Company Registration No. 01873263 (England and Wales)
ACCESS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
ACCESS LIMITED
COMPANY INFORMATION
Directors
RC Glass
BE Lidefelt
Secretary
K Higgins
Company number
01873263
Registered office
Unit 18
Suttons Business Park
Sutton Park Avenue
Reading
UK
RG6 1AZ
Auditor
Bright Grahame Murray
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
ACCESS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 23
ACCESS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Business review
The company's sales continue to diversify with growth in transportation ticketing applications and personal
identification applications. The company continues to invest in research and development and plans to further
broaden its product range with new devices being introduced into its target markets
The Directors are pleased to note the result for the year is satisfactory in the current climate.
Principal risks and uncertainties
Technology risks
The company's main activities involve a range of technologies. The company undertakes a range of technology research and development activities to ensure it remains at the forefront of technological advances within its target markets. The company also reviews, on an ongoing basis, technological developments which might impact the company.
Financial risk management objectives and policies
The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The group holds bank balances in foreign currencies to mitigate these risks. Foreign currencies are typically exchanged for GBP at the month end.
Cash Flow Risk
The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The
company and
group holds bank balances in foreign currencies to mitigate these risks. Foreign currencies are typically exchanged for GBP at the month end.
Credit Risk
The company's principal financial assets are cash and trade and other receivables. The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The group has no significant concentration of credit risk, with exposure spread over a large client base.
Liquidity Risk
The bank balances are controlled in order to ensure sufficient funds are available for the company to meet its
business needs.
Global Supply Chain Risk
The Directors continually monitor developments
regarding bottlenecks in the global supply chain as the world economies emerge from the COVID-19 global pandemic. The directors are aware of the potential impact of supply chain issues but are regularly reviewing the company's supply chain to ensure no impact to operations.
Coronavirus
The Directors are monitoring the situation. The company is aware of the potential impact of the Coronavirus on its business and has modelled the possible impacts against its plans for 2022. The result of these models shows that the company remains able to meet its liabilities throughout the year and the Board therefore concluded that the Going Concern basis remains appropriate for he preparation of its Financial Statement.
Future Developments
The directors expect the Company to continue with its current operations for the foreseeable future.
ACCESS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Key performance indicators
The Company utilises the following financial key performance indicators:
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In comparing the cash held position year on year in addition to the cash held by Access Ltd as at 31st December 202
0
there was £3.5 million on deposit with Assa Abloy, as part of the group treasury function, which
wa
s included at the year end within Amounts owed by group undertakings in Debtors. This cash was transferred
to the company in early 2021
.
Other performance indicators
The Directors review a wide range of non-financial key performance indicators to monitor performance. Various indicators such as staff engagement levels, staff retention, productivity and research and development activity are reviewed by the directors on a regular basis.
Susan Stuart
Power of attorney on behalf of the directors
4 July 2022
ACCESS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company is the manufacture, design and supply of passport, travel document and ticket readers and validators for mass transit, security and identification purposes.
Results and dividends
The results for the year are set out on page 8.
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:
LL Crumley
(Resigned 18 February 2022)
RC Glass
BE Lidefelt
Research and development
The company has continued to write off all research and development costs incurred to the profit and loss whilst continuing its strategy to use its knowledge and resources to be innovative in developing new products.
Auditor
Bright Grahame Murray were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, under section 487 (2) they will be deemed to be reappointed in the following year.
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;
-
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.
Matters covered in the strategic report
Financial risk management policies and objectives and future developments for the year ended 31 December 2021 are disclosed in the strategic report
in accordance with Companies Act 2006, s. 414C(11)
.
ACCESS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
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.
Going concern
Management have carried out a thorough review of the company's ability to prepare these financial statements on the going concern basis. Forecasts have been prepared which focus on the profitability of the group and company until December 2023.
A range of scenarios were assessed in coming to this view and the forecasts have been subjected to sensitivity analysis to reflect this. The group has adequate funds to finance its working capital requirements and debt obligations. After reviewing these forecasts of profitability and working capital requirements of the group and the impact of these on the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing these financial statements.
On behalf of the board
Susan Stuart
Power of attorney on behalf of the directors
4 July 2022
ACCESS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ACCESS LIMITED
- 5 -
Opinion
We have audited the financial statements of Access Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of income and retained earnings, the balance sheet 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 FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2021 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.
In arriving at our opinion we have considered the inherent uncertainties affecting the company such as Brexit, Covid-19 and the war in Ukraine. We have considered the reasonableness of the estimates made by the directors to assess how such risks may affect the company's financial resources and its ability to continue operations over the going concern period.
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'
r
eport 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.
ACCESS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ACCESS LIMITED
- 6 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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
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'
r
esponsibilities
s
tatement, 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
.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
-
We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and employment legislation.
-
We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.
-
We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.
ACCESS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ACCESS LIMITED
- 7 -
-
The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas
:
revenue recognition, related parties outside normal course of business, management override, misappropriation of cash and other assets.
-
We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
-
We enquired of the directors about actual and potential litigation and claims.
-
We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
-
In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
Due 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, 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 fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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.
Paul Davis (Senior Statutory Auditor)
For and on behalf of Bright Grahame Murray
Chartered Accountants
Statutory Auditor
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
20 July 2022
ACCESS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
13,786,676
17,465,949
Cost of sales
(7,518,150)
(10,154,092)
Gross profit
6,268,526
7,311,857
Distribution costs
(754,495)
(887,757)
Administrative expenses
(3,798,769)
(4,091,416)
Other operating income
467,850
Operating profit
4
2,183,112
2,332,684
Interest receivable and similar income
6
33
6,042
Interest payable and similar expenses
7
(7,413)
(79,845)
Exceptional items
8
(1,090,359)
Profit before taxation
1,085,373
2,258,881
Tax on profit
9
(233,145)
(115,421)
Profit for the financial year
852,228
2,143,460
Retained earnings brought forward
11,939,458
9,795,998
Retained earnings carried forward
12,791,686
11,939,458
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ACCESS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
11
83,258
107,105
Investments
12
5
83,258
107,110
Current assets
Stocks
13
4,595,718
4,453,370
Debtors
14
2,490,837
9,641,203
Cash at bank and in hand
8,265,952
254,360
15,352,507
14,348,933
Creditors: amounts falling due within one year
15
(2,642,079)
(2,514,498)
Net current assets
12,710,428
11,834,435
Total assets less current liabilities
12,793,686
11,941,545
Provisions for liabilities
Provisions
17
87
-
(87)
Net assets
12,793,686
11,941,458
Capital and reserves
Called up share capital
20
2,000
2,000
Profit and loss reserves
12,791,686
11,939,458
Total equity
12,793,686
11,941,458
The financial statements were approved by the board of directors and authorised for issue on 4 July 2022 and are signed on its behalf by:
Susan Stuart
Power of attorney on behalf of the directors
Company Registration No. 01873263
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
1
Accounting policies
Company information
Access Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Unit 18, Suttons Business Park, Sutton Park Avenue, Reading, UK, RG6 1AZ.
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 a
mounts
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of
HID Corporation Ltd
. These consolidated financial statements are available
Companies House.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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
.
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 11 -
1.5
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 improvements
20% per annum straight line
Plant and equipment
30% per annum straight line
Computers
30% per annum 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
.
1.6
Fixed asset investments
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
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.
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
.
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.
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.
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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts 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
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
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.
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
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in
profit
or
loss
in the period
in which
it arises.
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Group tax losses relief
Estimates are made in respect of tax losses available to be utilised from fellow group companies to offset corporation tax payable. Given that these estimates can change due to business or legislative factors, group relief offsetting the corporation tax payable may be subject to change after the balance sheet date or signing of accounts.
Stock cost absorption of overheads and staff costs
The company deploys a cost absorption policy in respect of overheads and staff wages, reallocating costs from the profit and loss account to stock, which in turn is released to cost of sales when the stock is sold. The policy is set on a formula and is applied to finished goods items, the directors believe that the allocation of overheads and staff wages to the cost of stock is appropriate.
Stock provision
The company applies stock provision policy as set out by its ultimate controlling party. The provision can be found in note 12. Provisioning for stock relies upon a certain degree of estimation uncertainty however the directors are satisfied that the provision is appropriate in light of tight controls.
Provision for bad debts
The company applies bad debt provision policy as set out by its ultimate controlling party. The provision can be found in note 13. Provisioning for trade debtors relies upon a certain degree of estimation uncertainty however the directors are satisfied that the provision is appropriate in light of tight controls and regular customer communication.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
2,753,817
2,163,530
Overseas sales
11,032,859
15,302,419
13,786,676
17,465,949
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
3
Turnover and other revenue
(Continued)
- 16 -
2021
2020
£
£
Other significant revenue
Interest income
33
6,042
Grants received
467,850
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
145,567
(124,176)
Research and development costs
286,944
249,314
Government grants
(467,850)
Fees payable to the company's auditor for the audit of the company's financial statements
76,585
61,293
Depreciation of owned tangible fixed assets
69,015
311,539
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
86
82
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
3,522,811
3,493,801
Social security costs
361,279
400,562
Pension costs
281,372
261,405
4,165,462
4,155,768
6
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
33
6,042
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
7
Interest payable and similar expenses
2021
2020
£
£
Interest on bank overdrafts and loans
7,413
79,845
8
Exceptional items
2021
2020
£
£
Exceptional items
Restructuring costs
(175,500)
-
Other gains/(losses)
Amounts written back to current loans from subsidiary undertakings
142,064
-
Other gains and losses
(1,056,923)
-
(1,090,359)
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
304,431
123,122
Adjustments in respect of prior periods
(89,466)
Total current tax
214,965
123,122
Deferred tax
Origination and reversal of timing differences
(521)
5,898
Changes in tax rates
(5,358)
Adjustment in respect of prior periods
18,701
(8,241)
Total deferred tax
18,180
(7,701)
Total tax charge
233,145
115,421
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
9
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
1,085,373
2,258,881
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
206,221
429,187
Tax effect of expenses that are not deductible in determining taxable profit
173,334
260
Group relief
(35,459)
(150,000)
Research and development tax credit
(27,744)
(190,430)
Other non-reversing timing differences
24,666
Under/(over) provided in prior years
(95,473)
(11,984)
Deferred tax adjustments in respect of prior years
18,701
Deferred tax not provided
13,722
Change in deferred tax rate
(6,435)
Taxation charge for the year
233,145
115,421
Factors that may affect future tax charges
In the Spring Budget 2020, the Government announced that from 1 April 2020 the corporation tax rate would remain at 19% (rather than reducing to 17%, as previously enacted). This new law was substantively enacted on 17 March 2020. ·In the Spring Budget 2021, the UK Government announced that the headline UK corporation tax rate would increase from 19% to 25% from 1 April 2023 on profits in excess of £250,000.
T
his new law
now
been substantively enacted at the balance sheet date
and so the
current
deferred
tax is calculated at
25
%.
10
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2021
2020
Notes
£
£
In respect of:
Fixed asset investments
12
1,056,923
-
Recognised in:
Amounts written off investments
1,056,923
-
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computers
Total
£
£
£
£
Cost
At 1 January 2021
929,293
961,105
425,907
2,316,305
Additions
40,918
4,250
45,168
At 31 December 2021
929,293
1,002,023
430,157
2,361,473
Depreciation and impairment
At 1 January 2021
929,033
892,233
387,934
2,209,200
Depreciation charged in the year
260
46,427
22,328
69,015
At 31 December 2021
929,293
938,660
410,262
2,278,215
Carrying amount
At 31 December 2021
63,363
19,895
83,258
At 31 December 2020
260
68,872
37,973
107,105
12
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
5
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2021
5
Additions
1,056,918
Disposals
(1,056,923)
At 31 December 2021
-
Carrying amount
At 31 December 2021
-
At 31 December 2020
5
The fixed asset investment related to the wholly owned subsidiary of Access North America Ltd. During the year the company invested an additional £1,056,918 in capital contribution to the subsidiary. The subsidiary was dissolved on 31 December 2021.
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
13
Stocks
2021
2020
£
£
Raw materials and consumables
4,066,058
4,016,058
Work in progress
473,695
380,232
Finished goods and goods for resale
55,965
57,080
4,595,718
4,453,370
The total provision for irrecoverable stock is £
619,437
(
2020
: £
582,029
) and has been netted off the total stock held.
14
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
1,566,721
2,268,460
Amounts owed by group undertakings
40,285
7,015,940
Other debtors
86,219
101,018
Prepayments and accrued income
770,799
210,792
2,464,024
9,596,210
2021
2020
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 18)
26,813
44,993
Total debtors
2,490,837
9,641,203
The total provision for irrecoverable debts is £228,563 (2020: £229,413) which is offset against trade debtors.
Included in prepayments in the current year are amounts paid to suppliers prior to invoicing, totalling £367,426, the prior year balance of £146,770 was included in trade creditors.
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
15
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Other borrowings
16
760,749
Trade creditors
2,057,769
974,033
Corporation tax
14,884
123,217
Other taxation and social security
100,516
59,517
Other creditors
42,676
Accruals and deferred income
426,234
596,982
2,642,079
2,514,498
16
Loans and overdrafts
2021
2020
£
£
Other loans
760,749
Payable within one year
760,749
Other loans in the prior year consisted of a loan of £760,749 which was on a rolling basis, each term lasting 14 days. Interest accrues on a daily basis and at a rate of 1.52% per annum. This loan replaced the previous loan held in the prior year which was paid back during the prior year by the ultimate parent, Assa Abloy AB, a company registered in Sweden. This balance was paid down in the year.
17
Provisions for liabilities
2021
2020
£
£
Warranty provision
-
87
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2021
2020
Balances:
£
£
Accelerated capital allowances
26,813
35,068
Tax losses
-
9,177
Other timing differences
-
748
26,813
44,993
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
18
Deferred taxation
(Continued)
- 22 -
2021
Movements in the year:
£
Asset at 1 January 2021
(44,993)
Charge to profit or loss
18,180
Asset at 31 December 2021
(26,813)
The deferred tax asset set out above is expected to reverse within 12 months and principally relates to accelerated capital allowances and the utilisation of tax losses against future expected profits of the same period.
19
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
281,372
261,405
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.
20
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,000
2,000
2,000
2,000
21
Operating lease commitments
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:
2021
2020
£
£
Within one year
200,393
199,893
Between two and five years
597,885
799,572
798,278
999,465
ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
22
Related party transactions
The Company has elected not to disclose transactions with other wholly-owned group companies during the period in accordance with FRS 102 section 33 'Related party transactions'.
During the year,
the Company
repaid £760,495 in
loans to Assa Abloy
AB
,
the ultimate parent undertaking with no loans due payable at the year end (2020:
£760,495
)
. Interest was charged during the
year
of £
1,200
(
2020
: £
74,300
)
on these loans
.
There are no other transaction with related parties which are required to be disclosed.
All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the Company are considered to be key management personnel.
23
Ultimate controlling party
The directors considered that Assa Abloy AB
, a company registered in Sweden,
is the ultimate controlling party. They are the largest group in which the results of the company are consolidated. The smallest group in which the results are being consolidated is HID Corporation L
imi
t
e
d
, a company registered in England and Wales
.
2021-12-31
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false
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