Company Registration No. 09189635 (England and Wales)
CLINICAL DESIGN TECHNOLOGIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
CLINICAL DESIGN TECHNOLOGIES LIMITED
CONTENTS
Page
Balance sheet
2 - 3
Statement of changes in equity
4
Notes to the financial statements
5 - 12
CLINICAL DESIGN TECHNOLOGIES LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr O Blackwell
Mr N S Sprague
Mr J M Tiley
Mr D D Severn
Mr D J Bee
(Appointed 25 July 2022)
Company number
09189635
Registered office
Wessex House
Teign Road
Newton Abbot
Devon
TQ12 4AA
Accountants
Darnells Chartered Accountants
Quay House
Quay Road
Newton Abbot
Devon
TQ12 2BU
Business address
Unit 6
Treloggan Trade Park
Newquay
Cornwall
TR7 2QL
CLINICAL DESIGN TECHNOLOGIES LIMITED
BALANCE SHEET
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
6
245,276
272,813
Tangible assets
5
621,667
778,536
866,943
1,051,349
Current assets
Stocks
73,656
12,620
Debtors
7
117,550
96,522
Cash at bank and in hand
512,489
308,379
703,695
417,521
Creditors: amounts falling due within one year
8
(232,171)
(161,106)
Net current assets
471,524
256,415
Total assets less current liabilities
1,338,467
1,307,764
Creditors: amounts falling due after more than one year
9
(808,784)
(426,872)
Net assets
529,683
880,892
Capital and reserves
Called up share capital
11
2,870
2,748
Share premium account
12
3,854,706
3,375,616
Profit and loss reserves
(3,327,893)
(2,497,472)
Total equity
529,683
880,892
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
CLINICAL DESIGN TECHNOLOGIES LIMITED
BALANCE SHEET (CONTINUED)
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 10 October 2023 and are signed on its behalf by:
Mr O Blackwell
Director
Company registration number 09189635 (England and Wales)
CLINICAL DESIGN TECHNOLOGIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
1,966
808,185
(145,638)
(664,513)
Year ended 30 June 2022:
Loss and total comprehensive income for the year
-
-
(554,092)
(554,092)
Issue of share capital
11
-
424,884
-
-
Balance at 30 June 2022
2,748
3,375,616
(2,497,472)
880,892
Year ended 30 June 2023:
Loss and total comprehensive income for the year
-
-
(830,421)
(830,421)
Issue of share capital
11
122
479,090
-
479,212
Balance at 30 June 2023
2,870
3,854,706
(3,327,893)
529,683
CLINICAL DESIGN TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -
1
Accounting policies
Company information
Clinical Design Technologies Limited is a private company limited by shares incorporated in England and Wales. The registered office is Teign Road, Newton Abbot, Devon, TQ12 4AA. The business address is Unit 6, Treloggan Trade Park, Newquay, Cornwall TR7 2QL.
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 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
Theses financial statements are prepared on a going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. The directors have prepared cash flow forecasts which cover a period of three years beyond the balance sheet date. The plan and the forecast contain certain assumptions about the scaling up of production and future sales with an increased level of gross margins which they hope to achieve. However, included in the assumptions is also an expectation of additional funding which has yet to be finalised. The plan identified the need to secure further funding to provide finance for both investment and for working capital purposes. true
The directors have been working very closely both with national and international investors for additional funding. It is noted that if this additional funding is not available, it would be unlikely that the company would be able to continue as a going concern. However, the additional funding will give the company sufficient funds to operate for a period of at least twelve months beyond the date of approval of the financial statements.
The directors are confident that the proposed investors will complete the deal but recognise these are uncertain times. Given the historical support that the company has enjoyed to date and the progress achieved in research and development, in setting up a production facility, in prototyping and testing of its core products and initial commercial sales, the directors are confident of being able to attract the required investment. The financial statements do not include any adjustments that would result if the company were not able to continue as a going concern.
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.
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.
CLINICAL DESIGN TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 6 -
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.
Where development expenditure is capitalised in accordance with the accounting policy on Research & Development expenditure, the expenditure is recognised at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
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
10% straight-line basis
Patents
10% straight-line basis
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:
Leasehold improvements
Over the length of the lease
Plant and machinery
Straight-line basis over 5 to 50 years
Fixtures, fittings & equipment
20% straight-line basis
Computer equipment
33% straight-line basis
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.
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.
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.
CLINICAL DESIGN TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 7 -
1.10
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 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.
1.11
Compound instruments
The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.
1.12
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.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
CLINICAL DESIGN TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 8 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
R&D expenditure credits are treated as a deduction from the current period tax charge or, if there is no tax charge, as a credit in the current reporting period
1.14
Employee benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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.
1.16
Government grants
Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment.
Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Cost of sales - direct project costs
In the comparative period, cost of sales related to the ongoing cost of putting the company and product in a position to generate future sales. It generally consisted of development costs. This year, cost of sales represents the purchase of goods and the stock movement. This reflects the transition of the company from development to production. Overheads previously included in cost of sales have been categorised as administrative costs this year as this more accurately reflects their nature.
2
Other operating income
Other operating income includes amounts received by way of government grants which have been credited to income in the year.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 8 (2022 - 5).
2023
2022
Number
Number
Total
8
5
CLINICAL DESIGN TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax recoverable as R&D expenditure credit
(78,003)
Adjustments in respect of R&D expenditure credit for prior period
(72,173)
(65,193)
Total current tax
(150,176)
(65,193)
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 July 2022
23,485
776,975
800,460
Additions
44,553
44,553
Disposals
(48,210)
(48,210)
At 30 June 2023
23,485
773,318
796,803
Depreciation and impairment
At 1 July 2022
3,540
18,384
21,924
Depreciation charged in the year
7,758
145,454
153,212
At 30 June 2023
11,298
163,838
175,136
Carrying amount
At 30 June 2023
12,187
609,480
621,667
At 30 June 2022
19,945
758,591
778,536
6
Intangible fixed assets
Development Costs
Patents
Total
£
£
£
Cost
At 1 July 2022 and 30 June 2023
300,493
7,907
308,400
Amortisation and impairment
At 1 July 2022
33,034
2,553
35,587
Amortisation charged for the year
26,746
791
27,537
At 30 June 2023
59,780
3,344
63,124
Carrying amount
At 30 June 2023
240,713
4,563
245,276
At 30 June 2022
267,459
5,354
272,813
CLINICAL DESIGN TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
495
101
Corporation tax recoverable
78,003
65,231
Other debtors
25,026
20,558
Prepayments and accrued income
14,026
10,632
117,550
96,522
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
65,315
24,494
Taxation and social security
27,086
12,088
Government grants
10
112,403
106,718
Other creditors
15,474
13,556
Accruals and deferred income
11,893
4,250
232,171
161,106
Included in other creditors are loans from the directors to the company of £11,180 (2022: £11,180) which are unsecured, interest free and repayable on demand.
9
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Convertible loans
500,000
Government grants
308,784
426,872
808,784
426,872
During the year the company issued £500,000 6% fixed rate unsecured convertible loan notes redeemable by 31 January 2026.
CLINICAL DESIGN TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
10
Government grants
2023
2022
£
£
Arising from government grants
421,187
533,590
Included in the financial statements as follows:
Current liabilities
112,403
106,718
Non-current liabilities
308,784
426,872
421,187
533,590
Government grants received in respect of capital expenditure are treated as deferred income and are released to the profit and loss account in equal instalments over the expected useful lives of the related assets.
11
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
21,010 Ordinary Shares of 10p each
2,250
2,193
2,830 A Ordinary shares of 10p each
610
545
100 Deferred shares of 1p each
10
10
2,870
2,748
The Ordinary shares and "A" Ordinary shares carry an equal right to vote and to a dividend. In the event of a capital distribution the "A" Ordinary shares have a right to a distribution before Ordinary shares and Deferred shares.
The Deferred shares do not carry a right to vote, nor an entitlement to a dividend. In the event of a capital distribution they rank behind the "A" Ordinary shares and behind the Ordinary shares.
No shares are redeemable.
12
Share premium account
2023
2022
£
£
At the beginning of the year
3,375,616
2,950,732
Issue of new shares
479,090
424,884
At the end of the year
3,854,706
3,375,616
The share premium account reflects the excess amount above the nominal value received for shares issued, less transaction costs.
CLINICAL DESIGN TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
13
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
£
£
37,714
61,662
14
Directors' transactions
During the year directors were paid consultancy fees totalling £14,000 (2022: £59,400).
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