not explicit in this particular circumstance, the directors have decided it is necessary to invoke a true and fair override of FRS 102 to comply with Companies Act 2006. The unrealised gain arising totalling £293,328 has been recognised in other comprehensive income and the fair value reserve on the balance sheet. Subject to the departure, all applicable legislation and accounting standards have been complied with.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

Going concern

The company finances its operations from ongoing trading, investment income and through various financing agreements with their bankers, including overdraft facilities.

During 2024 and continuing into 2025 the company has experienced delays to projects in the business pipeline. The directors have prepared forecasts and have considered sensitivity analysis which includes scenarios where there are delays in orders. To support the company in meeting its short-term liabilities and ongoing running costs for at least 12 months from the date of signing these financial statements, an overdraft facility of £625,000 is available. In addition, the company has also generated a number of opportunities with both existing and new customers that the directors expect to generate positive cashflow inflow for 2026.

The banking Credit facility has been reduced from c£1.25m in 2023 to c£625k to date. The current headroom on the facility is £525,000 and is due for renewal on 28 February 2026. The directors have no reason to believe that the facility will not be renewed based on the guarantees provided for the facilities. The directors consider the company had adequate funds to meet its liabilities as they fall due for a period of at least 12 months from the date the financial statements were authorised for issue.

Whilst there are elements of uncertainty regarding the timing of delayed projects, the directors are confident that the going concern basis of preparation is appropriate given the combination of an expectation of sufficient cash inflows from ongoing trade, the commencement of delayed orders and the use of the company's credit facility, together with the ability to temporarily reduce the company cost base if required. As a result, the directors believe it is appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

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

Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated deprecation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Deprecation is provided on the following basis:

Plant and machinery

- 10% straight line

Fixtures and fittings

- 20% straight line

Motor vehicles

- 25% reducing balance

Computer Equipment

- 33% straight line

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

Stocks

Stocks are stated at the lower of cost and net relisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Income and Retained earnings.

Financial instruments

The company only enters into basic financial instruments that results in the recognition of financial assets and liabilities such as trade and other debtors and creditors and loans to related parties.

Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amounts that the company would receive for the asset if it were to be sold at the balance sheet date.

Taxation

The tax expenses for the year comprises of current and deferred tax. Tax is recognised in the statement of comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

-

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

-

Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Research and development

Expenditure on research is written off in the year in which it is incurred.

Development expenditure is written off in the same year unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period in which the company is expected to derive benefits.

Foreign currency translation

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

The company's functional currency and presentational currency is pound sterling.

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.

Pensions

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in creditors as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 56 (2023 - 70 ) .

5.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1st January 2024

and 31st December 2024

85,620

AMORTISATION

At 1st January 2024

73,625

Charge for year

2,266

At 31st December 2024

75,891

NET BOOK VALUE

At 31st December 2024

9,729

At 31st December 2023

11,995

6.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1st January 2024

3,558,892

260,542

99,023

652,084

4,570,541

Additions

31,183

3,749

(294

)

-

34,638

Disposals

-

-

(3,505

)

-

(3,505

)

At 31st December 2024

3,590,075

264,291

95,224

652,084

4,601,674

DEPRECIATION

At 1st January 2024

3,402,550

222,136

63,685

641,832

4,330,203

Charge for year

33,409

8,822

10,369

7,701

60,301

Eliminated on disposal

-

-

(2,864

)

-

(2,864

)

At 31st December 2024

3,435,959

230,958

71,190

649,533

4,387,640

NET BOOK VALUE

At 31st December 2024

154,116

33,333

24,034

2,551

214,034

At 31st December 2023

156,342

38,406

35,338

10,252

240,338

7.	INVENTORIES

31.12.24

31.12.23

£

£

Stocks

1,623,835

1,382,216

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade debtors

1,019,575

1,997,799

Amounts owed by group undertakings

425,348

363,094

Amounts owed by related undertakings

36,750

95,014

Tax

252,475

660,590

Prepayments and accrued income

49,257

94,001

1,783,405

3,210,498

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Bank loans and overdrafts (see note 10)

-

278,679

Trade creditors

472,205

947,040

Amounts owed to group undertakings

1,302,500

1,107,500

Social security and other taxes

173,506

203,796

VAT

110,799

272,585

Other creditors

32,887

38,736

Accruals and deferred income

144,170

68,300

2,236,067

2,916,636

10.

LOANS

An analysis of the maturity of loans is given below:

31.12.24

31.12.23

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

-

278,679

Securities held in relation to the overdrafts are discussed in note 14.

11.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.12.24

31.12.23

£

£

Within one year

75,542

73,512

Between one and five years

101,465

97,878

177,007

171,390

12.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.24

31.12.23

£

£

Bank overdraft

-

278,679

The bank overdraft is secured by an unscheduled mortgage debenture incorporating a fixed and floating charge over all assets of the company, present and future, and by an unlimited inter-company guarantee jointly given by the company, Cannon Technologies Group Limited, Cannontech Limited, Cannon Technologies (Europe) Limited and Cannon Datacom Limited.

In addition, a charge is held over property owned by Scammell Estates Limited, a company under common control.

13.

RESERVES

Fair

Retained

value

earnings

reserve

Totals

£

£

£

At 1st January 2024

1,874,179

-

1,874,179

Deficit for the year

(666,341

)

(666,341

)

Gain on financial instrument

-

293,328

293,328

At 31st December 2024

1,207,838

293,328

1,501,166

During the year the company derecognised a financial instrument in exchange for stock items. The stock items have been valued at fair value by the directors at the point of exchange. The fair value of the stock is in excess of the financial instrument value, so has been recognised via the other comprehensive income in the fair value reserve.

14.	AUDITORS' INFORMATION

The audit report provided to the members of Cannon Technologies Limited on the financial statements for the period ended31st December 2024 was not qualified.

The audit report was signed by Alasdair Weaks (Senior Statutory Auditor) for and on behalf of TC Group, Statutory Auditor.

15.	CONTINGENT LIABILITIES

The company is party to a composite guarantee between itself, Cannon Technologies Group Limited, Cannon Technologies Europe Limited, Cannontech Limited, Cannon Telecomms Limited and Cannon Datacom Limited for bank borrowings, but all such borrowings were by the company itself at the period end. There are no other contingent liabilities at the balance sheet date (31.12.23 - none).

16.	RELATED PARTY DISCLOSURES

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.

During the year the company had the following transactions with associated companies:

31.12.24

31.12.23

£

£

Sales

51,731

55,625

Rent

30,000

36,000

Administrative support services

8,750

3,000

Balances owed at the year end

Amounts owed by related parties

38,219

94,935

17.	ULTIMATE CONTROLLING PARTY

The immediate and ultimate parent company is Cannon Technologies Group Limited, a company registered in England and Wales.

The ultimate controlling party is E A Reddicliffe.

Cannon Technologies Group Limited prepares consolidated financial statements and copies can be obtained from 13 Queensway, Stem Lane Industrial Estate, New Milton, Hampshire, BH25 5NU.