Company Registration No. 01879474 (England and Wales)
PAXTON ACCESS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAXTON ACCESS LIMITED
COMPANY INFORMATION
Directors
A Brotherton-Ratcliffe
A Stroud
P Bannister
G O'Hara
V Parekh
P Rawlinson
N O'Donnell
S Brotherton-Ratcliffe
Company number
01879474
Registered office
Paxton House
Home Farm Road
Brighton
East Sussex
BN1 9HU
Auditor
Humphrey & Co Audit Services Ltd
7-9 The Avenue
Eastbourne
East Sussex
BN21 3YA
Business address
Paxton House
Home Farm Road
Brighton
East Sussex
BN1 9HU
Bankers
HSBC Bank plc
153 North Street
Brighton
East Sussex
BN1 1SW
PAXTON ACCESS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Statement of comprehensive income
12
Statement of financial position
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 31
PAXTON ACCESS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report and financial statements for the year ended 31 December 2021.
Fair review of the business
Despite the challenges of 2021, as a company Paxton has very much got back on track.
In brief, the company grew during the year, with turnover increasing by 23.6% (2020: 12.3% shrinkage) and gross profit by 20.6% (2020: 13.1% shrinkage). At the same time administrative expenses increased by 10.6% (2020: 16.6% shrinkage
)
and net profit for the year before tax ended up at £5,518,771 (2020: £3,320,485). The company's net worth at the end of the year was £23,586,251 (2020: £18,502,480).
The company operates in a highly competitive market. In order to maintain and improve its position in this market, and despite the ongoing pandemic, substantial investment has continued to be made by the company in research and development. This investment is made both for improving existing products and creating new innovative products for the market with a focus on providing returns over the longer term.
The company did not enter any new markets in the year, instead looking to cultivate the overseas markets already entered into, with particular focus on the US.
Going concern
The impact of COVID-19 on the economy in 2020 and 2021 has raised uncertainties for all companies, and Paxton is no different.
Through strategies put in place by the directors, we have managed to come out of this situation in a stronger position and we will continue to focus on the resilience of the company.
Environmental matters
The company is committed to being environmentally responsible and has shown this in achieving the ISO 14001:2015 accreditation for its factory in Eastbourne in February 2018 and passing the audit for this in the past 3 years. The company continuously reviews its policies and capital to see where environmental improvements can be made and has installed charge-points for plug in hybrid cars to encourage the use of low emission vehicles. As well as this, the company has a cross company environmental group to track and report on environmental initiatives. Going forward we are looking to install solar panels on our latest building development as part of ongoing improvements to the environment.
Social and Community Issues
The company take social and community issues seriously and has arranged multiple charity days through the year to generate donation income for selected charities.
PAXTON ACCESS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Principal risks and uncertainties
-
The company's business is partly speculative, in that it is not known which new products will succeed, even though sales trends for existing products are known. The directors cannot give any undertaking as to the success or otherwise of new products yielded by its research and development work. There is therefore a significant risk inherent with expenditure related to this.
-
The directors are not privy to new products currently in development by the company's competitors; there is therefore a risk that sales of its own products may suffer in the future as a result of unknown improvements in competitors' products.
-
The company is typical of many companies of its type in that it is heavily reliant on IT systems. Whilst the directors diligently review and improve measures for ensuring resilience of its systems and back up of its data, they cannot absolutely ensure that failures will not damage the company's business at some point. In order to mitigate this risk the company continues to invest heavily in its IT infrastructure.
-
Sales to the company's customers are made on a credit basis. Trade debtors amount to a substantial sum. Mindful of the current credit conditions affecting all companies, including our customers, there is an increased awareness regarding the importance of adherence to our credit terms. The board has satisfied itself that its customers are financially sound and will continue to be able to fund their debt for the foreseeable future. There is continued focus on strong credit management to ensure timely payment from customers and a healthy corporate liquidity position.
-
The current global electronic component shortage. As a manufacturer of electronic goods, we are impacted by global demand of electronic components. There has been an ongoing shortage of key components which has affected companies worldwide. In order to mitigate this risk, we are continuously reviewing the components used in our products as well as investing in our Supply Chain team.
-
As a company with a global presence, we are aware of the risk posed by worldwide geo-political instability. To mitigate this, we always take this under consideration whenever looking to expand into new markets and when sourcing new materials, as well as keeping our current positions under ongoing review.
PAXTON ACCESS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
S172 Statement
Duty to promote the success of the company
The directors consider the successful running of the company in terms of achieving its long-term strategy which centres on building a resilient company that is great to work for and known for the quality of our products. The ongoing success of the company centres around positive and effective dealings with all the stakeholders of the company and the directors were mindful of the long terms consequences of key commercial decisions made during the year and determined that these were in the interests of the company’s owner, employees, agency staff, contractors, customers, installers, suppliers, local universities, and other stakeholders, as they were all aligned with the company’s strategy.
The principal decisions made in the year were:
-
To make significant investment in making our premises COVID-19 secure so we could continue to operate in a safe manner through the worst of the pandemic
-
Continued investment in our product development to deliver continued excellence
-
To acquire a new building on Home Farm Road to give us further manufacturing scalability
As set out in the directors’ report, the company takes employee involvement very seriously and we ensure we engage with our staff at all levels on a wide range of matters. The company also regularly engages with its distributors, installers, and suppliers to maintain these important relationships.
The directors confirm that throughout the year they have acted in the way they consider, in good faith, to be most likely to promote the continued success of the company for the benefit of its members.
A Stroud
Director
20 June 2022
PAXTON ACCESS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
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 and distribution of electronic access control systems.
Results and dividends
The results for the year are set out on page 12.
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:
A Brotherton-Ratcliffe
A Stroud
P Bannister
G O'Hara
V Parekh
P Rawlinson
N O'Donnell
S Brotherton-Ratcliffe
Financial instruments
Treasury operations and financial instruments
The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company’s activities.
The company’s principal financial instruments are cash balances. In addition, the company has various other financial assets and liabilities such as trade debtors and creditors arising directly from its operations.
Liquidity risk
Interest rate risk
Interest rate risk arises from cash balances, bank overdrafts and loans. The directors continually review the company's exposure to interest rates and take action to ensure that the risk is appropriate in relation to the financial results of the company.
Foreign currency risk
The company’s principal foreign currency exposures arise from trading with overseas companies. Dollar and Euro bank accounts are maintained in order to try and mitigate foreign currency risk.
Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. In addition the company has insured its risk of debtor irrecoverability.
Research and development
The company is heavily committed to research and development activities. During the year the company concentrated its research and development activities on both continuous improvement on its current product portfolio as well as diversification into other market sectors.
PAXTON ACCESS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company is conscious of the need to keep employees informed regarding the progress and future plans of the company and the mutual benefit that can be engendered by good internal communications. This is achieved through regular meetings with managers and staff and an open forum in which a two-way flow of comment and ideas is encouraged. An example of this is the Paxton Exchange which offers senior management the opportunity to communicate the company goals and achievements to all members of staff. A significant amount of time and money is invested in employee training in the company and is available to all levels of staff. The Paxton Seagull, the staff newsletter, is a further commitment to the concept of improving communications within the company. The company is committed to providing a fantastic company culture for all its staff members.
Business relationships
The directors consider the fostering of good relationships with all stakeholders as essential for the ongoing success of the company. In that regard they have always considered the impact on the suppliers, customers, end users, staff and others of all decisions made. Key decisions, and their impact on specific groups, have been summarised in the s172 statement included on both our website and in the strategic report.
Future developments
The company is continuing to develop its overseas marketing and sales strategy and the directors expect that this will contribute to an increase in profitability.
Auditor
The auditor, Humphrey & Co Audit Services Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
The company has consumed more than 40,000 kWh of energy in this reporting period and is required to report on its emissions, energy consumption or energy efficiency activities.
PAXTON ACCESS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
178,812
- Electricity purchased
982,896
1,161,708
Emissions of CO2 equivalent
Metric tonnes
Metric tonnes
Scope 1 - direct emissions
- Gas combustion
31.75
- Fuel consumed for owned transport
-
31.75
Scope 2 - indirect emissions
- Electricity purchased
206.57
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
Total gross emissions
238.32
Intensity ratio
kWh per sq ft per year and kWh per £k produced
11.87
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 202
1
UK Government’s Conversion Factors for Company Reporting.
Intensity measurement
The chosen intensity measurement ratio is total kilowatt hours per square foot for the offices and total kilowatt hours per £1,000 produced for the factory and warehouse.
The ratios for each site were:-
Paxton House -
12.77
kWh per square foot per year
Paxton Technology Centre -
10.80
kWh per square foot per year
Brampton Road -
20.63
kWh per £1,000 produced
Harvington Road -
3.28
kWh per £1,000 produced
Measures taken to improve energy efficiency
With the reopening of the premises following the extended lockdowns the focus of our facilities team was on ensuring people returned to a safe working environment, so there was no capacity to introduce energy improvements in our sites in 2021.
PAXTON ACCESS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
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.
On behalf of the board
A Stroud
Director
20 June 2022
PAXTON ACCESS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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.
PAXTON ACCESS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PAXTON ACCESS LIMITED
- 9 -
Opinion
We have audited the financial statements of Paxton Access Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the statement of financial position, 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 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.
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.
PAXTON ACCESS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PAXTON ACCESS LIMITED
- 10 -
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
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
PAXTON ACCESS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PAXTON ACCESS LIMITED
- 11 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
We obtained an understanding of the company and the laws and regulations that could reasonably be expected to have a direct effect on the financial statements through discussion with the directors and management and the application of our knowledge and experience. We discussed with management whether there were any known or suspected instances of fraud and/or non-compliance with relevant laws and regulations. We also obtained an understanding of the company's accounting systems and internal controls.
We audited the risk of management override of controls, by testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. Our other audit procedures included, but were not limited to, attending a year end stock count, carrying out detailed substantive testing of a sample of income and expenditure transactions arising in the year and a sample of balance sheet items such as fixed assets, debtors, creditors, etc. We also reviewed the financial statements and checked disclosures to supporting documentation to assess compliance with applicable law and regulation.
Because of the inherent risk of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements as we will be less likely to become aware of instances of non-compliance. The risk is greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion omission or misrepresentation.
A further description of our responsibilities 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
the
Companies
(Revision of Defective Accountsand Reports) Regulations
200
8
. 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.
Mr Michael Macefield (Senior Statutory Auditor)
For and on behalf of Humphrey & Co Audit Services Ltd
20 June 2022
Chartered Accountants
Statutory Auditor
7-9 The Avenue
Eastbourne
East Sussex
BN21 3YA
PAXTON ACCESS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
2021
2020
Notes
£
£
Turnover
3
55,752,754
45,096,360
Cost of sales
(25,169,790)
(19,736,768)
Gross profit
30,582,964
25,359,592
Administrative expenses
(26,645,259)
(24,079,557)
Other operating income
1,606,099
2,076,728
Operating profit
4
5,543,804
3,356,763
Interest payable and similar expenses
8
(25,033)
(36,278)
Profit before taxation
5,518,771
3,320,485
Tax on profit
9
(435,000)
19,000
Profit for the financial year
5,083,771
3,339,485
The income statement has been prepared on the basis that all operations are continuing operations.
PAXTON ACCESS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
31 December 2021
- 13 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
10
211,898
282,067
Tangible assets
11
1,799,619
2,260,801
2,011,517
2,542,868
Current assets
Stocks
12
7,250,610
4,424,208
Debtors falling due after more than one year
13
1,907,000
2,342,000
Debtors falling due within one year
13
20,107,367
12,831,230
Cash at bank and in hand
4,621,232
6,764,820
33,886,209
26,362,258
Creditors: amounts falling due within one year
14
(11,843,827)
(9,645,545)
Net current assets
22,042,382
16,716,713
Total assets less current liabilities
24,053,899
19,259,581
Creditors: amounts falling due after more than one year
15
(232,648)
(514,101)
Provisions for liabilities
Provisions
17
235,000
243,000
(235,000)
(243,000)
Net assets
23,586,251
18,502,480
Capital and reserves
Called up share capital
20
200,001
200,001
Profit and loss reserves
23,386,250
18,302,479
Total equity
23,586,251
18,502,480
The financial statements were approved by the board of directors and authorised for issue on 20 June 2022 and are signed on its behalf by:
A Brotherton-Ratcliffe
Director
Company Registration No. 01879474
PAXTON ACCESS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
200,001
14,962,994
15,162,995
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
3,339,485
3,339,485
Balance at 31 December 2020
200,001
18,302,479
18,502,480
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
5,083,771
5,083,771
Balance at 31 December 2021
200,001
23,386,250
23,586,251
PAXTON ACCESS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(1,465,318)
5,360,261
Interest paid
(25,033)
(36,278)
Net cash (outflow)/inflow from operating activities
(1,490,351)
5,323,983
Investing activities
Purchase of intangible assets
(55,173)
(105,824)
Purchase of tangible fixed assets
(326,190)
(177,598)
Net cash used in investing activities
(381,363)
(283,422)
Financing activities
Payment of finance leases obligations
(271,874)
(100,078)
Net cash used in financing activities
(271,874)
(100,078)
Net (decrease)/increase in cash and cash equivalents
(2,143,588)
4,940,483
Cash and cash equivalents at beginning of year
6,764,820
1,824,337
Cash and cash equivalents at end of year
4,621,232
6,764,820
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
1
Accounting policies
Company information
Paxton Access Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Paxton House, Home Farm Road, Brighton, East Sussex, BN1 9HU.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The impact of Covid-19 on the economy in 2020 and 2021 has raised uncertainties for all companies and Paxton is no different. Strategies have been put in place by the directors which have put the company in a stronger position than before and the directors are continuing to focus on the resilience of the company.
true
The company benefits from the support of its owners and financial resilience developed through working with key managerial stakeholders. A
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
.
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.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 17 -
Intangible assets comprise of product development costs. Such assets are considered to have a finite useful life and the costs are amortised on a reducing balance basis over their estimated useful life. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.
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:
Development Costs
33% reducing balance and 33% 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:
Freehold
No depreciation
Leasehold improvements
20% reducing balance and 20% straight line
Plant and machinery
20% reducing balance and 20%/33% straight line
Fixtures, fittings & equipment
20% reducing balance & 20%/25%/33% 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.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 18 -
The cost of stock is based on an average cost basis, where the actual cost of stock purchased to obtain the quantity held is identified and an average cost calculated.
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
Financial instruments are recognised in the company's statement of financial position 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.
Trade debtors
, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any 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.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 19 -
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.
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. 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.
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.
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
income statement
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.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 20 -
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
income statement
, 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.
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
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 21 -
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 lease
s
asset are consumed.
1.17
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.18
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at a fixed rate that is used as an approximation for the actual rate. The fixed rates used are reviewed periodically. All differences are taken to profit and loss account.
1.19
Related party transactions
The company has taken advantage of the exemption in Financial Reporting Standard
102
from disclosing transactions with other wholly owned subsidiaries of Paxton Access Group Limited.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
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
critical
judgments
which
have the most significant
impact
on amounts recognised in the financial statements
are as follows:
Stock provisioning
Provision is made where necessary for obsolete, slow moving and defective stocks. The directors review the level of the provision based on the level and condition of stock items and their knowledge of the business.
Warranty provisioning
The company provides a 5 year warranty on its products. A provision for expected warranty claims is calculated based on prior experience of levels of warranty claims incurred and future expectations.
Useful life of fixed assets
The directors estimate the expected useful lives of the company's fixed assets which in turn impacts on the amount of depreciation charged in the year.
Deferred Tax Asset
The directors estimate the amount of deferred tax that is likely to be recovered by the likely availability of future taxable profits.
Key sources of estimation uncertainty
In the opinion of the directors there are no estimates or assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Electronic access control systems
55,752,754
45,096,360
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
3
Turnover and other revenue
(Continued)
- 23 -
2021
2020
£
£
Other significant revenue
Grants received
64,912
1,503,409
Management fees receivable
1,288,072
550,000
Compensation for faulty goods
205,926
-
2021
2020
£
£
Turnover analysed by geographical market
UK
35,559,214
27,420,606
Europe
9,539,268
8,855,471
Rest of world
10,654,272
8,820,283
55,752,754
45,096,360
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
27,821
37,103
Research and development costs
505,010
587,081
Government grants
(64,912)
(1,503,409)
Management fees receivable
(1,288,072)
(550,000)
Compensation for faulty goods
(205,926)
-
Depreciation of owned tangible fixed assets
689,941
854,897
Loss on disposal of tangible fixed assets
97,431
218,144
Amortisation of intangible assets
116,146
117,148
Loss on disposal of intangible assets
9,196
11,680
Operating lease charges
1,950,705
1,132,601
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
28,350
26,000
For other services
Taxation compliance services
2,350
2,000
All other non-audit services
4,700
4,000
7,050
6,000
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 24 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Administration
211
227
Production
63
59
Cleaning
2
2
Total
276
288
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
11,961,469
11,451,370
Social security costs
1,292,575
1,343,505
Pension costs
1,304,755
1,131,495
14,558,799
13,926,370
Coronavirus Job Retention Scheme
Due to the ongoing Covid-19 pandemic, the company furloughed staff under the Government Job Retention Scheme.
For the year to 31 December 2021, the company was entitled to claim £64,912 (2020 - £1,503,409), all of which was received in the year.
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
2,407,129
1,821,744
Company pension contributions to defined contribution schemes
139,460
129,066
2,546,589
1,950,810
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2020 - 7).
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
7
Directors' remuneration
(Continued)
- 25 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
633,915
453,875
Company pension contributions to defined contribution schemes
16,973
15,655
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on finance leases and hire purchase contracts
22,748
32,327
Other interest on financial liabilities
2,285
3,951
25,033
36,278
9
Taxation
2021
2020
£
£
Deferred tax
Origination and reversal of timing differences
435,000
(19,000)
The actual charge/(credit) 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
5,518,771
3,320,485
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
1,048,566
630,892
Tax effect of expenses that are not deductible in determining taxable profit
5,128
22,575
Effect of change in corporation tax rate
(207,018)
(273,294)
Research and development tax credit
(411,676)
(399,173)
Taxation charge/(credit) for the year
435,000
(19,000)
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 26 -
10
Intangible fixed assets
Development Costs
£
Cost
At 1 January 2021
767,571
Additions - internally developed
55,173
Disposals
(114,067)
At 31 December 2021
708,677
Amortisation and impairment
At 1 January 2021
485,504
Amortisation charged for the year
116,146
Disposals
(104,871)
At 31 December 2021
496,779
Carrying amount
At 31 December 2021
211,898
At 31 December 2020
282,067
11
Tangible fixed assets
Freehold
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
£
Cost
At 1 January 2021
5,000
887,750
4,262,703
2,043,419
7,198,872
Additions
58,335
140,819
127,036
326,190
Disposals
(101,847)
(205,523)
(210,638)
(518,008)
At 31 December 2021
5,000
844,238
4,197,999
1,959,817
7,007,054
Depreciation and impairment
At 1 January 2021
596,333
2,695,192
1,646,546
4,938,071
Depreciation charged in the year
66,797
361,053
262,091
689,941
Eliminated in respect of disposals
(72,030)
(142,108)
(206,439)
(420,577)
At 31 December 2021
591,100
2,914,137
1,702,198
5,207,435
Carrying amount
At 31 December 2021
5,000
253,138
1,283,862
257,619
1,799,619
At 31 December 2020
5,000
291,417
1,567,511
396,873
2,260,801
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
11
Tangible fixed assets
(Continued)
- 27 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Plant and machinery
461,941
577,426
12
Stocks
2021
2020
£
£
Raw materials and consumables
158,456
129,061
Finished goods and goods for resale
7,092,154
4,295,147
7,250,610
4,424,208
13
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
13,657,541
8,192,463
Amounts owed by group undertakings
5,616,181
3,025,846
Other debtors
5,147
1,103,350
Prepayments and accrued income
828,498
509,571
20,107,367
12,831,230
2021
2020
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 18)
1,907,000
2,342,000
Total debtors
22,014,367
15,173,230
Trade debtors disclosed above are measured at amortised cost.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 28 -
14
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Obligations under finance leases
16
281,454
271,875
Trade creditors
9,529,279
6,661,967
Amounts owed to group undertakings
90,401
800,138
Taxation and social security
852,121
1,262,945
Accruals and deferred income
1,090,572
648,620
11,843,827
9,645,545
15
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Obligations under finance leases
16
232,648
514,101
16
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
281,454
271,875
In two to five years
232,648
514,101
514,102
785,976
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 60 months. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
Provisions for liabilities
2021
2020
£
£
Warranty repairs
235,000
243,000
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
17
Provisions for liabilities
(Continued)
- 29 -
Movements on provisions:
Warranty repairs
£
At 1 January 2021
243,000
Utilisation of provision
(8,000)
At 31 December 2021
235,000
The provision for warranty claims is a provision for future product costs arising in the normal course of business from prior year sales. The company provides a 5 year warranty on its products.
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
144,041
138,108
Tax losses
1,762,959
2,203,892
1,907,000
2,342,000
2021
Movements in the year:
£
Asset at 1 January 2021
(2,342,000)
Charge to profit or loss
435,000
Asset at 31 December 2021
(1,907,000)
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. It is estimated that approximately £625,000 of the deferred tax asset will reverse in the next 12 months.
Deferred tax balances have been measured at 21.25% (2020 - 19%).
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 30 -
19
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,304,755
1,131,495
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.
At the Balance Sheet date the company had a pension liability of £110,93
3 (2020 - £nil).
20
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200,001
200,001
200,001
200,001
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.
21
Operating lease commitments
Lessee
Operating lease payments consist of rentals payable by the company for motor vehicles and for payments to its parent company for its leasehold properties. The property leases are for a term of 10 years and motor vehicle leases are generally for a term of 3 years.
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
685,104
649,588
Between two and five years
924,186
1,275,865
In over five years
7,797
1,609,290
1,933,250
22
Related party transactions
Guarantees
The company has entered into an unlimited cross guarantee with other group companies such that it will guarantee the lending of those other group companies should they be unable to meet their liabilities as and when they fall due. At 31 December 20
2
1 the maximum potential exposure was £9,734,068
(2020 - £9
,
759
,
952). The company has also provided a guarantee of £300,000 to H M Revenue & Customs. No liability is expected to arise as a result of these arrangements.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 31 -
23
Ultimate controlling party
The parent company of Paxton Access Limited is
Paxton Access Group Limited
, a company incorporated in England and Wales and whose registered office is
Paxton House, Home Farm Road, Brighton, BN1 9HU
.
The ultimate controlling party is
A Brotherton
-
Ratcliffe
, a director of the company.
Paxton Access Group Limited
is the parent undertaking of the largest and smallest group to consolidate these financial statements. Copies of the accounts can be obtained from Companies House.
24
Cash (absorbed by)/generated from operations
2021
2020
£
£
Profit for the year after tax
5,083,771
3,339,485
Adjustments for:
Taxation charged/(credited)
435,000
(19,000)
Finance costs
25,033
36,278
Loss on disposal of tangible fixed assets
97,431
218,144
Loss on disposal of intangible assets
9,196
11,680
Amortisation and impairment of intangible assets
116,146
117,148
Depreciation and impairment of tangible fixed assets
689,941
854,897
Decrease in provisions
(8,000)
-
Movements in working capital:
(Increase)/decrease in stocks
(2,826,402)
35,033
(Increase)/decrease in debtors
(7,276,137)
207,974
Increase in creditors
2,188,703
558,622
Cash (absorbed by)/generated from operations
(1,465,318)
5,360,261
25
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
6,764,820
(2,143,588)
4,621,232
Obligations under finance leases
(785,976)
271,874
(514,102)
5,978,844
(1,871,714)
4,107,130
2021-12-31
2021-01-01
false
CCH Software
CCH Accounts Production 2022.100
A Brotherton-Ratcliffe
A Stroud
P Bannister
G O'Hara
V Parekh
P Rawlinson
N O'Donnell
S Brotherton-Ratcliffe
01879474
2021-01-01
2021-12-31
01879474
bus:Director1
2021-01-01
2021-12-31
01879474
bus:Director2
2021-01-01
2021-12-31
01879474
bus:Director3
2021-01-01
2021-12-31
01879474
bus:Director4
2021-01-01
2021-12-31
01879474
bus:Director5
2021-01-01
2021-12-31
01879474
bus:Director6
2021-01-01
2021-12-31
01879474
bus:Director9
2021-01-01
2021-12-31
01879474
bus:Director10
2021-01-01
2021-12-31
01879474
bus:Director7
2021-01-01
2021-12-31
01879474
bus:Director8
2021-01-01
2021-12-31
01879474
bus:RegisteredOffice
2021-01-01
2021-12-31
01879474
bus:Agent1
2021-01-01
2021-12-31
01879474
2021-12-31
01879474
2020-01-01
2020-12-31
01879474
dpl:Item1
2021-01-01
2021-12-31
01879474
dpl:Item1
2020-01-01
2020-12-31
01879474
dpl:Item2
2021-01-01
2021-12-31
01879474
dpl:Item2
2020-01-01
2020-12-31
01879474
dpl:Item3
2021-01-01
2021-12-31
01879474
dpl:Item3
2020-01-01
2020-12-31
01879474
core:RetainedEarningsAccumulatedLosses
2020-01-01
2020-12-31
01879474
core:RetainedEarningsAccumulatedLosses
2021-01-01
2021-12-31
01879474
core:OtherResidualIntangibleAssets
2021-12-31
01879474
core:OtherResidualIntangibleAssets
2020-12-31
01879474
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2021-12-31
01879474
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2020-12-31
01879474
2020-12-31
01879474
core:LandBuildings
core:OwnedOrFreeholdAssets
2021-12-31
01879474
core:LeaseholdImprovements
2021-12-31
01879474
core:PlantMachinery
2021-12-31
01879474
core:FurnitureFittings
2021-12-31
01879474
core:LandBuildings
core:OwnedOrFreeholdAssets
2020-12-31
01879474
core:LeaseholdImprovements
2020-12-31
01879474
core:PlantMachinery
2020-12-31
01879474
core:FurnitureFittings
2020-12-31
01879474
core:Non-currentFinancialInstruments
core:AfterOneYear
2021-12-31
01879474
core:Non-currentFinancialInstruments
core:AfterOneYear
2020-12-31
01879474
core:CurrentFinancialInstruments
core:WithinOneYear
2021-12-31
01879474
core:CurrentFinancialInstruments
core:WithinOneYear
2020-12-31
01879474
core:CurrentFinancialInstruments
2021-12-31
01879474
core:CurrentFinancialInstruments
2020-12-31
01879474
core:ShareCapital
2021-12-31
01879474
core:ShareCapital
2020-12-31
01879474
core:RetainedEarningsAccumulatedLosses
2021-12-31
01879474
core:RetainedEarningsAccumulatedLosses
2020-12-31
01879474
core:ShareCapital
2019-12-31
01879474
core:RetainedEarningsAccumulatedLosses
2019-12-31
01879474
2019-12-31
01879474
2020-12-31
01879474
core:IntangibleAssetsOtherThanGoodwill
2021-01-01
2021-12-31
01879474
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2021-01-01
2021-12-31
01879474
core:LandBuildings
core:OwnedOrFreeholdAssets
2021-01-01
2021-12-31
01879474
core:LeaseholdImprovements
2021-01-01
2021-12-31
01879474
core:PlantMachinery
2021-01-01
2021-12-31
01879474
core:FurnitureFittings
2021-01-01
2021-12-31
01879474
dpl:Item1
dpl:AdministrativeExpenses
2021-01-01
2021-12-31
01879474
dpl:Item1
dpl:AdministrativeExpenses
2020-01-01
2020-12-31
01879474
dpl:Item2
dpl:AdministrativeExpenses
2021-01-01
2021-12-31
01879474
dpl:Item2
dpl:AdministrativeExpenses
2020-01-01
2020-12-31
01879474
dpl:Item1
dpl:CostSales
2021-01-01
2021-12-31
01879474
dpl:Item2
dpl:CostSales
2020-01-01
2020-12-31
01879474
dpl:Item1
dpl:CostSales
2020-01-01
2020-12-31
01879474
core:UKTax
2021-01-01
2021-12-31
01879474
core:UKTax
2020-01-01
2020-12-31
01879474
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2020-12-31
01879474
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
core:InternallyGeneratedIntangibleAssets
2021-01-01
2021-12-31
01879474
core:LandBuildings
core:OwnedOrFreeholdAssets
2020-12-31
01879474
core:LeaseholdImprovements
2020-12-31
01879474
core:PlantMachinery
2020-12-31
01879474
core:FurnitureFittings
2020-12-31
01879474
core:Non-currentFinancialInstruments
2021-12-31
01879474
core:Non-currentFinancialInstruments
2020-12-31
01879474
core:WithinOneYear
2021-12-31
01879474
core:WithinOneYear
2020-12-31
01879474
core:BetweenTwoFiveYears
2021-12-31
01879474
core:BetweenTwoFiveYears
2020-12-31
01879474
core:MoreThanFiveYears
2021-12-31
01879474
core:MoreThanFiveYears
2020-12-31
01879474
dpl:Item1
dpl:CostSales
2020-12-31
01879474
dpl:Item1
dpl:CostSales
2019-12-31
01879474
dpl:Item2
dpl:CostSales
2021-12-31
01879474
dpl:Item2
dpl:CostSales
2020-12-31
01879474
bus:PrivateLimitedCompanyLtd
2021-01-01
2021-12-31
01879474
bus:FRS102
2021-01-01
2021-12-31
01879474
bus:Audited
2021-01-01
2021-12-31
01879474
bus:FullAccounts
2021-01-01
2021-12-31
xbrli:pure
xbrli:shares
iso4217:GBP