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REGISTERED NUMBER: 10480941 (England and Wales)













Financial Statements

for the Year Ended 30 November 2022

for

Advanced Electric Machines Limited

Advanced Electric Machines Limited (Registered number: 10480941)






Contents of the Financial Statements
for the Year Ended 30 November 2022




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Advanced Electric Machines Limited

Company Information
for the Year Ended 30 November 2022







DIRECTORS: M N O'Neill
A Steven
J Widmer
M J Woodcock
C L Burgess



REGISTERED OFFICE: Teal House
10 Teal Farm Way
WASHINGTON
Tyne and Wear
NE38 8BG



REGISTERED NUMBER: 10480941 (England and Wales)



SENIOR STATUTORY AUDITOR: Kevin Shotton BA BFP FCA



AUDITORS: Clive Owen LLP
Chartered Accountants
& Statutory Auditors
140 Coniscliffe Road
Darlington
County Durham
DL3 7RT

Advanced Electric Machines Limited (Registered number: 10480941)

Balance Sheet
30 November 2022

2022 2021
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 17,227 15,977
Tangible assets 5 188,263 234,203
205,490 250,180

CURRENT ASSETS
Stocks 6 1,066,519 475,031
Debtors 7 2,519,418 1,999,111
Cash at bank 2,013,493 1,160,786
5,599,430 3,634,928
CREDITORS
Amounts falling due within one year 8 1,861,923 1,042,787
NET CURRENT ASSETS 3,737,507 2,592,141
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,942,997

2,842,321

CREDITORS
Amounts falling due after more than one
year

9

(1,897,018

)

(5,804,147

)

PROVISIONS FOR LIABILITIES 12 (64,193 ) -
NET ASSETS/(LIABILITIES) 1,981,786 (2,961,826 )

CAPITAL AND RESERVES
Called up share capital 13 238 17
Share premium 9,229,465 652,478
Other reserves 101,892 42,470
Retained earnings (7,349,809 ) (3,656,791 )
SHAREHOLDERS' FUNDS 1,981,786 (2,961,826 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 November 2023 and were signed on its behalf by:





J Widmer - Director


Advanced Electric Machines Limited (Registered number: 10480941)

Notes to the Financial Statements
for the Year Ended 30 November 2022

1. STATUTORY INFORMATION

Advanced Electric Machines Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.

Going concern
The directors assess whether the use of going concern is appropriate i.e. if there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The directors make this assessment in respect of a period of a least one year from the date the financial statements are approved.

The company has accumulated losses in operations to date, reflecting the investment in product development that has taken place in recent years. Management have prepared forecasts that show the company, with the support of the parent company can continue to meet its liabilities as they fall due as a result of the growth in commercial revenues, the equity investment in October 2023 and the ongoing grant funded development.

The financial statements are prepared on the going concern basis which assumes that the company will continue to trade. If the company is unable to continue to trade, adjustments would be required to reduce the value of the assets to their recoverable amounts, to provide for any further liabilities that might arise and to analyse long term liabilities as current liabilities.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is a combination of commercial income to private customers and grant funding towards development of the company's products.

Income recognition
Commercial income is recognised when goods have been delivered or made available to the customer or by reference to the stage of completion of services being rendered. Grant funding is recognised as costs are incurred in line with the scope of the agreed project.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is amortised over a period of 1-3 years depending on the individual assets estimated useful life.

Advanced Electric Machines Limited (Registered number: 10480941)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2022

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - 33.33% on cost
Plant and machinery - 33%-50%on cost
Computer equipment - 50% on cost and 33%-50%on cost

Government grants
Revenue based grants are matched with the expenditure as it is incurred.

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell.

Financial instruments
Basic financial instruments are recognised at amortised cost with changes recognised in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 profit or loss in the period to which they relate.

Advanced Electric Machines Limited (Registered number: 10480941)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2022

2. ACCOUNTING POLICIES - continued

Share options
Employees of the company receive remuneration in the form of share-based payments from the parent company, whereby employees render services as consideration for equity instruments.

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using the Black Scholes model.

That cost would be recognised as wages costs, together with a corresponding increase in equity, over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the parent company's best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit or loss for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the parent company's best estimate of the number of equity instruments that will ultimately vest.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 53 (2021 - 32 ) .

4. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 December 2021 48,056
Additions 15,600
At 30 November 2022 63,656
AMORTISATION
At 1 December 2021 32,079
Amortisation for year 14,350
At 30 November 2022 46,429
NET BOOK VALUE
At 30 November 2022 17,227
At 30 November 2021 15,977

Advanced Electric Machines Limited (Registered number: 10480941)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2022

5. TANGIBLE FIXED ASSETS
Long Plant and Computer
leasehold machinery equipment Totals
£    £    £    £   
COST
At 1 December 2021 127,471 301,365 105,627 534,463
Additions - 89,044 28,583 117,627
At 30 November 2022 127,471 390,409 134,210 652,090
DEPRECIATION
At 1 December 2021 102,514 154,623 43,123 300,260
Charge for year 17,110 106,881 39,576 163,567
At 30 November 2022 119,624 261,504 82,699 463,827
NET BOOK VALUE
At 30 November 2022 7,847 128,905 51,511 188,263
At 30 November 2021 24,957 146,742 62,504 234,203

6. STOCKS
2022 2021
£    £   
Stocks 1,066,519 432,304
Work-in-progress - 42,727
1,066,519 475,031

7. DEBTORS
2022 2021
£    £   
Amounts falling due within one year:
Trade debtors 1,417,204 492,817
Other debtors 516,147 393,786
Prepayments and accrued income 586,067 508,316
2,519,418 1,394,919

Amounts falling due after more than one year:
Amounts owed by group undertakings - 604,192

Aggregate amounts 2,519,418 1,999,111

Advanced Electric Machines Limited (Registered number: 10480941)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2022

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Other loans 73,688 51,843
Trade creditors 620,591 258,969
Taxation and social security 79,429 76,365
Other creditors 32,288 19,756
Accruals and deferred income 1,055,927 635,854
1,861,923 1,042,787

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2022 2021
£    £   
Other loans - 2-5 years 956,504 956,504
Amounts owed to group undertakings 940,514 4,847,643
1,897,018 5,804,147

10. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2022 2021
£    £   
Within one year 99,137 80,500
Between one and five years 6,876 98,000
106,013 178,500

11. SECURED DEBTS

The following secured debts are included within creditors:

2022 2021
£    £   
Other loans 956,504 956,504

Other loans are secured by a fixed and floating charge over the assets of the company and its fellow group companies.

12. PROVISIONS FOR LIABILITIES
2022 2021
£    £   
Other provisions
Warranty provisions 64,193 -

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £    £   
1,684 Ordinary £0.01 238 17

Advanced Electric Machines Limited (Registered number: 10480941)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2022

13. CALLED UP SHARE CAPITAL - continued

During the year 221 shares were issues at a premium of £8,576,987.

14. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Kevin Shotton BA BFP FCA (Senior Statutory Auditor)
for and on behalf of Clive Owen LLP

15. ULTIMATE CONTROLLING PARTY

The ultimate parent company is Advanced Electric Machines Group Ltd. The registered office is Teal House, 10 Teal Farm Way, Washington, Tyne and Wear, NE38 8BG.

16. SHARE OPTIONS

The company operates an EMI scheme under which share options have been granted to certain key individuals. Of the options, one scheme vests after 3 years and is exercisable at the next eligible event, the other option scheme vests equally at the end of the first 3 years and cannot be exercised until 12 months after the issued date. In addition, employees must have remained in employment. Share options are to be settled through equity. There is no cash-based alternative.

The fair value recognised in the accounts for the year ended 30 November 2022 was £59,422.

Movements during the year
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during the year:
2022202220212021
NumberWAEPNumberWAEP
£   £   
Balance brought forward96,4528.92--
Granted during the period24,1628.92103,3118.92
Forfeighted during the period(14,864)8.92(6,859)8.92
Exercise during the period----
Expired during the period----
Balance carried forward105,7508.9296,4528.92
Exercisable----