REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 30 November 2022 |
for |
Advanced Electric Machines Limited |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
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 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks | 6 |
Debtors | 7 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
9 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 12 | ( |
) |
NET ASSETS/(LIABILITIES) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Share premium |
Other reserves |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
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 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Long leasehold | - |
Plant and machinery | - |
Computer equipment | - |
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 |
4. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 December 2021 |
Additions |
At 30 November 2022 |
AMORTISATION |
At 1 December 2021 |
Amortisation for year |
At 30 November 2022 |
NET BOOK VALUE |
At 30 November 2022 |
At 30 November 2021 |
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 |
Additions |
At 30 November 2022 |
DEPRECIATION |
At 1 December 2021 |
Charge for year |
At 30 November 2022 |
NET BOOK VALUE |
At 30 November 2022 |
At 30 November 2021 |
6. | STOCKS |
2022 | 2021 |
£ | £ |
Stocks |
Work-in-progress |
7. | DEBTORS |
2022 | 2021 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Aggregate amounts |
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 |
Trade creditors |
Taxation and social security |
Other creditors |
Accruals and deferred income |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Other loans - 2-5 years |
Amounts owed to group undertakings |
10. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
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: | £ | £ |
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. |
for and on behalf of |
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: |
2022 | 2022 | 2021 | 2021 |
Number | WAEP | Number | WAEP |
£ | £ |
Balance brought forward | 96,452 | 8.92 | - | - |
Granted during the period | 24,162 | 8.92 | 103,311 | 8.92 |
Forfeighted during the period | (14,864 | ) | 8.92 | (6,859 | ) | 8.92 |
Exercise during the period | - | - | - | - |
Expired during the period | - | - | - | - |
Balance carried forward | 105,750 | 8.92 | 96,452 | 8.92 |
Exercisable | - | - | - | - |