REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
FOR |
COTTON MOUTON DIAGNOSTICS LTD |
REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
FOR |
COTTON MOUTON DIAGNOSTICS LTD |
COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
COTTON MOUTON DIAGNOSTICS LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
5 Ash Tree Court |
Woodsy Close |
Cardiff Gate Business Park |
Cardiff |
CF23 8RW |
COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496) |
BALANCE SHEET |
31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Stocks |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
7 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Share premium | 10 |
Retained earnings | 10 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496) |
BALANCE SHEET - continued |
31 DECEMBER 2021 |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | STATUTORY INFORMATION |
Cotton Mouton Diagnostics Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The presentation currency is £ sterling and the accounts are rounded to the nearest £. |
Going Concern |
In determining the appropriate basis of preparation of the financial statements, the directors are required to consider whether the company can continue in operational existence for the foreseeable future. |
The Company continues to be in the early stages of commercialising its technology and has, to date, been in the pre revenue phase of its development. Significant investment has been made in research, development and protection of the company's intellectual property with this investment being through both equity and grant funding. Further operating losses are anticipated in the future as this investment continues. |
As at 31 December 2021, the Company had a cash balance of £77,127. The Company's cash flow forecasts indicate that further cash funding will be required prior to the end of 2022. The directors believe that the required additional funding will be obtained based on the continuing good technical and commercial progress the Company is making. In the post year end period, significant additional capital has be obtained via further share issues and the company continues to be actively engaged in discussions with potential commercial partners. Therefore, the directors consider it appropriate to prepare the financial statements on the going concern basis. |
Turnover |
Turnover represents net invoiced sales of products, sundry costs and services, excluding value added tax, except in respect of service contracts where turnover is recognised when the company obtains the right to consideration. Income is recognised upon transfer of products and sundry costs and when and services have been provided to the customer and when the amount can be reliably measured and it is probable that the amount will be received. |
Tangible fixed assets |
Office equipment | - |
Lab equipment | - |
Fixtures and fittings | - |
COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Grants |
Grants received that relate to revenue and specific projects are recognised in other income over the period in which the related costs are incurred and project carried out. Grants related to expenses and covid-19 support are recognised in other income as the grant becomes receivable. Such grants occur as a re-imbursement for expenses already incurred and as a result of local authority and government covid-19 support measures. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all relevant, appropriate, significant and material timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. |
Financial instruments |
Basic financial liabilities are recognised at fair value and accounted for at amortised cost. The finance element of any financial liability is charged to the income statement in the year it relates. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
4. | TANGIBLE FIXED ASSETS |
Fixtures |
Office | Lab | and |
equipment | equipment | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2021 |
and 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Welsh government grant debtor | - | 14,513 |
R&D tax credits due |
VAT recoverable |
Prepayments |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade creditors |
Social security and other taxes |
Pension creditor |
Accruals |
COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Deferred management debt | 128,600 | 128,600 |
IUK continuity loan |
(due within 5 years) |
Floating rate loan notes 2026 |
(due within 5 years) | 51,200 | - |
IUK continuity loan |
(due after 5 years) | 30,764 | - |
Floating rate loan notes 2026 |
(due after 5 years) | - | 50,196 |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Floating rate loan notes 2026 |
(due after 5 years) |
Repayable by instalments |
IUK continuity loan |
(due after 5 years) | 30,764 | - |
30,764 | - |
The floating rate Loan Notes attract interest at 1.5% plus LIBOR are unsecured and are repayable in full in 2026. |
8. | SECURED DEBTS |
The following secured debts are included within creditors: |
2021 | 2020 |
£ | £ |
IUK continuity loan | 369,167 | - |
Deferred management debt | 128,600 | 128,600 |
The deferred management debt has a 9th January 2023 repayment date and is secured by a fixed and floating charge over the company. The IUK continuity loan has a repayment date of April 2027 and is secured by a fixed and floating charge over the company. |
COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
9. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal Value: | 2021 | 2020 |
£ | £ |
5,861,160 | Ordinary Shares | £0.0001 | 586 | 586 |
194,463 | B Ordinary Shares | £0.0001 | 19 | 19 |
8,741,978 | Preference Shares | £0.0001 | 874 | 874 |
3,703,704 | Preference A Ordinary Shares | £0.0135 | 50,000 | - |
51,479 | 1,479 |
3,703,704 Preference Ordinary A Shares of £0.0135 each were issued at par during the year. |
10. | RESERVES |
Share premium account |
The share premium account represents amounts raised on the initial allotment of share capital in excess of the nominal value of the shares issued. |
Retained earnings |
The retained earnings represents the accumulated profits, losses and distributions of the Company and in the previous year, adjustments required for present value discounting of relevant financial liabilities. |
11. | COMMITMENTS UNDER OPERATING LEASES |
2021 | 2020 |
£ | £ |
Total company commitments as at the balance sheet date | 69,278 | 131,607 |
12. | RELATED PARTY DISCLOSURES |
During the current and previous year, the company was in receipt of an interest free loan from some of its shareholders, (former) directors and key management in the form of deferred management debt. The amount outstanding at the year end and included within creditors falling due after more than one year is £128,600 (2020 - £128,600). |
13. | POST BALANCE SHEET EVENTS |
After the year end, but before the accounts were approved, the following relevant event occurred: |
- further shares were issued, resulting in £450,000 of new capital being raised |