Company No:
Contents
DIRECTORS | Mr B Carolin |
Mr A B Conjour | |
Mr D G Gould | |
Ms R H Gould | |
Mr W R Hobbs | |
Mr M L Holloway | |
Mr M C McNabb |
REGISTERED OFFICE | 17 Apple Lane Sowton Industrial Estate |
Exeter | |
EX2 5GL | |
United Kingdom |
COMPANY NUMBER | 07621889 (England and Wales) |
CHARTERED ACCOUNTANTS | Francis Clark LLP |
Centenary House | |
Peninsula Park | |
Rydon Lane | |
Exeter | |
Devon EX2 7XE |
Note | 2023 | 2022 | ||
£ | £ | |||
Fixed assets | ||||
Intangible assets | 3 |
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Tangible assets | 4 |
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297,567 | 387,118 | |||
Current assets | ||||
Stocks | 5 |
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Debtors | 6 |
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Cash at bank and in hand |
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5,614,734 | 6,700,605 | |||
Creditors: amounts falling due within one year | 7 | (
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Net current assets | 3,524,348 | 5,811,385 | ||
Total assets less current liabilities | 3,821,915 | 6,198,503 | ||
Creditors: amounts falling due after more than one year | 8 | (
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Net assets |
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Capital and reserves | ||||
Called-up share capital | 9 |
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Share premium account |
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Profit and loss account | (
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Total shareholders' funds |
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Directors' responsibilities:
The financial statements of Degould Limited (registered number:
Mr M L Holloway
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Degould Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office and the principal place of business is 17 Apple Lane, Sowton Industrial Estate, Exeter, EX2 5GL, 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. There are no material departures from FRS 102.
The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.
The company remains in an investment and development phase and requires additional finance to enable it to continue operating as a going concern for the foreseeable future.
The company is progressing fundraising conversations with new and existing shareholders with a view to raising additional capital which is expected, based on cash flow forecasts which management consider to be reasonable and prudent, to be sufficient to enable the company to continue operating as a going concern for a period of greater than twelve months from the date of approval of these financial statements.
The Board are confident that the company will be successful in raising the capital outlined above but recognise that this is inherently uncertain and risk remains. Absent to a significant capital injection the company would not be able to continue operating as a going concern for a period of twelve months.
Accordingly, the directors consider it appropriate to prepare the financial statements on a going concern basis but recognise that the need to raise finance represents a material uncertainty that may cast significant doubt on the ability of the company to continue as a going concern.
Turnover on the sale of image capture booths is recognised on receipt of the booth by the customer.
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 tax rates and laws substantively enacted at the balance sheet date. Deferred tax assets and liabilities are not discounted.
Patents and licenses have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation:
Amortisation is provided on intangible assets so as to write off the cost of assets other than those under development, less any estimated residual value, over their useful life as follows:
Computer software |
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Leasehold improvements |
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Plant and machinery |
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Vehicles |
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Fixtures and fittings |
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Computer equipment |
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Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
The cost of finished foods and work in progress 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. At each reporting date, stocks are assessed for impairment, If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Assets sold on contract are retained in stock and recognised over the period of the contract.
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.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
During the year the company received grants of £284,622 (2022: £278,654) from Innovate UK in relation to innovative product development.
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.
2023 | 2022 | ||
Number | Number | ||
Monthly average number of persons employed by the Company during the year, including directors |
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Computer software | Total | ||
£ | £ | ||
Cost | |||
At 01 June 2022 |
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At 31 May 2023 |
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Accumulated amortisation | |||
At 01 June 2022 |
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Charge for the financial year |
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At 31 May 2023 |
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Net book value | |||
At 31 May 2023 |
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At 31 May 2022 |
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Leasehold improve- ments |
Plant and machinery | Vehicles | Fixtures and fittings | Computer equipment | Total | ||||||
£ | £ | £ | £ | £ | £ | ||||||
Cost | |||||||||||
At 01 June 2022 |
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Additions |
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Disposals |
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At 31 May 2023 |
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Accumulated depreciation | |||||||||||
At 01 June 2022 |
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Charge for the financial year |
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Disposals |
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At 31 May 2023 |
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Net book value | |||||||||||
At 31 May 2023 |
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At 31 May 2022 |
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2023 | 2022 | ||
£ | £ | ||
Stocks |
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Work in progress |
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Finished goods |
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2023 | 2022 | ||
£ | £ | ||
Trade debtors |
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Prepayments |
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VAT recoverable |
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Corporation tax |
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Other debtors |
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2023 | 2022 | ||
£ | £ | ||
Trade creditors |
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Amounts owed to directors |
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Other loans |
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Accruals and deferred income |
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Other taxation and social security |
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Obligations under finance leases and hire purchase contracts (secured) |
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Other creditors |
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2023 | 2022 | ||
£ | £ | ||
Other loans (secured) |
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2023 | 2022 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
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277.49 | 277.49 | ||
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188.26 | 188.26 | ||
465.75 | 465.75 |
The Ordinary and Ordinary A shares carry voting rights, rights to dividends and rank equally. In the event of an exit on or prior to 10 July 2025, the holders of the Ordinary A shares shall receive the higher of i) twice the amount paid up on their shares or ii) their proportion of the sale proceeds. In the event of an exit post 10 July 2025, the holders of the Ordinary A shares shall receive the higher of i) the amount paid up on their shares or ii) their proportion of the sale proceeds.
Preference B and Preference C Shares:
Preference B shares and Preference C shares carry voting rights, right to dividend payments or any other distribution and right to participate in a distribution arising from a winding up of the company. The shares are non-redeemable.
The company has a share option scheme in which four employees participate: The Degould Limited Enterprise Management Incentive Share Options Plan set up in October 2017. Under the EMI scheme, the company has granted an EMI option over 'Ordinary' shares in the company. Exercise is only possible should certain performance conditions be achieved. During the year the directors granted additional options to the employees. Options are granted over 249,325 shares with an exercise price of £0.0001 per share at the date of the grant and an expiry date of October 2027.
Commitments
Capital commitments are as follows:
2023 | 2022 | ||
£ | £ | ||
Contracted for but not provided for: | |||
finance leases entered into |
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The above financial commitments are not included in the balance sheet is £180,000 (2022 - £265,517)