Company No: SC704425 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	31.07.2022
		£
Fixed assets
Tangible assets	3	130,167
		130,167
Current assets
Debtors	4	1,258,276
Cash at bank and in hand		982,452
		2,240,728
Creditors: amounts falling due within one year	5	( 830,675)
Net current assets		1,410,053
Total assets less current liabilities		1,540,220
Creditors: amounts falling due after more than one year	6	( 38,745)
Provision for liabilities	7	( 32,099)
Net assets		1,469,376
Capital and reserves
Called-up share capital	8	1,000
Share premium account		159,050
Profit and loss account		1,309,326
Total shareholders' funds		1,469,376

For the financial period ending 31 July 2022 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial period in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Phoenix Decom Ltd (registered number: SC704425) were approved and authorised for issue by the Director on 13 April 2023. They were signed on its behalf by:

Henry John Lints Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial period, unless otherwise stated.

General information and basis of accounting

Phoenix Decom Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is Unit G5 Enterprise Centre, Aberdeen Energy Park, Exploration Drive, Bridge Of Don, Aberdeen, AB23 8GX, Scotland, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Reporting period length

These financial statements represent a period from incorporation, 19 July 2021 to 31 July 2022.

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.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery etc.

6 - 10 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Non-financial assets
At each balance sheet date, the company reviews 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). The recoverable amount of an asset is the higher of its fair value less costs to sell and its 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. 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. 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.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, with original maturities of three months or less.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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 assets
Basic financial assets, which include debtors and cash and bank balances are measured at transaction price including transaction costs.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are recognised at transaction price.

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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) 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 Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Employees

	Period from 19.07.2021 to 31.07.2022
	Number
Monthly average number of persons employed by the Company during the period, including directors	10

3. Tangible assets

	Plant and machinery etc.		Total
	£		£
Cost
At 19 July 2021	0		0
Additions	141,178		141,178
At 31 July 2022	141,178		141,178
Accumulated depreciation
At 19 July 2021	0		0
Charge for the financial period	11,011		11,011
At 31 July 2022	11,011		11,011
Net book value
At 31 July 2022	130,167		130,167

4. Debtors

	31.07.2022
	£
Trade debtors	470,435
Other debtors	787,841
	1,258,276

5. Creditors: amounts falling due within one year

	31.07.2022
	£
Bank loans	22,337
Trade creditors	221,933
Corporation tax	248,632
Other taxation and social security	243,238
Other creditors	94,535
	830,675

The bank loan is secured by a floating charge over all the assets of the company.

6. Creditors: amounts falling due after more than one year

	31.07.2022
	£
Bank loans	38,745

The bank loan is secured by a floating charge over all the assets of the company.

7. Deferred tax

	31.07.2022
	£
At the beginning of financial period	0
Charged to the Statement of Income and Retained Earnings	( 32,099)
At the end of financial period	( 32,099)

8. Called-up share capital

	31.07.2022
	£
Allotted, called-up and fully-paid
100,000 Ordinary shares of £ 0.01 each	1,000

During the year 100,000 1p Ordinary Shares were issued and share premium of £159,050 was recognised accordingly.

9. Financial commitments

Commitments

	31.07.2022
	£
Total future minimum lease payments under non-cancellable operating lease	34,542

10. Related party transactions

Transactions with the entity's directors

During the period, the Company received a loan of £40,000 from a director. As at 31 July 2022, the balance due to the director was £nil. This loan had no fixed terms of repayment in place and loan interest of 7.5% was applied.

11. Events after the Balance Sheet date

Post year end the company declared and paid a final dividend of £300,000 to the shareholders.