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Registration number: 02112385

PCS Instruments Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2023

 

PCS Instruments Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 24

 

PCS Instruments Limited

Company Information

Directors

Dr John Michael Hutchinson

Dr John Clive Hamer

Steven Horder

Dr Nigel Baker

Registered office

78 Stanley Gardens
Acton
LONDON
W3 7SZ

Auditors

Just Audit & Assurance Ltd
37 Market Square
Witney
Oxfordshire
OX28 6RE

 

PCS Instruments Limited

Strategic Report for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

Principal activity

The principal activity of the company is the design and manufacture of the equipment for measuring the tribological properties of fuels, lubricants, foods and cosmetics.

Fair review of the business

The company continues to invest heavily in research and development, directed both to improving existing products and developing new ones.

Another new product is currently being brought to the market.

Principal risks and uncertainties

The company has made progress in developing and positioning products for new markets. It is important that this work continues so that the company reduces its dependency on the fuels and lubricants sectors.

The company continues to sell products worldwide so the directors consider the downturn in any one geographical area would have limited impact.

Approved and authorised by the Board on 23 August 2023 and signed on its behalf by:
 

.........................................
Dr John Clive Hamer
Director

 

PCS Instruments Limited

Directors' Report for the Year Ended 31 March 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors of the company

The directors who held office during the year were as follows:

Dr John Michael Hutchinson

Dr John Clive Hamer

Steven Horder (appointed 14 October 2022)

Dr Nigel Baker (appointed 14 October 2022)

Future developments

The rapid development of electric vehicle technology poses many challenges for the lubricants industry. The company's products can be used to address many of these challenges and thus the directors feel that a widespread move to EVs would have a neutral or positive effect on the business.

Research and development

The company is actively engaged in Research and Development both on existing instruments and on new developments. The directors anticipate that this work will lead to products able to be targeted at new markets.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Just Audit & Assurance Ltd are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 23 August 2023 and signed on its behalf by:
 

.........................................
Dr John Clive Hamer
Director

 

PCS Instruments Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

PCS Instruments Limited

Independent Auditor's Report to the Members of PCS Instruments Limited

Opinion

We have audited the financial statements of PCS Instruments Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 March 2023 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.

Basis for opinion

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 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 director's 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 original financial statements were 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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

PCS Instruments Limited

Independent Auditor's Report to the Members of PCS Instruments Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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 directors' 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 Statement of Directors' Responsibilities [set out on page 4], 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

PCS Instruments Limited

Independent Auditor's Report to the Members of PCS Instruments Limited

Our assessment focused on key laws and regulations the company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation.

We are not responsible for preventing irregularities. Our approach to detect irregularities included, but was not limited to, the following:

• obtaining an understanding of the entity’s policies and procedures and how the entity has complied with these, through discussions and sample testing of controls;
• obtaining an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;
• an understanding of the entity’s risk assessment process, including the risk of fraud;
• designing our audit procedures to respond to our risk assessment; and
• performing audit work over the risk of management override of controls including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing estimates for bias.

Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

Because of the inherent limitations 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. This 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 also 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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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.

......................................
Jonathan M Russell (Senior Statutory Auditor)
For and on behalf of Just Audit & Assurance Ltd, Statutory Auditor

37 Market Square
Witney
Oxfordshire
OX28 6RE

25 August 2023

 

PCS Instruments Limited

Profit and Loss Account for the Year Ended 31 March 2023

Note

2023
£

2022
£

Turnover

3

10,198,464

7,552,337

Cost of sales

 

(4,200,811)

(3,073,987)

Gross profit

 

5,997,653

4,478,350

Administrative expenses

 

(3,181,216)

(2,446,589)

Other operating income

4

78

250

Operating profit

5

2,816,515

2,032,011

Other interest receivable and similar income

6

81,469

5,250

Interest payable and similar expenses

7

69,668

7,234

   

151,137

12,484

Profit before tax

 

2,967,652

2,044,495

Tax on profit

11

(155,625)

(5,386)

Profit for the financial year

 

2,812,027

2,039,109

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

PCS Instruments Limited

Statement of Comprehensive Income for the Year Ended 31 March 2023

2023
£

2022
£

Profit for the year

2,812,027

2,039,109

Total comprehensive income for the year

2,812,027

2,039,109

 

PCS Instruments Limited

(Registration number: 02112385)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

9,557,857

8,777,094

Tangible assets

13

1,035,027

1,022,272

Investments

14

-

150

 

10,592,884

9,799,516

Current assets

 

Stocks

15

2,434,717

1,730,845

Debtors

16

1,779,904

1,704,431

Cash at bank and in hand

 

7,597,714

6,663,906

 

11,812,335

10,099,182

Creditors: Amounts falling due within one year

18

(1,550,898)

(2,011,485)

Net current assets

 

10,261,437

8,087,697

Total assets less current liabilities

 

20,854,321

17,887,213

Provisions for liabilities

19

(1,823,013)

(1,667,932)

Net assets

 

19,031,308

16,219,281

Capital and reserves

 

Called up share capital

21

2,115

2,115

Capital redemption reserve

235

235

Retained earnings

19,028,958

16,216,931

Shareholders' funds

 

19,031,308

16,219,281

Approved and authorised by the Board on 23 August 2023 and signed on its behalf by:
 

.........................................
Dr John Michael Hutchinson
Director

 

PCS Instruments Limited

Statement of Changes in Equity for the Year Ended 31 March 2023

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 April 2022

2,115

235

16,216,931

16,219,281

Profit for the year

-

-

2,812,027

2,812,027

New share capital subscribed

2,115

-

-

2,115

Other share capital movements

(2,115)

-

-

(2,115)

At 31 March 2023

2,115

235

19,028,958

19,031,308



 

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 April 2021

2,115

235

15,184,562

15,186,912

Profit for the year

-

-

2,039,109

2,039,109

Dividends

-

-

(1,006,740)

(1,006,740)

At 31 March 2022

2,115

235

16,216,931

16,219,281

 

PCS Instruments Limited

Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

2,812,027

2,039,109

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

365,274

277,710

Profit from disposals of investments

(99,850)

-

Finance income

6

(81,469)

(5,250)

Finance costs

7

-

333

Income tax expense

11

155,625

5,386

 

3,151,607

2,317,288

Working capital adjustments

 

Increase in stocks

15

(703,872)

(309,698)

Increase in trade debtors

16

(308,658)

(377,864)

(Decrease)/increase in trade creditors

18

(461,130)

949,076

Cash generated from operations

 

1,677,947

2,578,802

Income taxes received/(paid)

11

233,185

(176,126)

Net cash flow from operating activities

 

1,911,132

2,402,676

Cash flows from investing activities

 

Interest received

6

81,469

5,250

Acquisitions of tangible assets

(109,141)

(23,798)

Proceeds from sale of tangible assets

 

-

1

Acquisition of intangible assets

12

(1,049,652)

(1,496,793)

Proceeds from disposal of investments in joint ventures and associates

 

100,000

-

Net cash flows from investing activities

 

(977,324)

(1,515,340)

Cash flows from financing activities

 

Interest paid

7

-

(333)

Dividends paid

22

-

(1,006,740)

Net cash flows from financing activities

 

-

(1,007,073)

Net increase/(decrease) in cash and cash equivalents

 

933,808

(119,737)

Cash and cash equivalents at 1 April

 

6,663,906

6,783,643

Cash and cash equivalents at 31 March

 

7,597,714

6,663,906

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
78 Stanley Gardens
Acton
LONDON
W3 7SZ

These financial statements were authorised for issue by the Board on 23 August 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold buildings

3.33% per annum of cost

Office equipment and furniture

20% per annum of cost

Laboratory equipment

10% per annum of cost

Computer equipment

33% per annum of cost

Integral features

10% per annum of cost

Motor vehicles

25% per annum of cost

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Intangible assets

Capitalised development costs, patents and trademarks are appraised each year by the directors and are amortised over their expected life once in production. The life expectancy of products is also reviewed annually. At the point the asset is no longer being commercially exploited the asset is deemed to have been disposed of at nil value.

Expenditure on securing patents for instrumentation devices is capitalised and when the patent is granted it is written off over the estimated commercial life of the product; this is estimated to be twenty years. Trademarks expenditure has the same accounting treatment but the amortisation will be over ten years,

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Development costs

10% per annum of cost

Patents

5% per annum of cost

Trademarks

10% per annum of cost

Investments

Investments are stated at cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

The directors review their debtors on a regular basis and provision is made for any doubtful debts accordingly.

Stocks

Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Dividends

Dividend distribution to the company’s shareholders is recognised as paid.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Sale of goods and services

10,198,464

7,552,337



 

The analysis of the company's turnover for the year by market is as follows:

2023
 £

2022
 £

UK

1,048,832

1,263,436

Europe

1,821,782

1,267,068

Rest of world

7,327,850

5,021,833

10,198,464

7,552,337

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
 £

2022
 £

Miscellaneous other operating income

78

250

5

Operating profit

Arrived at after charging/(crediting)

2023
 £

2022
 £

Amortisation expense

268,889

200,072

Depreciation expense

96,385

77,638

Research and development cost

9,196

15,100

Pension costs

167,843

140,748

(Gain) loss from disposal of investments

(99,850)

-

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

6

Other interest receivable and similar income

2023
 £

2022
 £

Interest income on bank deposits

81,469

5,250

7

Interest payable and similar expenses

2023
 £

2022
 £

Interest expense on other finance liabilities

-

333

Foreign exchange gains/losses

(69,668)

(7,567)

(69,668)

(7,234)

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

2,430,970

2,341,384

Social security costs

303,798

305,400

Other short-term employee benefits

11,952

23,911

Pension costs, defined contribution scheme

177,010

140,748

Other employee expense

37,518

8,608

2,961,248

2,820,051

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Production

5

5

Administration and support

7

5

Research and development

8

8

Sales, marketing and distribution

3

3

23

21

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

1,231,954

1,440,000

Contributions paid to money purchase schemes

9,167

-

Directors amount under long term incentive schemes in respect of qualifying services

153,813

-

1,394,934

1,440,000

In respect of the highest paid director:

2023
 £

2022
 £

Remuneration

479,436

720,000

10

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

6,500

6,000


 

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

11

Taxation

Tax charged/(credited) in the income statement

2023
 £

2022
 £

Current taxation

UK corporation tax

544

(233,185)

Deferred taxation

Arising from origination and reversal of timing differences

155,081

238,571

Tax expense in the income statement

155,625

5,386

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

2,967,652

2,044,495

Corporation tax at standard rate

563,854

388,454

Effect of expense not deductible in determining taxable profit (tax loss)

59,486

34,492

Decrease from effect of tax incentives

(165,027)

(22,494)

Tax increase from effect of capital allowances and depreciation

147,537

247,395

Tax decrease from effect of adjustment in research and development tax credit

(450,225)

(642,461)

Total tax charge

155,625

5,386

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Origination and reversal of timing differences

-

1,820,830

-

1,820,830

2022

Asset
£

Liability
£

Origination and reversal of timing differences

-

1,667,932

-

1,667,932

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

12

Intangible assets

Patents
 £

Trademarks
 £

Development costs
 £

Total
£

Cost or valuation

At 1 April 2022

115,449

68,033

11,252,844

11,436,326

Additions

9,364

10,025

1,030,263

1,049,652

At 31 March 2023

124,813

78,058

12,283,107

12,485,978

Amortisation

At 1 April 2022

32,176

26,876

2,600,180

2,659,232

Amortisation charge

4,830

7,806

256,253

268,889

At 31 March 2023

37,006

34,682

2,856,433

2,928,121

Carrying amount

At 31 March 2023

87,807

43,376

9,426,674

9,557,857

At 31 March 2022

83,273

41,157

8,652,664

8,777,094

The aggregate amount of research and development expenditure recognised as an expense during the period is £9,196 (2022 - £15,100).
 

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

13

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 April 2022

1,380,996

133,731

54,458

474,552

2,043,737

Additions

-

39,624

-

69,517

109,141

At 31 March 2023

1,380,996

173,355

54,458

544,069

2,152,878

Depreciation

At 1 April 2022

495,513

120,478

16,786

388,688

1,021,465

Charge for the year

28,344

13,973

13,615

40,454

96,386

At 31 March 2023

523,857

134,451

30,401

429,142

1,117,851

Carrying amount

At 31 March 2023

857,139

38,904

24,057

114,927

1,035,027

At 31 March 2022

885,483

13,253

37,672

85,864

1,022,272

Included within the net book value of land and buildings above is £857,139 (2022 - £885,483) in respect of freehold land and buildings.
 

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

14

Investments

2023
 £

2022
 £

Investments in associates

-

150

Associates

£

Cost

At 1 April 2022

150

Disposals

(150)

At 31 March 2023

-

Provision

Carrying amount

At 31 March 2023

-

At 31 March 2022

150

15

Stocks

2023
 £

2022
 £

Finished goods and goods for resale

2,434,717

1,730,845

16

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

1,360,108

1,256,406

Other debtors

 

308,440

173,018

Prepayments

 

111,356

41,822

Income tax asset

11

-

233,185

   

1,779,904

1,704,431

17

Cash and cash equivalents

2023
 £

2022
 £

Cash at bank

7,597,714

6,663,906

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

18

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

612,583

339,001

Amounts due to related parties

1,830

1,006,791

Social security and other taxes

 

72,440

103,766

Other payables

 

667,034

510,459

Accrued expenses

 

196,467

51,468

Income tax liability

11

544

-

 

1,550,898

2,011,485

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 April 2022

1,667,932

1,667,932

Increase (decrease) in existing provisions

155,081

155,081

At 31 March 2023

1,823,013

1,823,013

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £177,010 (2022 - £140,748).

 

PCS Instruments Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £0.25 each

-

-

8,460

2,115

Ordinary A of £0.25 (2022 - £0) each

4,230

1,058

-

-

Ordinary B of £0.25 (2022 - £0) each

4,230

1,058

-

-

 

8,460

2,115

8,460

2,115

New shares allotted

During the year 4,230 Ordinary A having an aggregate nominal value of £1,058 were allotted for an aggregate consideration of £1,058. This reflects a change of share class further to revised Memorandum and Articles of Association.

During the year 4,230 Ordinary B having an aggregate nominal value of £1,058 were allotted for an aggregate consideration of £1,058. This reflects a change of share class further to revised Memorandum and Articles of Association.

22

Dividends

   

2023

 

2022

   

£

 

£

Interim dividend of £Nil (2022 - £119.00) per ordinary share

 

-

 

1,006,740