Company registration number 03711442 (England and Wales)
Reginox UK Limited
financial statements
For the year ended 31 December 2023
Reginox UK Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
Reginox UK Limited
Statement of financial position
As at 31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
515,904
522,781
Current assets
Stocks
940,714
752,708
Debtors
4
862,404
1,285,190
Cash at bank and in hand
735,140
450,652
2,538,258
2,488,550
Creditors: amounts falling due within one year
5
(962,138)
(907,747)
Net current assets
1,576,120
1,580,803
Total assets less current liabilities
2,092,024
2,103,584
Creditors: amounts falling due after more than one year
6
(433,496)
(487,768)
Net assets
1,658,528
1,615,816
Capital and reserves
Called up share capital
101
101
Share premium account
2,214,456
2,214,456
Profit and loss reserves
(556,029)
(598,741)
Total equity
1,658,528
1,615,816
The director of the company has elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 12 March 2024
Mr G Smit
Director
Company Registration No. 03711442
Reginox UK Limited
Notes to the financial statements
For the year ended 31 December 2023
- 2 -
1
Accounting policies
Company information
Reginox UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units 1 - 4, Radnor Park Industrial Estate, Back Lane, Congleton, Cheshire, CW12 4XJ.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements cover the company as an individual enity and are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The performance of the company has continued to improve for some years and the company is expected to make profits in the coming years and will return to a positive P&L reserves position.
Reginox B.V. have agreed to fully support Reginox UK Limited financially and will not seek repayment of the loans due to them beyond that of which Reginox UK Limited can afford to repay, or reduce the terms of the trade credit arrangements between them.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch 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
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.
Reginox UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 3 -
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 land and buildings
2% on cost
Property improvements
2% on cost
Plant and equipment
33.33% on cost
Fixtures and fittings
33.33% on cost
Motor vehicles
40% on reducing balance
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.
Tangible fixed assets under the cost model are stated at historical cost (or deemed cost) less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
1.5
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.
1.6
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.
Reginox UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
Cost is calculated using the first-in, first-out formula. 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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.8
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 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.
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 and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
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.
Reginox UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 5 -
1.10
Taxation
The tax expense represents the sum of the tax currently payable, and deferred tax if applicable.
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.
1.11
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.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
19
20
Reginox UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 6 -
3
Tangible fixed assets
Freehold land and buildings
Property improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
541,766
135,813
36,823
154,160
110,927
979,489
Additions
11,908
2,265
53,000
67,173
Disposals
(880)
(29,995)
(30,875)
At 31 December 2023
541,766
147,721
36,823
155,545
133,932
1,015,787
Depreciation and impairment
At 1 January 2023
225,757
11,769
20,109
138,772
60,301
456,708
Depreciation charged in the year
10,835
2,862
6,296
9,254
38,053
67,300
Eliminated in respect of disposals
(880)
(23,245)
(24,125)
At 31 December 2023
236,592
14,631
26,405
147,146
75,109
499,883
Carrying amount
At 31 December 2023
305,174
133,090
10,418
8,399
58,823
515,904
At 31 December 2022
316,009
124,044
16,714
15,388
50,626
522,781
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
775,251
1,172,551
Other debtors
87,153
112,639
862,404
1,285,190
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
546,579
382,291
Amounts owed to group undertakings
43,350
44,434
Corporation tax
25,270
19,593
Other taxation and social security
201,155
261,185
Other creditors
145,784
200,244
962,138
907,747
Reginox UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 7 -
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
433,496
487,768
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
260,098
310,398
7
Secured debts
The following secured debts are included within creditors: Loan from Reginox BV for £476,846 (2022: £532,202).
A loan of €550,000 (2022: €600,000) is owed to Reginox BV, the parent company. This amount has been translated at the year end to £476,846 (2022: £532,202) and is repayable over 15 years. The loan is secured over the land & buildings and all other assets of the company (including fixed assets, debtors, stock and cash).
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Christopher Abbott FCA
Statutory Auditor:
DJH Mitten Clarke Audit Limited
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
13,201
19,334
10
Capital commitments
During the year the company committed to completing installation of IT software. The committed value of completion at the year end was £2,500.
Reginox UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 8 -
11
Related party disclosures
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
12
Parent company
The parent company preparing consolidated accounts is Reginox BV, registered at Noordermorssingel 2, 7461 JN, Rijssen, The Netherlands.
The ultimate controlling party is Mr W. Ter Steege , who controlled the company by virtue of a controlling interest of 100% of the issued share capital of the ultimate parent company, Supercom BV.